Camden defense companies at center of $4.7 billion PAC-3 award

The U.S. Space Force added Blue Origin, Boeing, and Umbra as vendors for its space-based air moving target indicator (SB-AMTI) program, with contracts signed June 2. Boeing received $6,666, while Blue Origin and Umbra each received $10,000. The program now includes 12 vendors, with SpaceX securing a $4.16 billion contract earlier. Recent task orders totaling $615 million were awarded to Rocket Lab, STR, and Wildstar. The Space Force aims to demonstrate SB-AMTI capability within two years.

L3Harris Technologies won a $4.7B, seven-year contract from Lockheed Martin to produce PAC-3 MSE interceptor components, the largest such award for the company. The deal covers production of key propulsion systems for the missile defense interceptor. L3Harris is expanding facilities to meet demand, with new plants set to open in 2027. The contract supports increased production of PAC-3 MSE interceptors for U.S. and allied forces.

L3Harris Technologies (LHX) secured a $4.7B contract for PAC-3 missile propulsion systems, its largest to date. The 7-year deal supports production of key components, with the company expanding manufacturing capacity. LHX's Missile Solutions revenue grew 14% YoY to $1.05B in Q2, with a $10.5B backlog. Analysts expect 9.79% and 14.44% EPS growth for 2026 and 2027, respectively. LHX trades at a discount to industry peers.

L3Harris Technologies received a $4.7B contract from Lockheed Martin over seven years to produce propulsion systems for the PAC-3 MSE interceptor. The deal supports large-scale production of advanced rocket motors and control systems, with L3Harris expanding production capacity to meet wartime needs. The company is also building new facilities in Arkansas to support this effort, expected to be operational by 2027.

AST SpaceMobile (ASTS) and L3Harris (LHX) are two space sector companies facing challenges. ASTS reported Q2 revenue of $31.5M, up 263% YoY, and expects $150M-$200M for the year. LHX reported Q2 revenue of $7.3B, up 8% YoY, and EPS of $3.13, up 28% YoY. Both stocks have declined since SpaceX's IPO, with ASTS down 24% and LHX down 15%.

L3Harris Technologies (LHX) secured a $139.01M contract for submarine photonics masts, extending through 2030. The stock offers a 1.91% dividend yield, a 43% payout ratio, and 3-year dividend growth of 2.3%. Its GF Value suggests a 3.8% undervaluation. LHX has a GF Score of 86, with strengths in profitability and growth, but moderate financial strength and momentum. Institutional investors show mixed activity, with no insider purchases but $33M in sales.