L3Harris dramatically expanded its space-based business via its 2023 acquisition of Aerojet Rocketdyne. Aerojet was one of only two U.S.-based companies that manufactured the engines needed to propel big objects into space. The other, Orbital ATK, was acquired by Northrop Grumman (NOC -1.07%) in 2018. Northrop's rivals in the defense industry are eager to have another reliable propulsion option.
L3Harris had a lot of space credentials even before the acquisition. The Harris legacy business has historically been one of the top suppliers of communications equipment to the Pentagon, from radios to satellites. Today, the company offers not only access to space but also a range of electronics, missile-warning, and space-intelligence products.
This company is the result of a series of mergers and is only now beginning to integrate all that it now owns. As it emerges, the finished product may be an attractive option for investors seeking the stability of a defense company but with a focus on defense tech and electronics.
5. Leidos Holdings