Leonardo DRS, Inc. (DRS) AI Stock Analysis

Leonardo DRS, Inc. specializes in defense technologies across land, air, sea, space, cyber security, and commercial domains. Operating through Advanced Sensing and Computing, and Integrated Mission Systems, it supplies threat detection sensors such as infrared and electronic warfare systems. The company also provides military computing hardware for ground vehicles, ships, and submarines. Additionally, Leonardo DRS produces force protection equipment, including counter-unmanned aerial systems and short-range air defense, alongside hybrid electric drive propulsion, energy storage, and thermal management systems for U.S. and allied armed forces.

From FY2021 to FY2025, revenue grew from $2.88B to $3.65B, reflecting a 5-year CAGR of 5.6%. Annual revenue rose 14.4% in FY2024 to $3.23B and 12.8% in FY2025 to $3.65B. Gross margin expanded from 19.0% in FY2021 to 23.8% in FY2025, while operating margin improved from 8.2% to 9.5%. FY2025 net income reached $278.0M with a net margin of 7.6% and EPS of $1.14. Over the trailing twelve months, revenue was $3.78B with an operating margin of 11.2%. For the quarter ended June 30, 2026, quarterly revenue increased 10.1% year-over-year, while quarterly earnings grew 60.0%.

As of June 30, 2026, Leonardo DRS held $270.0M in cash and short-term investments against $267.0M in total debt, leaving net cash of $3.0M. The company reported a current ratio of 1.92 and a debt-to-equity ratio of 0.10 on shareholders' equity of $2.80B. In FY2025, operating cash flow was $366.0M and free cash flow was $227.0M. Capital deployment in FY2025 included $139.0M in capital expenditures, $96.0M paid in dividends, and $35.0M directed toward share buybacks.

At $35.42 per share, Leonardo DRS has a market capitalization of $9.45B and an enterprise value of $9.98B. The stock trades at a trailing P/E of 29.8x and a forward P/E of 30.9x, above the US-listed Industrials peer group medians of 24.8x and 17.2x, respectively. Its enterprise value-to-EBITDA multiple is 20.3x compared to the peer median of 13.9x. Over the past year, the shares returned -9.8%, trailing the S&P 500 (SPY) return of 16.8%, though its 5-year return of 250.4% outperformed the S&P 500 return of 83.0%.

Leonardo DRS pays a quarterly dividend with an annualized forward payout of $0.36 per share, representing a dividend yield of 1.02%. The payout ratio stands at 27.3%, and the company has paid dividends for 2 consecutive years. Its most recent ex-dividend date was August 13, 2026, following FY2025 total dividend payments of $96.0M.

Wall Street sentiment includes 8 Strong Buy, 1 Buy, and 2 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target of $53.18 represents a 50.1% premium over the last close of $35.42. Consensus projections call for FY2026 revenue of $3.95B and EPS of $1.39, representing 20.8% earnings growth. Over the last 4 quarters, the company beat EPS estimates 4 times, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Leonardo DRS, Inc. (DRS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DRS income statement, DRS balance sheet, DRS key metrics, DRS analyst forecast, DRS chart. See the DRS stock overview for the latest quote and news.