Leonardo DRS (DRS)
Market Price (4/23/2026): $42.13 | Market Cap: $11.2 BilSector: Industrials | Industry: Aerospace & Defense
Leonardo DRS (DRS)
Market Price (4/23/2026): $42.13Market Cap: $11.2 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% Low stock price volatilityVol 12M is 40% Megatrend and thematic driversMegatrends include Cybersecurity, Autonomous Technologies, and Advanced Aviation & Space. Themes include Software Security, Show more. | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 33x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 31x Key risksDRS key risks include [1] the potential termination of classified U.S. Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% |
| Low stock price volatilityVol 12M is 40% |
| Megatrend and thematic driversMegatrends include Cybersecurity, Autonomous Technologies, and Advanced Aviation & Space. Themes include Software Security, Show more. |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 33x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 31x |
| Key risksDRS key risks include [1] the potential termination of classified U.S. Show more. |
Qualitative Assessment
AI Analysis | Feedback
Leonardo DRS (DRS) stock has gained about 25% since 12/31/2025 because of the following key factors:
1. Strong Q4 2025 Earnings Beat and Bullish 2026 Guidance Fueled Investor Confidence.
Leonardo DRS reported its fourth-quarter 2025 earnings on February 24, 2026, significantly surpassing analyst expectations with an adjusted EPS of $0.42, beating the consensus estimate of $0.37 by $0.05. Quarterly revenue also rose 8.1% year-over-year to $1.06 billion, exceeding analysts' projections of $994.79 million. Accompanying these strong results, the company provided an optimistic outlook for 2026, forecasting total revenue between $3.85 billion and $3.95 billion, implying 6% to 8% organic growth, and anticipating adjusted EBITDA between $505 million and $525 million with 70 to 90 basis points of margin expansion.
2. Major Contract Wins Secured Substantial Future Revenue and Enhanced Market Position.
Leonardo DRS secured several high-value contracts during the period. Notably, in February 2026, the company was awarded multiple contracts under the Missile Defense Agency's (MDA) Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) indefinite-delivery/indefinite-quantity (IDIQ) contract, which has a ceiling of $151 billion. In March 2026, Leonardo DRS was selected for the Advanced Technology Support Program V (ATSP5), a multiple-award IDIQ contract with a potential value exceeding $25 billion over ten years, allowing them to compete for future task orders for next-generation electronic systems. Additionally, in March 2026, DRS Systems secured a $533.29 million IDIQ contract to produce and deliver infrared countermeasure assemblies for Navy and Army programs.
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1. Strong Q4 2025 Earnings Beat and Bullish 2026 Guidance Fueled Investor Confidence.
Leonardo DRS reported its fourth-quarter 2025 earnings on February 24, 2026, significantly surpassing analyst expectations with an adjusted EPS of $0.42, beating the consensus estimate of $0.37 by $0.05. Quarterly revenue also rose 8.1% year-over-year to $1.06 billion, exceeding analysts' projections of $994.79 million. Accompanying these strong results, the company provided an optimistic outlook for 2026, forecasting total revenue between $3.85 billion and $3.95 billion, implying 6% to 8% organic growth, and anticipating adjusted EBITDA between $505 million and $525 million with 70 to 90 basis points of margin expansion.
2. Major Contract Wins Secured Substantial Future Revenue and Enhanced Market Position.
Leonardo DRS secured several high-value contracts during the period. Notably, in February 2026, the company was awarded multiple contracts under the Missile Defense Agency's (MDA) Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) indefinite-delivery/indefinite-quantity (IDIQ) contract, which has a ceiling of $151 billion. In March 2026, Leonardo DRS was selected for the Advanced Technology Support Program V (ATSP5), a multiple-award IDIQ contract with a potential value exceeding $25 billion over ten years, allowing them to compete for future task orders for next-generation electronic systems. Additionally, in March 2026, DRS Systems secured a $533.29 million IDIQ contract to produce and deliver infrared countermeasure assemblies for Navy and Army programs.
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Stock Movement Drivers
Fundamental Drivers
The 23.6% change in DRS stock from 12/31/2025 to 4/22/2026 was primarily driven by a 17.7% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 34.03 | 42.07 | 23.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,569 | 3,648 | 2.2% |
| Net Income Margin (%) | 7.4% | 7.6% | 2.6% |
| P/E Multiple | 34.2 | 40.2 | 17.7% |
| Shares Outstanding (Mil) | 266 | 266 | 0.1% |
| Cumulative Contribution | 23.6% |
Market Drivers
12/31/2025 to 4/22/2026| Return | Correlation | |
|---|---|---|
| DRS | 23.6% | |
| Market (SPY) | -5.4% | 34.7% |
| Sector (XLI) | 10.3% | 46.4% |
Fundamental Drivers
The -6.9% change in DRS stock from 9/30/2025 to 4/22/2026 was primarily driven by a -16.4% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 45.19 | 42.07 | -6.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,421 | 3,648 | 6.6% |
| Net Income Margin (%) | 7.3% | 7.6% | 4.3% |
| P/E Multiple | 48.1 | 40.2 | -16.4% |
| Shares Outstanding (Mil) | 266 | 266 | 0.1% |
| Cumulative Contribution | -6.9% |
Market Drivers
9/30/2025 to 4/22/2026| Return | Correlation | |
|---|---|---|
| DRS | -6.9% | |
| Market (SPY) | -2.9% | 35.5% |
| Sector (XLI) | 11.3% | 49.2% |
Fundamental Drivers
The 29.1% change in DRS stock from 3/31/2025 to 4/22/2026 was primarily driven by a 15.7% change in the company's Net Income Margin (%).| (LTM values as of) | 3312025 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 32.59 | 42.07 | 29.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,234 | 3,648 | 12.8% |
| Net Income Margin (%) | 6.6% | 7.6% | 15.7% |
| P/E Multiple | 40.5 | 40.2 | -0.7% |
| Shares Outstanding (Mil) | 265 | 266 | -0.4% |
| Cumulative Contribution | 29.1% |
Market Drivers
3/31/2025 to 4/22/2026| Return | Correlation | |
|---|---|---|
| DRS | 29.1% | |
| Market (SPY) | 16.3% | 41.3% |
| Sector (XLI) | 31.9% | 50.5% |
Fundamental Drivers
The 228.2% change in DRS stock from 3/31/2023 to 4/22/2026 was primarily driven by a 452.8% change in the company's P/E Multiple.| (LTM values as of) | 3312023 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 12.82 | 42.07 | 228.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,693 | 3,648 | 35.5% |
| Net Income Margin (%) | 15.0% | 7.6% | -49.3% |
| P/E Multiple | 7.3 | 40.2 | 452.8% |
| Shares Outstanding (Mil) | 230 | 266 | -13.5% |
| Cumulative Contribution | 228.2% |
Market Drivers
3/31/2023 to 4/22/2026| Return | Correlation | |
|---|---|---|
| DRS | 228.2% | |
| Market (SPY) | 63.3% | 40.6% |
| Sector (XLI) | 76.3% | 47.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| DRS Return | - | 16% | 57% | 61% | 7% | 27% | 298% |
| Peers Return | 25% | 22% | -0% | 4% | 48% | 7% | 152% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 3% | 88% |
Monthly Win Rates [3] | |||||||
| DRS Win Rate | - | 50% | 58% | 58% | 58% | 75% | |
| Peers Win Rate | 60% | 53% | 47% | 57% | 68% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| DRS Max Drawdown | - | -12% | -9% | -7% | -11% | 0% | |
| Peers Max Drawdown | -7% | -3% | -21% | -9% | -8% | -0% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: LHX, RTX, GD, NOC, HII.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 4/22/2026 (YTD)
How Low Can It Go
| Event | DRS | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -14.6% | -25.4% |
| % Gain to Breakeven | 17.2% | 34.1% |
| Time to Breakeven | 8 days | 464 days |
Compare to LHX, RTX, GD, NOC, HII
In The Past
Leonardo DRS's stock fell -14.6% during the 2022 Inflation Shock from a high on 2/13/2023. A -14.6% loss requires a 17.2% gain to breakeven.
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About Leonardo DRS (DRS)
DRS is a leading provider of defense products and technologies that are used across land, air, sea, space and cyber domains. Our diverse array of defense systems and solutions is offered to all branches of the U.S. military, major aerospace and defense prime contractors, government intelligence agencies and international military customers for deployment on a wide range of military platforms. We focus our capabilities in areas of critical importance to the U.S. military, such as sensing, electronic warfare (“EW”), cyber security, network computing, communications, force protection and electrical power conversion and propulsion. As a mid-tier defense company with a portfolio that includes internally developed proprietary intellectual property (“IP”) and offerings at the component, sub-system and system level, we are able to serve as either prime contractor or a sub-contractor on key contracts, affording us flexibility in how we approach the market. Our alignment with the nation’s top defense priorities has allowed us to achieve a 12% compounded annual growth rate (“CAGR”) in revenues from the year ended December 31, 2016 through the year ended December 31, 2020. This growth, which exceeded the DoD budget CAGR of 5.3% during such period and drove our annual revenue to approximately $2.8 billion for the year ended December 31, 2020, was driven by organic growth. During the same period, our net earnings (loss) improved by $247 million to $85 million, our operating earnings grew $178 million to$181 million and our Adjusted EBITDA grew $117 million to $268 million (CAGR of 16%). Adjusted EBITDA is a non-GAAP measure. We have a 50-year legacy of designing and manufacturing innovative and differentiated products and solutions for military applications. From our earliest sonar systems that were instrumental in detecting enemy submarines, to today’s best-in-class electro-optical sensors, we have continually developed advanced technologies to address complex military challenges. Throughout much of our history, we have targeted our investments towards the highest growth areas of the DoD defense budgets. Today, we employ approximately 6,500 people including a substantial number of highly trained engineers and personnel with security clearances to support classified programs for the U.S military. We focus on products, systems and solutions that can be adapted for installation on a wide range of military platforms. This allows us to leverage our technology investments to expand revenue opportunities. Our high-technology solutions are designed to transition from one military platform to another. In addition, we have a significant installed base of products and solutions, which allows us to enhance revenue opportunities by providing upgrades to existing platforms. This gives us a resilient position to offer new solutions and technology in changing budget environments. Our growth has been facilitated by our longstanding relationships and position as a trusted partner with the U.S. military, intelligence community and industry customers. Together, these characteristics allow us to pivot quickly to address emerging needs for our customers and generate growth opportunities in today’s dynamic defense market. We operate in three segments: Advanced Sensor Technologies, Network Computing & Communications and Integrated Mission Systems. We have achieved significant growth over the past five years by aligning our investments and technology development to address the greatest threats to U.S. defense interests. Advanced Sensor Technologies: Our Advanced Sensor Technologies segment provides world-class electro-optical sensor technologies, laser systems, EW systems and intelligence and surveillance solutions to U.S. military and intelligence community customers. We are a leading provider of ground vehicle targeting and surveillance sensors, including electro-optical and advanced detection systems. We are also a leading provider of soldier sensor systems in high priority modernization areas such as infrared imaging and precision targeting systems. Our infrared focal plane array foundry is recognized as a leading provider of high performance and small sized cryogenically cooled and uncooled detector arrays. We are also a leading and world-recognized provider of signals intelligence high-performance radio frequency receivers and transceivers for U.S. and international customers. Our quantum cascade laser technology has promising military and commercial medical applications. Collectively, these sensor technologies provide our warfighters with a distinct battlefield advantage. Network Computing & Communications: Our Network Computing & Communications segment provides advanced defense electronics solutions across warfare domains. Our technologies and products are used on legacy and new military platforms, end-to-end network communication systems, network services and cyber solutions. We are a leading provider of ruggedized computing equipment, having provided advanced tactical computing units for ground combat vehicles and command post operations for more than two decades. During this period we have delivered more than 125,000 units. For the U.S. Navy and its allies, we provide naval computing infrastructure, network and data distribution, radar and rugged naval control systems, which are present on naval surface and subsurface combatant vessels. Across the full spectrum of our network computing capabilities, we have leadership positions at both the product and sub-systems levels. Our global communications network is a worldwide network of terrestrial and satellite bandwidth that ensures our customers’ data is secure and reliable. As a result of this capability, we are positioned as one of the leading providers of secured commercial satellite communications to the U.S. military. Integrated Mission Systems: Our Integrated Mission Systems segment provides critical force protection, vehicle integration, transportation and logistics and electrical conversion and ship propulsion systems to the U.S. military. Our force protection systems protect service members and military assets from evolving threats and include solutions for counter-unmanned aerial systems, short-range air defense systems and active protection systems on ground vehicles. In 2018, we were awarded the Expedited Active Protection System program by bringing the TROPHY™ Active Protection System (“APS”) to the U.S. market, making us the leading U.S. provider of active protection systems for the U.S. Army. We were also awarded the Initial Maneuver Short-Range Air Defense (“IM-SHORAD”) Mission Equipment Package Program for the U.S. Army that year, culminating an 18-month cycle from development to customer delivery. We have military transportation and logistics offerings and ground vehicle integration capabilities to support U.S. forces in a wide range of operational environments. We provide power conversion and propulsion systems for the U.S. Navy’s top priority shipbuilding programs, building on our legacy of providing power components and systems for nearly all naval combat vessels for three decades, positioning us to continue as a leading provider of electrical ship propulsion systems and components for the U.S. Navy. We are a Delaware corporation. Our principal executive offices are located at 2345 Crystal Drive Suite 1000, Arlington, Virginia.
AI Analysis | Feedback
1. L3Harris, but focused on cutting-edge military sensors, electronic warfare, and mission systems.
2. The advanced electronics and mission systems provider for defense, akin to a specialized technology division of a Raytheon or General Dynamics.
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- Electro-Optical Sensor Systems: Provides advanced electro-optical sensors for ground vehicle targeting, surveillance, soldier systems, and infrared imaging.
- Electronic Warfare (EW) Systems: Delivers systems designed to detect and counter adversary electronic capabilities across various domains.
- Laser Systems: Offers advanced laser technologies, including quantum cascade lasers, for military and commercial applications.
- Signals Intelligence (SIGINT) Receivers and Transceivers: Supplies high-performance radio frequency receivers and transceivers for intelligence and surveillance.
- Ruggedized Computing Equipment: Provides advanced tactical computing units designed for harsh military environments in ground vehicles and command posts.
- Naval Computing & Control Systems: Delivers computing infrastructure, network and data distribution, radar, and rugged control systems for naval vessels.
- Secured Satellite Communications: Offers a global network of terrestrial and satellite bandwidth for secure commercial satellite communications to the U.S. military.
- Active Protection Systems (APS): Provides ground vehicle protection systems, such as TROPHY™ APS, against evolving threats.
- Short-Range Air Defense (SHORAD) Systems: Delivers mission equipment packages, like IM-SHORAD, to defend against aerial threats.
- Counter-Unmanned Aerial Systems (C-UAS): Offers solutions for detecting and mitigating threats posed by unmanned aerial systems.
- Electrical Power Conversion & Ship Propulsion Systems: Supplies critical power components and propulsion systems for U.S. Navy shipbuilding programs.
- Military Transportation & Logistics Solutions: Provides offerings and ground vehicle integration capabilities to support U.S. forces in various operational environments.
AI Analysis | Feedback
Leonardo DRS (DRS) serves a diverse customer base primarily within the defense sector. Its major customers include:
- U.S. Military: All branches of the U.S. military, including the Army and Navy, are significant customers. DRS is a leading provider for specific programs such as the Expedited Active Protection System (TROPHY™ APS) for the U.S. Army, the Initial Maneuver Short-Range Air Defense (IM-SHORAD) Mission Equipment Package Program for the U.S. Army, and power conversion and propulsion systems for the U.S. Navy.
- U.S. Government Intelligence Agencies: These agencies utilize DRS's intelligence and surveillance solutions, including advanced sensor technologies.
- International Military Customers: DRS supplies defense systems and solutions to military customers in various international countries.
- Major Aerospace and Defense Prime Contractors: DRS acts as both a prime contractor and a sub-contractor, supplying its products and solutions to other large defense companies for integration into broader military platforms. The company description does not specify the names of these individual prime contractors.
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John Baylouny President and Chief Executive Officer
John Baylouny assumed the role of President and Chief Executive Officer of Leonardo DRS on January 1, 2026. He brings over 35 years of experience in the aerospace and defense industry, having held various leadership positions within Leonardo DRS and its predecessor, DRS Technologies. His previous roles include Chief Operating Officer since 2018, Corporate Chief Technology Officer, and General Manager of the Land Systems business unit and the Advanced ISR business unit. Baylouny's extensive career at Leonardo DRS has involved direct P&L and operational responsibility, general management, product development, program management, and product design across the company's portfolio. Prior to his long tenure at DRS, he also served as Senior Vice President-Engineering at Ocean Power Technologies, Inc. from 2005 to 2007.
Michael Dippold Executive Vice President, Chief Financial Officer
Michael Dippold was appointed Executive Vice President and Chief Financial Officer for Leonardo DRS on January 1, 2017. He is responsible for the company's financial activities and operations, SEC reporting, tax and treasury functions, and economic and business strategies. Dippold has over 20 years of finance experience. Before joining DRS, he spent four years at KPMG, primarily working on Defense Industry client accounts, including DRS Technologies, where he assisted with acquisitions and the implementation of Sarbanes Oxley. He then joined DRS, holding roles of increasing responsibility, including Senior Vice President, Corporate Controller, and played a significant part in complex transactions such as the RADA merger, which facilitated Leonardo DRS's return to the public markets.
Mark A. Dorfman Executive Vice President, General Counsel and Secretary
Mark A. Dorfman serves as the Executive Vice President, General Counsel, and Secretary for Leonardo DRS. He has held the position of General Counsel since August 2005 and Corporate Secretary since December 2009.
Tami E. Gesiskie Senior Vice President, Human Resources
Tami E. Gesiskie is the Senior Vice President of Human Resources at Leonardo DRS. She has held a Human Resources Officer role with the company since December 1992.
Dr. Philip Perconti Corporate Chief Technology Officer
Dr. Philip Perconti holds the position of Corporate Chief Technology Officer at Leonardo DRS. He was appointed to a Chief Tech/Sci/R&D Officer role in December 2021.
AI Analysis | Feedback
The key risks to Leonardo DRS's business are:1. Dependence on U.S. Government Defense Spending and Contracts
Leonardo DRS's business is heavily reliant on contracts with the U.S. military, intelligence community, and major aerospace and defense prime contractors. Approximately 80% of its 2025 revenue was derived directly or indirectly from U.S. government contracts, primarily with the Department of Defense. This makes the company highly susceptible to fluctuations in federal defense budgets, changes in spending priorities, government shutdowns, or the inability to secure and retain key contracts. A reduction in defense spending or a shift in focus away from areas where DRS has significant capabilities could materially and adversely affect its financial performance.2. Technological Obsolescence and Intense Competition
Operating in the defense technology sector, Leonardo DRS faces a constant need to innovate and adapt to rapid technological advancements and evolving threats. The company emphasizes its advanced sensor technologies, electronic warfare systems, and network computing solutions. However, failure to keep pace with new technologies or to successfully develop and integrate next-generation solutions could lead to technological obsolescence. Furthermore, as a "mid-tier" defense company, it operates in a highly competitive landscape against larger prime contractors and other specialized firms, requiring continuous investment in research and development to maintain its competitive edge and secure new contracts.3. Supply Chain Disruptions and Cost Overruns on Fixed-Price Contracts
Leonardo DRS's business is exposed to risks related to its supply chain, including potential shortages of materials and components. The company has previously experienced issues such as constraints in Germanium supply, which necessitated finding alternative, higher-cost sources. Additionally, a significant portion of its revenue is derived from fixed-price contracts, which expose the company to the risk of cost overruns and inflationary pressures. If actual costs exceed estimates on these contracts, especially on long and complex programs, the company's profitability could be negatively impacted.AI Analysis | Feedback
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Leonardo DRS operates in several defense technology markets. The addressable market sizes for its main products and services are detailed below:
Advanced Sensor Technologies
- Military Electro-Optical and Infrared (EO/IR) Systems: The global market size for military electro-optical and infrared systems was valued at approximately USD 17.04 billion in 2025 and is projected to reach USD 28.98 billion by 2034. North America held a significant share of 36.8% in 2025. The U.S. Military Electro-Optical and Infrared Systems Market alone is valued at USD 2.69 billion in 2025 and is expected to grow to USD 3.98 billion by 2035.
- Infrared Imaging: The global infrared imaging market was valued at USD 7.8 billion in 2025 and is projected to reach USD 12.3 billion by 2034. North America dominated this market in 2025. Specifically for defense, the U.S. Thermal Imaging for Defense Market size was USD 3.15 billion in 2025 and is expected to reach USD 4.70 billion by 2035.
- Military Laser Systems: The global military laser systems market was valued at USD 6.52 billion in 2024 and is estimated to reach USD 12.47 billion by 2033. Another estimate places the global market at USD 5.7 billion in 2024, growing to USD 14 billion by 2034. North America held the largest share, accounting for 37.8% in 2024.
- Intelligence, Surveillance, and Reconnaissance (ISR): The global ISR market was valued at approximately USD 41.6 billion in 2024 and is projected to reach USD 57 billion by 2030. Other reports indicate a market size of USD 42 billion in 2024, expected to reach USD 71.2 billion by 2034. North America dominated this market and is expected to reach over USD 26.5 billion by 2034.
- Signals Intelligence (SIGINT): The global signals intelligence market was estimated at USD 18.51 billion in 2025 and is projected to reach USD 28.51 billion by 2033. Another estimate values the global market at USD 30.4 billion in 2025, with a projection to reach USD 60.9 billion by 2035. North America held the largest revenue share of 36.4% in 2025, and valued at USD 7.54 billion in 2024.
- Quantum Cascade Lasers: The global market for quantum cascade lasers is projected to grow from USD 441.9 million in 2025 to USD 673.3 million by 2035. North America dominated this market with a 35% share in 2023, and the military and defense segment accounted for over 30% of the market in 2023.
Network Computing & Communications
- Ruggedized Military Computing: The global rugged military computers market was valued at USD 4.84 billion in 2024 and is anticipated to grow to USD 6.95 billion by 2030. The U.S. military computers market alone was estimated at USD 3.0 billion in 2024.
- Rugged Servers: The global rugged servers market size was USD 550 million in 2023 and is projected to reach USD 1 billion by 2032. The military and defense segment accounted for over 25% of this market in 2023. Another report estimates the global market at USD 713.2 million in 2025, projected to reach USD 1,244.9 million by 2033. North America held a 38.9% revenue share in the global rugged servers market in 2025.
- Military Satellite Communications: The global military communications market was valued at USD 38.85 billion in 2024 and is expected to reach USD 54.35 billion by 2033. Military SATCOM systems were the highest contributor to this market. The global military satellite market was valued at USD 30.3 billion in 2023 and is projected to reach USD 73.3 billion by 2032. North America dominated the military satellite market with a 38.00% share in 2025. The global commercial and military satellite communications market was valued at USD 49.91 billion in 2024 and is projected to reach USD 66.57 billion by 2033.
Integrated Mission Systems
- Active Protection Systems (APS): The global active protection system market grew from USD 5.21 billion in 2025 to USD 5.65 billion in 2026, with projections to reach USD 9.29 billion by 2032. North America dominated this market with a 34.44% share in 2025. Another source values the global market at USD 3.76 billion in 2024, expected to reach USD 6.70 billion by 2032.
- Short-Range Air Defense (SHORAD) Systems: The global short-range air defense systems market was valued at $12.4 billion in 2021 and is projected to reach $21.1 billion by 2031. Other reports state the global market was around USD 18 billion in 2024, projected to reach USD 26 billion by 2030. North America leads this market, holding approximately a 30% market share and valuing at USD 4.0 billion in 2023, projected to rise to USD 6.0 billion by 2032.
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Here are the 3 expected drivers of future revenue growth for Leonardo DRS (DRS) over the next 2-3 years: 1. Robust Backlog and Sustained Customer Demand Across Core Defense Programs: Leonardo DRS's significant backlog provides multi-year revenue visibility, fueled by consistent customer demand in critical defense areas such as sensors, computing, and naval power systems. The company achieved a book-to-bill ratio of 1.2x or better for the fourth consecutive year, pushing its year-end backlog to $8.7 billion, and demand for electric power and propulsion, advanced infrared sensing, counter-UAS, naval network computing, and tactical radar technologies was particularly strong in 2025. 2. Strategic Investments in Research & Development and Capacity Expansion: Leonardo DRS is aggressively investing in its future capabilities. Internal research and development spending increased by over 40% in 2025, with plans to maintain a similar percentage of sales in 2026. Capital expenditures also rose by more than 60% in 2025, targeting capacity expansion in areas like Charleston naval power, tactical radar, and infrared production, indicating a focus on high-growth markets such as airborne, missiles, space, and unmanned systems. 3. Alignment with National Defense Priorities and Advanced Technology Solutions: The company's portfolio is well-aligned with key U.S. national defense priorities, including shipbuilding, layered strategic air and missile defense, counter-unmanned aerial systems (UAS), unmanned systems, electronic warfare, and missiles and munitions. Furthermore, Leonardo DRS is advancing its technological offerings with new software and hardware launches, such as SAGEcore (integrated AI, sensing, and edge computing) and THOR (multifunction network computing), which aim to enable next-generation command and control across various domains.AI Analysis | Feedback
Share Repurchases
- Leonardo DRS announced an equity buyback plan on February 20, 2025.
- From October 1, 2025, to December 31, 2025, the company repurchased 292,564 shares for $11 million.
- Under the buyback plan announced on February 20, 2025, the company completed the repurchase of 893,292 shares for $35.05 million. In 2025, the company repurchased $35 million of its own shares.
Share Issuance
- Leonardo DRS's shares outstanding for the quarter ending September 30, 2025, were 0.268 billion, a 0.04% increase year-over-year.
- In 2024, shares outstanding were 0.268 billion, marking a 1.32% increase from 2023.
- Shares outstanding in 2023 were 0.264 billion, representing a 22.88% increase from 2022.
Outbound Investments
- In 2025, Leonardo DRS invested $15 million to increase its ownership stake in Hoverfly, a company specializing in power-tethered unmanned aerial systems.
Capital Expenditures
- Capital expenditures increased by over 60% in 2025.
- The company opened a 140,000 square foot naval power and propulsion manufacturing and testing facility in South Carolina, intended to increase capacity for U.S. Navy submarine and shipbuilding programs. This expansion was supported by an additional $45 million in funding for a 40,000 square foot capacity increase.
- In the first quarter of 2025, capital expenditures amounted to $32 million.
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| 03312026 | NSP | Insperity | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 03312026 | TNC | Tennant | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 03272026 | ADP | Automatic Data Processing | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 1.0% | 1.0% | 0.0% |
| 03272026 | HURN | Huron Consulting | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.0% | 4.0% | 0.0% |
| 03272026 | TRU | TransUnion | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 5.2% | 5.2% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 326.20 |
| Mkt Cap | 72.9 |
| Rev LTM | 32,116 |
| Op Inc LTM | 3,423 |
| FCF LTM | 2,994 |
| FCF 3Y Avg | 2,283 |
| CFO LTM | 3,886 |
| CFO 3Y Avg | 3,304 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.2% |
| Rev Chg 3Y Avg | 9.2% |
| Rev Chg Q | 7.9% |
| QoQ Delta Rev Chg LTM | 2.0% |
| Op Inc Chg LTM | 20.0% |
| Op Inc Chg 3Y Avg | 10.1% |
| Op Mgn LTM | 10.0% |
| Op Mgn 3Y Avg | 9.0% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 10.5% |
| CFO/Rev 3Y Avg | 9.8% |
| FCF/Rev LTM | 7.7% |
| FCF/Rev 3Y Avg | 6.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 72.9 |
| P/S | 2.3 |
| P/Op Inc | 24.2 |
| P/EBIT | 19.2 |
| P/E | 28.7 |
| P/CFO | 19.0 |
| Total Yield | 4.9% |
| Dividend Yield | 1.3% |
| FCF Yield 3Y Avg | 3.9% |
| D/E | 0.2 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -7.2% |
| 3M Rtn | -9.5% |
| 6M Rtn | 4.1% |
| 12M Rtn | 43.0% |
| 3Y Rtn | 81.1% |
| 1M Excs Rtn | -15.7% |
| 3M Excs Rtn | -13.3% |
| 6M Excs Rtn | 3.7% |
| 12M Excs Rtn | -4.1% |
| 3Y Excs Rtn | 7.7% |
Price Behavior
Price Behavior
| Market Price | $42.07 | |
| Market Cap ($ Bil) | 11.2 | |
| First Trading Date | 11/29/2022 | |
| Distance from 52W High | -12.6% | |
| 50 Days | 200 Days | |
| DMA Price | $44.23 | $40.99 |
| DMA Trend | indeterminate | up |
| Distance from DMA | -4.9% | 2.6% |
| 3M | 1YR | |
| Volatility | 51.2% | 39.6% |
| Downside Capture | 0.84 | 0.70 |
| Upside Capture | 320.61 | 131.75 |
| Correlation (SPY) | 27.1% | 28.9% |
DRS Betas & Captures as of 3/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.89 | 1.40 | 1.39 | 1.22 | 0.90 | 1.03 |
| Up Beta | -2.84 | 0.28 | 0.46 | 1.09 | 0.77 | 0.87 |
| Down Beta | -0.79 | -0.62 | 0.16 | 0.56 | 0.71 | 0.76 |
| Up Capture | 391% | 397% | 424% | 193% | 151% | 316% |
| Bmk +ve Days | 7 | 16 | 27 | 65 | 139 | 424 |
| Stock +ve Days | 11 | 21 | 33 | 61 | 130 | 410 |
| Down Capture | 89% | 131% | 103% | 131% | 106% | 103% |
| Bmk -ve Days | 12 | 23 | 33 | 58 | 110 | 323 |
| Stock -ve Days | 10 | 20 | 29 | 64 | 121 | 331 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DRS | |
|---|---|---|---|---|
| DRS | 22.7% | 39.5% | 0.61 | - |
| Sector ETF (XLI) | 41.3% | 15.2% | 2.06 | 42.7% |
| Equity (SPY) | 26.7% | 12.5% | 1.77 | 29.6% |
| Gold (GLD) | 38.9% | 27.4% | 1.19 | 10.2% |
| Commodities (DBC) | 23.5% | 16.2% | 1.32 | 17.3% |
| Real Estate (VNQ) | 15.6% | 13.6% | 0.82 | 19.4% |
| Bitcoin (BTCUSD) | -12.8% | 42.6% | -0.21 | 25.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DRS | |
|---|---|---|---|---|
| DRS | 31.1% | 38.5% | 1.13 | - |
| Sector ETF (XLI) | 12.8% | 17.3% | 0.58 | 43.9% |
| Equity (SPY) | 10.5% | 17.1% | 0.48 | 36.7% |
| Gold (GLD) | 21.5% | 17.8% | 0.99 | 8.5% |
| Commodities (DBC) | 10.7% | 18.8% | 0.47 | 16.0% |
| Real Estate (VNQ) | 3.6% | 18.8% | 0.09 | 28.2% |
| Bitcoin (BTCUSD) | 3.8% | 56.4% | 0.29 | 19.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DRS | |
|---|---|---|---|---|
| DRS | 14.5% | 38.5% | 1.13 | - |
| Sector ETF (XLI) | 13.8% | 19.9% | 0.61 | 43.9% |
| Equity (SPY) | 13.8% | 17.9% | 0.66 | 36.7% |
| Gold (GLD) | 13.9% | 15.9% | 0.73 | 8.5% |
| Commodities (DBC) | 8.1% | 17.6% | 0.38 | 16.0% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.23 | 28.2% |
| Bitcoin (BTCUSD) | 68.1% | 66.9% | 1.07 | 19.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/24/2026 | 14.9% | 19.3% | 15.7% |
| 10/29/2025 | -4.4% | -10.0% | -15.9% |
| 7/30/2025 | -10.3% | -13.9% | -12.6% |
| 5/1/2025 | 8.8% | 12.4% | 14.7% |
| 2/20/2025 | 5.6% | 1.2% | 14.4% |
| 10/30/2024 | 11.4% | 16.3% | 22.0% |
| 7/30/2024 | -0.7% | -7.4% | -2.2% |
| 2/27/2024 | 8.7% | 9.2% | 3.6% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 6 | 7 | 6 |
| # Negative | 5 | 4 | 5 |
| Median Positive | 8.8% | 9.2% | 15.2% |
| Median Negative | -1.0% | -8.7% | -2.8% |
| Max Positive | 14.9% | 19.3% | 22.0% |
| Max Negative | -10.3% | -13.9% | -15.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 03/03/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 05/01/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/02/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 03/28/2023 | 10-K |
| 09/30/2022 | 11/07/2022 | 10-Q |
| 06/30/2022 | 08/15/2022 | 10-Q |
| 03/31/2022 | 05/16/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q4 2025 Earnings Reported 2/24/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 3.85 Bil | 3.90 Bil | 3.95 Bil | 9.1% | Higher New | Actual: 3.58 Bil for 2025 | |
| 2026 Adjusted EBITDA | 505.00 Mil | 515.00 Mil | 525.00 Mil | 15.7% | Higher New | Actual: 445.00 Mil for 2025 | |
| 2026 Tax Rate | 18.5% | 2.8% | 0.5% | Higher New | Actual: 18.0% for 2025 | ||
| 2026 Diluted WASO | 269.00 Mil | 0 | Same New | Actual: 269.00 Mil for 2025 | |||
| 2026 Adjusted Diluted EPS | 1.2 | 1.23 | 1.26 | 12.3% | Higher New | Actual: 1.09 for 2025 | |
Prior: Q3 2025 Earnings Reported 10/29/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Revenue | 3.55 Bil | 3.58 Bil | 3.60 Bil | 0.4% | Raised | Guidance: 3.56 Bil for 2025 | |
| 2025 Adjusted EBITDA | 437.00 Mil | 445.00 Mil | 453.00 Mil | 0 | Affirmed | Guidance: 445.00 Mil for 2025 | |
| 2025 Tax Rate | 18.0% | -5.3% | Lowered | Guidance: 19.0% for 2025 | |||
| 2025 Diluted WASO | 269.00 Mil | 0 | Affirmed | Guidance: 269.00 Mil for 2025 | |||
| 2025 Adjusted Diluted EPS | 1.07 | 1.09 | 1.12 | 0.9% | Raised | Guidance: 1.08 for 2025 | |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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