L3Harris Stock Poised for Breakout on Strategic Expansion

The global defense sector is experiencing a significant upswing in military expenditures, and L3Harris Technologies is strategically positioning itself to capitalize on this trend. Through a key international partnership and a substantial domestic manufacturing investment, the defense specialist is laying the groundwork for its next growth phase. The central question for investors is whether these moves will propel the company's shares to new heights.

Underpinning its recent strategic announcements is a foundation of robust financial health. For the third quarter of 2025, L3Harris delivered results that exceeded market expectations. The company reported an adjusted earnings per share of $2.70, with revenue reaching $5.66 billion. This strong performance prompted management to revise its full-year guidance upward, signaling sustained operational momentum and confidence in its ongoing business trajectory.

Major Investment in Missile Propulsion Capacity

In a decisive response to rising global demand for advanced weaponry, L3Harris is channeling $400 million into expanding its rocket engine production facilities in Arkansas. This capital investment is projected to increase manufacturing capacity for medium and large rocket engines by a factor of six. The expansion directly addresses the growing need for missiles, interceptors, and hypersonic weapons, positioning the company to benefit from major defense initiatives like the "Golden Dome" shield program amid persistent international conflicts.

Should investors sell immediately? Or is it worth buying L3Harris?

Forging a Strategic Alliance in the Middle East

Further strengthening its global footprint, L3Harris announced on Tuesday the signing of a strategic statement of intent with the UAE's EDGE Group. This collaboration is focused on joint research and development in cutting-edge domains, including artificial intelligence and autonomous systems. For L3Harris, this partnership represents a deliberate and calculated entry into one of the world's most dynamic defense markets, sharpening its competitive edge in the race for international contracts.

Despite these positive operational and strategic developments, the market has yet to fully reward the company's efforts. With a share price hovering around 250 euros, the stock remains approximately 5% below its annual peak. Market observers are now watching closely to see when this strategic foresight will translate into a sustained share price advance.