DRS Stock: Insider Activity, Filings & Research
Leonardo DRS, Inc. (DRS) — Drillr’s hub for DRS insider activity, SEC filings, earnings signals and AI research. Over the trailing 3 months, DRS insiders filed 1 open-market buy and 6 sales (SEC Form 4).
DRS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 28, 2026 | Morrow Pamelaofficer: SVP and Controller | Sell | 11,545 | $45.13 |
| May 19, 2026 | Jeffery Reuben IIIdirector | Buy | 25,000 | $42.77 |
| May 18, 2026 | SALZMAN ERICdirector | Grant | 3,733 | — |
| May 18, 2026 | Brothers Louis R Jrdirector | Grant | 3,733 | — |
| May 18, 2026 | Casey Georgedirector | Grant | 3,733 | — |
| May 18, 2026 | Baker Gaildirector | Grant | 3,733 | — |
| May 18, 2026 | TOWNSEND FRANCES Fdirector | Grant | 3,733 | — |
| May 18, 2026 | Krieg Kenneth Jdirector | Grant | 3,733 | — |
| May 18, 2026 | Jeffery Reuben IIIdirector | Grant | 3,733 | — |
| May 18, 2026 | GALLAGHER MARY Edirector | Grant | 3,733 | — |
| Apr 9, 2026 | Rinsky Jasonofficer: EVP Chief Tax and Treasury | Grant | 5,887 | — |
| Apr 9, 2026 | Morrow Pamelaofficer: SVP and Controller | Grant | 4,089 | — |
| Apr 9, 2026 | Dippold Michaelofficer: EVP and CFO | Grant | 12,020 | — |
| Apr 9, 2026 | Wallace Sallyofficer: EVP, Chief Operating Officer | Grant | 7,359 | — |
| Apr 9, 2026 | Dorfman Markofficer: EVP, GC and Secretary | Grant | 7,359 | — |
Source: DRS SEC Form 4 filings, latest May 28, 2026. For informational purposes only — not investment advice.
Leonardo DRS, Inc. company profile
Overview
Leonardo DRS, Inc. (NASDAQ:DRS) is a defense technology company that provides advanced sensing, computing, and mission systems for military applications. Founded in 1969 and headquartered in Arlington, Virginia, the company went public in 1985 and has evolved into a leading supplier of defense electronics and systems. Leonardo DRS serves the U.S. military, aerospace and defense prime contractors, government intelligence agencies, and international military customers across land, air, sea, space, cyber security, and commercial domains.
Business
Leonardo DRS operates in the aerospace and defense industry, specializing in advanced defense electronics and integrated systems. The company's core business revolves around providing sophisticated sensing technologies, computing systems, and mission-critical equipment that enable military forces to detect threats, process information, and execute operations effectively. The company operates through two primary business segments: Advanced Sensing and Computing (ASC) Segment - This division focuses on sensor technologies and computing systems. Key products include infrared systems and sensors used for threat detection and situational awareness, which allow military personnel to "see" heat signatures in various conditions. The segment also produces electronic warfare (EW) systems that can detect, jam, or disrupt enemy communications and radar systems. Additionally, it provides computing systems for ground vehicles, ships, and submarines, along with network and data distribution applications that enable secure military communications. This segment has been experiencing strong growth, with revenue increasing 18% in the most recent quarter. Integrated Mission Systems (IMS) Segment - This division provides complete system solutions for military platforms. Major offerings include force protection systems such as counter-unmanned aerial systems (counter-drone technology) and short-range air defense systems that protect military installations and personnel. The segment also produces power control, distribution, and propulsion systems, including hybrid electric drive systems for naval vessels. A significant focus area is nuclear instrumentation and controls, particularly for submarine applications like the Columbia-class nuclear submarine program. The IMS segment has shown steady growth with revenue up 11% in the latest quarter. The company's revenue is relatively balanced between these segments, with both contributing significantly to the overall $3.2 billion in annual revenue. The ASC segment tends to have higher margins due to its advanced technology content, while the IMS segment benefits from large, long-term contracts particularly in naval applications.
Revenue model
Leonardo DRS generates revenue primarily through product sales and service contracts with government and military customers. The company's business model is built around long-term defense contracts, often spanning multiple years, which provide revenue visibility and stability. The primary revenue streams include direct sales of defense systems and components to the U.S. Department of Defense, sales to major defense contractors (known as "primes") who integrate DRS components into larger weapons systems, and international sales to allied nations' military forces. The company has been expanding its international presence, with international revenue growing to 13% of total revenue in 2024, up from 5% previously. Key factors that positively impact margins include the transition of programs from development to production phases, where economies of scale improve profitability. The Columbia-class submarine program exemplifies this, as it moves from design and development into full production, driving significant margin expansion. Additionally, the company benefits from economic price adjustment clauses in contracts that help offset inflation and material cost increases. Factors that can pressure margins include supply chain disruptions and material cost inflation, particularly for specialized materials like germanium used in infrared sensors. Program mix also affects profitability, as development-phase contracts typically carry lower margins than production contracts. Competition for new contract awards can also pressure pricing, though the specialized nature of many DRS products provides some protection. The company's focus on platform-agnostic technologies helps mitigate risks from specific program delays or cancellations, as the same technology can often be applied across multiple military platforms. The defense industry's long procurement cycles and the critical nature of national security applications provide relatively stable demand, though budget uncertainties and changing defense priorities can create timing variations in revenue recognition.
Competitive moat
Leonardo DRS possesses a moderate to strong competitive moat built primarily on specialized technical expertise, long-term customer relationships, and high switching costs inherent in defense applications. The company's moat is strongest in areas requiring deep technical specialization, such as infrared sensing technologies, electronic warfare systems, and nuclear submarine components. The company benefits from significant barriers to entry in its core markets. Defense contractors must obtain security clearances, meet stringent quality and reliability standards, and demonstrate proven performance over extended periods. Once a technology is integrated into a military platform, the costs and risks of switching suppliers are extremely high, creating substantial customer stickiness. This is particularly evident in the Columbia-class submarine program, where DRS's electric propulsion systems become integral to the vessel's design and operation over decades. DRS's platform-agnostic approach strengthens its competitive position by allowing the same core technologies to be applied across multiple military systems, reducing dependence on any single program. The company's investment in research and development, approaching 3% of revenue, helps maintain technological leadership in key areas like AI-enabled processing and quantum information science. However, the moat faces potential challenges from several directions. Large defense primes like Lockheed Martin, Raytheon, and Northrop Grumman have substantial resources and may choose to develop competing technologies in-house rather than rely on suppliers. Additionally, emerging technologies could disrupt traditional approaches - for example, advances in commercial semiconductor technology might challenge specialized military computing solutions. The company's international expansion and diversification across multiple defense domains help strengthen its overall competitive position, but individual product lines may face varying degrees of competitive pressure. The specialized nature of many DRS products and the critical mission requirements they support provide meaningful protection, though constant innovation and customer relationship management remain essential to maintaining competitive advantages.
Risks & safety
Leonardo DRS demonstrates a solid financial foundation with manageable debt levels and strong liquidity, though recent cash flow volatility warrants attention. **Liquidity and Solvency:** - Cash and short-term investments: $380 million as of Q1 2025 - Current ratio: 2.02, indicating strong short-term liquidity - Debt-to-equity ratio: 0.18, representing conservative leverage - Total debt levels remain modest relative to the company's asset base **Cash Flow Concerns:** - Q1 2025 operating cash flow: -$138 million (negative) - Free cash flow: -$170 million (negative) - This represents a significant deterioration from Q4 2024's positive $443 million operating cash flow - The negative cash flow appears related to working capital timing and contract milestone payments **Valuation Metrics:** - Price-to-earnings ratio: 43.6 (elevated) - EV/EBITDA: 26.8 (high) - Price-to-book ratio: 3.4 (premium valuation) - These metrics suggest the stock is trading at a significant premium to historical averages **Other Considerations:** - Strong backlog of $8.6 billion provides revenue visibility - Consistent book-to-bill ratios above 1.0 for 13 consecutive quarters - Recent initiation of dividend payments and share buybacks demonstrates management confidence
Recent development
Over the past few years, Leonardo DRS has executed several strategic initiatives to position itself for growth in evolving defense markets. The company has significantly expanded its focus on force protection and counter-unmanned aerial systems (Counter-UAS), developing directed energy counter-drone capabilities in just eight months to address the growing threat from hostile drones demonstrated in conflicts like Ukraine. A major strategic pivot has been the company's increased emphasis on naval systems and submarine technologies. The Navy has become DRS's largest customer, representing nearly 40% of revenue, driven primarily by the Columbia-class nuclear submarine program. To support this growth, the company invested $120 million in a new facility in Charleston, South Carolina, specifically designed to expand submarine industrial base capabilities and support long-term naval contracts. The company has also pursued aggressive international expansion, growing international revenue from 5% to 13% of total sales between 2022 and 2024. This expansion has been driven by increased global defense spending, particularly in Europe, the Middle East, and Asia-Pacific regions, as geopolitical tensions have heightened demand for advanced defense technologies. Innovation and technology development has been another key focus area. DRS has increased its R&D investment to approach 3% of revenue, with particular emphasis on AI-enabled edge processing, quantum information science applications, and advanced sensing modalities. The company has developed new tactical radars, infrared sensing technologies for next-generation missile systems, and over-the-horizon radar capabilities. The company has also been actively pursuing mergers and acquisitions as a primary capital allocation strategy, maintaining an active pipeline of opportunities in advanced sensing, naval power systems, force protection, and network computing. While no major acquisitions have been completed recently, management continues to prioritize M&A for strategic growth and market expansion.
DRS company profile · for informational purposes only — not investment advice.
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