Leonardo DRS, Inc.
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
Business model, numbers and balance sheet hold up to our review. Whether the current price supports an entry is a separate question — it hangs on the price, not on the company.
Why this colour
Green, because the quality of the business is documented: revenue and earnings have grown every year since 2023, operating cash flow was positive in every fiscal year (2025: $366 million), the balance sheet shows net cash, and funded backlog stood at a record as of June 30, 2026. We examined the dependence on the U.S. government and do not count it as an existential dependence on a single counterparty: it is spread across the Navy, the Army and many programs, and the defense budget is rising; the concentration in Navy propulsion (about 45 percent of committed future contract revenue) is spelled out in truth No. 4 — it rests on programs the annual report describes as top priority. Leonardo’s majority, the late cash curve and the swinging estimate revisions temper the picture and are spelled out in the text, but they are not a threat to the company’s substance. Whether the stock at $36.80 (October 2, 2026), about 27 times expected adjusted earnings, is a reasonable price is not something this rating answers. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Leonardo DRS is a growing, profitable supplier of defense electronics with a record funded backlog and net cash. The drawbacks lie in its structure: Leonardo in Rome holds about 71 percent, nearly all the cash arrives in the fourth quarter, and a fifth of second-quarter 2026 net earnings came from revised cost estimates. Not investment advice.
Business model
Defense electronics in in-demand niches (submarine propulsion, counter-drone, sensors); funded backlog $5.1B (6/30/2026, record, +17%).
Growth and earnings
Revenue from $2,826M to $3,648M and net earnings from $168M to $278M between 2023 and 2025; 2026 guidance raised on 7/30/2026.
Balance sheet
Net cash of about $121M, bank loan repaid in January 2026, $500M credit facility undrawn (6/30/2026); the Raft acquisition ($450M) turns this into net debt on paper.
Cash flow quality
2025 free cash flow of about $227M, but heavily concentrated in the fourth quarter; operating cash outflow of $31M in the first half of 2026, contract assets of $1,002M.
Earnings quality
Revised cost estimates: +$17M net in Q2 2026 (a fifth of quarterly net earnings), −$47M net (operating −$59M) in 2025; 88% fixed-price contracts.
Ownership structure
Leonardo S.p.A. holds about 71%, the Italian state about 30.2% of Leonardo; under its charter, DRS waives any claim to business opportunities presented to Leonardo; minority shareholders with little influence.
Worth Noting
Version of October 4, 2026, based on the quarterly report on Form 10-Q of July 30, 2026 (latest periodic report), the second-quarter earnings release (8-K of July 30, 2026), the annual reports on Form 10-K for 2025 and 2024, the quarterly reports of October 29, 2025, and May 5, 2026, and Form 4 filings through October 1, 2026. The stock came to our attention through the wallstreet-online ranking in early October 2026, not through our in-house stock scanner.
The ranking listed the stock as “Leonardo” with the symbol DRS. This analysis covers Leonardo DRS, Inc. (Nasdaq: DRS), not the Italian parent Leonardo S.p.A. (Milan Stock Exchange). Price data before 11/29/2022 belong to the predecessor listing of RADA Electronic Industries and are not used.
Price anchor is the October 2, 2026, close of $36.80 (source: fundamental data). Market value is our own calculation (266.9 million shares × $36.80), cross-checked against the sale price in the Form 4 filed September 8, 2026 (sale on September 4, 2026, at $37.01). Free cash flow = operating cash flow minus capital expenditures, our own calculation; quarterly cash flows derived from half-year, nine-month and full-year totals.
Stock Watch
This analysis is as of October 4, 2026. Stock Watch will tell you what's changed at DRS since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 32.60 $ to 49.70 $ · Last price: 36.90 $ (As of: November 2, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 11/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Aerospace & Defense
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Leonardo DRS, Inc. DRS | 9.9 | 32.8 | 19.6 | 24.9 | 9.1 | 12.8 | 1.9 |
| Space Exploration Technologies Corp. SPCX | 1,032.7 | – | 187.0 | 56.8 | – | – | – |
| GE Aerospace GE | 329.1 | 41.0 | 26.1 | 30.1 | 20.2 | 18.5 | 2.8 |
| RTX Corporation RTX | 266.4 | 38.6 | 17.7 | 21.1 | 13.2 | 9.7 | 15.3 |
| Lockheed Martin Corporation LMT | 148.3 | 31.0 | 15.5 | 11.7 | 11.0 | 5.7 | 34.1 |
| The Boeing Company BA | 138.3 | 69.4 | 12.9 | 9.5 | 1.7 | 34.5 | -12.8 |
| General Dynamics Corporation GD | 101.5 | 23.9 | 15.7 | 15.4 | 10.5 | 10.1 | 10.2 |
| Howmet Aerospace Inc HWM | 85.2 | 49.9 | 27.7 | 36.6 | 28.2 | 11.1 | 3.6 |
| Northrop Grumman Corporation NOC | 78.0 | 17.4 | 11.6 | 20.0 | 11.7 | 2.2 | -2.1 |
| Median of companies shown | 138.3 | 35.7 | 17.7 | 21.1 | 11.3 | 10.6 | 3.2 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 13 | -3 | -5 | -0.23 | -5 | 11 | 21 |
| 2017 | 26 | 2 | 2 | 0.07 | 1 | 29 | 36 |
| 2018 | 2,333 | 45 | -10 | -0.07 | 105 | 42 | 54 |
| 2019 | 2,714 | 163 | 75 | 0.52 | 157 | 1,019 | 2,888 |
| 2020 | 2,778 | 181 | 85 | 0.57 | 125 | 1,427 | 2,956 |
| 2021 | 2,879 | 236 | 154 | 1.06 | 178 | 1,593 | 3,069 |
| 2022 | 2,693 | 561 | 405 | 1.88 | 33 | 2,127 | 3,677 |
| 2023 | 2,826 | 231 | 168 | 0.64 | 205 | 2,325 | 3,921 |
| 2024 | 3,234 | 293 | 213 | 0.80 | 271 | 2,557 | 4,184 |
| 2025 | 3,648 | 348 | 278 | 1.03 | 366 | 2,730 | 4,617 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.33 | 19.20 | 981 | 5.90 | 9.10 | 443 | 414 |
| 2025: Q1 | 0.19 | 70.90 | 799 | 16.10 | 6.30 | -138 | -170 |
| 2025: Q2 | 0.20 | 41.20 | 829 | 10.10 | 6.50 | -28 | -56 |
| 2025: Q3 | 0.27 | 25.90 | 960 | 18.20 | 7.50 | 107 | 77 |
| 2025: Q4 | 0.38 | 14.30 | 1,060 | 8.10 | 9.60 | 425 | 376 |
| 2026: Q1 | 0.23 | 24.00 | 846 | 5.90 | 7.30 | -66 | -96 |
| 2026: Q2 | 0.32 | 60.00 | 913 | 10.10 | 9.40 | 35 | 6 |
| 2026: Q3 | 0.43 | 59.30 | 1,066 | 11.00 | 10.80 | 96 | 58 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 9 of our scanner strategies — each hit links to the scanner.
Best Hits
Growth
Quality & Balance Sheet
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 1.39 | 1.37 – 1.40 | 3,950 | 20.8% | 11 |
| 12/31/2027 | 1.47 | 1.41 – 1.57 | 4,236 | 6.0% | 10 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 12.0% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $363.0M |
|---|---|
| Market cap | $9.92B |
| Free cash flow in year ten | $1.12B |
| Terminal value as a share of market value | 59.6% |
For comparison: over the past five years free cash flow grew by 26.9% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Leonardo DRS beschreibt im Geschäftsbericht 2025 (10-K, Item 1 Business) KI als festen Bestandteil der verkauften Produkte — Netzwerkrechner für Schiffe, U-Boote und Bodentruppen arbeiten mit KI und der KI-optimierten Software SAGEcore, Sensoren liefern Lagebilder „in Kombination mit KI“ —, und der Quartalsbericht zum zweiten Quartal 2026 (10-Q) meldet den vereinbarten Kauf des KI- und Datenfusions-Softwarehauses Raft für 450 Millionen Dollar. KI ist damit Teil des Produktangebots an das US-Verteidigungsministerium, also gilt nach der Vorrang-Regel die Kategorie „verkauft“; einen gesonderten KI-Umsatz weist die Firma nicht aus.
View the full file — quotes, sources, reviewed filings
„These products help support the DoW’s need for greater situational understanding and faster decision-making at the tactical edge by leveraging AI and AI-optimized open architecture software, SAGEcore™, to rapidly share, synthesize and transmit data securely between command centers and forward-positioned defense assets and personnel, while supporting reduced latency, operational continuity, and interoperability through modular, open-system architectures."
Diese Produkte unterstützen den Bedarf des Verteidigungsministeriums an besserem Lageverständnis und schnelleren Entscheidungen an der taktischen Front, indem sie KI und die KI-optimierte Software mit offener Architektur, SAGEcore™, nutzen, um Daten zwischen Kommandozentralen und vorgeschobenen Verteidigungssystemen und Soldaten schnell und sicher zu teilen, zusammenzuführen und zu übertragen — bei geringerer Verzögerung, durchgängigem Betrieb und Zusammenarbeit über modulare, offene Systemarchitekturen.
10-K · 2026-02-27 · View SEC filing
„Across our offerings, we are focused on advancing sensor range and enhancing the precision, clarity, definition, spectral depth and effectiveness of our sensors to deliver actionable information in time-sensitive mission scenarios in combination with AI, enabled by our advanced edge processing solutions."
Über unser gesamtes Angebot hinweg konzentrieren wir uns darauf, die Reichweite unserer Sensoren zu erhöhen und ihre Präzision, Klarheit, Auflösung, spektrale Tiefe und Wirksamkeit zu verbessern, um in zeitkritischen Einsätzen verwertbare Informationen zu liefern — in Kombination mit KI, ermöglicht durch unsere fortschrittlichen Lösungen zur Datenverarbeitung direkt am Einsatzort.
10-K · 2026-02-27 · View SEC filing
„Subsequent to quarter end, on July 28, 2026, the Company announced that it entered into a definitive agreement to acquire Raft LLC, an open-architecture mission software company focused on multi-domain data fusion and artificial intelligence for U.S. government and defense customers, for $450 million."
Nach dem Quartalsende, am 28. Juli 2026, gab das Unternehmen bekannt, dass es eine endgültige Vereinbarung zum Kauf der Raft LLC geschlossen hat, eines Softwarehauses für Einsatzsoftware mit offener Architektur, das sich auf die Fusion von Daten aus mehreren Einsatzräumen und auf künstliche Intelligenz für Kunden der US-Regierung und des Verteidigungssektors konzentriert, für 450 Millionen Dollar.
10-Q · 2026-07-30 · View SEC filing
Filings Reviewed: 10-Q 2026-07-30 · 10-Q 2026-05-05 · 10-Q 2025-10-29 · 10-Q 2025-07-30 · 10-K 2026-02-27 · 10-K 2025-03-03
Rated on October 4, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 10.6%
- More than 10% revenue growth is expected for the coming year 6.7%
- Share count grows by less than 3% a year 7.7%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 19.0%
- Gross margin at 40% or higher and without meaningful erosion 23.8%
- Goodwill from acquisitions does not grow faster than revenue 26.8%
- Net debt below twice EBITDA 177 m net cash
- Operating cash flow covers the profits of the last three years 183 m
- Return on capital at 15% or higher, or up versus two years ago 10.3%
- Insiders hold at least 10% or are net buyers 71.5%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
6/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 87.4%
- Exp. sales growth 3Y > 5% 7.8%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 19.4%
- Net debt < 4x EBIT -0.5x
- EBIT positive, 10Y straight 9
- Max. EBIT decline < 50% 58.8%
- Return on equity > 15% 20.1%
- ROCE > 15% 10.3%
- Expected return > 10% 22.1%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 30, 2026 | Townsend Frances F | Director | Other | 1,006 | 0.00 | – |
| Sep 9, 2026 | Krieg Kenneth J | Director | Other | 3,700 | 0.00 | – |
| Sep 4, 2026 | Dorfman Mark | EVP, GC and Secretary | Sell | 7,471 | 37.01 | 276,502 |
| Sep 2, 2026 | Dippold Michael | EVP and CFO | Sell | 20,317 | 37.18 | 755,386 |
| Aug 4, 2026 | Rinsky Jason | EVP Chief Tax and Treasury | Sell | 3,864 | 45.81 | 177,010 |
| Jul 7, 2026 | Rinsky Jason | EVP Chief Tax and Treasury | Sell | 3,865 | 45.37 | 175,355 |
The company
About the Company
Leonardo DRS, Inc. bietet gemeinsam mit ihren Tochtergesellschaften weltweit Verteidigungselektronikprodukte und -systeme sowie militärische Unterstützungsdienste an.
- CEO Insider Trades (12 Mo.)
- selling own stock
- Employees
- 7,300
- Headquarters
- Arlington, VA
- Address
- 2345 Crystal Drive, 22202 Arlington, United States
- Phone
- 703 416 8000
- Website
- leonardodrs.com
- IPO Date
- 11/29/2022
- ISIN
- US52661A1088
- Stock Split
- 1:2 on 09/14/2016
- Stock Split
- 1:3 on 02/14/2007
- Stock Split
- 10:25 on 04/04/2001
Management
| Name | Title | Birth Year |
|---|---|---|
| John A. Baylouny | President, CEO & Director | 1961 |
| Michael D. Dippold | Executive VP & CFO | 1981 |
| Sally A. Wallace | Executive VP & COO | 1967 |
| Mark A. Dorfman J.D. | Executive VP, General Counsel & Secretary | 1974 |
| Philip Perconti | Senior VP & CTO | – |
| William Guyan | Senior VP of Business Development & President of International Business | – |
| Matthew H. Green | Senior Vice President of Government Relations | – |
| Jason W. Rinsky J.D. | Executive VP & Chief Tax and Treasury Officer | 1973 |
| Pamela J. Morrow | Senior VP & Corporate Controller | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 10/29/2026 Leonardo DRS, Inc. (DRS): Results of Operations and Financial Condition; Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 07/30/2026 Leonardo DRS, Inc. (DRS): Results of Operations and Financial Condition; Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 07/28/2026 Leonardo DRS, Inc. (DRS): Other Events; Financial Statements and Exhibits SEC ↗
- 07/17/2026 Leonardo DRS, Inc. (DRS): Amendments to the Registrant's Code of Ethics, or Waiver of a Provision of the Code of Ethics; Financial Statements and Exhibits SEC ↗
Data as of: November 2, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.