L3Harris Expands Fiber-Optic Tether Production for Military Applications
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 42 minutes ago
0mins
Should l Buy LHX?
Source: seekingalpha
- Technological Innovation: L3Harris's fiber-optic tether systems provide physical connections for drones and underwater platforms, ensuring communication in electronic warfare environments, addressing the growing demand for hardened communication systems in modern conflicts.
- Market Potential: The expansion of this technology signals a potentially expanding market for defense companies focused on autonomous systems and electronic warfare resilience, likely attracting more investment as Pentagon interest increases.
- Increased Manufacturing Capacity: L3Harris plans to boost production capacity for fiber-optic tether systems in 2025 and 2026 to meet accelerating military demand for resilient drone technologies that can withstand jamming and signal disruption.
- Multi-Domain Applications: The technology is not only utilized in drones but also in the Navy's MK-48 Mod 8 torpedo communications system, showcasing its versatility in maritime and underwater applications, thereby enhancing the company's competitiveness in the defense market.
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Analyst Views on LHX
Wall Street analysts forecast LHX stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 311.160
Low
212.00
Averages
253.50
High
280.00
Current: 311.160
Low
212.00
Averages
253.50
High
280.00
About LHX
L3Harris Technologies, Inc. provides end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security. Its segments include Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR). The SAS segment supplies full mission solutions as a prime and subsystem integrator in the space, airborne and cyber domains. The IMS segment delivers differentiated mission capabilities and prime systems integration to support intelligence, reconnaissance and surveillance (ISR), passive sensing and targeting, electronic attack, autonomy, power and communications, networks and sensors. CS enables warfighters across all domains with solutions critical to mission success even in the contested environments. The AR segment provides propulsion, power and armament products and systems to the U.S. Government, including the DoD, NASA and various aerospace and defense prime contractors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
L3Harris Expands Fiber-Optic Tether Production for Military Applications
- Technological Innovation: L3Harris's fiber-optic tether systems provide physical connections for drones and underwater platforms, ensuring communication in electronic warfare environments, addressing the growing demand for hardened communication systems in modern conflicts.
- Market Potential: The expansion of this technology signals a potentially expanding market for defense companies focused on autonomous systems and electronic warfare resilience, likely attracting more investment as Pentagon interest increases.
- Increased Manufacturing Capacity: L3Harris plans to boost production capacity for fiber-optic tether systems in 2025 and 2026 to meet accelerating military demand for resilient drone technologies that can withstand jamming and signal disruption.
- Multi-Domain Applications: The technology is not only utilized in drones but also in the Navy's MK-48 Mod 8 torpedo communications system, showcasing its versatility in maritime and underwater applications, thereby enhancing the company's competitiveness in the defense market.
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- Surging Market Demand: The defense and space market in 2026 presents unprecedented demand, and Starfighters Space is focused on addressing production capacity gaps, which is expected to drive the company's market share growth in both defense and commercial space sectors, particularly in collaboration with the Pentagon.
- Strengthened Leadership Team: The recent appointments of former Blue Origin executives Jose Arias and Catrina L. Medeiros to key positions enhance the team's technical capabilities, with Arias having previously reduced integration cycle times from 76 days to 13 days, demonstrating his effectiveness in aerospace projects.
- Industry Context Analysis: With RTX, L3Harris, and Boeing reporting record backlogs, Starfighters Space's strategic positioning aims to capitalize on this trend, enhancing its competitive edge and ensuring a favorable position in future defense spending.
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- Market Demand: The defense and aerospace sectors are experiencing unprecedented demand in 2026, with Starfighters Space focusing on addressing production capacity bottlenecks to meet the Pentagon's funding and program authority, thereby improving hardware delivery capabilities.
- Executive Appointments: The company recently appointed Jose Arias and Catrina L. Medeiros as senior leaders, both from Blue Origin, bringing extensive project experience that is expected to further enhance STARLAUNCH's execution capacity and market responsiveness.
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- Mining Stake Increase: Through Hancock Prospecting, Rinehart added 1.35 million shares in Hudbay Minerals, bringing her total to approximately 15.9 million shares valued at about $333.2 million, further solidifying her position in the mining industry.
- Emerging Mining Investment: Hancock Prospecting initiated a new investment in Rare Earths Americas, acquiring about 1.2 million shares for a 6% stake valued at roughly $34 million, reflecting a strategic focus on rare earth resources.
- Diversified Investment Portfolio: In addition to defense and mining, Hancock disclosed a new position in CrowdStrike valued at approximately $16.1 million, showcasing its intent to diversify into the technology sector and enrich its investment portfolio.
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- Portfolio Diversification: Hancock Prospecting has diversified its holdings in 2023 by adding defense, gold, and rare-earth assets, bringing its total portfolio value to $3.3 billion, indicating a strategic focus on emerging markets.
- Significant Shift in Investments: In a March portfolio adjustment, Hancock invested $133 million in defense firms including CrowdStrike, L3Harris, Lockheed Martin, Northrop Grumman, and RTX, reflecting strong confidence in the defense sector.
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- Defense Capability Enhancement: Qatar has requested permission from the U.S. to purchase 10,000 Advanced Precision Kill Weapon System-II (APKWS) rockets for $992.4 million, aiming to bolster its defense capabilities and ensure effective responses to potential threats in future conflicts.
- Profit Opportunities for BAE Systems: As the principal contractor for this arms deal, BAE Systems is expected to reap substantial profits from Qatar's purchase, particularly since APKWS comes from its most profitable Electronic Systems unit, likely achieving a 15.5% operating profit margin.
- Market Supply-Demand Dynamics: With BAE Systems' current production capacity limited to 25,000 rockets per year, Qatar's order will consume nearly half of that, leading to price increases, with an expected unit price of $99,000 per rocket, further solidifying BAE's seller's market position.
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L3Harris Expands Fiber-Optic Tether Production for Military Applications
- Technological Innovation: L3Harris's fiber-optic tether systems provide physical connections for drones and underwater platforms, ensuring communication in electronic warfare environments, addressing the growing demand for hardened communication systems in modern conflicts.
- Market Potential: The expansion of this technology signals a potentially expanding market for defense companies focused on autonomous systems and electronic warfare resilience, likely attracting more investment as Pentagon interest increases.
- Increased Manufacturing Capacity: L3Harris plans to boost production capacity for fiber-optic tether systems in 2025 and 2026 to meet accelerating military demand for resilient drone technologies that can withstand jamming and signal disruption.
- Multi-Domain Applications: The technology is not only utilized in drones but also in the Navy's MK-48 Mod 8 torpedo communications system, showcasing its versatility in maritime and underwater applications, thereby enhancing the company's competitiveness in the defense market.
See More
Starfighters Space Advances STARLAUNCH Pathway with ILS Engagement
- Strategic Partnership: Starfighters Space has engaged Integrated Launch Solutions to enhance the engineering and technical integration capabilities of the STARLAUNCH pathway, leveraging a team with extensive experience to improve execution capacity for space launches, thereby accelerating the transition from design to actual launch services.
- Surging Market Demand: The defense and space market in 2026 presents unprecedented demand, and Starfighters Space is focused on addressing production capacity gaps, which is expected to drive the company's market share growth in both defense and commercial space sectors, particularly in collaboration with the Pentagon.
- Strengthened Leadership Team: The recent appointments of former Blue Origin executives Jose Arias and Catrina L. Medeiros to key positions enhance the team's technical capabilities, with Arias having previously reduced integration cycle times from 76 days to 13 days, demonstrating his effectiveness in aerospace projects.
- Industry Context Analysis: With RTX, L3Harris, and Boeing reporting record backlogs, Starfighters Space's strategic positioning aims to capitalize on this trend, enhancing its competitive edge and ensuring a favorable position in future defense spending.
See More
Starfighters Space Partners with ILS to Advance STARLAUNCH Pathway
- Strategic Partnership: Starfighters Space has engaged Integrated Launch Solutions to provide engineering and technical integration support for the STARLAUNCH project, leveraging expertise to expedite the transition from design to launch, thereby enhancing the company's competitiveness in the defense and commercial space markets.
- Market Demand: The defense and aerospace sectors are experiencing unprecedented demand in 2026, with Starfighters Space focusing on addressing production capacity bottlenecks to meet the Pentagon's funding and program authority, thereby improving hardware delivery capabilities.
- Executive Appointments: The company recently appointed Jose Arias and Catrina L. Medeiros as senior leaders, both from Blue Origin, bringing extensive project experience that is expected to further enhance STARLAUNCH's execution capacity and market responsiveness.
- Industry Context: In the context of a historically high spending environment in the defense industry, Starfighters Space's STARLAUNCH project is seen as a critical initiative to bridge the gap between market demand and delivery capacity, indicating significant growth potential in the coming years.
See More
Gina Rinehart Invests Nearly $97M in U.S. Defense and Mining
- Defense Investment Expansion: Australia's richest person, Gina Rinehart, invested nearly $97 million in U.S. defense contractors during Q1, including stakes in RTX, Northrop Grumman, L3Harris, and Lockheed Martin, indicating strong confidence in the defense sector.
- Mining Stake Increase: Through Hancock Prospecting, Rinehart added 1.35 million shares in Hudbay Minerals, bringing her total to approximately 15.9 million shares valued at about $333.2 million, further solidifying her position in the mining industry.
- Emerging Mining Investment: Hancock Prospecting initiated a new investment in Rare Earths Americas, acquiring about 1.2 million shares for a 6% stake valued at roughly $34 million, reflecting a strategic focus on rare earth resources.
- Diversified Investment Portfolio: In addition to defense and mining, Hancock disclosed a new position in CrowdStrike valued at approximately $16.1 million, showcasing its intent to diversify into the technology sector and enrich its investment portfolio.
See More
Hancock Prospecting Expands Portfolio into Defense and Gold
- Portfolio Diversification: Hancock Prospecting has diversified its holdings in 2023 by adding defense, gold, and rare-earth assets, bringing its total portfolio value to $3.3 billion, indicating a strategic focus on emerging markets.
- Significant Shift in Investments: In a March portfolio adjustment, Hancock invested $133 million in defense firms including CrowdStrike, L3Harris, Lockheed Martin, Northrop Grumman, and RTX, reflecting strong confidence in the defense sector.
- Increased Gold Producer Holdings: Hancock has also increased its stake in major gold producer Newmont, further solidifying its investment in precious metals, which is expected to benefit from potential rises in gold prices.
- Rare Earth Investment Boost: In the current quarter, Hancock raised its stake in Rare Earths Americas to 6.3% while increasing its position in Hudbay Minerals by approximately 10%, demonstrating a strategic emphasis on the rare earth and copper markets.
See More
Qatar Requests Purchase of 10,000 Rockets Amid Ongoing Conflict
- War Impact Assessment: After $25 billion in spending and 39 days of fighting, Qatar suffered 700 Iranian drone and missile strikes, resulting in an estimated $20 billion annual revenue loss and a five-year recovery timeline for LNG facilities, highlighting the significant economic toll of the conflict.
- Defense Capability Enhancement: Qatar has requested permission from the U.S. to purchase 10,000 Advanced Precision Kill Weapon System-II (APKWS) rockets for $992.4 million, aiming to bolster its defense capabilities and ensure effective responses to potential threats in future conflicts.
- Profit Opportunities for BAE Systems: As the principal contractor for this arms deal, BAE Systems is expected to reap substantial profits from Qatar's purchase, particularly since APKWS comes from its most profitable Electronic Systems unit, likely achieving a 15.5% operating profit margin.
- Market Supply-Demand Dynamics: With BAE Systems' current production capacity limited to 25,000 rockets per year, Qatar's order will consume nearly half of that, leading to price increases, with an expected unit price of $99,000 per rocket, further solidifying BAE's seller's market position.
See More
