Leonardo DRS, Inc.DRS
NasdaqGS•Industrials•Aerospace & Defense
Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC
Leonardo DRS, Inc. (DRS) reported trailing twelve months revenue of $3.69B as of March 2026, a 10.5% increase year-over-year. Quarterly revenue reached $846.00M, reflecting continued top-line momentum.
Leonardo DRS, Inc. generated $290.00M in TTM net income, with quarterly EBITDA of $101.00M. The operating margin expanded from 7.4% to 9.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (9.1%) and net margin (7.3%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 6.3% a year ago, signaling stronger bottom-line efficiency.
DRS trades at a P/E of 39.7x (a premium multiple) and a P/S of 3.1x. The price-to-book ratio of 4.2x reflects a moderate premium to book value.
The company reported negative free cash flow of $-96.00M, indicating cash consumption over the period. The balance sheet shows $4.21B in total assets with $140.00M in long-term debt against $2.77B in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 20 quarters of fundamental data
Operating margins are positive at ~9.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~9.2% on average, adequate but below the threshold typically associated with wide moats.
Only 4 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~20.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 20 quarters
Margins are stable or improving at ~9.8% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.
Share count is stable — no significant dilution or buyback activity.