Leonardo DRS, Inc. (DRS) Stock

Leonardo DRS, Inc. (DRS) is a Technology stock trading at $41.02 (as of 2026-08-20), with a market capitalization of $10.95B and a trailing P/E of 34.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Leonardo DRS, Inc., through its subsidiaries, develops defense products and technologies for military applications across land, air, sea, space, cyber, and security, and also serves commercial customers. It operates in two segments, Advanced Sensing and Computing and Integrated Mission Systems, providing sensing and electronic warfare, computing and network/data distribution, and force protection and related systems.

Understand Leonardo DRS, Inc.: how it makes money

Leonardo DRS, Inc. provides defense electronics and technologies across land, air, sea, space, cyber, and security, making money by delivering mission systems and advanced sensing and computing capabilities used in military applications.

Near-term profit momentum depends on whether new bookings translate into revenue, which is signaled by the Book-to-Bill Ratio.

Revenue by segment (latest quarter)
IMS	$0.3B
ASC	$0.5B

Business quality (Mixed): The company is organized around two defense technology segments, with operating demand reflected in book-to-bill metrics, but the latest snapshot also shows one segment contributing a clearly larger share of reported revenue than the other based on the provided segment figure.

Valuation: At 45× earnings, DRS trades 12% below the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

Order intake signal supports revenue conversion: The Book-to-Bill Ratio is 1.0, which indicates new bookings are roughly keeping pace with what is being recognized as revenue (based on the metric definition).
Segmented defense offerings create multiple pathways to programs: The company operates in Advanced Sensing and Computing and Integrated Mission Systems, aligning its products to multiple operational domains such as threat detection, situational awareness, and electronic warfare.

Bear case

Demand and execution risk can show up after bookings: If the pipeline does not convert into delivered revenue, the Book-to-Bill Ratio can deteriorate and pressure results, even when orders look healthy in a given quarter.
Revenue mix may concentrate around one segment: In the provided segment data, Integrated Mission Systems is 0.29B versus the implied remaining balance for Advanced Sensing and Computing, so unfavorable program timing in the larger or smaller segment could affect quarter-to-quarter performance.

Valuation — source: SEC EDGAR (first-party)
Price	$41.02
Market Cap	$10.95B
P/E Ratio	34.0
EV / EBITDA	21.6
Price / Book	3.91
Price / Sales	2.90
FCF Yield	3.3%
DCF Value (model)	$21.44
DCF Upside vs Price	-47.7%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$3.65B
Net Margin	7.6%
Revenue Growth (YoY)	10.1%
EPS Growth (YoY)	65.0%
FCF Growth (YoY)	-110.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	4.37 (safe)
Piotroski F-Score	7/9 (strong)

Valuation vs Sector & Industry
Stock P/E	34.0
Sector P/E (Technology)	33.9
Industry P/E (Electronic Equipment)	39.4
vs Sector	0.2%
vs Industry	-13.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($263.09M)
Institutional Holders Tracked	10
Congressional Trades (recent)	1

Company
Sector	Technology
Industry	Electronic Equipment
CEO	John A. Baylouny
Employees	7,000
Country	US
IPO Date	1985-06-24

Related Companies (Business model: Defense & Aerospace Prime (Defense Primes + Commercial Aerospace OEMs); 8 closest by market cap)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.