L3Harris Technologies (LHX) Lands its Biggest Ever Full-Rate Production Contract For Submarine Communication Systems

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L3Harris Technologies, Inc. (NYSE:LHX) has recently made significant strides in the aerospace and defense industry. The company announced its largest ever full-rate production contract for submarine communication systems on February 18. This contract involves supplying 26 shipsets to General Dynamics Electric Boat for Virginia and Columbia-class submarines. The agreement includes continued production for both classes until 2033, with options to extend to more Columbia-class boats and allied navies overseas.

Nino DiCosmo, President of Maritime, Space, and Mission Systems at L3Harris, emphasized the importance of this contract for the company’s growth and contribution to national security.

In addition to the submarine communication systems contract, L3Harris secured another contract from the Missile Defense Agency worth around $400 million on February 16. This contract involves producing solid rocket boost motors and Liquid Divert and Attitude Control Systems for missile defense systems. The company plays a crucial role in supplying components for the Terminal High Altitude Area Defense (THAAD) system, which is a vital part of the nation’s defense against short to medium-range ballistic missiles.

The Solid Rocket Boost motors power the initial launch and boost phase of the THAAD interceptor missile, while the Liquid Divert and Attitude Control Systems ensure precise targeting during the final intercept stages. THAAD has demonstrated a 100% success rate in intercept tests, underscoring its importance for national security.

These contracts have significantly boosted L3Harris Technologies’ pace & Airborne Systems segment backlog, which stood at over $38.7 billion in 2025. The company provides end-to-end technology solutions that connect various domains like air, land, space, sea, and cyber for national security purposes.

While L3Harris Technologies presents a compelling investment opportunity, there are other AI stocks with potentially higher upside and lower downside risk. For investors seeking undervalued AI stocks that stand to benefit from current economic trends, exploring alternative investment options may be beneficial.

In conclusion, L3Harris Technologies continues to secure major contracts and play a critical role in national defense. The company’s expertise in aerospace and defense technology positions it as a key player in the industry. Investors looking for opportunities in this sector should consider the company’s growth potential and strategic partnerships.

Disclosure: None. This article was originally published on Insider Monkey.