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ARLINGTON, Va. - Defense technology provider Leonardo DRS, Inc. (NASDAQ:DRS), an $11.8 billion market cap defense technology company with impressive revenue growth of ~14% over the last twelve months, has been awarded a $41 million contract by the Naval Sea Systems Command to continue supplying combat management system hardware to the U.S. Navy, allied naval forces, and the U.S. Coast Guard, the company announced today.
The contract involves the delivery of multi-screen consoles, displays, and peripheral equipment that are integral to the AEGIS Combat System and Ship Self-Defense System (SSDS), which are employed on a variety of naval ships. These systems are crucial for sailors to access, process, and display essential battlespace information, thereby facilitating rapid tactical decision-making. The open architecture of the system is designed to ensure that it remains interoperable and scalable for use on both current and future vessel platforms.
Leonardo DRS’s hardware will also be supplied to allied navies, including those of Australia, South Korea, and Japan, highlighting the company’s significant role in international maritime security. According to InvestingPro data, the company maintains a strong financial position with a healthy current ratio of 2.02 and has demonstrated robust performance with a year-to-date return of 38%.
Cari Ossenfort, Senior Vice President and General Manager of Leonardo DRS’s Naval Electronics business unit, expressed pride in the company’s ongoing partnership with the U.S. Navy and Coast Guard, as well as allied forces. Ossenfort emphasized Leonardo DRS’s position as a top provider of combat and network hardware for maritime forces, ensuring that they are equipped with the most advanced and reliable systems available.
The company’s combat system hardware is widely deployed across various mission-critical platforms, enhancing situational awareness, interoperability, and command effectiveness in multi-domain operations worldwide. The production work for this contract will take place at Leonardo DRS’s facility in Johnstown, PA. With an overall financial health score rated as GOOD by InvestingPro, which offers comprehensive analysis and 12+ additional ProTips for this defense contractor, the company appears well-positioned to execute on this contract.
Leonardo DRS is recognized for its comprehensive experience in complex design and manufacturing, supporting a broad spectrum of missions and capabilities across naval, ground, air, space, and cyber domains.
This contract underscores Leonardo DRS’s commitment to providing high-performance, multi-domain capabilities for U.S. national security and allied forces. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value. Detailed insights, including comprehensive financial analysis and future growth projections, are available in the Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities. The information for this article is based on a press release statement.
In other recent news, Leonardo DRS reported a strong financial performance for the first quarter of 2025, with a 16% increase in revenue compared to the previous year. The company’s adjusted EBITDA rose by 17% to $82 million, and net earnings reached $50 million. Leonardo DRS maintained its full-year revenue guidance between $3.425 billion and $3.525 billion, projecting a growth of 6-9%. The company’s backlog increased to $8.6 billion, supported by a book-to-bill ratio of 1.2, indicating strong demand and consistent order intake. The company is actively exploring mergers and acquisitions as part of its growth strategy. Analysts have noted the company’s advancements in AI, electric propulsion, and infrared sensing technologies. During the earnings call, executives highlighted the importance of innovation and strategic investments in defense technologies. The company also commenced its capital return initiatives with the payment of its first dividend and initial stock repurchases.
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