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Makes defense electronics—sensors, network computing, electro-optical/infrared systems—majority-owned by Italy's Leonardo.
Makes defense electronics—sensors, network computing, electro-optical/infrared systems—majority-owned by Italy's Leonardo.
Sells to the US Department of Defense mainly through contracts on long-running programs: thermal-imaging sensors for vehicles, ship power systems and rugged computers. Italy's Leonardo owns most of the shares, and the company went public in 2022 by combining with Israel's RADA Electronic Industries.
Moat: narrow (customer qualification, IP / patents, installed base). Embedded on many DoD platforms via long-running, largely sole-source sensor/electronics programs.
Headquarters: Arlington, Virginia, US · Founded: 2022 · Employees: 7,300
Size Leonardo DRS (DRS) is a United States Industrials company (Aerospace & Defense) with a market value of $9.08B, the 823rd largest of 3,117 United States companies the cockpit tracks. Shares closed at $34.04 on 6 Nov 2026.
Performance Over six months the shares fell 17.7%, against -9.8% for the median peer and -1.1% for the United States market (cap-weighted) — 8th lowest of 21 in its peer set.
Growth Revenue grew 8.8% over the last twelve months (peer median +18.8%); the operating margin is 10.9% (peer median 9.1%).
Valuation It trades at 23.1× forward earnings against a peer median of 33.4× (3rd cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 5% a year for seven years (Req g). Recent delivered growth is +6%, so the hurdle is -1 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 4.9 points above its cost of capital (6.7% WACC).
Backlog Backlog (remaining performance obligations) was $9.38B at 30 Sep 2026, up 5% on a year earlier — 2.4 years of trailing revenue. Backlog detail →
Short interest Short interest is 1.4% of the free float (15 Oct 2026).
Next results Next results expected around 23 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $3.88B | $3.65B | $3.23B | $2.83B | $2.69B |
| Revenue growth | — | +13% | +14% | +5% | — |
| Gross profit | $959M | $847M | $714M | $626M | $565M |
| EBITDA | $523M | $443M | $392M | $334M | $318M |
| Net income | $365M | $278M | $213M | $168M | $405M |
| Free cash flow | $344M | $227M | $186M | $145M | -$29.0M |
| Capital expenditure | $146M | $139M | $85.0M | $60.0M | $65.0M |
| Total debt | $286M | $470M | $458M | $497M | $487M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Leonardo DRS DRS | $9.08B | -18% | +9% | 11% | 23.1× | 4.6% |
| L3Harris LHX | $48.4B | -13% | +7% | 12% | 20.1× | 7.0% |
| Elbit Systems ESLT | $32.0B | -13% | +12% | 9% | 46.5× | 10.1% |
| Teledyne Technologies TDY | $28.5B | 0% | +8% | 20% | 22.9× | 15.5% |
| General Dynamics GD | $95.7B | +3% | +10% | 10% | 19.4× | -2.5% |
| BAE Systems BA..L | $72.6B | -4% | +7% | 9% | 22.0× | 2.8% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | DRS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -5.1% | +2.8% | 9th lowest of 21 |
| 6-month return | -17.7% | -9.8% | 8th lowest of 21 |
| Distance from 52-week high | -32.7% | -32.0% | 10th lowest of 21 |
| Revenue growth (TTM) | +8.8% | +18.8% | 7th lowest of 21 |
| Operating margin | 10.9% | 9.1% | 9th highest of 21 |
| Forward P/E | 23.1× | 33.4× | 3rd cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 4.6% | 17.2% | least demanding of 11 |
| Growth delivered (Del g) | +5.6% | +7.3% | 4th lowest of 11 |
| Hurdle (Req g minus delivered) | -1.0 pp | +5.7 pp | 3rd least demanding of 11 |
| ROIC minus cost of capital | +4.9 pp | +0.4 pp | 2nd highest of 20 |
| EV / EBITDA | 17.3× | 21.1× | 4th cheapest of 12 |
| Net debt / EBITDA | -0.0× | 2.5× | 2nd least indebted of 12 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Leonardo DRS DRS | United States | $9.08B | -18% | +9% | 11% | 23.1× | 4.6% | +5.6% |
| Raytron Technology 688002.SS | China | $8.64B | -15% | +84% | 29% | 26.4× | 20.1% | +32.1% |
| AVIC Airborne Systems 600372.SS | China | $8.36B | -11% | -2% | 5% | 48.1× | n/a | n/a |
| AVIC Xi'an Aircraft Industry 000768.SZ | China | $9.92B | +1% | -34% | 3% | 55.7× | n/a | n/a |
| Hensoldt HAG.DE | Germany | $10.0B | +2% | +15% | 10% | 41.3× | 12.2% | +15.3% |
| Moog MOG-A | United States | $10.3B | +3% | +16% | 12% | 27.8× | 15.1% | +6.0% |
| Melrose Industries MRO.L | United Kingdom | $7.80B | -4% | +9% | 11% | 13.4× | 15.3% | -12.8% |
| Jonhon Optronic Technology 002179.SZ | China | $10.7B | -7% | +6% | 11% | 30.4× | n/a | n/a |
| BWX Technologies BWXT | United States | $11.0B | -42% | +18% | 10% | 23.8× | 19.6% | +8.5% |
| Korea Aerospace 047810.KS | South Korea | $7.37B | -39% | +44% | 6% | 45.4× | n/a | n/a |
| Huntington Ingalls Industries HII | United States | $11.4B | -8% | +13% | 5% | 14.4× | 5.3% | +5.9% |
| Crane CR | United States | $11.6B | +11% | +22% | 18% | 25.8× | 17.5% | -3.5% |
| Loar LOAR | United States | $7.05B | +26% | +30% | 25% | 52.2× | 29.1% | +27.5% |
| Hanwha Systems 272210.KS | South Korea | $6.93B | -57% | +30% | 6% | 82.5× | n/a | n/a |
| Kratos Defense & Security Solutions KTOS | United States | $6.59B | -39% | +26% | 2% | 36.4× | n/a | n/a |
| China Aerospace Times Electronics 600879.SS | China | $6.43B | -46% | -13% | 1% | 130.0× | n/a | n/a |
| BETA Technologies BETA | United States | $6.37B | +45% | +136% | -1,033% | n/a | n/a | n/a |
| Hexcel HXL | United States | $6.09B | -16% | +8% | 11% | 29.6× | 23.0% | +4.5% |
| Karman KRMN | United States | $6.04B | -25% | +50% | 19% | 57.5× | n/a | n/a |
| Joby Aviation JOBY | United States | $5.89B | -45% | +118,568% | -754% | n/a | n/a | n/a |
| Embraer S.A. Sponsored ADR EMBJ | United States | $14.1B | +23% | +20% | 8% | 23.6× | 16.9% | +14.5% |
Leonardo DRS reported $9.38B of remaining performance obligations at 30 Sep 2026, up 5% from a year earlier and up 7% from the previous quarter. That is 2.4 years of trailing revenue already under contract. Book-to-bill last quarter: 1.56.