Leonardo DRS, Inc. (DRS)

Over the past six months, Leonardo DRS's stock has experienced several notable events. In Q2 2025, the company met revenue expectations, and adjusted EPS beat estimates. In Q3 2025, Leonardo DRS reported earnings per share exceeding analysts' estimates, with quarterly revenue increasing compared to the same quarter last year. In November 2025, the stock experienced a significant decline but was subsequently upgraded to "Strong Buy" by some analysts. The company consistently pays a quarterly dividend. Leonardo DRS secured key contracts, including a U.S. Army prototype contract, a contract with Chaiseri Defense Systems, and an award from the Space Development Agency.

Demand for Leonardo DRS's products and services appears to be consistently strong rather than exhibiting significant seasonality. The company has reported robust demand for defense solutions and resilient customer demand for its innovative, high-performance technologies. Leonardo DRS's backlog reached a significant amount in Q2 2025, representing a year-over-year increase. The company secured new funded bookings in Q2 2025, with strong customer demand across its segments. The company benefits from defense spending tailwinds, which contribute to sustained demand for its offerings.

Leonardo DRS, Inc. is a U.S.-based defense contractor specializing in advanced defense technology. The company operates within the defense sector, focusing on the design, development, and manufacture of mission-critical technologies. Leonardo DRS's business is structured around two segments: Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS). Major products and technologies include advanced sensing systems, network computing, force protection, electric power and propulsion, and mission-critical technologies.

Headquartered in Arlington, Virginia, Leonardo DRS serves U.S. national security customers and allies globally. The company maintains a significant presence across the United States with facilities in Florida, Maryland, Ohio, and California. Internationally, Leonardo DRS also has operations in Israel through its DRS RADA Technologies business.

Leonardo DRS has maintained a strong brand reputation, primarily bolstered by its consistent delivery of advanced defense technologies and significant contract wins. Recent contract wins demonstrate the company's technological leadership and ability to secure high-value, strategic programs. Consistent strong financial results contribute to a positive perception of the company's operational strength. While the stock price pullback in November 2025 could be seen as a negative event, the subsequent analyst upgrade suggests that the underlying business fundamentals and long-term value proposition remained robust.

Leonardo DRS, Inc. has a mixed ownership structure comprising institutional, retail, and individual investors. Leonardo S.p.A., the Italian parent company, holds a significant majority stake. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and Fmr Llc. As of January 28, 2026, institutional owners collectively held shares, with approximately 16.88% of the company's stock owned by institutional investors, while insiders hold about 0.29%, and public companies and individual investors account for 82.83%.