Leonardo Drs, Inc. (DRS)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$3.8B

Revenue growth

10.5%

Net income, last twelve months

$322.0M

Earnings per share

$1.19

Gross margin

24.9%

Operating margin

10.5%

Net margin

8.5%

Free cash flow

$363.0M

Return on equity

11.5%

Market value

$9.5B

Price to earnings

29.8x

Dividend yield

1.0%

Cash

$270.0M

Debt

$149.0M

Debt to equity

0.05

Shares outstanding

266.8M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the third quarter 2026 results, filed 29 October 2026.

• Revenue rose 11% year over year. Revenue was $1,066 million against $960 million; nine-month revenue was $2,825 million, up 9%.
• Diluted EPS rose 65% year over year. Diluted EPS was $0.43 against $0.26; net earnings were $115 million against $72 million, up 60%.
• Adjusted EBITDA margin expanded 180 bps. Adjusted EBITDA was $149 million, up 27%, with margin of 14.0% against 12.2%; nine-month margin was 13.5% against 11.4%.
• Growth led by three program areas. Management named tactical radars, naval power and propulsion, and space sensing progress as the main drivers of year-over-year revenue growth.
• ASC revenue rose 14%. Advanced Sensing and Computing revenue was $659 million against $580 million; operating margin 8.6% against 7.8%.
• ASC margin rose on delivery and mix. ASC segment adjusted EBITDA was $78 million, margin 11.8% against 11.0%; management attributed the margin gain to operational delivery, favorable mix and volume.
• IMS operating margin reached 15.0%. Integrated Mission Systems revenue was $428 million, up 12%; operating earnings were $64 million, up 33%, and operating margin 15.0% against 12.5%.
• Naval, radar and force protection demand. Management said customer demand was led by naval power and propulsion, tactical radars and force protection programs.
• IMS bookings balanced across two areas. IMS bookings were $622 million against $550 million and balanced across electric power and propulsion and force protection programs.
• ASC bookings on naval computing and radars. ASC bookings were $1,017 million against $757 million, supported by naval network computing and tactical radars.
• Cost of revenues rose to $803 million. Cost of revenues was $803 million against $738 million, and general and administrative expenses were $142 million against $123 million; gross profit was $263 million against $222 million.
• Execution and volume drove margin growth. Management attributed Adjusted EBITDA growth and margin expansion to rigorous program execution, favorable mix and operating leverage from greater volume.
• IMS margin rose despite research spending. IMS adjusted EBITDA and margin expanded, supported by higher volume and execution in electric power and propulsion, despite higher internal research and development spending.
• Income tax provision was lower. The income tax provision was $1 million against $15 million, and management said a lower tax rate supported growth in net earnings and EPS.

Revenue by segment

As the company reports it in the segment note of its annual report.

By business, FY2025

Company events

The newest 8-K filings of 52 held.

Every filing

The newest filings with the SEC of 141 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

431 funds held it at 30 Jun 2026: 226 added and 100 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Northrop Grumman Corp. (NOC): revenue $43.6B, market value $78.5B
• Garmin Ltd. (GRMN): revenue $7.9B, market value $52.5B
• L3Harris Technologies, Inc. (LHX): revenue $22.9B, market value $48.5B
• Teledyne Technologies Inc. (TDY): revenue $6.5B, market value $30.8B
• Nextnav Inc. (NN): revenue $4.0M, market value $2.1B

What the company does

Leonardo DRS, Inc. provides defense technology to U.S. national security customers and to allied defense forces. It designs, develops, manufactures and integrates sensing, network computing, force protection, and electric power and propulsion technologies. The company reports in two segments, Advanced Sensing and Computing ("ASC") and Integrated Mission Systems ("IMS"). In 2025 the U.S. government accounted for 80% of its revenues.

How the business is organised

The company splits its operations and reporting into two technology segments, based on the capabilities it offers customers. ASC covers sensing and network computing. IMS covers power, propulsion, force protection, and transportation and logistics systems. The filing describes the company as a mid-sized defense technology company, with products at the system, sub-system and component level. Its technologies are used across land, air, sea, space and cyber domains.

What it sells

ASC makes sensors and rugged computing products. The sensing work includes long range electro-optic/infrared sensors, signals intelligence, electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier sensing and space sensing. The network computing products handle data processing, fusion and dissemination at the tactical edge. They are used on ground platforms and on surface ships and submarines. The company's open architecture software is called SAGEcore. ASC is also combining sensing, computing and software for counter-unmanned aircraft systems, electronic warfare and networked sensing.

IMS provides power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives for the U.S. Navy and allied customers. This includes systems for the Columbia Class ballistic missile submarine. The company also has an installed base on submarines, aircraft carriers and other surface ships. Products there include motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. IMS also integrates complex systems in ground vehicles for short-range air defense, counter-unmanned aircraft systems, and vehicle survivability and protection.

Who buys from it

Revenue from the U.S. government, as a prime contractor or as a subcontractor, was 80% of the total in 2025. By branch, the Navy was 36%, the Army 36%, the Air Force 3% and other U.S. government agencies 5%. The remaining 20% came from foreign governments and from commercial sales in the U.S. and abroad. International revenue, which includes foreign military sales and direct commercial sales, was approximately 8% of revenue. No single contract was more than 10% of revenues.

How it contracts

The company was a prime contractor direct with the U.S. government for 39% of its 2025 revenue. It was a subcontractor for 61%, typically as a system provider to the platform provider. It decides between the two roles based on its competitive position, the likelihood of winning and overall profit contribution. Many programs are long-term, and the company is often the incumbent, sole or dual supplier.

Firm-fixed price contracts made up 88% of 2025 revenue and flexibly priced contracts (cost-type and time-and-materials) made up 12%. Under fixed-price contracts the company bears the risk of cost overruns. Product-related revenue was 94% of the total, and the rest came from services. For most contracts, revenue is recognised over time, based on costs incurred to date against estimated total costs. U.S. government contracts can be terminated for convenience or default and depend on Congressional appropriations.

Making things and competing

The company's manufacturing involves assembling purchased components and subsystems and testing them at various stages. Several suppliers are the sole source of certain components, and the company has seen delays from supply shortages, including germanium. It funds its own independent research and development and also does customer-funded research. It opened a 140,000 square foot naval power and propulsion manufacturing and testing facility in South Carolina to add capacity for U.S. Navy submarine and shipbuilding programs. It competes with divisions of large defense primes, mid-tier and smaller defense companies and some non-traditional companies, and several competitors are substantially larger. Customers weigh performance, cost, delivery schedule, embedded positions, past performance and reputation.

People and ownership

About 500 of the roughly 7,300 employees, or 7%, are represented by labor unions. Some employees hold security clearances that allow work on classified programs. The company's immediate majority stockholder is US Holding, and its indirect majority stockholder is Leonardo S.p.A. An amended and restated proxy agreement with the DoW limits their rights as foreign owners and requires an independent Board of Directors. The company also holds an approximately 25% interest in Hoverfly Technologies, Inc., which makes power-tethered unmanned aerial systems.

*From Leonardo DRS's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1833756/000183375626000013/drs-20251231.htm)*

From the company's 10-K.