DRS
IndustrialsLeonardo DRS, Inc. · Aerospace & Defense · $12B
What is Leonardo DRS, Inc.?
Leonardo DRS, Inc. is a U.S. defense technology company delivering advanced sensing, computing, and mission systems to military customers across land, air, sea, space, and cyber domains. Headquartered in Arlington, Virginia, it serves the U.S. military and allied international forces.
The company operates through two segments — Advanced Sensing and Computing, and Integrated Mission Systems. Revenue comes from long-term defense contracts with the U.S. military, prime contractors, and government intelligence agencies. It designs and manufactures infrared sensors, electronic warfare systems, force protection solutions, and power and propulsion systems. International military customers also contribute to its contract base, providing geographic diversification within the defense sector.
Leonardo DRS was founded in 1985 and is headquartered in Arlington, Virginia.
- Infrared and uncooled sensor systems for threat detection and situational awareness
- Airborne and ground-based electronic warfare systems and training solutions
- Counter-drone and short-range air defense force protection systems
- Computing and networked infrastructure for ground vehicles, ships, and submarines
- Hybrid electric drive propulsion and nuclear instrumentation systems
Is DRS a Good Stock to Buy?
UQS Score rates DRS as Good overall, reflecting a balanced profile with notable strengths and one area of caution.
The Risk pillar stands out as the strongest element of DRS's profile, suggesting the business carries relatively low financial and operational risk compared to sector peers. The Growth pillar also rates Good, consistent with a defense contractor benefiting from sustained government spending and expanding program awards. Together, these two pillars form a stable foundation for the investment case.
The Valuation pillar is rated Elevated, meaning the market may already be pricing in much of the growth story — a consideration for investors focused on entry price.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does DRS pay dividends?
Yes — Leonardo DRS, Inc. pays a dividend.
Leonardo DRS pays a regular dividend, which is relatively uncommon among mid-sized defense technology companies. The dividend reflects the company's contract-backed revenue visibility and cash generation capacity. Investors seeking income alongside defense sector exposure may find this noteworthy. For current yield and payout details, check the company's investor relations page.
When does DRS report earnings?
Leonardo DRS reports earnings on a quarterly cadence, consistent with standard practice for U.S.-listed defense contractors.
The company's Growth pillar rating of Good suggests its recent financial performance has been constructive relative to sector peers. Defense budget tailwinds and expanding program scope have supported revenue trajectory without significant volatility.
For the most recent quarter's results and guidance, visit Leonardo DRS's investor relations page directly.
DRS Price History
+270.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Leonardo DRS, Inc.?
Based on Leonardo DRS, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
DRS Long-term Outlook
The combination of a Good Growth pillar and a Strong Risk pillar points to a business with above-average earnings stability and a credible near-term expansion path. Defense modernization programs, growing demand for electronic warfare capabilities, and international military procurement trends all support the growth outlook. The Elevated Valuation pillar, however, signals that the forward trajectory is largely reflected in the current price, leaving limited margin of safety if contract awards slow or defense budgets shift.
Growth drivers
- Sustained U.S. defense modernization spending across sensing and EW programs
- Growing international military demand for advanced force protection and sensor systems
- Expansion of hybrid electric propulsion and next-generation computing contracts
Key risks
- Elevated valuation leaves limited buffer if contract timelines slip or budgets are trimmed
- Concentration in U.S. government contracts creates exposure to procurement policy changes
- Competitive pressure from larger prime contractors bidding on overlapping program areas
DRS vs Peers
Leonardo DRS competes across defense sensing, space intelligence, and aerospace technology markets alongside a range of specialized peers.
CAE focuses primarily on simulation and training systems for defense and civil aviation, overlapping with DRS mainly in defense training solutions.
Karman specializes in propulsion and structural components for space and hypersonic defense programs, occupying a narrower niche than DRS's multi-domain portfolio.
Planet Labs provides satellite-based earth observation data, competing with DRS indirectly in the space and intelligence domain through commercial imagery rather than hardware.
Frequently Asked Questions
What does Leonardo DRS do?
Leonardo DRS designs and manufactures defense technology products including infrared sensors, electronic warfare systems, force protection solutions, and power and propulsion systems. It serves the U.S. military, defense prime contractors, government intelligence agencies, and international military customers across land, air, sea, space, and cyber domains.
Does DRS pay dividends?
Yes, Leonardo DRS pays a regular dividend. This distinguishes it from many peers in the defense technology space. The dividend is supported by the company's contract-backed revenue base. For current yield and payment schedule details, refer to the company's investor relations page.
When does DRS report earnings?
Leonardo DRS follows a standard quarterly earnings cadence for U.S.-listed companies. Specific upcoming report dates are not tracked by UQS Score's data source. Check the company's investor relations page or a financial calendar service for the next scheduled release.
Is DRS a good stock to buy?
UQS Score rates DRS as Good overall. The Risk pillar is Strong and the Growth pillar is Good, indicating financial stability and above-average growth potential. However, the Valuation pillar is Elevated, which means investors should weigh entry price carefully. The full pillar breakdown is available to UQS Pro members.
Is DRS overvalued?
The UQS Valuation pillar for DRS is rated Elevated, suggesting the stock trades at a premium relative to fundamental benchmarks. This does not necessarily mean the stock will decline, but it does indicate that much of the growth outlook may already be priced in. See the full valuation analysis with a Pro account.
How does DRS compare to its competitors?
Among its tracked peers — CAE Inc., Karman Holdings, and Planet Labs — DRS stands out for its broad multi-domain defense portfolio spanning sensing, computing, force protection, and propulsion. Competitors tend to occupy narrower niches in training, propulsion components, or satellite imagery rather than DRS's integrated hardware and systems approach.
What is DRS's market cap bracket?
Leonardo DRS is classified as a large-cap company. This places it among the more substantial publicly traded defense technology firms, typically associated with greater institutional coverage, liquidity, and balance sheet stability than mid- or small-cap defense peers.
Who founded Leonardo DRS?
Leonardo DRS traces its origins to 1985. The company has evolved significantly through acquisitions and corporate restructuring over the decades, eventually becoming a subsidiary of Leonardo S.p.A. before its public listing. Detailed founding history is available through the company's official corporate profile.
Is DRS a long-term quality indicator?
As a long-term quality indicator, DRS presents a mixed but constructive picture. The Strong Risk pillar and Good Growth pillar suggest durable fundamentals and earnings stability. The Neutral Quality and Moat pillars indicate the business has not yet demonstrated the kind of entrenched competitive advantages associated with the highest-quality defense franchises. Pro members can view the complete multi-year analysis.
What is the main competitive advantage of Leonardo DRS?
Leonardo DRS's primary competitive advantage lies in its deep integration across multiple defense domains — combining sensing, electronic warfare, computing, and propulsion into a unified offering. Its long-standing relationships with the U.S. military and prime contractors create contract continuity that is difficult for newer entrants to replicate quickly.
What sector does DRS belong to?
Leonardo DRS is classified in the Industrials sector, specifically within the defense and aerospace sub-industry. Investors screening for [defense sector stocks](/sector/industrials) will find DRS alongside other government-contract-driven businesses with relatively stable, long-cycle revenue streams.
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Pro Analysis
DRS — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 10, 2026 | 58.7 | 45.6 | 46.0 | 77.5 | 89.3 | 46.4 | +0.8 |
| May 3, 2026 | 57.9 | 45.0 | 46.0 | 76.9 | 89.6 | 42.3 | 0.0 |
| May 1, 2026 | 57.9 | 45.0 | 46.0 | 76.9 | 89.6 | 42.4 | 0.0 |
| Apr 26, 2026 | 57.9 | 45.0 | 46.0 | 76.9 | 89.6 | 42.1 | +0.7 |
| Apr 25, 2026 | 57.2 | 45.0 | 46.0 | 76.9 | 89.6 | 37.4 | +0.3 |
| Apr 24, 2026 | 56.9 | 44.8 | 46.0 | 76.9 | 89.6 | 35.9 | -0.1 |
| Apr 23, 2026 | 57.0 | 44.8 | 46.0 | 76.9 | 89.6 | 36.3 | +0.3 |
| Apr 22, 2026 | 56.7 | 44.6 | 46.0 | 76.9 | 89.6 | 35.1 | -0.1 |
| Apr 21, 2026 | 56.8 | 44.6 | 46.0 | 76.9 | 89.6 | 35.5 | +0.1 |
| Apr 19, 2026 | 56.7 | 44.6 | 46.0 | 76.9 | 89.6 | 35.1 | +0.4 |
DRS — Pillar Breakdown
Quality
— 47.5/100 (25%)Leonardo DRS, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 78.6/100 (20%)Leonardo DRS, Inc. is growing rapidly with strong revenue and earnings expansion.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 89.3/100 (15%)Leonardo DRS, Inc. carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 35.6/100 (15%)Leonardo DRS, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 46/100 (25%)Leonardo DRS, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DRS.
Score Composition
Financial Data
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How is the DRS UQS Score Calculated?
The UQS (Unified Quality Score) for Leonardo DRS, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Leonardo DRS, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Leonardo DRS, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.