L3Harris Technologies announced it will sell a roughly 60% stake in its space propulsion and power systems business to private equity firm AE Industrial Partners for $845 million, including debt.

The move aligns with L3Harris’ strategy to focus more on defense capabilities amid global geopolitical uncertainty.

The company is also reorganizing into three business segments: space and mission systems, communications and spectrum dominance, and missile solutions.

L3Harris will retain full ownership of the RS-25 rocket engine used in NASA’s Artemis program, Reuters has reported.

The deal, expected to close in the second half of 2026, will also support AE Industrial’s development of future propulsion technologies, including nuclear propulsion for Mars exploration.