Leonardo DRS, Inc.

Leonardo DRS, Inc. (DRS) Market Cap

Leonardo DRS, Inc. has a market capitalization of $12.31B.

Price: $46.15

▼ -0.56 (-1.20%)

Market Cap: 12.31B

NASDAQ · time unavailable

CEO: John A. Baylouny

Sector: Industrials

Industry: Aerospace & Defense

IPO Date: 1985-06-24

Website: https://www.leonardodrs.com

Leonardo DRS, Inc. (DRS) - Company Information

Market Cap: 12.31B|Sector: Industrials

Company Profile

Leonardo DRS, Inc., together with its subsidiaries, provides defense products and technologies in the land, air, sea, space, cyber and security, and commercial domains for military applications. It operates in two segments, Advanced Sensing and Computing, and Integrated Mission Systems. The company offers advanced sensor technologies, including infrared systems and sensors for threat detection and situational awareness; uncooled infrared systems and brownout solutions; airborne, ground vehicle mounted, and dismounted soldier electronic warfare (EW) systems; and EW software and training systems, and intelligence solutions. It also provides computing systems for ground vehicles, ships, and submarines; network and data distribution applications; sensor systems; and networked computing infrastructure on military platform. In addition, the company offers force protection systems, such as solutions for counter-unmanned aerial systems, short-range air defense systems, and active protection systems; and power control, distribution, conversion, and propulsion systems, as well as hybrid electric drive propulsion systems, energy storage, gas turbine packages, nuclear instrumentation and controls, and thermal management and refrigeration equipment. It serves the U.S. military, aerospace and defense prime contractors, government intelligence agencies, and international military customers. The company was founded in 1969 and is based in Arlington, Virginia.

Analyst Sentiment

78%
Strong Buy

From 10 Active Polls

1Y Forecast: $53.33

▲ +15.6% Potential Upside

Consensus Target Metrics

Low Bound

$47

Median

$54

High Bound

$59

Average

$53

Price & Moving Averages

Loading chart...

🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$53.33
▲ +15.56% Upside
Low Target
$47.00
2% Risk
Median Target
$54.00
17% Mid
High Target
$59.00
28% Max
Consensus
Buy
7 / 9 Buys

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

valuation & financial ratiosdetailed financials

📊 Historical Valuation Multiples

Real-time Trailing Twelve Month (TTM) momentum side-by-side with discrete quarterly metrics.

Fiscal QuarterTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Period EndingTrailing 12MMar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024
Market Cap ($M)12,31111,8119,04412,04512,3318,7238,5647,4506,649
Enterprise Value ($M)12,25411,7548,86712,20712,5258,7958,4247,7126,969
Price to Earnings Ratio (P/E)42.2247.6322.1741.8257.0943.6224.0632.6843.74
Price/Earnings-to-Growth Ratio (PEG)——2.132.6515.20—1.164.174.63
Price to Sales Ratio (P/S)3.3313.968.5312.5514.8710.928.739.178.83
Price to Book Ratio (P/B)4.424.263.314.554.743.393.353.012.76
Price to Free Cash Flow Ratio (P/FCF)40.90-123.0324.05156.42-220.20-51.3120.69158.51—
Enterprise Value to Sales (EV/Sales)—13.898.3712.7215.1111.018.599.509.25
Enterprise Value to EBITDA (EV/EBITDA)26.81116.3859.11107.08136.14107.2661.0579.5190.50
Debt to Equity Ratio-0.120.100.170.180.180.180.180.190.19

⚡ DRS Growth Runway Model

Standard long term linear growth fade

Multi-Stage Discounted Cash Flow Sandbox

Market Price$46.15
Intrinsic Value$25.11
Market Alignment
Overvalued by 45.6%relative to calculated intrinsic value
9.00%
Exp: 6%6%
i

Growth runway slowdown

This value provides a time window for the growth rate to decline beyond Stage 1 toward the terminal rate. Longer windows are most useful for companies with high growth starting conditions or strong competitive advantages. This option stretches out the growth rate slowdown across 5, 10, or 15-year steps. A high-growth starting condition (exceeding a 25% initial growth rate) automatically applies a curve decay to simulate realistic, rapid market saturation.
i

Terminal growth rate

With long-term inflation between 3-5%, revenue must grow by that baseline to maintain flat real-world market share. This value sets the permanent terminal growth rate to factor into the valuation beyond the growth slowdown runway toward maturity.

3-Stage Financial Runway Horizon

🧠 Perpetuity Horizon Engine (Stage 3: Post-2035)

Terminal FCF Base$0.47B
Perpetuity TV Value$8.87B
Discounted TV (PV)$3.75B
TV Weighting %61.0%
⚠️
Financial Model Disclaimer & Risk Disclosure: This interactive scenario simulator is an educational sandbox provided strictly for informational and analytical research purposes. Core historical financial statements and consensus estimates are sourced directly via Financial Modeling Prep (FMP). All downstream outputs are entirely deterministic, hypothetical projections generated by combining automated mathematical formulas (including linear interpolation and Gaussian bell-curve decay models) with user-selected variables and third-party financial data inputs. Users assume all liability for trading decisions executed based on these sandbox calculations.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 LEONARDO DRS INC (DRS) — Investment Overview

🧩 Business Model Overview

Leonardo DRS is a defense electronics and mission-systems provider that designs, integrates, and sustains complex platforms and subsystems across air, land, sea, space, and cyber-relevant capabilities. The value chain typically runs from systems engineering and production of electronics/sensors through integration into customer programs of record, followed by ongoing sustainment (spares, software support, upgrades, and repairs).

Customer stickiness is driven by defense procurement realities: platforms require long qualification cycles, interoperability testing, and risk-managed deployment. Once DRS equipment is fielded within a customer’s architecture and training/sustainment pipeline, switching suppliers is costly in both time and risk.

💰 Revenue Streams & Monetisation Model

Revenue is generally composed of (1) program-based production and delivery for mission systems and electronics, and (2) sustainment-related income such as software support, upgrades, service contracts, and spares. Monetisation is supported by recurring elements embedded in long-lived defense systems.

Margin drivers tend to cluster around:

  • Program mix and pricing discipline (fixed-price vs. cost-type contract structures)
  • Sustainment share (service and upgrade economics often provide durability)
  • Component and supply-chain execution in electronics and production
  • Systems integration value (engineering depth and platform integration can command better economics than commodity hardware alone)

🧠 Competitive Advantages & Market Positioning

DRS’ primary moat is high switching costs created by qualification, integration, and lifecycle sustainment requirements. Defense customers prioritize reduced deployment risk, established performance history, and interoperability. Competitors face friction entering entrenched programs where existing subsystems are already integrated into a broader command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) or effects architecture.

This moat is reinforced by intangibles: specialized engineering know-how, operational data feedback loops, and mission-specific systems expertise that translate into faster integration and improved reliability in the field.

  • Competitive benchmarking:
  • Northrop Grumman — broad prime with large-scale platforms and systems integration across air, space, and C4ISR; competes more at the level of prime integration programs.
  • L3Harris Technologies — strong presence in C4ISR and communications; competes heavily in electronics and mission systems with large installed bases.
  • Saab — expertise in sensors, electronic warfare, and air defense solutions; competes in mission system categories with differentiated sensor/EW offerings.

DRS’ positioning typically emphasizes defense electronics and mission systems capabilities where rapid integration, modular upgrades, and lifecycle sustainment matter. Compared with broader primes, DRS often competes more directly on subsystem performance, integration support, and upgrade pathways within customer architectures; compared with other mission-system specialists, it competes on engineering depth across multiple mission domains and sustainment leverage.

🚀 Multi-Year Growth Drivers

Over a 5–10 year horizon, the investment case rests on secular demand for modernization and increased electronic/space/cyber resilience. Key growth drivers include:

  • Persistent ISR and situational awareness needs: continued expansion of sensors, effectors, and data exploitation capabilities.
  • Electronic warfare and survivability: rising requirement to detect, identify, and counter advanced threats increases spend on mission electronics.
  • Upgrade cycles for legacy fleets: long service lives create a steady stream of retrofit programs and modernization upgrades rather than only new-build procurements.
  • Software-enabled mission systems: incremental enhancements to algorithms, sensor fusion, and communications resilience extend the addressable market for sustainment and updates.
  • Interoperability and networked operations: procurement standards that reward proven integration and validated performance benefit incumbents with installed-base experience.

⚠ Risk Factors to Monitor

  • Government budget and program risk: defense spending priorities can shift; contract cancellations or delays can affect revenue cadence and backlog conversion.
  • Cost and execution risk: electronics programs can be exposed to supply-chain disruptions, schedule slips, and margin pressure from contract terms.
  • Qualification and technical obsolescence: mission systems must remain interoperable and effective; technology changes can require design refreshes and sustained R&D.
  • Export controls and geopolitical constraints: compliance requirements can restrict sales channels or end-market scope.
  • Concentration and customer dependence: a relatively concentrated customer base can increase sensitivity to procurement cycles and contract award timing.

📊 Valuation & Market View

Defense electronics and mission-systems companies are typically valued through EV/EBITDA and earnings-based multiples that reflect expected margin durability, backlog quality, and sustainment economics. Market sensitivity often concentrates on:

  • Backlog quality and visibility (percentage of work expected to be executed and sustainment-linked)
  • Contract mix (degree of fixed-price exposure vs. more cost-type structures)
  • Margin stability and ability to manage supply chain and execution
  • Free cash flow conversion (working capital discipline and capex intensity)
  • Lifecycle sustainment trajectory (share of revenue linked to upgrades, services, and software support)

🔍 Investment Takeaway

Leonardo DRS offers an evergreen defense electronics thesis anchored by high switching costs and installed-base sustainment. The company is positioned to benefit from long-duration modernization of defense systems that require continued integration, upgrades, and lifecycle support—conditions that favor incumbents with proven engineering execution, qualification history, and mission-system interoperability expertise. The primary investment diligence focus should be on execution quality, margin resilience under contract structures, and the durability of sustainment-linked revenue streams.


⚠ AI-generated — informational only. Validate using filings before investing.

📰 Market News & Coverage

15 Stories Available

Real-time institutional reporting and market updates for DRS.

businesswire.com•2026-05-18

Leonardo DRS Launches Tenum® 640 Orbit™ Uncooled Thermal Drone Camera at SOF Week

ARLINGTON, Va.--(BUSINESS WIRE)--Announcement of Tenum® 640 Orbit™, an uncooled long-wave infrared (LWIR) thermal camera module for unmanned air, ground, and maritime platforms.

zacks.com•2026-05-11

Is Leonardo DRS, Inc. (DRS) Stock Outpacing Its Aerospace Peers This Year?

Here is how Leonardo DRS, Inc. (DRS) and Elbit Systems (ESLT) have performed compared to their sector so far this year.

zacks.com•2026-05-08

All You Need to Know About Leonardo DRS, Inc. (DRS) Rating Upgrade to Buy

Leonardo DRS, Inc. (DRS) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

seekingalpha.com•2026-05-05

Leonardo DRS, Inc. (DRS) Q1 2026 Earnings Call Transcript

Leonardo DRS, Inc. (DRS) Q1 2026 Earnings Call Transcript

zacks.com•2026-05-05

Leonardo DRS, Inc. (DRS) Reports Q1 Earnings: What Key Metrics Have to Say

While the top- and bottom-line numbers for Leonardo DRS, Inc. (DRS) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

zacks.com•2026-05-05

Leonardo DRS, Inc. (DRS) Q1 Earnings and Revenues Beat Estimates

Leonardo DRS, Inc. (DRS) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.2 per share a year ago.

businesswire.com•2026-05-05

Leonardo DRS Announces Financial Results for First Quarter 2026

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the first quarter 2026, which ended March 31, 2026. CEO Commentary “Leonardo DRS delivered a strong start to the year. Our first quarter 2026 results meaningfully outperformed expectations thanks to disciplined execution, program momentum and sustained demand for our differentiated technologies. We expanded profitability, while simultaneous.

forbes.com•2026-04-27

U.S. Air Force To Fly B-1B Lancer And B-2 Spirit Well Into Late 2030s

The United States Air Force has no plans to retire its remaining fleet of Boeing B-52 Stratofortress bombers for at least a couple more decades, and the old "BUFFs" as they are known, will be in service until the late 2040s or early 2050s, perhaps even longer. However, even as the Air Force will adopt the Northrop Grumman B-21 Raiders in the coming year, the B-52s won't be the only old workhorses that will remain in the bomber fleet.

businesswire.com•2026-04-23

Leonardo DRS Introduces Rugged 2kVA UPS for Mission-Critical Power Protection in Harsh Shipboard Environments

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today it is introducing a new 2 kVA AC Uninterruptible Power Supply (UPS) in the company's uninterruptible power supply family of products, delivering clean, conditioned backup power to help keep mission-critical electronics online through shipboard power disturbances. The product is designed and positioned as IP54-hardened, and military-qualified—built for harsh and unforgiving operating environments. “We designed this.

businesswire.com•2026-04-20

Leonardo DRS Launches New Maritime Counter-UAS Capability to Defeat Aerial Unmanned Threats at Sea

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today it has successfully integrated its Maritime Mission Equipment Package (M-MEP) on an autonomous unmanned surface vessel (AUSV), delivering a new counter-unmanned aerial system (C-UAS) capability designed to detect, track, identify, and defeat aerial unmanned threats operating in the maritime domain. Built for rapid integration on crewed and uncrewed platforms, the solution provides a mission-ready layer of protecti.

fool.com•2026-04-17

3 Defense Tech Stocks Central to U.S. Battle Networks as Trump Ramps Up Spending on Iran and Beyond

U.S. defense spending is rising sharply. Specialized contractors are positioned to benefit the most from rising demand for AI hardware and software, cybersecurity, and missile tracking technology.

seekingalpha.com•2026-04-09

Leonardo DRS: Strong Demand Meets Supply-Side Constraints

Leonardo DRS's growth is propelled by advanced sensing, electric propulsion, and tactical radar, but supply chain risks—especially rare earths—threaten operational continuity. ASC segment shows margin improvement, but IMS faces profit conversion challenges; Q4 2025 saw IMS margins drop sharply despite revenue growth. Expansion initiatives, including a new naval facility and increased capex, support future ambitions, yet rare earth supply risks remain unresolved and material.

businesswire.com•2026-04-06

Leonardo DRS Schedules First Quarter 2026 Earnings Conference Call for May 5, 2026

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) has scheduled a conference call for Tuesday, May 5, 2026 beginning at 10:00 a.m. (ET) to discuss its first quarter 2026 results. The company plans to issue its quarterly earnings press release prior to the conference call. The live audio broadcast of Leonardo DRS's conference call with corresponding press release and supplemental information will be available on the company's investor relations website. To attend the conference c.

defenseworld.net•2026-04-05

Sally Wallace Sells 28,960 Shares of Leonardo DRS (NASDAQ:DRS) Stock

Leonardo DRS, Inc. (NASDAQ: DRS - Get Free Report) EVP Sally Wallace sold 28,960 shares of Leonardo DRS stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $46.35, for a total value of $1,342,296.00. Following the completion of the sale, the executive vice president owned 58,353 shares in

defenseworld.net•2026-03-29

Rep. Julia Letlow Purchases Shares of Leonardo DRS, Inc. (NASDAQ:DRS)

Representative Julia Letlow (Republican-Louisiana) recently bought shares of Leonardo DRS, Inc. (NASDAQ: DRS). In a filing disclosed on March 12th, the Representative disclosed that they had bought between $1,001 and $15,000 in Leonardo DRS stock on February 2nd. The trade occurred in the Representative's "MERRILL LYNCH INVESTMENT ACCOUNT #025" account. Representative Julia Letlow also recently made

Related Companies in Industrials

GRACO INC (GGG)

Industrials

$12.34B

Mkt Cap

STANLEY BLACK & DECKER INC (SWK)

Industrials

$12.20B

Mkt Cap

SAIA INC (SAIA)

Industrials

$12.44B

Mkt Cap

AVERY DENNISON CORP (AVY)

Industrials

$11.87B

Mkt Cap

KNIGHT-SWIFT TRANSPORTATION HOLDIN (KNX)

Industrials

$12.77B

Mkt Cap

PENTAIR (PNR)

Industrials

$11.82B

Mkt Cap

📊 AI Financial Analysis

Powered by StockMarketInfo
Earnings Data: Q Ending 2026-03-31

"DRS (Q1’26, ended 2026-03-31) reported revenue of $846.0M and net income of $62.0M, with EPS of $0.23. On a YoY basis (vs Q1’25 ended 2025-03-31), revenue increased 5.8% ($846.0M vs $799.0M) and net income rose 24.0% ($62.0M vs $50.0M). QoQ momentum weakened: revenue declined 20.2% from Q4’25 ($846.0M vs $1,060.0M) and net income fell 39.2% from Q4’25 ($62.0M vs $102.0M). Profitability improved over the last year. Net profit margin expanded to 7.33% from 6.26% in Q1’25, and gross margin ticked up to 25.06% from 22.65%. However, sequentially margins softened: net margin contracted from 9.62% in Q4’25 to 7.33% in Q1’26. Cash flow quality is mixed. Q1’26 operating cash flow was -$66.0M and free cash flow was -$96.0M, with cash ending at $328.0M (down from $647.0M in Q4’25). Over the last year, DRS appears to generate profitable earnings but with significant working-capital volatility. Balance sheet remains resilient with net debt of -$177.0M (net cash position) and equity of $2.77B. Total shareholder return cannot be scored reliably because price/return data is not provided; dividend payout looks modest (payout ratio ~11.3% in Q1’26)."

Revenue Growth

Neutral

YoY revenue +5.8% (Q1’26 $846.0M vs $799.0M). QoQ revenue -20.2% (vs Q4’25 $1,060.0M), indicating sequential deceleration.

Profitability

Positive

Net margin improved YoY to 7.33% from 6.26% and net income +24.0% YoY. Sequentially net margin fell from 9.62% in Q4’25 to 7.33% in Q1’26, suggesting margin normalization after a strong prior quarter.

Cash Flow Quality

Caution

Q1’26 operating cash flow was -$66.0M and free cash flow was -$96.0M (vs strong Q4’25 OCF of +$425.0M). Earnings are positive, but cash conversion is volatile.

Leverage & Balance Sheet

Good

Net cash position improved to net debt of -$177.0M in Q1’26 (net cash). Equity was stable at $2.77B vs $2.73B in Q4’25, with total assets down to $4.21B from $4.62B.

Shareholder Returns

Fair

Dividend payout appears conservative (Q1’26 payout ratio ~11.3%). Buyback activity is limited (repurchases -$4.0M). Total return scoring is constrained because marketPerformance/price momentum data is missing (price remains 0 / undefined changes).

Analyst Sentiment & Valuation

Caution

Consensus price target is $53 with a high of $59 and low of $47, but no current price is provided (marketPerformance price = 0), so upside/downside versus market cannot be quantified.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

Loading fundamentals overview...

DRS delivered a strong Q1 2026 start with revenue of $846M (+6% YoY) and adjusted diluted EPS of $0.26 (+30% YoY). Profitability outperformance was broad-based: adjusted EBITDA of $105M (+28% YoY) and a 12.4% margin (+210 bps YoY), led by margin gains in both segments (ASC +290 bps; IMS +90 bps). Management linked improvements to execution, favorable mix (tactical radars/infrared sensing in ASC), operational leverage, and reduced headwinds from IRAD/G&A versus the prior year, plus better supply/timing and germanium cost favorability. Outlook was raised/updated: FY revenue $3.9B–$3.975B (+7%–9% organic), adjusted EBITDA $515M–$530M, and adjusted diluted EPS $1.26–$1.30. Key risks are still timing-driven (receipt and book-to-bill variability) and raw-material supply/costs. Q&A reinforced durable demand signals, with DAIRCM contract flow and IMS/Columbia Class execution as critical near-term supports.

AI IconGrowth Catalysts

  • 17th consecutive book-to-bill >= 1.0x, supporting new record funded backlog and improving full-year visibility
  • Revenue acceleration driven by favorable material receipt timing plus higher volume, favorable program mix, and solid operational execution
  • Operational leverage and improved mix in ASC tied to tactical radars and infrared sensing demand
  • IMS margin expansion expected to continue as Columbia Class execution remains the largest contributor

Business Development

  • Received $533 million DAIRCM (Distributed Aperture Infrared Countermeasure System) IDIQ production contract for aircraft survivability (integrated missile warning + infrared countermeasures with 360-degree threat picture and laser director)

AI IconFinancial Highlights

  • Revenue: $846 million (+6% YoY), exceeding expectations on favorable receipt timing
  • Adjusted diluted EPS: $0.26 (+30% YoY) vs reported diluted EPS $0.23 (+21% YoY); net earnings $62 million (+24% YoY)
  • Adjusted EBITDA: $105 million (+28% YoY); Adjusted EBITDA margin 12.4% with +210 bps YoY expansion
  • ASC adjusted EBITDA margin expansion +290 bps YoY; IMS adjusted EBITDA margin +90 bps YoY
  • Q2 expectations: revenue ~ $900 million; adjusted EBITDA margin mid-12% and modestly free cash flow positive
  • Revised full-year outlook: revenue range $3.9B–$3.975B (+7% to +9% organic YoY); adjusted EBITDA $515M–$530M (assumes improved margin vs prior guide); adjusted diluted EPS $1.26–$1.30
  • Unchanged full-year tax rate and diluted share count assumptions: 18.5% and 269 million; free cash flow conversion targeted at ~75% of adjusted net earnings

AI IconCapital Funding

  • Free cash flow: modest outflow in Q1 due to seasonality, improving vs prior year; further strength aided by working capital management
  • CapEx: light in Q1 attributed to timing; management expects ramp in subsequent quarters to end-year level of ~5% of sales threshold (no change indicated)
  • No explicit buyback/debt figures were provided in the transcript

AI IconStrategy & Ops

  • Wartime footing across the company to support elevated demand and execution requirements
  • Automation/supply-side execution improved via better line of sight from raw material/supply perspective; margin favorability from material cost (notably germanium) and timing
  • IRAD not a headwind to Q1 margin; IRAD and G&A were less of a drag vs prior year
  • Supply chain/content expansion: working with customer on second sourcing steam turbine generators for submarine industrial base (Charleston referenced as existing work); goal to add at least a second source
  • Platform-agnostic modularity demonstrated: counter-UAS mission equipment adapted from tank to unmanned surface and unmanned ground vehicles

AI IconMarket Outlook

  • FY26 revised revenue: $3.9B–$3.975B; adjusted EBITDA: $515M–$530M; adjusted diluted EPS: $1.26–$1.30
  • Q2 outlook: revenue around $900M; adjusted EBITDA margin comparable to Q1 in mid-12% range; modestly free cash flow positive

AI IconRisks & Headwinds

  • Material receipt timing and variability of book-to-bill capture remain primary drivers behind quarterly/year forecast range
  • Raw-material supply still a key lever: germanium availability/cost is explicitly cited as impacting margins
  • Federal budget and Congress outcomes remain a source of potential timing/friction risk (management not quantifying impact, but explicitly avoided dependence on $1.5T being required)

Q&A: Analyst Interest

  • IMS margin drivers: Management attributed IMS margin strength to execution across the segment, with Columbia Class as the largest contributor. They also cited program-level efficiency, cost management, and operational leverage. Management stated IMS should stay in a similar range through 2026 after accounting for baseline normalization from Q4.
  • ASC order environment/book-to-bill trajectory: Management downplayed a quarterly dip below 1x by pointing to a ~1:1 segment trend over the last 12 months. They emphasized enduring demand for tactical radars and cited DAIRCM $500M IDIQ and newly awarded next-gen sensing IDIQs as reasons for reversal.
  • Supply chain/content expansion and budget composition into 2027: Management described proactive second-sourcing for steam turbine generators in the submarine industrial base and investments in modular electric propulsion components for next-gen surface combatants. They said planning is not dependent on a specific $1.5T topline; alignment to base and reconciliation priorities persists.

Sentiment: POSITIVE

Note: This summary was synthesized by AI from the DRS Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

📋 Official Regulatory 10-K / 10-Q SEC Filings

Direct authenticated documentation links to audited SEC database reports for DRS.

SEC EDGAR Live Feed
No recent 10-K available.
10-Q
Latest Quarterly Report
Filed: May 5, 2026
→
🔍 View Full Historical 10-K & 10-Q Archive on SEC EDGAR
Loading financial data and tables...
📁

SEC Filings (DRS)

© 2026 Stock Market Info — Leonardo DRS, Inc. (DRS) Financial Profile