Leonardo DRS wins DoD counter-drone competition with new system

ARLINGTON, Va. - Leonardo DRS, Inc. (NASDAQ:DRS), a defense technology company with an $11.8 billion market capitalization, secured first place in a Department of Defense counter-drone competition with its new electronic warfare system designed to detect and neutralize unmanned aerial threats. According to InvestingPro analysis, the company appears overvalued at current levels despite strong market performance, with shares up over 41% year-to-date.

The company demonstrated its Ring C-UxS system during an event hosted by the DoD’s Joint Counter-small Unmanned Aircraft Systems Office (JCO). The system employs radio frequency-based electronic warfare capabilities to detect, identify, and defeat enemy drones and autonomous systems across air, land, and sea domains.

Leonardo DRS, working with technology partner Regulus, excelled in the demonstration’s "Dismounted Detect-Identify-Track-Defeat" portion focused on group 1 and 2 unmanned aerial systems (UAS). The competition evaluated industry capabilities that can operate effectively in contested electromagnetic environments.

"We are proud to have been recognized with a first-place award in this critical JCO demonstration used to inform requirements for keeping ahead of the ever-growing small UAS threat," said Aaron Hankins, senior vice president and general manager of the Leonardo DRS Land Systems business unit, according to the press release.

The Ring system utilizes radio frequency detection, Global Navigation Satellite Systems techniques, and RF datalink manipulation to counter both commercial and military uncrewed threats. The company stated the technology has been deployed across multiple platforms and operational theaters.

Leonardo DRS serves as prime contractor for the Mobile-Low, Slow Small Unmanned Aircraft Integrated Defeat System program and develops the integrated Mission Equipment Package for the SGT Stout Maneuver Short Range Air Defense program.

The announcement comes as military forces worldwide continue to enhance their capabilities against the growing proliferation of drone threats in modern warfare. With analyst price targets ranging from $45 to $53 and a strong consensus recommendation, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks including Leonardo DRS.

In other recent news, Leonardo DRS reported its second-quarter earnings with a notable 10% increase in revenue, reaching $829 million. This growth was accompanied by a rise in adjusted EBITDA and adjusted earnings per share, demonstrating strong operational performance. The company has also revised its full-year revenue guidance, now anticipating growth between 9% and 11%. Additionally, Leonardo DRS participated in a $20 million Series B funding round for Hoverfly Technologies, contributing $15 million. This investment includes a manufacturing agreement to expand production of Hoverfly’s Sentry drone and initiate a production line for the Spectre system. The remaining $5 million of the funding round was provided by Korea Robot Manufacturing. These developments reflect Leonardo DRS’s strategic moves in the defense and technology sectors.

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