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The U.S. Defense Department has invested $1 billion in L3Harris Technologies to expand its missile-solutions business. The investment, made through convertible preferred securities, will convert to common stock in an IPO planned for the second half of 2026.

This move aims to secure missile motor supply chains and reshape defense production strategies, establishing direct partnerships with suppliers to enhance the defense industrial base. The investment has raised concerns about potential conflicts of interest due to the Pentagon's ownership stake in a competitor for government contracts.