LHX · L3Harris Technologies, Inc.

This $1 billion strategic investment from the U.S. Department of War represents a material, government-backed validation of L3Harris’ Missile Solutions (MSL) business and signals a deliberate shift toward scaling missile production to meet urgent national security demand. The transaction is not a traditional acquisition or divestiture but a structured capital infusion into a newly ring-fenced business unit — MSL — which consolidates legacy missile assets, including those of Aerojet Rocketdyne, under a unified operational and strategic mandate. The terms reflect deep alignment with DoW priorities: proceeds are earmarked for physical infrastructure upgrades at three key solid rocket motor sites (Camden, Huntsville, Orange) and acceleration of programs explicitly named — PAC-3, THAAD, Tomahawk, and Standard Missile — all of which face documented capacity constraints and growing global demand. Critically, L3Harris retains >80% ownership and full consolidation, preserving control while de-risking the path to IPO through pre-commitment of institutional capital and clear strategic sponsorship. The conversion mechanics — 80% of IPO price for preferred stock and 110% for warrant exercise — embed a valuation floor and upside participation for the DoW, while ensuring L3Harris maintains economic dominance pre- and post-IPO. Forward-looking statements in Exhibit 99.1 emphasize that this capital, combined with future IPO proceeds and other funding, is essential to achieving DoW-mandated production timelines; any delay or shortfall would materially impact L3Harris’ ability to fulfill existing contracts and capture follow-on awards. Given the scale of investment, explicit linkage to high-priority defense programs, and the stated intent to pursue an IPO within months, this event constitutes a pivotal inflection point in L3Harris’ portfolio strategy and capital allocation framework.