Kratos Issues Letter of Intent for 60 Zeus Hypersonic Rocket Motors to L3Harris, Expanding Production Capacity

LHX
December 24, 2025

Kratos Defense & Security Solutions has issued a letter of intent to L3Harris Technologies for 60 Zeus hypersonic system rocket motors, comprising 40 Zeus 1 and 20 Zeus 2 solid‑rocket motors. The order will enable L3Harris to begin full‑rate production of these high‑performance motors, which are critical for hypersonic vehicle and ballistic missile defense testing.

L3Harris designs the Zeus motors in its Huntsville, Alabama facility and produces them at its Camden, Arkansas plant. The new order is expected to increase L3Harris’s annual production rate of Zeus motors by more than 50%, a significant boost to the company’s hypersonic propulsion pipeline. While the letter of intent does not disclose a specific financial value or a start date for full‑rate production, the commitment signals a substantial expansion of L3Harris’s manufacturing capacity.

Kratos’s strategy of self‑funding development and building inventory ahead of customer demand is evident in this move. By securing a ready supply of Zeus motors, Kratos can accelerate the deployment of its hypersonic test platforms and support U.S. Department of War programs such as the Multi‑Service Advanced Capability Hypersonic Test Bed. The company’s focus on affordability and rapid production aligns with broader defense priorities to field hypersonic capabilities more quickly.

The transaction builds on L3Harris’s 2023 acquisition of Aerojet Rocketdyne, which added deep expertise in rocket engines and propulsion systems. The expanded production capacity positions L3Harris as a more comprehensive supplier in the hypersonic and missile‑defense markets, where demand is projected to grow substantially over the next decade. L3Harris’s Q3 2025 earnings were strong, with revenue up 10% and an adjusted segment operating margin of 15.9%, underscoring the company’s ability to scale new capabilities while maintaining profitability.

"This letter of intent underscores L3Harris’s commitment to delivering reliable, high‑performance propulsion solutions for the U.S. defense community," said Christopher Kubasik, Chair and CEO of L3Harris. "By expanding our Zeus motor production, we reinforce our leadership in hypersonic technology and support the nation’s strategic defense objectives." Eric DeMarco, President and CEO of Kratos, added, "Investing in ready‑now capabilities allows us to meet emerging customer needs faster and more affordably, ensuring that our hypersonic test platforms can be deployed at scale when required."

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