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ARLINGTON, Va. - Leonardo DRS, Inc. (NASDAQ:DRS), a defense technology company with a market capitalization of $11.67 billion, has secured a contract from the U.S. Army to develop prototype Vehicle Integrated Power Kits (VIPKs) that will provide on-demand electrical power from tactical vehicles in the field. According to InvestingPro analysis, the company’s stock is currently trading near Fair Value levels, with strong year-to-date returns of 36%.
The company will base the prototypes on its On-Board Vehicle Power solution, known as TITAN, which can generate up to 120kW of electrical power directly from a vehicle’s drivetrain. The technology allows for power delivery to mission-critical systems such as communications equipment, electronic warfare systems, and counter-UAS technologies without requiring external power sources. The company’s robust financial health, rated as GOOD by InvestingPro, supports its ability to deliver on such innovative military contracts.
The power kits will support various high-demand systems including mobile command and control, missile defense launchers, radar arrays, directed energy weapons, and expeditionary power microgrids, whether the vehicle is stationary or in motion.
"This award highlights our continued commitment to delivering mission-enabling technologies that increase operational effectiveness for our military customers," said Dennis Crumley, senior vice president and general manager of the Leonardo DRS Land Electronics business unit, in a press release statement.
The contract addresses the growing electrical power requirements of modern military operations that increasingly rely on advanced technologies requiring significant power resources.
The financial terms and delivery timeline for the contract were not disclosed in the announcement.
Leonardo DRS, which trades on the Nasdaq exchange, specializes in defense technologies across domains including advanced sensing, network computing, force protection, and electric power and propulsion systems. The company has demonstrated strong performance with 11.43% revenue growth in the last twelve months. Investors should note that Leonardo DRS will report its next earnings on October 29, potentially providing new catalysts for the stock. For detailed analysis and additional insights, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Leonardo DRS reported a 10% year-over-year increase in revenue for the second quarter, reaching $829 million. The company also experienced a notable rise in adjusted EBITDA and adjusted earnings per share, indicating strong operational performance. Leonardo DRS has subsequently raised its full-year revenue guidance, anticipating growth between 9% and 11%. Additionally, Leonardo DRS secured first place in a Department of Defense counter-drone competition with its Ring C-UxS system, which uses electronic warfare to neutralize unmanned aerial threats. In a strategic move, Leonardo DRS and KNDS have partnered to offer the CAESAR Self-Propelled Howitzer system to the U.S. Army, aiming to enhance artillery range and mobility. Furthermore, Leonardo DRS led a $20 million Series B funding round for Hoverfly Technologies, contributing $15 million and securing a manufacturing agreement to expand drone production. These developments reflect Leonardo DRS’s active engagement in expanding its defense capabilities and partnerships.
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