The L3Harris logo is seen on the floor of the 2022 Air Force Association conference in National Harbor, Maryland. (Justin Katz/Breaking Defense)
WASHINGTON — L3Harris is postponing its planned spin off of its missile solutions unit until at least mid-2027, with its chief executive saying that the business is being undervalued even as demand soars for solid rocket motors and other weapons components.
The company wants to let the market “settle down” and will revisit an initial public offering in mid-2027, rather than completing the spin off by the end of the year as originally projected, CEO Chris Kubasik told investors during a Wednesday earnings call.
L3Harris announced the spin off in January, concurrent with the Pentagon announcing that they would take a $1 billion stake in the new company.
“The market conditions do not reflect the value we’re building. I think we have a great business,” Kubasik told investors. “We have land, we have operating factories, backlog, great financials, a great workforce, and we’re actually making money. I think, unfortunately, a lot of the recent IPOs are obviously missing some or all of those key elements to a business, and the market is adjusting to valuation. I think we’re kind of caught in that process a little bit.”
