Can L3Harris' New Rhode Island Facility Strengthen Undersea Growth?

L3Harris Technologies, Inc. LHX is expanding its maritime capabilities with a new production facility in Providence, RI, supporting growing demand for undersea training and readiness. On Aug. 12, 2026, the company announced the opening of a 50,000-square-foot facility at ProvPort following a $6 million investment. The site will design, produce and deliver advanced undersea training systems for the U.S. Navy and allied forces.

The new facility is expected to strengthen L3Harris' ability to integrate and test undersea training ranges for U.S. and partner-nation fleets. Its location also provides access to maritime infrastructure and a skilled workforce, supporting the company's ability to execute specialized naval programs. The investment expands L3Harris' physical presence in Rhode Island, where it has operated since 1991 through its Ashaway facility, which provides undersea sensor systems and military sonar for the U.S. Navy.

The ProvPort expansion also broadens L3Harris' role across the undersea defense ecosystem. The facility will support local partnerships, port operations and specialized maritime services while creating additional capacity for undersea training activities. This complements the company's existing capabilities in undersea warfare, sensors and maritime solutions.

Growing emphasis on naval readiness and undersea capabilities could support demand for specialized training systems and related technologies. L3Harris' investment in dedicated production infrastructure positions the company to support U.S. and allied fleets while strengthening its presence in the maritime defense market.

Companies Expanding Undersea Defense Capabilities

The growing focus on naval readiness is encouraging defense companies to expand technologies supporting undersea operations. Companies like RTX Corporation RTX and Northrop Grumman Corporation NOC are also developing capabilities for U.S. and allied naval missions.

RTX provides sonar, sensing and other maritime technologies that support naval platforms and undersea operations.

Northrop Grumman develops undersea systems and technologies that facilitate naval missions, including capabilities for submarine and undersea warfare applications.

Earnings Estimates for LHX

The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.04% and 15.81%, respectively.

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LHX Stock Is Trading at a Discount

LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 2.21X compared with the industry average of 2.69X.

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LHX Stock Price Performance

Over the past year, LHX shares have rallied 7.3% compared with the industry’s 6.6% growth.

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LHX’s Zacks Rank

LHX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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