Effective today, L3Harris Technologies (NYSE: LHX) has officially reorganized its business structure, moving from four segments to three to more closely align with “the future of warfare”. The restructuring follows a multi-year portfolio-shaping process intended to streamline the company into a “Trusted Disruptor” for national security missions.
The new organizational structure is divided into three strategic segments:
- Space & Mission Systems (SMS): Led by Sam Mehta, this segment integrates satellite and payload capabilities—specifically missile warning and defense—with maritime, air special missions, and civil government programs.
- Communications & Spectrum Dominance (CSD): Led by Jon Rambeau, this unit combines all capabilities in resilient communications, tactical radios, and electronic warfare.
- Missile Solutions (MSL): Led by Ken Bedingfield, this segment unites propulsion, hypersonics, and advanced missile technologies.
Concurrent Divestiture of Propulsion Assets
In a simultaneous move to sharpen its focus, L3Harris announced it will sell a 60% controlling stake in its Space Propulsion and Power Systems business (formerly part of Aerojet Rocketdyne) to private equity firm AE Industrial Partners for $845 million. AE Industrial plans to restore the historic Rocketdyne name to the business, focusing on the RL10 engine and future nuclear propulsion technologies.
L3Harris will retain a 40% minority stake in the propulsion business but will keep 100% ownership of the RS-25 rocket engine program, which is critical to NASA’s Space Launch System (SLS) for the Artemis missions.
Executive Strategy
“This change thoughtfully organizes common business models, technical capabilities, and investment priorities,” said Christopher Kubasik, Chairman and CEO of L3Harris. “We’re now best poised to deliver the speed, technology, and commerciality required by our most important customer—the warfighter“.
The reorganization follows a series of high-profile wins for the company, including an $843 million contract from the Space Development Agency (SDA) to build 18 infrared tracking satellites for the Tranche 3 (T3) Tracking Layer.
Financial Realignment
L3Harris will provide further details regarding the reorganization and the realignment of its 2025 financial results during its Q4 earnings call on January 29, 2026. Ken Bedingfield will continue to serve as the company’s Senior Vice President and Chief Financial Officer in addition to his leadership of the Missile Solutions segment.