L3Harris Wins Contract to Produce Propulsion for Javelin Weapon System

L3Harris Technologies, Inc. LHX recently revealed that it has secured a contract worth nearly $292 million to continue producing propulsion for the Javelin weapon system. This marks the largest propulsion production award in the history of the Javelin program and extends production for the next five years.

The company is also implementing a fully digital workflow for Javelin production, enabling real-time data tracking to enhance quality monitoring and provide greater control over production efficiency.

Overview of the Javelin Weapon System

Javelin is a leading shoulder-fired anti-armor system that automatically guides itself to the target after launch, enabling the operator to seek cover and avoid counterfire. Employing a top-attack profile, the missile arcs above its target for better visibility before striking the most vulnerable points of the armor.

Lockheed Martin LMT in Orlando, FL, and Raytheon, a subsidiary of RTX Corp. RTX in Tucson, AZ, formed the Javelin Joint Venture (“JJV”) to develop and manufacture the Javelin for the U.S. Army and Marine Corps. To date, the JJV has produced more than 55,000 Javelin missiles and more than 12,000 reusable Command Launch Units.

LHX’s Expertise in Providing Propulsion Systems

For more than 80 years, L3Harris has delivered reliable and innovative propulsion solutions to support U.S. warfighters and allied forces. With a strong legacy of proven performance, L3Harris continues to leverage its expertise to provide advanced, dependable and cost-effective propulsion systems for next-generation systems.

The company’s state-of-the-art Engineering, Manufacturing and Development facility in Camden, AR, has expanded its decade-long production of solid rocket motors, currently producing more than 100,000 units annually.

L3Harris is ramping up solid rocket motor production across multiple programs, including Javelin, through internal manufacturing investments and a $215.6 million cooperative agreement with the Department of War. The company also currently produces propulsion systems for the Navy Trident II D5 missile systems.

Growth Potential

According to a report by Fortune Business Insights, the global missile propulsion systems market is rapidly evolving due to technological advancements, geopolitical developments and rising global defense budgets, and it is projected to grow at 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 that are likely to gain from the growth potential provided by the global missile propulsion systems market are listed below: 

Lockheed Martin: The company is involved in the Next Generation Interceptor program with the Missile Defense Agency, employing advanced propulsion and sensor technologies to enhance U.S. missile defense capabilities.

LMT has a long-term (three to five years) earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales stands at $74.23 billion, which calls for an increase of 4.5%.

RTX Corporation: The company is leveraging its advanced weapons expertise to develop air-breathing hypersonic scramjet systems, which utilize high-speed airflow for oxygen in propulsion and rely on a single solid rocket booster with no moving parts.

RTX has a long-term earnings growth rate of 9.1%. The Zacks Consensus Estimate for 2025 sales is pinned at $85.69 billion, which suggests a jump of 6.1%.

Northrop Grumman Corp. NOC: With more than 60 years of experience, the company manufactures propulsion systems for the Ground-Based Midcourse Defense interceptor, Trident II D5, Minuteman III, Sentinel strategic missiles and emerging hypersonic systems.

NOC has a long-term earnings growth rate of 3.9%. The Zacks Consensus Estimate for 2025 sales is pinned at $42.15 billion, which implies a rise of 2.7%.

LHX Stock Price Movement

In the past month, shares of L3Harris have risen 4.3% compared with the industry’s growth of 2.6%.

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.

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This article originally published on Zacks Investment Research (zacks.com).

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