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L3Harris Wins Contract to Produce Propulsion Units for GMLRS
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Key Takeaways
LHX wins its largest 12-month GMLRS IM propulsion contract, valued up to $200 million.
The contract highlights LHX's decade-long propulsion expertise and expanded Camden production capacity.
LHX has boosted GMLRS output by nearly 80% while producing more than 115,000 solid rocket motors annually.
L3Harris Technologies, Inc. (LHX - Free Report) recently revealed that it has secured a follow-on production contract valued at up to $200 million to produce Guided Multiple Launch Rocket System (“GMLRS”) Insensitive Munition (“IM”) propulsion units.
The contract underscores L3Harris’ proficiency in missile propulsion technology and commitment to providing high-performance, reliable propulsion solutions for military missions. It also marks the largest GMLRS IM contract the company has received from Lockheed Martin for a 12-month performance period.
LHX’s Proven Capabilities in Providing Propulsion Systems
L3Harris has continuously provided reliable and innovative propulsion solutions in support of U.S. warfighters and allied forces. Building on a strong legacy of proven performance, the company continues to leverage its expertise to deliver advanced, dependable and cost-effective propulsion systems for next-generation systems.
L3Harris has been producing GMLRS propulsion units for decades. By applying its extensive experience and advanced manufacturing techniques, the company has increased GMLRS output by nearly 80%, enhancing both delivery capacity and reliability.
The company’s state-of-the-art Engineering, Manufacturing and Development facility in Camden, AR, continues to expand to meet the nation’s urgent demand for solid rocket motors. With more than a decade of production experience, the facility now produces more than 115,000 solid rocket motors annually.
Growth Potential for LHX & Other Defense Stocks
According to a report by Fortune Business Insights, the global missile propulsion systems market is rapidly evolving, driven by technological advancements, geopolitical developments and increasing defense budgets. It is projected to witness a CAGR of 7.2% between 2025 and 2032.
Such growth prospects are favorable for L3Harris, which serves as the post-boost propulsion supplier for all current U.S. strategic deterrence weapon systems. Other defense contractors positioned to capitalize on the expanding global missile propulsion market are listed below:
Lockheed Martin Corp. (LMT - Free Report) : The company is involved in the Missile Defense Agency’s Next Generation Interceptor program, utilizing advanced propulsion and sensor technologies to strengthen U.S. missile defense capabilities.
LMT has a long-term (three to five years) earnings growth rate of 12.35%. The Zacks Consensus Estimate for 2025 sales stands at $74.40 billion, which calls for an increase of 4.7%.
RTX Corporation (RTX - Free Report) : The company is applying its advanced weapon expertise to develop air-breathing hypersonic scramjet systems, which use high-speed airflow for oxygen in propulsion and operate with a single solid rocket booster without any moving parts.
RTX has a long-term earnings growth rate of 10.35%. The Zacks Consensus Estimate for 2025 sales is pinned at $87.04 billion, which suggests a jump of 7.8%.
Northrop Grumman Corp. (NOC - Free Report) : The company is one of the leading suppliers of solid rocket motors for U.S. strategic weapon systems. Its propulsion systems support the Ground-Based Midcourse Defense interceptor, Trident II D5, Minuteman III, Sentinel strategic missiles and emerging hypersonic programs.
NOC has a long-term earnings growth rate of 4.16%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.89 billion, which implies a rise of 2.1%.
LHX Stock Price Movement
In the past six months, shares of L3Harris have risen 14.2% compared with the industry’s growth of 6.7%.
Image: Bigstock
L3Harris Wins Contract to Produce Propulsion Units for GMLRS
Key Takeaways
L3Harris Technologies, Inc. (LHX - Free Report) recently revealed that it has secured a follow-on production contract valued at up to $200 million to produce Guided Multiple Launch Rocket System (“GMLRS”) Insensitive Munition (“IM”) propulsion units.
The contract underscores L3Harris’ proficiency in missile propulsion technology and commitment to providing high-performance, reliable propulsion solutions for military missions. It also marks the largest GMLRS IM contract the company has received from Lockheed Martin for a 12-month performance period.
LHX’s Proven Capabilities in Providing Propulsion Systems
L3Harris has continuously provided reliable and innovative propulsion solutions in support of U.S. warfighters and allied forces. Building on a strong legacy of proven performance, the company continues to leverage its expertise to deliver advanced, dependable and cost-effective propulsion systems for next-generation systems.
L3Harris has been producing GMLRS propulsion units for decades. By applying its extensive experience and advanced manufacturing techniques, the company has increased GMLRS output by nearly 80%, enhancing both delivery capacity and reliability.
The company’s state-of-the-art Engineering, Manufacturing and Development facility in Camden, AR, continues to expand to meet the nation’s urgent demand for solid rocket motors. With more than a decade of production experience, the facility now produces more than 115,000 solid rocket motors annually.
Growth Potential for LHX & Other Defense Stocks
According to a report by Fortune Business Insights, the global missile propulsion systems market is rapidly evolving, driven by technological advancements, geopolitical developments and increasing defense budgets. It is projected to witness a CAGR of 7.2% between 2025 and 2032.
Such growth prospects are favorable for L3Harris, which serves as the post-boost propulsion supplier for all current U.S. strategic deterrence weapon systems. Other defense contractors positioned to capitalize on the expanding global missile propulsion market are listed below:
Lockheed Martin Corp. (LMT - Free Report) : The company is involved in the Missile Defense Agency’s Next Generation Interceptor program, utilizing advanced propulsion and sensor technologies to strengthen U.S. missile defense capabilities.
LMT has a long-term (three to five years) earnings growth rate of 12.35%. The Zacks Consensus Estimate for 2025 sales stands at $74.40 billion, which calls for an increase of 4.7%.
RTX Corporation (RTX - Free Report) : The company is applying its advanced weapon expertise to develop air-breathing hypersonic scramjet systems, which use high-speed airflow for oxygen in propulsion and operate with a single solid rocket booster without any moving parts.
RTX has a long-term earnings growth rate of 10.35%. The Zacks Consensus Estimate for 2025 sales is pinned at $87.04 billion, which suggests a jump of 7.8%.
Northrop Grumman Corp. (NOC - Free Report) : The company is one of the leading suppliers of solid rocket motors for U.S. strategic weapon systems. Its propulsion systems support the Ground-Based Midcourse Defense interceptor, Trident II D5, Minuteman III, Sentinel strategic missiles and emerging hypersonic programs.
NOC has a long-term earnings growth rate of 4.16%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.89 billion, which implies a rise of 2.1%.
LHX Stock Price Movement
In the past six months, shares of L3Harris have risen 14.2% compared with the industry’s growth of 6.7%.
Image Source: Zacks Investment Research
LHX’s Zacks Rank
LHX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.