Leonardo DRS, Inc. Common Stock

Leonardo DRS, Inc. has announced a series of defense contract wins in recent weeks, including a deal with Doosan Enerbility to supply integrated electric propulsion systems for the Republic of Korea Navy's KDDX destroyer program. The company also booked US$96.00 million in MK 41 Vertical Launching System electronics awards and a US$39.60 million Joint Tactical Terminal Transceiver contract for the EA-18G Growler. Together, the naval propulsion, missile-launch electronics and resilient communications awards highlight Leonardo DRS's expanding role in next-generation, networked military platforms across air and sea domains. The company has upgraded its 2026 revenue guidance and reported improving margins, though the dollar value of these wins looks incremental relative to its multibillion revenue base. Five Simply Wall St Community fair value estimates for DRS span roughly US$31.62 to US$59.

Leonardo DRS announced September 17 that it signed a contract with Doosan Enerbility to supply electric propulsion for South Korea's KDDX destroyer program, covering propulsion motors and the electronic drives that control them. The broader KDDX program is expected to include at least six destroyers, but the announcement does not establish funded orders covering all six ships, and no contract value, delivery timing, or expected profitability was disclosed. Leonardo DRS says its hybrid electric drive systems have been provided for 20 Korean frigates across the FFX Batch II, III and IV programs, an existing relationship the company cites as strengthening its commercial case. The award fits an area already contributing to growth: Leonardo DRS reported second-quarter revenue of $913 million, up 10% year over year, with electric power and propulsion among the growth drivers, and funded backlog reached approximately $5.1 billion at June 30, up 17%, figures that predate the September announcement. Insider Monkey's database showed 32 hedge funds holding Leonardo DRS at the end of 2Q2026, up from 28 funds three months earlier.

Leonardo DRS raised its full-year adjusted EBITDA and earnings guidance after reporting second-quarter revenue of $913 million, up 10% year over year, and adjusted EBITDA of $128 million, a 33% increase. The company now expects full-year adjusted EBITDA between $525 million and $540 million, up from a prior range of $515 million to $530 million, and adjusted diluted EPS of $1.34 to $1.39 per share, compared with the previous $1.26 to $1.30. Bookings exceeded $1 billion in the quarter, yielding a book-to-bill ratio of 1.2x and marking the 18th consecutive quarter at or above 1.0x. The company also announced a $450 million all-cash agreement to acquire Raft LLC, expanding its multi-domain AI, data fusion, and mission software capabilities. Full-year revenue guidance was maintained at $3.9 billion to $3.975 billion, implying 7% to 9% organic growth.

Leonardo DRS has signed a contract to supply more than 50,000 Tenum Orbit thermal imaging cameras under a blanket purchase agreement. The deal marks a major production milestone and reflects growing demand for compact, high-performance thermal imaging systems used in applications including unmanned systems and other rapidly evolving platforms. Jerry Hathaway, senior vice president and general manager of the company's EO/IS business unit, said the agreement demonstrates the strength of its thermal imaging technology and readiness to deliver at scale. The Tenum Orbit module is designed for high-volume production across multiple end uses, including drones, and is backed by investments in factory infrastructure to support annual production in the hundreds of thousands of units.

Leonardo DRS reported first-quarter revenues of $846 million, up 5.9% year on year and beating analyst estimates by 3.3%, in what the company called an exceptional quarter with beats on EPS and EBITDA. Its stock has risen 17.5% since the report, trading at $47. Among the 13 defense contractors tracked, Mercury Systems posted the biggest beat with revenues of $235.8 million, up 11.5% year on year and 14.2% above estimates, sending its shares up 38.8% to $115.11. Lockheed Martin had the weakest quarter, with flat revenues of $18.02 billion missing estimates by 0.9% and a significant miss on adjusted operating income and EPS, causing its stock to fall 8% to $511.04. Parsons reported revenues of $1.49 billion, down 4.1% year on year and slightly below estimates, while Kratos posted revenues of $371 million, up 22.6% year on year and 8.1% above estimates, though its stock fell 11.9% to $54.18. Overall, the group beat revenue consensus by 3.4% but guided next-quarter revenue 2.3% below expectations, and share prices across the sector have declined an average of 4.3% since earnings.