L3Harris Technologies, Inc. (NYSE:LHX) recently announced it has secured a contract from the U.S. Navy aimed at bolstering the Marine Corps’ strike modernization initiatives. Central to this contract are the Red Wolf™ vehicles engineered to carry out long-range precision strike missions. The company was selected by the U.S. Naval Air Systems Command to undertake the development, testing, and manufacturing of these systems, which are integral to the Marines’ Precision Attack Strike Munition program.
The contract award followed extensive operational evaluations, including 52 launched-effects vehicle test flights spanning various environments. Notably, recent testing incorporated low-altitude firings from Marine AH-1Z helicopters. This extensive evaluation phase has paved the way for moving operations beyond demonstration trials toward full-scale production and field deployment.
Within military planning, there is an increasing emphasis on developing affordable yet scalable weapons systems. This shift is partly driven by recent conflicts and incursions over NATO airspace, which have underscored vulnerabilities associated with adversaries leveraging large volumes of relatively inexpensive unmanned aerial vehicles. Against this backdrop, cost-effective alternatives to highly sophisticated munitions are becoming a strategic imperative.
Christopher Kubasik, Chairman and Chief Executive Officer of L3Harris, highlighted this strategic context, stating, "Recent conflicts and incursions over NATO airspace, particularly with the increased use of mass-produced drones, demonstrate the urgent need for cost-effective alternatives to exquisite munitions." He added that the Red Wolf system offers an affordable solution capable of augmenting the Marine Corps’ arsenal within the timelines established by U.S. defense officials to maintain a decisive fighting force.
Red Wolf technology expands the operational reach of weapons launched from vertical takeoff platforms, showcasing validated testing ranges close to 200 nautical miles. This extended engagement envelope allows precision targeting at distances previously difficult to cover effectively, enhancing combat flexibility.
The vehicle is equipped with sophisticated beyond line-of-sight communication capabilities and supports autonomous over-the-horizon targeting. These features enable greater numbers of aircraft to participate in coordinated strike efforts, enhancing overall mission effectiveness. Prior deployments of Red Wolf systems were conducted under the Department of Defense’s Long-Range Advanced Missile initiative within the Defense Innovation Acceleration program.
In a related announcement, L3Harris updated its financial guidance for fiscal year 2026. The company projects adjusted earnings per share in the range of $11.30 to $11.50, which is below analyst estimates pegged at $12.46 per share. Despite this, L3Harris increased its revenue forecast to a range between $23.0 billion and $23.5 billion, slightly surpassing the consensus estimate of $23.327 billion.
Segment-wise, Space & Mission Systems is expected to account for roughly $11.5 billion in revenue, Communications & Spectrum Dominance approximately $8.0 billion, and Missile Solutions about $4.4 billion. Regarding profitability, operating margins are anticipated to reach the mid-10% range for Space & Mission Systems, around 25% for Communications & Spectrum Dominance, and mid-12% range for Missile Solutions. This combination is expected to yield an overall operating margin near 16%.
The company forecasts free cash flow generation to approach $3.0 billion for the fiscal year, underscoring strong cash conversion potential.
L3Harris stock has exhibited considerable growth, with shares climbing over 61% in the prior twelve months. Investors seeking exposure to the company’s defense technology trajectory may consider engagement via the ARK Space & Defense Innovation ETF (BATS:ARKX), which includes L3Harris holdings.