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DRS News
DRS Events
Space42 Signs MoU with Leonardo DRS
Space42 has signed a memorandum of understanding, or MoU, with Leonardo DRS. The agreement establishes a framework to integrate Leonardo DRS mission systems with Space42's secure satellite connectivity to boost sovereign national security across the United Arab Emirates. Under the MoU, Leonardo DRS will contribute its expertise in C5ISR mission systems while Space42 will provide secure, AI-enabled satellite communications and beyond line of sight connectivity. Together, the companies will explore the joint design and integration of advanced mission capabilities for the UAE.
Leonardo DRS Signs Agreement for New Facility to Expand Naval Power Systems Business
Leonardo DRS announced it has signed an agreement for a new facility in Brookfield, Connecticut, that will expand and consolidate operations for its Naval Power Systems business. Located at 120 Park Ridge Road in Brookfield, the new site will provide 141,087 square feet of space and bring together operations currently spread across three locations in Danbury and Bethel, Connecticut. Initial occupancy is expected in early 2027, with the potential for limited occupancy in late 2026, depending on final design and tenant improvement construction.
Leonardo DRS Q2 Revenue $913M Beats Expectations
Reports Q2 revenue $913M, consensus $901.51M. "Leonardo DRS delivered an exceptional second quarter. Our results reflect disciplined execution and sustained demand for DRS's differentiated technologies. We captured over $1 billion in bookings, which increased funded backlog to record levels, drove double-digit organic revenue growth and meaningfully expanded margins and profitability. We are encouraged by our first half performance, which gives us the conviction to support increasing our full year guidance for Adjusted EBITDA and Adjusted Diluted EPS. Building on this momentum, the announced acquisition of Raft accelerates our multi-domain AI, data fusion and mission software position and reflects the disciplined capital deployment that underpins our long-term strategy. We are confident that our continued dedication to solving our customers' toughest challenges will drive consistent, profitable growth and create meaningful long-term value for our stockholders," said John Baylouny, President and CEO of Leonardo DRS.
Leonardo DRS Raises FY26 EBITDA Guidance to $525M-$540M
Consensus $1.30. Backs FY26 revenue view $3.9B-$3.98B, consensus $3.94B. Raises FY26 adjusted EBITDA view to $525M-$540M from $515M-$530M. The company said, "Leonardo DRS is increasing 2026 guidance for Adjusted EBITDA and Adjusted Diluted EPS based on strong first half performance."
Leonardo DRS Acquires Raft for $450M
Leonardo DRS entered into a definitive agreement to acquire Raft in an all-cash transaction valued at $450M. The company said, "Founded in 2018 and headquartered in McLean, Virginia, Raft provides open-architecture mission software, specializing in multi-domain data fusion and artificial intelligence (AI) that supports real-time situational awareness and faster operational decision-making for national security customers. The acquisition is aligned with DRS's strategy and enhances its ability to deliver integrated, mission-focused technologies that help customers operate with greater speed, clarity and confidence in complex operational environments. Defense customers increasingly manage large volumes of data from distributed sensors and systems; fragmented data architectures can slow decision-making. Raft's technology is designed to address this challenge by fusing disparate data into a common operating picture and helping reduce the cognitive burden on operators across domains and mission threads. Raft's open-architecture software, AI and data integration capabilities are highly complementary and additive to DRS's existing technology portfolio and customer relationships, enhancing the company's ability to deliver integrated, advanced sensing and network computing capabilities with software to turn sensor data into actionable decision advantage." The $450M all-cash transaction is subject to customary post-closing purchase price adjustments. As a result of the transaction, DRS expects to realize a tax benefit over the next 15 years, the present value of which is calculated to be approximately $50M. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in Q4. The acquisition is expected to be accretive to Adjusted Diluted Earnings Per Share in the first full year of ownership. DRS expects to fund the transaction through cash on hand and borrowings under its revolving credit facility.
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