DRS · Nasdaq · Industrials
Leonardo DRS, Inc. (DRS) — Rank #325 by gross profitability (GP/assets 0.21) · ROE 9.9% · Piotroski F-Score 7 / 9.
As-of 2026-10-30 · CIK 0001833756 · all metrics point-in-time as of the filing date.
About
Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide.
Show moreShow less
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.
- Industry
- Aerospace & Defense
- Sector
- Industrials
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- leonardodrs.com
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
7,300
Industry
Aerospace & Defense
Exchange
Nasdaq
11/12
Flags passed
DRS passes 11/12 quality flags
1 caution to review
- CAUTIONDisclosure regression
A previously-disclosed line item is no longer reported — worth checking the filing for why
- PASSGross margin holding
- PASSDilution within 2%
- PASSFCF not negative from investment
- PASSRevenue not declining
- PASSOperating margin holding
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
2/3 passGrowth
2/2 passOperating margin expansion and free cash flow are the primary reads at this stage.
Profitability
Does it make money well?
No warning flags · GP/assets 12th percentile of 41 SIC 38 peers
Gross profitability (GP / assets)
0.21
Primary signal (Novy-Marx).
12th pctl of 41 SIC 38 peers
Return on equity
9.9%
Gross margin
23.8%
2nd pctl of 41 SIC 38 peers
Revenue growth (YoY)
12.8%
RPO growth (YoY)
-0.7%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
10.6%
Revenue CAGR (5Y)
5.6%
Earnings CAGR (3Y)
-11.8%
FCF CAGR (3Y)
—
Cash Flow Health
Is the cash real?
No warning flags · FCF 18% below net income
Free cash flow
$227.00M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
-18.3%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.9%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
No warning flags · net debt $88.00M, F-Score 7/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.50
62nd pctl of 40 SIC 38 peers (best = lowest)
Current ratio
1.92×
21st pctl of 40 SIC 38 peers
Quick ratio
0.55×
Net cash
-$88.00M
Cash & equivalents minus total debt.
Piotroski F-Score
7 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
2.7 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports