$LHX

The U.S. Space Force has created its first space-based moving target indication unit, the 77th Space Surveillance Squadron, ahead of satellite launches. Northrop Grumman is developing the Resilient Radar System/Ground for a 2025 launch. The Space Force is also working with the National Reconnaissance Office on GMTI satellites and has a vendor pool for AMTI satellites, with launches expected this month. The initiative aims to counter adversary anti-access systems.

The U.S. Space Force announced a $6.27B GPS ground-control program failure and plans for GPS Gen4, focusing on commercial sourcing and incremental development. Contracts for the Resilient GPS program will be awarded to Astranis, L3Harris, and Sierra Space. The Space Force aims to avoid past acquisition mistakes and enhance GPS resilience.

U.S. defense spending reached $33.4B in four months, with $22.3B on munitions, causing inventory shortages. Lockheed Martin (LMT) and RTX (RTX) gained 10.3% and 6.6% YTD, while Northrop Grumman (NOC) fell 6.8%. Iran's attacks damaged U.S. aircraft from Boeing (BA) and Lockheed. Investors may consider defense stocks amid market trends.

The U.S. Space Force will soon award contracts to Astranis, L3Harris, and Sierra Space for the Resilient-GPS (R-GPS) program, funded by $15M in congressional add-ons. The program aims to develop eight small satellites for position, navigation, and timing. The Space Force is also advancing GPS III Follow-On (IIIF) satellites and planning the next-gen GPS architecture, Gen4. Lockheed Martin is building 14 GPS IIIF satellites, with the first entering testing.

L3Harris Technologies (LHX) gained 0.43% premarket after Guggenheim initiated coverage with a Buy rating and $365 price target, suggesting 49% upside. The stock is near its 52-week low, down 30% in six months. Guggenheim expects sustained growth and defense spending tailwinds. Jefferies started coverage at Hold with a $315 target, citing leadership changes and missile IPO uncertainty.

Lockheed Martin awarded L3Harris Technologies a $4.7b contract over seven years for PAC-3 MSE rocket motors. The deal supports L3Harris' propulsion segment and ties into new manufacturing facilities in Camden, Arkansas, expected to open in 2027. Analysts project $28.0b revenue and $3.0b earnings by 2029, with a 38% potential upside. Risks include margin management, debt, and U.S. budget decisions.

L3Harris Technologies secured a $4.7 billion, seven-year contract with Lockheed Martin for PAC-3 missile propulsion systems. The deal supports large-scale production of interceptors for tactical and cruise missiles. L3Harris, valued at $60B-$65B, did not disclose if work will occur at its Northampton plant. The contract aligns with a broader $58.6B DoD agreement to increase PAC-3 production.

The U.S. is facing a shortage of high-tech munitions due to the ongoing conflict with Iran, with military expenditures reaching $25 billion. Lockheed Martin, producing 750 Patriot missiles annually, plans to increase output to 2,000 units. Defense analyst Mark Cancian notes inventory strain, while the Pentagon denies operational shortfalls. L3Harris and startup CoAspire are also involved in missile production.

Northrop Grumman's Integrated Battle Command System (IBCS) and RTX's Lower Tier Air and Missile Defense Sensor (LTAMDS) are part of a shift towards networked, gallium nitride-powered radar systems for defense against saturation attacks. The U.S. Space Force awarded L3Harris a contract for 18 satellites under the AMDT3 program for missile defense. These systems aim to improve threat detection and response times, with IBCS fusing sensor data to prevent duplicate tracks and enhance engagement decis

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.