Industrials · NYSE/NASDAQ: DRS
Leonardo DRS, Inc.
Aerospace & Defense
Market Cap $12.45B
Verdict: High
Quality Scores
Multi-Bagger
72/100
Compounder Quality
84/100
Management Credibility
86/100
Governance
88/100
Cash Flow Quality
92/100
AI Summary
Leonardo DRS (DRS) serves as a critical mid-tier defense electronics provider, specifically focusing on advanced sensing, network computing, and force protection for the U.S. military. Since its merger with RADA Electronic Industries in late 2022, the company has successfully pivoted toward a pure-play localized technology portfolio. Revenue growth accelerated to 14% and 13% in recent years, reaching $3.65B by FY2025, supported by a robust backlog in naval power and electronic warfare. Net income remains somewhat volatile due to merger-related adjustments, but the underlying operational core…
Top Opportunities
- Pure-play mid-tier US defense leader
- Strong alignment with US Navy and Army electronics priorities
- Robust Revenue CAGR trajectory (10% over 3y)
Top Risks
- Heavy reliance on US Department of Defense budgets
- Significant minority stake held by foreign entity (Leonardo SpA)
- Inconsistent Cash Conversion history (2022 dip)
Latest report: Read the annual report summary →
Unlock the full report
Full sections, financial charts, AI chat and PDF export are available with Premium.