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1 L3HARRIS Investor Update Call INVESTOR UPDATE PRESENTATION January 13 , 2026
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2 L3HARRIS Investor Update Call Creating a new Missile Solutions company enabling growth throughout the entire value chain of a missile system New company rapidly expands SRM production capacity DoW has agreed to be the anchor investor through $1B convertible preferred security Investment expands capacity for critical missiles, such as PAC - 3, THAAD, Standard Missile, and Tomahawk L3Harris intends to pursue an IPO of the Missile Solutions business in the second half of 2026 and would retain a majority stake New company capital deployment focused on growth (CAPEX and R&D), no dividend or share repurchase expected in the near - term L3HARRIS ACCELERATES THE ‘ARSENAL OF FREEDOM’
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3 L3HARRIS Investor Update Call SRM – Solid Rocket Motors, EO/IR – Electro - Optical / Infrared, ISR – Intelligence Surveillance and Reconnaissance Missile Solutions (MSL) ▪ Capability : SRMs, cruise missiles, IR seekers, munition fuzes ▪ Business Model : Defense supplier of missile solutions ▪ Financials : Durable mid - teens growth driven by DoW missile demands, strong margins Communications & Spectrum Dominance (CSD) ▪ Capability: T actical radios, electronic warfare, EO/IR sensors ▪ Business Model: Commercial product model ▪ Financials: Mid single digit growth, commercial margins Space & Mission Systems (SMS) ▪ Capability: Space platforms/payloads, ISR aircraft, maritime solutions, cyber, air traffic control networks ▪ Business Model: Traditional defense program structure ▪ Financials: Mid/upper single digit growth, defense margins Consolidate spectrum capabilities (Communications, Electronic Warfare, EO/IR Sensors) SEGMENT OVERVIEW REALIGNED LHX INTO THREE SEGMENTS PORTFOLIO REALIGNMENTS Align all missile and munition capabilities into Missile Solutions 1 1 Sector includes the Space Propulsion and Power Systems majority stake that will be sold as previously announced on January 5, 20 26 Combine traditional programmatic defense businesses
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4 L3HARRIS Investor Update Call 1 Unaudited pro forma financials for illustrative purposes 2 Sector includes the Space Propulsion and Power Systems majority stake that will be sold as previously announced on January 5, 20 26 DACS – Divert and Attitude Control Systems Missile Propulsion Space Propulsion Advanced Effects $3.6 - $3.8B 1 2025 Revenue CAPABILITIES Missile Propulsion and DACS Leading provider of propulsion and DACS for air & missile defense interceptors, tactical weapons, and strategic deterrence Advanced Effects Growing provider of air - launched effects, advanced missile & munitions fuzes, seekers, and sensors Space Propulsion 2 Leading provider of launch engines, satellite thrusters, and advanced power systems for national security and civil space Portfolio aligned with the Department of War’s highest - priority programs ~7K Employees 18 Sites ~40 Facilities PORTFOLIO COMPOSITION MISSILE SOLUTIONS BUSINESS OVERVIEW
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5 L3HARRIS Investor Update Call Expansion Sites Huntsville, AL Inerts Expansion of Composite Case & Nozzle Manufacturing Orange, VA DACS & SRMs Advanced Production Facility #2 Common Process SRM – Solid Rocket Motor, DACS – Divert and Attitude Control Systems, M SF - Million Square Feet Canoga Park, CA Expansion of THAAD DACS Production BUILDING WORLD CLASS FACILITIES WITH GEOGRAPHIC DIVERSITY Expanding capacity : o 64 buildings / 1M SF new factories o 8 automated assembly lines o 6 casting bays and mixers Creating production resilience: o Identical capability in Camden AR and Orange VA Camden, AR SRM production Advanced Production Facility #1 Common Process
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6 L3HARRIS Investor Update Call STRONG, SUSTAINED MISSILE DEMAND Expanding capacity in DoW’s most critical missile programs, including PAC - 3, THAAD, Tomahawk, and Standard Missile THAAD PAC - 3 Multi - year award structures provide clear financial visibility and predictability Transforms operations at scale, driving operating leverage