Leonardo DRS wins $16.9M U.S. Army Paladin upgrade

Published 26/03/2025, 21:06
Leonardo DRS wins $16.9M U.S. Army Paladin upgrade

ARLINGTON, Va. - Defense contractor Leonardo DRS, Inc. (NASDAQ:DRS), with a market capitalization of nearly $9 billion, has secured a $16.9 million project award from the U.S. Army to upgrade a key component of the M109A7 Paladin self-propelled howitzer. The company announced on Wednesday that it will be tasked with modernizing the Paladin Electric Servo Amplifier (PESA), which is essential for the weapon control system of the artillery vehicle. According to InvestingPro data, Leonardo DRS has demonstrated strong momentum with a 57.66% return over the past year.

The Paladin M109A7, a cornerstone of the U.S. Army’s armored brigade combat teams, will receive a next-generation prototype of the PESA, incorporating current electrical technology. This upgrade aims to enhance the producibility and maintainability of the line replaceable units, ensuring the vehicle’s continued operation without compromising its existing capabilities. The company’s solid execution is reflected in its 14.44% revenue growth in the last twelve months, as reported by InvestingPro.

Denny Crumley, senior vice president and general manager of Leonardo DRS’s Land Electronics business unit, emphasized the importance of the Paladin as a mission-critical combat system. He expressed enthusiasm for providing the Army with advanced technology to support the long-term effectiveness of the Paladin combat vehicle.

Leonardo DRS is recognized for its expertise in designing, developing, and integrating complex electrical, electromechanical, and electronic systems for the U.S. military. The PESA project exemplifies the company’s commitment to delivering best-of-breed technology and capabilities across various customer needs, including electrical power, network computing, and advanced sensing. The company maintains a strong financial position with a "Good" overall health score according to InvestingPro, which offers comprehensive analysis and over 30 additional key metrics in its Pro Research Report.

Headquartered in Arlington, VA, Leonardo DRS is known for its innovative defense technology solutions provided to U.S. national security customers and allies globally. The company specializes in advanced sensing, network computing, force protection, electric power and propulsion, and other critical defense technologies. With a year-to-date return of 6.62% and currently trading above its Fair Value, the stock has shown resilience in the defense sector.

The announcement of this prototype project award represents the company’s ongoing efforts to support the U.S. Army with cutting-edge technology and underscores its role as a key player in the defense sector. This information is based on a press release statement from Leonardo DRS.

In other recent news, Leonardo DRS has reported significant developments across its operations. The company delivered strong fourth-quarter results for 2024, surpassing both its outlook and consensus expectations, which led BTIG analyst Andre Madrid to raise the stock’s price target to $40, reiterating a Buy rating. Leonardo DRS’s record backlog of $8.5 billion was highlighted as a key factor in its revenue visibility, supporting an organic growth projection of 6-9%. Additionally, the company has launched its Artificial Intelligence Processor (AIP), a ruggedized computing system designed to enhance situational awareness and threat detection for U.S. Army vehicles. This strategic move aims to solidify Leonardo DRS’s position as a leading supplier of advanced military technologies. In another development, Leonardo DRS delivered its first Integrated Voice Communication Systems (IVCS) for the U.S. Navy’s Arleigh Burke DDG51-class destroyers. These systems are part of the company’s ongoing commitment to providing secure communication technologies to support naval operations. The delivery marks a significant step in Leonardo DRS’s partnership with the U.S. Navy, reflecting its leadership in secure naval communications solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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