Space Development Agency Awards L3Harris $919 Million Contract to Build Satellites for Missile Tracking Program
L3Harris Technologies (NYSE:LHX) has been awarded a contract worth up to $919 million to design and build 18 infrared space vehicles for the Space Development Agency’s Tranche 2 Tracking Layer program. The company's technology will support the U.S. military's efforts to protect against hypersonic weapons and provide missile warning and tracking coverage. L3Harris has also been involved in the development of satellites for the Tranche 0 and Tranche 1 Tracking Layer programs, showcasing its commitment to space technology innovation and defense solutions.
Positive
L3Harris received a substantial contract with a potential value of up to $919 million, indicating strong revenue potential for the company.
The company's technology will support the U.S. military's ongoing efforts to protect against hypersonic weapons, demonstrating its importance in national defense.
L3Harris has a track record of successful satellite development, having designed, developed, and built satellites for previous Tranche programs, showcasing its expertise in space technology.
The contract awarded to L3Harris Technologies by the Space Development Agency represents a significant investment in the enhancement of national defense capabilities, specifically in the domain of missile warning and tracking systems. The financial magnitude of the contract, up to $919 million, underscores the strategic importance of the Tracking Layer program to the U.S. military's infrastructure. This program is not only a substantial revenue source for L3Harris but also a testament to the company's technological capabilities in space vehicle design and development.
From a defense contracting perspective, the successful delivery of 18 infrared space vehicles could lead to further contracts, both domestic and international, as global interest in missile defense systems grows. The company's prior experience with the Tranche 0 Tracking Layer program positions it favorably to meet the technical and time constraints of the Tranche 2 contract. This could result in enhanced shareholder value and potentially influence L3Harris's stock performance positively, contingent upon execution and delivery milestones being met.
The aerospace and defense industry is witnessing a growing emphasis on space-based capabilities, particularly in the context of missile defense against hypersonic weapons. L3Harris's contract to build satellites for the SDA's Tranche 2 Tracking Layer program is indicative of the sector's trajectory towards proliferated satellite constellations offering near-global coverage. This move aligns with the broader industry trend of investing in advanced technologies to counteract emerging threats.
For industry stakeholders, the focus on increased production efficiencies and the integration of advanced technologies into the Proliferated Warfighter Space Architecture (PWSA) may signal a shift towards more cost-effective and scalable solutions. The ability of L3Harris to deliver these satellites within a compressed timeline could set new industry benchmarks for rapid deployment. This efficiency could become a competitive advantage, potentially influencing procurement decisions and market dynamics in the aerospace and defense sector.
When evaluating the financial implications of L3Harris's contract win, it is essential to consider the potential impact on the company's revenue streams and profitability. A contract of this scale can provide a predictable multi-year income, enhancing the company's financial stability and attractiveness to investors. However, the costs associated with research, development and production of the space vehicles must be carefully managed to preserve profit margins.
The announcement of this contract may have immediate positive effects on investor sentiment, as it reflects the company's solid positioning within the defense sector. Long-term, the successful execution of this contract could improve L3Harris's market share and financial performance. It's crucial to monitor the company's quarterly filings and any updates on the project's progress, as these will provide insights into the contract's actual financial impact and any adjustments to the company's guidance or investor expectations.
01/16/2024 - 03:15 PM
MELBOURNE, Fla. --(BUSINESS WIRE)--
L3Harris Technologies (NYSE:LHX) received a contract with a potential value of up to $919 million missile warning and tracking coverage.
“Space remains a growth engine, and we are well positioned to provide innovative solutions after having made significant investments in technology for space vehicles, payloads and ground software,” said Christopher E. Kubasik, Chair and CEO, L3Harris. “The SDA’s latest decision is another example of L3Harris listening to customers, knowing the threats and delivering value for stakeholders while supporting our country.”
L3Harris designed the missile defense solutions to support the U.S. military’s ongoing effort to build a robust constellation of satellites to protect against a new generation of hypersonic weapons that have increased speed, unpredictable flight trajectories and faint heat signatures.
The company’s technology will also support preliminary fire control capability for the SDA’s Proliferated Warfighter Space Architecture (PWSA).
In advance of this T2 Tracking Layer program win, L3Harris designed, developed and built four satellites in less than three years for the SDA’s Tranche 0 (T0) Tracking Layer program. Those T0 satellites will launch together with the U.S. Missile Defense Agency’s Hypersonic and Ballistic Tracking Space Sensor (HBTSS) satellite. With an anticipated launch in early 2024, the DoD will be able to warn, track and target advanced threats concurrently by launching the T0 and HBTSS satellites together.
L3Harris is also building a 16-vehicle satellite constellation for SDA’s Tranche 1 Tracking Layer program, which follows the T0 Tracking Layer capabilities with targeted technology enhancements, expanded coverage, increased integration and greater production efficiencies, which will begin to build out the operational space-based constellation and be used to inform future capabilities of the PWSA.
About L3Harris Technologies
L3Harris Technologies is the Trusted Disruptor in the defense industry. With customers’ mission-critical needs always in mind, our 50,000 employees deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security.
Forward-Looking Statements
This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the value or expected value of orders, contracts or programs or about system deliveries and launches as well as technology capabilities are forward-looking and involve risks and uncertainties. L3Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240116340116/en/
Irene Lockwood
Irene.Lockwood@L3Harris.com
Sara Banda
Sara.Banda@L3Harris.com
Source: L3Harris Technologies
What is the contract value for L3Harris Technologies for the Tranche 2 Tracking Layer program?
L3Harris Technologies has been awarded a contract with a potential value of up to $919 million for the Tranche 2 Tracking Layer program.
What is the purpose of the infrared space vehicles designed by L3Harris Technologies?
The infrared space vehicles are designed to provide near-global missile warning and tracking coverage, supporting the U.S. military's efforts to protect against hypersonic weapons.
What previous satellite development has L3Harris Technologies been involved in?
L3Harris Technologies has designed, developed, and built satellites for the Tranche 0 and Tranche 1 Tracking Layer programs, showcasing its expertise in space technology innovation.
What is the ticker symbol for L3Harris Technologies?
The ticker symbol for L3Harris Technologies is LHX.
