The sale of L3Harris’s space propulsion, power and electronics business to private-equity firm AE Industrial Partners closed on August 4, 2026, and the standalone company launched as Rocketdyne. AE Industrial controls the business, while L3Harris retained about 40 percent and kept the RS-25 engine program out of the deal. The transaction puts a storied supplier’s changing fortunes in view: the business includes the RL10 and in-space propulsion assets, but the RS-25—one of the few large engines associated with the former Rocketdyne still in production—remains with L3Harris.
What happened to Rocketdyne?
On January 5, 2026, L3Harris announced an agreement to sell a controlling interest in its Space Propulsion and Power Systems business to AE Industrial Partners. The seller said the transaction represented $845 million in total enterprise value and that it would retain approximately 40 percent. The RS-25 rocket-engine business was explicitly excluded. The deal was then subject to regulatory approval and customary closing conditions. L3Harris’s January announcement
AE Industrial announced the closing on August 4, 2026; the release was syndicated through FinancialContent. It said the acquired space propulsion, power and electronics units would operate as a standalone company named Rocketdyne. The company’s current website describes its business as propulsion, space electronics and power systems.
L3Harris’s 2025 annual report describes AE Industrial’s interest as approximately 60 percent, with L3Harris retaining a 40 percent noncontrolling interest. It reports $825 million in net enterprise value, a different valuation measure from the $845 million total enterprise value in the January announcement. The report also records an $85 million non-cash goodwill impairment and a $54 million pretax loss on the disposal group for fiscal 2025. Those accounting figures are not additional transaction prices. L3Harris 2025 annual report
Recommended Free Tools
#1 Best Overall
- BEGINNER MODEL-ROCKET LAUNCH SET: The Tandem-X rocket-model launch set offers adults and kids ages 10+ hours of fun during the holidays as they complete and launch our Amazon and Crossfire ISX rocket models. This set includes the easy-to-assemble Amazon model parts, the Crossfire ISX model parts, parachutes, and the launch pad system. It requires rocket engines, Starters, Recovery Wadding, and 4 high-quality 1.5-volt AA alkaline batteries for launch use (sold separately).
- 2 SOARING ALTITUDE HEIGHTS: Our Tandem X set offers a high-performing power duo with our giant 30-inch Amazon model (600-foot projected altitude with a C6-5 rocket engine) and our streamlined 15.6-inch Crossfire ISX model (1,150-foot projected altitude with a C6-7 rocket engine). Other compatible Estes model-rocket engines for Amazon model: B4-2, B4-4, B6-2, B6-4, C5-3, and C6-3. Other compatible engines for Crossfire ISX: A8-3, B4-4, B6-4, and C6-5. All engines sold separately.
- READY TO ASSEMBLE: Our beginner model-rocket launch set comes with 2 build options. The precolored Amazon model features plastic fins and self-stick graphics and can be built in an hour. The Crossfire ISX model comes with laser-cut wood fins, self-stick decals, and aerodynamic parts. Pair the rockets with the included Porta Pad II Launch Pad and Electron Beam Launch Controller for a hands-on educational activity or a unique Christmas gift for a budding scientist or a space aficionado.
- SAFETY FIRST, FUN ALWAYS: Our rockets and rocket launch accessories are designed to be used with the NAR (National Association of Rocketry) model-rocket safety code. Always ensure you have an appropriate launch site, stand back at least 15 ft., insert the safety key, issue a countdown, and then you can let your rocket fly!
- WE IGNITE IMAGINATIONS: Since 1958, Estes has created educational rocket kits and displays designed for an unforgettable aerospace experience. As a family-owned company, we have grown to offer exciting STEM products that engage aspiring rocketeers and the future minds of aerospace.
What did AE Industrial acquire, and what stayed with L3Harris?
The transaction separates a broad space-propulsion portfolio from the RS-25 program. The main distinction is practical: the new Rocketdyne gets assets tied to upper-stage and in-space systems, while L3Harris retains the engine used for NASA’s Space Launch System.
| Business or asset | After the deal | What it does |
|---|---|---|
| RL10 upper-stage engine program | Transferred to the Rocketdyne business controlled by AE Industrial | Used on United Launch Alliance’s Vulcan rocket, according to the reporting. |
| In-space propulsion, nuclear power and space electronics or avionics assets | Transferred to the Rocketdyne business controlled by AE Industrial | Capabilities spanning propulsion, power and electronics; the portfolio includes smaller in-space thrusters and power systems. |
| RS-25 engine program | Retained by L3Harris; excluded from the sale | Used on NASA’s Space Launch System. |
| Ownership of the transferred business | AE Industrial: approximately 60 percent; L3Harris: approximately 40 percent | L3Harris’s 2025 annual report describes AE Industrial’s controlling interest and L3Harris’s noncontrolling interest. |
The January announcement said the business spans five U.S. locations and had developed upper-stage engines for national-security, civil and commercial missions for more than 60 years. AE Industrial’s description of that record is a statement about the transferred business’s history, not a claim that the new company inherited the RS-25.
L3Harris’s retained RS-25 program serves a different customer and mission. Ars Technica reported that L3Harris had a NASA contract for new engines for SLS flights beyond Artemis IV and described the RS-25 as the largest engine in L3Harris’s portfolio. Contract obligations and mission schedules can change; that reporting should not be read as a guarantee of future flight timing.
Rank #2
- BEGINNER MODEL ROCKET LAUNCH SET: The Estes Alpha III launch set lets kids ages 10+ and hobbyists easily build and launch this iconic model rocket. The model rocket kit includes rocket parts, engine mount, decals, a parachute, a launch pad system, and instructions. For blastoff, you’ll need Estes rocket engines, Starters, Recovery Wadding, and 4 high-quality 1.5-volt AA alkaline batteries (not included).
- SOARS UP TO 1,150 FT.: Our Alpha III model rocket is designed for first-time STEM kit builders and climbs up to a projected altitude of 1,150 ft. (351 m). It’s compatible with 1/2A6-2, A8-3, A8-5, B4-4, B6-4, B6-6, C6-5, or C6-7 Estes rocket engines (sold separately).
- READY TO ASSEMBLE: Rocket building sparks creativity and a love for science and outer space! This beginner Alpha III model kit is easily put together with 1 hour of preparation and includes decals. It comes with a Porta-Pad II Launch Pad and Electron Beam Launch Controller for an unforgettable blastoff for first-time rocketeers.
- SAFETY FIRST, FUN ALWAYS: Our rockets are designed to be used with the NAR (National Association of Rocketry) model-rocket safety code. Always ensure you have an appropriate launch site, stand back at least 15 ft., insert the safety key, issue a countdown, and then you can let your rocket fly!
- ESTES EDUCATION: Since 1958, Estes has created educational rocket kits designed for an unforgettable launch experience. As a family-owned, US-based company, we offer exciting and engaging STEM products for all interests, skills, and power levels.
Why does the deal point to a diminished legacy?
The “fall” in the headline refers to the shrinking reach of the historic Rocketdyne enterprise, not the disappearance of U.S. rocket-engine work. In Stephen Clark’s Ars Technica account, Rocketdyne began in 1955 as a North American Aviation division and once made nearly all large liquid-fueled U.S. rocket engines. The article traces engines supplied for Saturn V, the Space Shuttle, Atlas, Thor, Delta and early U.S. ballistic missiles, then follows ownership through Rockwell, Boeing, Pratt & Whitney, Aerojet and L3Harris. That account of repeated ownership changes and a thinner record of new engine development is the article’s historical framing, not an independent industry census. Stephen Clark’s Ars Technica report
Clark reports that after the Cold War, Rocketdyne developed and qualified only one large engine design from scratch: the RS-68, which retired from service in 2024. The article counts at least nine medium-to-large liquid-fueled U.S. engines in production or advanced development and says only one came from the former Rocketdyne enterprise. Those are the reporter’s figures and timeframe, not a government count; the RS-25 remains with L3Harris rather than the new Rocketdyne.
The competitive pressure described in the article is also about business models. SpaceX, Blue Origin and later launch companies emphasized vertical integration—designing and building their own engines rather than relying on merchant suppliers. Clark notes that ULA selected Blue Origin’s BE-4 for Vulcan, rather than buying an engine from the legacy supplier. This helps explain the challenge for a business centered on selling engines to customers, but it is an analytical explanation, not proof of a single cause for the industry’s change.
Rank #3
- INTERMEDIATE MODEL-ROCKET-BUILDING KIT: This Estes model rocket kit bulk pack offers kids ages 10+ the chance to build and blast our high-flying 1754 Wizard model rocket during holidays and special occasions. Each intermediate building kit includes the model parts, an engine mount, design decals, a recovery parachute, and instructions. Each requires rocket engines, a launch pad system, Starters, Recovery Wadding, and 4 high-quality 1.5-volt AA alkaline batteries for launch (sold separately).
- SOAR UP TO 1,600 FT.: Our spellbinding 1754 Wizard rocket model was made for wind-drift studies or flight competitions. It has a projected altitude of 1,600 ft. (488 m) on a C6-7 Estes model-rocket engine (sold separately) and is also compatible with 1/2A6-2, A8-3, A8-5, B4-4, B6-4, B6-6, or C6-5 rocket engines.
- READY TO ASSEMBLE: Rocket-building kits are creative, educational gift ideas for Christmas or special-occasion surprises! Our intermediate-level rocket-building bulk pack comes with ready-to-build rockets that each require approximately 1 hour of assembly time. Add the included decals and pair the rockets with the right engines, Porta-Pad II Launch Pad, and Electron Beam Launch Controller (sold separately) for a memorable blastoff.
- SAFETY FIRST, FUN ALWAYS: Our rockets are designed to be used with the NAR (National Association of Rocketry) model-rocket safety code. Always ensure you have an appropriate launch site, stand back at least 15 ft., insert the safety key, issue a countdown, and then you can let your rocket fly!
- ESTES EDUCATION: Estes Education provides educators with the tools for success through our interdisciplinary STEM products, accessible lessons, and online resources. Our mission is to cultivate the skills and confidence necessary to easily implement science and rocketry in classrooms, youth programs, and beyond.
What the deal’s valuation does—and does not—say
The announced value and the annual-report value should not be treated as conflicting prices: L3Harris identified the January figure as total enterprise value, while its annual report gives net enterprise value. Neither figure alone shows what AE Industrial paid in cash or how value is allocated among the assets and retained stake.
- $845 million: total enterprise value in L3Harris’s January 2026 transaction announcement.
- $825 million: net enterprise value in L3Harris’s 2025 annual report.
- Approximately 60/40: AE Industrial’s controlling interest and L3Harris’s retained noncontrolling interest, as described in the annual report.
The same annual report’s $85 million goodwill impairment and $54 million pretax loss relate to fiscal 2025 accounting for the disposal group. They are not evidence that the acquired assets were sold for either amount, nor do they by themselves establish the business’s future performance.
What the deal means for the rocket-engine market
The transaction is a reshuffling of ownership and corporate boundaries, not a clean test of private equity versus aerospace incumbents. AE Industrial has control of an established propulsion and space-systems portfolio; L3Harris kept a substantial minority interest and the RS-25. The reporting does not provide a like-for-like current comparison of engine cost, performance or development timelines across Rocketdyne, SpaceX, Blue Origin and other suppliers, so the ownership change cannot support a ranking of their products.
Rank #4
- BEGINNER MODEL ROCKET SET: The Estes Athena model rocket gives kids ages 10+ and beginners an easy way to experience real rocket launches with no building required! This ready-to-fly model rocket kit includes a fully prepared rocket with a parachute. This rocket requires Estes rocket engines, a launch pad system, Starters, Recovery Wadding, and 4 high-quality 1.5-volt AA alkaline batteries (sold separately) for launch use.
- SOARS UP TO 1,125 FT.: Our high-flying Athena rocket features a bright 12-inch parachute for safe recovery and soars up to a projected altitude of 1,125 ft. (343 m) with a C6-7 engine (sold separately). It is also compatible with the A8-3, B4-4, B6-4, and C6-5 rocket engines.
- READY TO FLY: Rocket-building kits are creative, educational gift ideas for Christmas or special-occasion surprises! This beginner-friendly Athena rocket comes fully assembled and just takes 15 minutes of preparation time. This model pairs with the Porta Pad II Launch Pad and Electron Beam Launch Controller (sold separately) for blastoff.SAFETY FIRST, FUN ALWAYS: Our rockets are designed to be used with the NAR (National Association of Rocketry) model-rocket safety code. Always ensure you have an appropriate launch site, stand back at least 15 ft., insert the safety key, issue a countdown, and then you can let your rocket fly!
- SAFETY FIRST, FUN ALWAYS: Our rockets are designed to be used with the NAR (National Association of Rocketry) model-rocket safety code. Always ensure you have an appropriate launch site, stand back at least 15 ft., insert the safety key, issue a countdown, and then you can let your rocket fly!
- ESTES EDUCATION: Since 1958, Estes has created educational rocket kits designed for an unforgettable launch experience. As a family-owned, US-based company, we offer exciting and engaging STEM products for all interests, skills, and power levels.
AE Industrial managing partner Kirk Konert framed the acquisition as creating a “new hybrid model of agile collaboration, combining the stability and power of a national defense prime with the innovation of a specialized investor.” That is the buyer’s stated aspiration, not an independently demonstrated outcome. L3Harris chairman and CEO Christopher Kubasik said the transaction “further aligns the L3Harris portfolio with DoW core mission priorities,” the seller’s rationale for the separation.
Konert also called Rocketdyne “the birthplace of US rocket propulsion.” The name carries a long history, but the modern company is a new standalone entity with a defined set of acquired assets—not the same company that once supplied engines across much of the American launch industry.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Free tools Windows power users keep installed
One-click scans. No signup required.
