L3Harris Technologies (LHX) has secured an $843 million contract from the Space Development Agency to build 18 new satellites. These satellites are part of a growing U.S. space system designed to detect missile threats, including newer types like hypersonic weapons.
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This latest award follows two earlier contracts for 34 satellites. The company’s work began with a small batch of four satellites launched in February 2024. Those were part of a test program under the Missile Defense Agency. The project has now moved into larger-scale production as the technology has advanced.
Meanwhile, LHX shares rose 1.67% on Friday, closing at $287.45.
Missile Defense Strategy and Production Ramp-Up
The satellites will support a broader U.S. effort, referred to by some officials as the “Golden Dome,” which focuses on using low-Earth-orbit systems to track missile activity worldwide. This space-based layer is designed to work with existing ground and sea-based defense tools, adding more coverage and faster detection.
L3Harris has started full-scale satellite production at a new $100 million facility in Florida. The plant spans 94,000 square feet and is tailored for rapid assembly and testing. This expansion allows the company to meet rising demand as the U.S. looks to build out its space defense network.
The new contract strengthens L3Harris’ role in military space tech, which has become a fast-growing part of defense budgets. While most of its revenue still comes from traditional defense systems, space-based assets are gaining importance.
The deal also reflects how defense companies are adapting to meet new global threats. As missile tech becomes more advanced, the U.S. is shifting focus from older tracking systems to faster, more flexible tools in orbit. For L3Harris, that shift may lead to steady growth in future satellite deals.
Is LHX a Good Stock to Buy?
Turning to the Street, L3Harris Technologies boasts a Moderate Buy consensus, based on 13 analysts’ ratings. The average LHX stock price target is $334, implying a 16.19% upside from the current price.
