L3Harris Technologies has successfully completed a hot-fire test of its stage two advanced large solid rocket motor for the Missile Defense Agency's Next Generation Interceptor programme. The company conducted the test as part of the Lockheed Martin team developing the homeland missile defense system. The test validated the system's design integrity, with the motor completing a full-duration burn in a simulated high-altitude, vacuum environment. Engineers evaluated performance in conditions mimicking Earth's upper atmosphere. L3Harris serves as the primary propulsion and control systems provider for NGI, producing both stage one and stage two rocket motors, plus the Attitude Control System and Divert and Attitude Control System. The company manufactures components across facilities in California, Virginia, Alabama, and Arkansas.

Iran's recent attacks in the Strait of Hormuz and Red Sea have exposed critical shortages in defense supplies, particularly drones, precision weapons, and artillery shells. This situation presents opportunities for defense contractors positioned to scale production. AeroVironment secured a $186 million US Army order in February 2026 for Switchblade loitering munitions, part of a five-year contract with a $990 million ceiling. The systems enable small units to destroy armored vehicles without larger missiles. L3Harris Technologies reported orders of $7.8 billion in Q1 2026, with a book-to-bill ratio of 1.4 and record backlog of $40.7 billion. By Q2, backlog reached $42 billion on $7.3 billion in new orders, with revenue increasing 8% to $5.9 billion. Both companies are positioned to benefit from increased demand driven by ongoing conflicts.

The US Defense Department announced two seven-year agreements with L3Harris Technologies and Lockheed Martin on 27 July to expand propulsion capacity for Patriot and THAAD interceptors, addressing missile defence system shortages driven by Iran tensions. RTX also benefits as a key contractor and supplier for these systems. L3Harris is up 3% this year, whilst RTX and Lockheed Martin have gained more than 17% and 19% respectively. Lockheed reported Q2 revenue of $20.1 billion, up 11% year over year, with a record backlog of $230 billion. Through its Aerojet Rocketdyne business, L3Harris supplies solid-rocket motors for THAAD and Patriot missiles, benefiting from demand regardless of contract awards.