L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, and networks and sensors, as well as advanced combat systems for air, land, and sea sectors. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations. The company's Communication Systems segment provides broadband communications; tactical radios, software, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios, and system applications and equipment. Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic, and tactical systems; and space propulsion and power systems for national security, and space and exploration missions. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is based in Melbourne, Florida.

L3Harris looks like a high-quality defense asset, but the market is already pricing in a noticeable premium for stability and profitability. On valuation multiples, the picture is mixed: P/E, P/S, and especially P/FCF are above industry medians, which limits re-rating potential and suggests the stock is not particularly cheap. At the same time, P/B is slightly below the median, and the debt/equity burden looks moderate and even better than the industry, which supports the investment profile. The company’s strength lies in earnings resilience: revenue, net income, operating income, and EBITDA remain at high levels and have generally grown over the years, with no signs of a sharp deterioration. Net profit margin and operating margin look acceptable and fairly stable, which is important for a defense business with long contract cycles. However, gross margin is below the industry median and does not show any clear improvement, so the quality of growth does not appear to be accelerating. Return on equity and assets is noticeably weaker than the industry: ROE, ROA, and ROI are below median levels, which limits the case for a higher valuation. Liquidity is also not ideal: the current ratio and quick ratio are around one, meaning there is a cushion, but it does not look especially comfortable. Dividend yield remains low, although for L3Harris this is more of an additional support than a main return driver. The decline in long-term debt compared with earlier periods is a positive signal, but the absolute level of liabilities remains significant. Growth in equity and assets looks steady, confirming the business’s financial stability. Overall, the fundamentals support the current valuation rather than justify a strong upward revision, so only a modest positive adjustment to the target is appropriate.

L3Harris Technologies, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Средний индекс, без изменений. Рынок не поддерживает быков.

Medium index, flat. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

L3Harris has stable revenue and earnings, moderate debt, and stable margins, but its valuation is no longer cheap, and its return on equity is below the industry average.

(RTTNews) - Tuesday, L3Harris Technologies, Inc. (LHX) announced that the company has secured an undefinitized contract from Lockheed Martin (LMT), valued at more than $6 billion, excluding escalations, over seven years to significantly expand propulsion production for the Terminal High Altitude Area Defense or THAAD system.
The company added that the contract reflects its demonstrated ability to quickly deliver critical defense technologies at the scale and speed required by the Department of War.
Under the contract, the American technology company will build a new facility to support increased THAAD Solid Rocket Boost Motor manufacturing and expand capacity for THAAD's Liquid Divert and Attitude Control production.
LHX was trading at $236.96, down 0.31 percent on the New York Stock Exchange.

L3Harris Technologies Bags $6 Bln THAAD Propulsion Expansion Contract From Lockheed Martin

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Stock to Watch: L3Harris (LHX)
L3Harris Technologies, Inc. was formed following the merger of L3 Technologies and Harris Corporation on June 29, 2019. The company is a technology-oriented aerospace and defense player that delivers advanced defense and commercial technologies across air, land, sea, space and cyber domains. From the third quarter of 2023, L3Harris added another segment to its existing three business segments, following the acquisition of Aerojet Rocketdyne in July 2023. Currently, the company reports its revenues under the following four major business segments.
LHX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.92; value investors should take notice.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.03 to $13.09 per share. LHX boasts an average earnings surprise of 2.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LHX should be on investors' short list.
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Why L3Harris (LHX) is a Top Value Stock for the Long-Term

Key Points
Pentagon priorities are shifting toward hybrid and autonomous aircraft.
Archer's Thunder platform is designed specifically for military missions.
Archer's Boeing deal could significantly expand its defense business.
The Pentagon has spent years testing electric vertical takeoff and landing (eVTOL) aircraft, and two of the biggest beneficiaries have been Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY). But if I'm looking for the eVTOL stock with the stronger defense opportunity today, I'm going with Archer. Let me explain.
Archer's contract with the U.S. Air Force's Agility Prime program is valued at up to $142 million. The company delivered its first Midnight aircraft to the Air Force in 2024 after receiving a military airworthiness assessment from the Department of Defense. The military has been evaluating Midnight for missions including personnel transport, logistics, medical evacuation, and intelligence and surveillance.
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That said, Joby has also collected plenty of defense money. Its Air Force contract reached a potential value of $131 million, with plans to provide as many as nine aircraft. Joby has operated aircraft at Edwards Air Force Base and continues working with the Air Force on autonomous flight technology. So why give Archer the edge?
The Pentagon's priorities are changing
Joby disclosed that the Department of Defense shifted the Agility Prime program toward hybrid aircraft and autonomous flight technologies in 2025 and reduced the scope of Joby's existing contract. Joby is responding by developing autonomous capabilities and pursuing additional government contracts, including work with L3Harris.The company also agreed to acquire defense contractor Resonant Sciences for approximately $500 million. Resonant already works on active national security programs and brings expertise in areas including advanced sensing, electronic warfare, communications, autonomous systems, and low-observability aircraft technology. It also generated more than $100 million in revenue over the previous 12 months.
Once that acquisition closes, Resonant will become Joby's dedicated defense business, giving it an established defense operation that can be combined with Joby's hybrid aircraft and autonomous-flight technology.Archer, meanwhile, has already built its defense strategy around that shift.
The company partnered with defense technology company Anduril to develop a new autonomous hybrid-electric VTOL platform. In July, the companies unveiled Thunder, a Group 5 autonomous aircraft designed specifically for military missions.
Unlike Archer's all-electric Midnight air taxi, Thunder uses a hybrid-electric powertrain to provide greater range and endurance. It's also autonomous and designed to carry configurable payloads depending on the mission. Archer's defense ambitions are getting even bigger, too.
In August, Archer announced a deal to acquire Boeing's Insitu, Wisk Aero, and SkyGrid businesses. Insitu alone generates more than $200 million in annual revenue, while the three businesses would significantly expand Archer's aerospace, defense, and autonomous-flight capabilities. Of course, none of this means Archer is about to become the next Lockheed Martin.
The $142 million Air Force contract represents a maximum potential value, not guaranteed revenue, and Thunder is still a new platform that will have to prove itself. Joby shouldn't be counted out, either. Its relationship with the military goes back years, and its autonomous technology could produce additional defense contracts. But right now, Archer has the cleaner alignment with where Pentagon spending appears to be heading: autonomy, hybrid propulsion, longer range, and uncrewed military aircraft. And that gives Archer the edge in the battle for defense dollars.
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The Pentagon Is Buying eVTOLs. Here's Which Stock Wins the Defense Money.

L3Harris Technologies, Inc. LHX uses a structured process to monitor the cost and performance of its long-term contracts. The company establishes an estimated total cost at completion based on contract complexity and perceived risks, and regularly reviews progress and performance. This process provides an opportunity to adjust cost estimates as technical, schedule and cost risks are retired.
Contract execution is particularly important because L3Harris’ production contracts are mainly fixed-price, while development contracts are generally cost-type. Under fixed-price arrangements, the company can benefit from cost savings, but it also carries the burden of cost overruns. As a result, effective monitoring of contract costs and execution can have a direct effect on profitability.
L3Harris’ recent results show the potential earnings impact of this process. Net favorable Estimate at Completion (‘EAC”) adjustments affected earnings by $47 million in 2025 compared with $39 million in 2024. These adjustments reflect changes in estimated costs and transaction prices, with the cumulative impact recognized in operating income and future revenues and margins adjusted based on revised estimates.
Continued discipline in contract execution could remain an important factor for L3Harris’ margin performance. The company notes that cost estimates can improve when technical, schedule and cost risks are successfully retired, while supply-chain disruptions, inflation, labor issues, design challenges and program execution problems can increase estimated costs. Managing these factors effectively could support more consistent profitability as contracts progress.
Companies Managing Contract Cost and EAC Performance
Effective contract cost management can help aerospace and defense companies manage profitability as long-term programs progress. Northrop Grumman Corporation NOC and AeroVironment, Inc. AVAV use contract estimates and adjustments to reflect changes in expected program performance.
Northrop Grumman uses EAC adjustments to reflect changes in estimated contract earnings, which can affect sales, operating income and margins. It reported $209 million of net favorable EAC adjustments in 2025.
AeroVironment uses cumulative catch-up adjustments to reflect changes in estimated contract performance and reported $14.3 million of favorable cumulative catch-up adjustments in fiscal 2026.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.79% and 14.44%, respectively.
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.79X compared with the industry average of 2.24X.
LHX Stock Price Performance
Over the past year, LHX shares have fallen 18.9% compared with the industry’s 14.9% decline.
LHX’s Zacks Rank
LHX stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can L3Harris' Contract Cost Control Support Future Margin Growth?

Lockheed Martin LMT and L3Harris Technologies LHX are two major U.S. defense companies, but they have different business profiles and exposure across the defense industry.
Lockheed Martin is the larger and more diversified of the two, with major exposure to fighter aircraft, missiles, missile defense, helicopters, space systems and other defense platforms. Its portfolio includes programs such as the F-35, F-16, C-130J, THAAD and various space systems. L3Harris has a different portfolio emphasis, focusing more heavily on communications, electronic warfare, sensing, space systems, missile technologies and mission systems.
The companies also provide different exposure to the changing nature of warfare. LMT is more closely tied to major defense platforms and weapons systems, including advanced aircraft, missile defense and strategic systems. LHX is more concentrated in the technology layer of defense, including secure communications, electronic warfare, sensors, space-based capabilities and networking.
Let's compare the stocks' fundamentals to determine which one is better positioned at present.
Tailwinds for LMT Stock
Lockheed Martin is converting elevated demand into longer-duration awards that improve revenue visibility and support capacity planning. Backlog reached a record $230 billion as of June 28, 2026, following $65 billion in second-quarter orders and a 3.2 book-to-bill ratio. The total includes a seven-year, $35 billion contract to quadruple THAAD interceptor production, alongside new GMLRS, HIMARS, radar and space awards.
LMT’s portfolio is focused on areas benefiting from increased funding and procurement priority, including munitions, integrated air and missile defense, hypersonics, space-based interceptors and counter-drone systems. Missiles and Fire Control sales rose 19% in the second quarter of 2026 as PAC-3, THAAD and PrSM production increased, while segment profit advanced 24%. The company is also expanding facilities in Alabama and Florida and investing ahead of awards to increase production capacity.
Tailwinds for LHX Stock
L3Harris’ space sensing and missile franchises remain aligned with Golden Dome, missile defense and hypersonic tracking initiatives. Second-quarter 2026 orders totaled $7.3 billion, producing 1.2x book-to-bill and lifting backlog to a record $42 billion from $40.7 billion at the end of the first quarter of 2026. The company has secured $2.4 billion of new space contracts since fourth-quarter 2025 and sees a $9 billion pipeline across missile warning, missile defense and classified missions.
The company continues to refine its portfolio around core defense priorities while integrating prior acquisitions. In August 2026, the company completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses to AE Industrial Partners for an enterprise value of $845 million. L3Harris plans to use the proceeds to invest in facilities and advanced technologies to meet growing demand. Management has also completed the implementation phase of its LHX NeXt initiative and is increasing investments in innovation and capacity, which could support operating leverage as new programs ramp up.
How Do Zacks Estimates Compare for LMT & LHX?
The Zacks Consensus Estimate for Lockheed Martin’s 2026 and 2027 earnings per share (EPS) indicates an increase of 31.7% and 8.44%, respectively. LMT’s long-term (three to five years) earnings growth rate is 15.13%.
The Zacks Consensus Estimate for L3Harris’ 2026 and 2027 EPS indicates an increase of 9.79% and 14.44%, respectively. LHX’s long-term earnings growth rate is 13.19%.
Valuation for LMT & LHX
Lockheed Martin’s shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.45X compared with L3Harris’ 1.80X.
Liquidity of LMT & LHX
Lockheed Martin and L3Harris’ current ratio is 1.19 and 1.18, respectively. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.
LMT & LHX’s Price Performance
In the past three months, shares of Lockheed Martin have increased 6.8%, while those of L3Harris have declined 16.7%.
Image Source: Zacks Investment Research
LMT or LHX: Which Is a Better Choice Now?
Lockheed Martin is converting strong defense demand into longer-term contracts, improving revenue visibility and supporting capacity expansion across key programs. Its portfolio focuses on high-priority areas such as munitions, missile defense, hypersonics, space systems and counter-drone technologies, while the company continues investing to expand production capacity. L3Harris is expanding its exposure to space sensing, missile defense and hypersonic tracking while building a growing pipeline of new defense programs. LHX is also streamlining its portfolio and redirecting resources toward advanced technologies, facilities and capacity expansion to support future program growth.
Our choice at the moment is Lockheed Martin, given its better price performance, stronger near-term earnings growth and slightly better liquidity than L3Harris. LMT carries a Zacks Rank #2 (Buy) and LHX has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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LMT vs. LHX: Which Defense Company Has Stronger Growth Drivers?

Rocket Lab Corporation RKLB is expanding its space systems portfolio into optical technologies through its Optical Systems business. The company develops advanced electro-optical and infrared (EO/IR) sensor payloads for national security space missions. These systems are designed for applications, including space domain awareness, missile tracking and tactical intelligence, providing Rocket Lab with exposure to specialized space-based sensing requirements.
A key opportunity comes from the growing need to track and monitor objects in space. Rocket Lab’s optical systems are used for space domain awareness, helping identify and monitor objects of interest. The company also develops systems for missile warning, tracking and defense, as well as space protection. These capabilities broaden the applications of its space systems portfolio beyond spacecraft and launch-related offerings.
Rocket Lab’s optical technologies are also designed for military satellites and ground-based surveillance systems. The company focuses on high-performance, affordable and compact hardware, which can support national security missions requiring specialized sensing capabilities. The combination of space-based and ground-based applications gives the Optical Systems business exposure to multiple mission requirements within the national security space market.
The Optical Systems business could provide Rocket Lab with another avenue to expand its addressable market. By adding EO/IR sensing capabilities to its portfolio, the company can participate in missions involving surveillance, missile warning, tracking and space protection. This expansion could help diversify Rocket Lab’s space systems offerings while supporting its broader strategy of addressing additional applications across the space economy.
Companies Expanding Optical Systems Capabilities
The rising use of optical and infrared technologies across aerospace and defense applications is encouraging companies to expand their optical systems capabilities. L3Harris Technologies, Inc. LHX and Teledyne Technologies Inc. TDY are developing advanced optical and infrared technologies for space and defense applications.
L3Harris develops electro-optical and infrared payloads for space missions. Its SpaceView payloads provide visible, infrared and multispectral imaging for small satellites, while its infrared payloads support space-based tracking.
Teledyne Technologies develops imaging and sensor solutions, including infrared focal plane modules for space applications. Its infrared technologies support satellite tracking and optical sensing for national security missions.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 81.48% and 240%, respectively.
RKLB Stock Is Trading at a Premium
Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 31.57X compared with the industry average of 7.21X.
RKLB Stock Price Performance
Over the past year, RKLB shares have rallied 29.7% against the industry’s 7.7% decline.
RKLB’s Zacks Rank
Rocket Lab currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Rocket Lab's Optical Systems Boost Its Growth Opportunities?

Key Points
L3Harris and BAE Systems have developed counter-drone missiles that cost half the price of the drones they shoot down.
L3Harris stock has underperformed its peers due to management turmoil.
A powerful product combined with a weak stock price makes L3Harris stock attractive today.
America's war with Iran entered its seventh month last week, while Russia's war on Ukraine is approaching its fifth year of conflict. And like it or not, times of global conflict highlight the need for defense stocks. It's been more than a year since I highlighted L3Harris (NYSE: LHX) as one rising star in these conflicts and especially in the effort to combat cheap, one-way attack drones based on the Iranian Shahed-136 design.
Wall Street is only just starting to notice.
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L3Harris and VAMPIRE
The spring of 2025 saw an encouraging development in the effort to defeat Russian drone attacks on Kyiv and other Ukrainian cities. OSINTtechnical published a video on X showing how a Ukrainian surface-to-air missile team used L3Harris' Vehicle-Agnostic Modular Palletized ISR Rocket Equipment (VAMPIRE) launcher, firing Advanced Precision Kill Weapon System (APKWS) rockets manufactured by BAE Systems (OTC: BAESY), to shoot down a Russian Shahed.
New footage of a Ukrainian laser-guided APKWS rocket slamming into a Russian Shahed-136 attack drone, sending it spiraling toward the ground.
The low-cost rocket was fired and guided in by an L3Harris Vampire SAM system. pic.twitter.com/9rKEafTz9x
-- OSINTtechnical (@Osinttechnical) April 30, 2025
And here's the real kicker: APKWS rockets cost the U.S. military about $22,000 each. Shahed drones cost closer to $50,000.
In one fell swoop, L3Harris (and BAE) had found a way to flip the economics of drone wars on their head. No longer did the U.S. need to fire off $2 million Patriot missiles to kill $50,000 Shaheds. Now it could bring them down with VAMPIRE rockets that cost half as much as their target.
Good news, bad news
So that's the good news about L3Harris. Now here's the bad:
Last month, as you may have heard, L3Harris fired its CEO, Christopher Kubasik, over alleged "conduct ... not consistent with the values of the Company." His lieutenant, Sam Mehta, immediately stepped into the CEO's role but hasn't been able to stem the bleeding so far; L3Harris stock is down 16% over the past month and 35% from its all-time high set earlier in the year.
A decline so steep and so sudden couldn't help but catch Wall Street's notice. A couple of weeks ago, The Wall Street Journal ran a piece highlighting L3Harris's apparent value, noting that the stock had underperformed defense peers by more than 20 percentage points and was trading "at less than 16 times forward free cash flow."
For the company that has apparently found the solution to defeating Iranian and Russian drones, that seems quite a cheap price. And as the Journal observed, L3Harris is also a key supplier of solid rocket motors used for more advanced interceptor missiles -- such as the $2 million Patriot itself!
How cheap is L3Harris stock?
But is it cheap enough? Valued at its $2.7 billion in trailing free cash flow (a more reliable number than forward free cash flow), I get a 16.9x price-to-free cash flow ratio for L3Harris -- significantly cheaper than the stock's 24x price-to-earnings (P/E) ratio.
Relative to analyst forecasts for 20%-plus annual earnings growth over the next five years, this suggests that L3Harris stock might be a lot cheaper than it looks based solely on a simple PEG ratio (P/E divided by growth). Even factoring in net debt of $9.5 billion and giving the stock credit for its 2% dividend yield, L3Harris stock appears attractively priced at just over 20x free cash flow.
While it's not a slam dunk, my calculations suggest L3Harris stock is priced about 10% below its fair value.
What's next for L3Harris stock?
Final point: One recent catalyst has the potential to supercharge L3Harris's drone defense business and turn this arguably "cheap" defense stock into an inarguable bargain. Last week, L3Harris licensed new artificial intelligence (AI) technology from defense tech start-up Shield AI to make its VAMPIREs work even better.
The tech in question is called Tracker Counter-Unmanned Aircraft System, or Tracker C-UAS for short, and it uses AI to scan electro-optical/infrared spectra (EO/IR) to "detect, track, and defeat unmanned aerial threats." Shield AI says it's starting to license Tracker C-UAS to other companies, but according to the defense tech website Tectonic, L3Harris is the first to take advantage of the offer.
Adding first-mover advantage to an already-popular product, I expect this development to provide a noticeable boost to VAMPIRE sales -- and potentially to L3Harris's sales growth rate, too.
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How to Buy L3Harris: A Cheap Drone Stock With an AI Kicker

L3Harris Technologies, Inc. LHX is expanding its presence across international markets, creating opportunities to serve a broader customer base beyond the United States. In fiscal 2025, international revenues reached $4.8 billion, accounting for 22% of total revenues. The company serves customers across more than 100 countries, providing exposure to a wide range of international markets.
LHX’s international operations are supported by marketing organizations and regional sales offices across Europe, the Middle East and Africa, Asia-Pacific and Canada. This geographic presence enables the company to maintain closer relationships with customers and pursue opportunities across different regions. No single foreign country accounted for more than 5% of revenues in fiscal 2025, providing geographic diversification.
International deliveries also contributed to L3Harris’ fiscal 2025 revenue growth. Consolidated revenues increased 3% to $21.865 billion, with higher volumes, including new program ramps, and increased international deliveries supporting the performance. Continued international activity could therefore provide an additional avenue for growth as the company expands its customer reach.
The company’s broad portfolio across defense and technology markets further supports its ability to address international requirements. L3Harris competes internationally against large defense companies and focuses on opportunities that fit its technological capabilities and objectives. Its established international marketing infrastructure and presence across multiple regions could support continued expansion in global markets.
Companies Expanding Their Global Defense Presence
Growing international defense demand is encouraging aerospace and defense companies to expand their global customer base and regional presence. General Dynamics Corporation GD and RTX Corporation RTX are also generating significant revenue from customers outside the United States.
General Dynamics generated $9.2 billion from non-U.S. government and commercial customers in 2025, representing 17% of consolidated revenues, while maintaining business relationships across global markets.
RTX generated $41.3 billion in international sales in 2025, representing 47% of total net sales, with customers across Europe, Asia-Pacific, the Middle East and other regions.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.79% and 14.44%, respectively.
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.89X compared with the industry average of 2.26X.
LHX Stock Price Performance
Over the past year, LHX shares have fallen 11.8% compared with the industry’s 13.7% decline.
LHX’s Zacks Rank
LHX stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can L3Harris' Expanding Global Reach Support Future Growth?

Kratos Defense & Security Solutions, Inc. KTOS is expanding its production infrastructure to support the growing demand for affordable defense systems. The company is making significant investments across manufacturing, propulsion, hypersonic systems, unmanned aircraft and microwave electronics, with the goal of supporting its backlog, opportunity pipeline and potential future awards.
A key focus is increasing production capacity across multiple product areas. Kratos is relocating and expanding small turbojet engine production in Michigan and plans to establish a small turbofan jet engine production facility in Oklahoma. It is also expanding unmanned jet drone manufacturing and its U.S. machining, milling, casting, 3D printing and additive manufacturing capabilities.
KTOS is also investing in specialized facilities to support larger-scale production. These include a hypersonic fabrication and integration facility in Indiana, expanded microwave electronics manufacturing facilities in Israel and additional classified facilities for certain programs and contracts. Investments related to the Prometheus venture and the Oklahoma turbofan facility are expected to ramp up during 2026.
Kratos’ manufacturing strategy is closely linked to its focus on affordability. The company designs products and systems for rapid, large-quantity and low-cost future manufacturing, while its production infrastructure is intended to support a much larger revenue base.
Companies Expanding Affordable Defense Production
As defense companies focus on scalable and affordable production, expanding manufacturing capacity is becoming increasingly important. Companies like Northrop Grumman Corporation NOC and L3Harris Technologies, Inc. LHX are also amplifying production capabilities to support growing defense demand.
Northrop Grumman is investing in advanced manufacturing and propulsion capacity to boost higher-volume production of critical weapons and systems.
L3Harris is expanding production capacity for missile and propulsion systems, including PAC-3 MSE and THAAD, to support larger defense requirements.
Earnings Estimates for KTOS Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 50.91% and 37.06%, respectively.
KTOS Stock Is Trading at a Discount
Kratos is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 4.3X compared with the industry average of 7.14X.
KTOS Stock Price Performance
Over the past three months, Kratos shares have fallen 12.2% compared with the industry’s 20.4% decline.
KTOS’ Zacks Rank
Kratos currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Kratos' Manufacturing Expansion Support Affordable Defense Growth?

Rocket Lab Corporation RKLB is expanding its spacecraft component portfolio to capture more opportunities across the growing space market. The company is commercializing technologies developed for its launch vehicles and spacecraft programs, including avionics subsystems, radios and batteries.
Rocket Lab’s strategy extends beyond providing launch services by increasing its presence in the spacecraft supply chain. The company is focused on developing and commercializing components that can be used across different spacecraft platforms, helping broaden its addressable market and support growing constellation demand.
RKLB also has flight hardware on more than 1,800 missions, supported by its acquired spacecraft businesses. This installed base provides Rocket Lab with experience across multiple spacecraft components and systems and creates a foundation for expanding its product portfolio.
As satellite operators deploy larger and more complex constellations, demand for reliable spacecraft components could create additional opportunities for Rocket Lab. Expanding its component portfolio may allow the company to participate in more parts of the spacecraft value chain while supporting its broader space systems business. The broader offering can also strengthen customer relationships, increase cross-selling opportunities and provide recurring demand as satellite operators build, upgrade and maintain their fleets over time across a wide range of missions.
Companies Expanding Spacecraft Component Portfolios
As spacecraft manufacturers and satellite operators seek reliable components and subsystems, companies are expanding their capabilities across the space supply chain. Companies like Northrop Grumman Corporation NOC and L3Harris Technologies, Inc. LHX also provide spacecraft and space-system technologies.
Northrop Grumman develops spacecraft, payloads and related technologies that support national security and space missions.
L3Harris provides space systems, payloads, communications and other technologies that support government and commercial space programs.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 81.48% and 240%, respectively.
RKLB Stock Is Trading at a Premium
Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 31.43X compared with the industry average of 7.25X.
RKLB Stock Price Performance
Over the past year, RKLB shares have rallied 32.2% against the industry’s 4.9% decline.
RKLB’s Zacks Rank
Rocket Lab currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Indicator	TTM Median
P/E	27.99 24.67
Price/Sales	1.94 1.41
P/B	2.22 2.39
P/FCF	32.16 18.56

Indicator	TTM Median
ROE	9.45 14.70
ROA	4.47 6.02
ROI	6.28 8.68
Net Worth	51.89 1.19
Quick Ratio	1.04 1.16
Current Ratio	1.03 1.59

Indicator	TTM Median
Net Profit Margin	8.11 7.70
Operating Margin	10.49 10.36
Gross Margin	25.26 32.70
Return on tangible equity	0.00 24.33

Indicator	TTM Median
EPS	3.13 0.80
EPS Forecast	2.80 0.67
Revenue	5.88B 187.00M
Gross Profit	1.50B —
EBITDA	934.00M —

L3Harris Technologies, Inc.

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