[PART I. Financial Information](index=6&type=section&id=PART%20I%2E%20Financial%20Information) This section presents the unaudited financial statements and management's discussion and analysis for the quarter ended March 31, 2025, detailing the company's financial performance, position, and cash flows [ITEM 1. Financial Statements (Unaudited)](index=6&type=section&id=ITEM%201%2E%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for Q1 2025 reveal significant year-over-year growth in revenue and net earnings, a solid balance sheet, and improved operating cash flow [Consolidated Statements of Earnings](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings) Q1 2025 consolidated earnings show revenues of **$799 million**, a **16.1% increase**, and net earnings of **$50 million**, up **72.4%** year-over-year Consolidated Earnings Summary (Q1 2025 vs Q1 2024) | Metric (in millions, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenues** | $799 | $688 | | **Gross Profit** | $181 | $153 | | **Operating Earnings** | $59 | $43 | | **Net Earnings** | $50 | $29 | | **Basic EPS** | $0.19 | $0.11 | | **Diluted EPS** | $0.19 | $0.11 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$4.096 billion**, with a decrease in cash, while total liabilities decreased and shareholders' equity increased Balance Sheet Summary | Metric (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,070 | $2,163 | | Cash and cash equivalents | $380 | $598 | | **Total Assets** | **$4,096** | **$4,184** | | **Total Current Liabilities** | $1,027 | $1,116 | | **Total Liabilities** | **$1,525** | **$1,627** | | **Total Shareholders' Equity** | **$2,571** | **$2,557** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 cash flow shows net cash used in operating activities improved to **$138 million**, with investing and financing activities also using cash, resulting in a **$218 million** net decrease Cash Flow Summary (Q1 2025 vs Q1 2024) | Activity (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(138) | $(265) | | Net cash used in investing activities | $(32) | $(10) | | Net cash used in financing activities | $(48) | $(32) | | **Net decrease in cash** | **$(218)** | **$(307)** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, **78%** revenue reliance on DoD, **$8.6 billion** backlog, and recent share repurchase and dividend activities - The Department of Defense (DoD) is the largest customer, accounting for approximately **78%** of total revenues for the three months ended March 31, 2025[32](index=32&type=chunk) - Total backlog as of March 31, 2025, was **$8.612 billion** Approximately **27%** is expected to be recognized as revenue over the next nine months[45](index=45&type=chunk) - On February 20, 2025, the Board approved a share repurchase program of up to **$75 million** As of March 31, 2025, approximately **$3 million** had been repurchased[75](index=75&type=chunk) - A quarterly dividend of **$0.09 per share** was declared and paid during the first quarter of 2025[76](index=76&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202%2E%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2025 performance to backlog growth and execution across ASC and IMS segments, with revenue up **16.1%** and operating earnings up **37.2%**, maintaining strong liquidity [Business Overview and Considerations](index=28&type=section&id=Business%20Overview%20and%20Considerations) DRS operates two defense technology segments, ASC and IMS, with **78%** of Q1 2025 revenue from DoD, influenced by global conflicts and the **$850 billion** FY 2025 U.S. defense budget - The company operates through two technology-driven segments: Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS)[102](index=102&type=chunk)[106](index=106&type=chunk) - The DoD accounted for **78%** of revenue in Q1 2025, with the U.S. Navy (**38%**) and U.S. Army (**32%**) being the primary end-users[100](index=100&type=chunk) - The FY 2025 National Defense Authorization Act (NDAA) authorizes **$850 billion** in defense spending, largely flat over prior year levels but with increases in procurement and R&D[118](index=118&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 revenue grew **16.1%** to **$799 million**, with operating earnings up **37.2%** and net earnings up **72.4%**, driven by backlog growth and improved margins Q1 2025 vs Q1 2024 Performance | Metric (in millions) | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $799 | $688 | 16.1% | | **Gross Profit** | $181 | $153 | 18.3% | | **Operating Earnings** | $59 | $43 | 37.2% | | **Net Earnings** | $50 | $29 | 72.4% | | **Bookings** | $991 | $815 | 21.6% | | **Backlog** | $8,612 | $7,845 | 9.8% | - G&A expenses increased by **15.8%** primarily due to higher internal R&D spending and bid and proposal efforts[135](index=135&type=chunk) - Net interest expense decreased by **$4 million** due to higher interest income from larger cash balances and reduced borrowings[139](index=139&type=chunk) [Review of Operating Segments](index=39&type=section&id=Review%20of%20Operating%20Segments) Both ASC and IMS segments contributed to Q1 2025 growth, with ASC revenue up **18.0%** and IMS revenue up **11.5%**, driven by strong bookings across programs Segment Performance (Q1 2025 vs Q1 2024) | Segment (in millions) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **ASC** | Revenues | $511 | $433 | 18.0% | | | Operating Earnings | $25 | $19 | 31.6% | | | Bookings | $669 | $587 | 14.0% | | **IMS** | Revenues | $291 | $261 | 11.5% | | | Operating Earnings | $34 | $25 | 36.0% | | | Bookings | $322 | $228 | 41.2% | [Advanced Sensing and Computing (ASC)](index=39&type=section&id=Advanced%20Sensing%20and%20Computing%20(ASC)) ASC revenue grew **18.0%** to **$511 million** in Q1 2025, with operating earnings up **31.6%** and margin improving to **4.9%**, driven by tactical computing and C-UAS radars - Revenue growth was driven by advanced sensing and force protection programs, specifically tactical computing and C-UAS tactical radars[165](index=165&type=chunk) - Operating margin increased to **4.9%** due to higher revenue and reduced restructuring, despite increased germanium costs and R&D spending[166](index=166&type=chunk)[167](index=167&type=chunk) [Integrated Mission Systems (IMS)](index=40&type=section&id=Integrated%20Mission%20Systems%20(IMS)) IMS revenue increased **11.5%** to **$291 million** in Q1 2025, with operating earnings up **36.0%** and margin expanding to **11.7%**, driven by naval power programs - Revenue growth was attributed to naval power programs (submarine and surface ship) and short-range air defense programs[169](index=169&type=chunk) - Operating margin increased to **11.7%** from **9.6%**, driven by operational leverage and continued program improvement on the Columbia Class submarine program[170](index=170&type=chunk) - Bookings increased significantly due to funding for the next tranche of the Columbia Class program and additional short-range air defense vehicle awards[171](index=171&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Q1 2025 ended with **$380 million** cash, with net cash used in operating activities improving to **$138 million** due to working capital management, despite increased investing and financing outflows Cash Flow Summary (Q1 2025 vs Q1 2024) | Activity (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(138) | $(265) | | Net cash used in investing activities | $(32) | $(10) | | Net cash used in financing activities | $(48) | $(32) | | **Net decrease in cash** | **$(218)** | **$(307)** | - The improvement in operating cash flow was driven by customer advances on electric propulsion and tactical radar programs, and lower cash outflow for accounts payable[174](index=174&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rate risk on variable-rate debt, limited foreign currency exposure, and inflationary pressures on supply chain costs impacting profitability - The company is exposed to interest rate risk on its **$200 million** outstanding variable-rate 2022 Term Loan A A **0.5%** change in rates would alter annual interest expense by about **$1 million**[179](index=179&type=chunk) - Foreign currency risk is limited, with primary exposure to the Canadian dollar on receivables of **$26 million** as of March 31, 2025[181](index=181&type=chunk) - The company has experienced inflationary pressures on supply chain costs for micro-electronics and metals, which have impacted profitability[182](index=182&type=chunk) [ITEM 4. Controls and Procedures](index=42&type=section&id=ITEM%204%2E%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of the end of the quarter[183](index=183&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[185](index=185&type=chunk) [PART II. Other Information](index=43&type=section&id=PART%20II%2E%20Other%20Information) This section provides updates on legal proceedings, risk factors, equity security sales, and other general information for the reporting period [ITEM 1. Legal Proceedings](index=43&type=section&id=ITEM%201%2E%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings and claims, with details provided in Note 12 of the Consolidated Financial Statements - Information regarding legal proceedings is detailed in Note 12: Commitments and Contingencies to the Consolidated Financial Statements[187](index=187&type=chunk) [ITEM 1A. Risk Factors](index=43&type=section&id=ITEM%201A%2E%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024[188](index=188&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **88,050 shares** for approximately **$3 million** under its **$75 million** share repurchase program during Q1 2025 Share Repurchase Activity (Q1 2025) | Period | Shares Purchased | Average Price Paid | Value (in millions) | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | :--- | | March 2025 | 88,050 | $32.46 | ~$2.9 | $72 | - The Board approved a share repurchase program on February 20, 2025, authorizing the purchase of up to **$75 million** of common stock through March 4, 2027[189](index=189&type=chunk) [ITEM 5. Other Information](index=43&type=section&id=ITEM%205%2E%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[194](index=194&type=chunk)

Financial Data and Key Metrics Changes - The company reported a revenue growth of 16% in Q1, significantly exceeding expectations, primarily due to favorable timing of material receipts [21][28] - Adjusted EBITDA for the quarter was $82 million, representing a 17% increase year-over-year, with an adjusted EBITDA margin of 10.3%, reflecting a slight margin expansion of 10 basis points [23][24] - Net earnings for Q1 were $50 million, with diluted EPS of $0.19, marking a 7273% increase, while adjusted net earnings were $54 million, with adjusted diluted EPS of $0.20, up 42% [26][27] Business Line Data and Key Metrics Changes - The Advanced Sensing and Computing (ASC) segment saw an 18% revenue growth, while the Integrated Mission Systems (IMS) segment's revenue increased by 11% [22][24] - ASC adjusted EBITDA increased by 2%, but the margin declined by 130 basis points due to negative contract adjustments and increased costs from a sole source supplier [24][26] - IMS adjusted EBITDA rose by 38%, with margin expansion of 260 basis points, driven by favorable contract adjustments and increased volume from the Columbia Class program [25][26] Market Data and Key Metrics Changes - The company secured nearly $1 billion in bookings during the quarter, resulting in a book-to-bill ratio of 1.2, marking the thirteenth consecutive quarter with a book-to-bill above one [6][7] - The backlog increased to $8.6 billion, reflecting growth on both a year-over-year and sequential basis [7][28] - Domestic growth was highlighted, while international growth faced headwinds due to timing issues related to deliveries supporting Ukraine [35] Company Strategy and Development Direction - The company is focused on enhancing its capabilities in layered air defense, counter UAS, and shipbuilding, aligning with national defense initiatives [10][11] - The company is investing in AI technologies and electric propulsion systems, aiming to capture significant demand in these areas [18][19] - The strategic emphasis is on maintaining a strong position in defense priorities while ensuring efficient program execution and innovation [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand despite a dynamic operating environment, with expectations for continued growth in defense spending [9][10] - The company anticipates a revenue range of $3.425 billion to $3.525 billion for the full year, implying a 6% to 9% year-over-year growth [28][29] - Management noted that the operating environment is more dynamic compared to the previous year, requiring agility to navigate complexities [20] Other Important Information - The company initiated a dividend payment and stock repurchase program, reflecting a commitment to returning capital to shareholders [8] - The management is actively engaged in M&A opportunities, viewing it as a top priority for capital allocation [76] Q&A Session Summary Question: Can you discuss the impact of material receipts on revenue? - The material acceleration impacted revenue holistically across the board, with improved supplier deliveries contributing positively [33][34] Question: What are the expectations for ASC margins going forward? - The adjustments made in Q1 are expected to reset the backlog, leading to a lower gross margin prospectively, but a recovery is anticipated [38] Question: How does the company view the potential defense budget increase? - The company is well-positioned to grow ahead of the defense budget, aligning with core markets in shipbuilding and force protection [55] Question: What is the company's strategy regarding international opportunities? - There is a substantial near-term opportunity in Europe, particularly in counter-drone and advanced sensing programs [63] Question: How is the company addressing supply chain challenges? - The company is including economic price adjustment clauses in future contracts to mitigate risks associated with price volatility [78]

Leonardo DRS, Inc. (DRS) reported $799 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 16.1%. EPS of $0.20 for the same period compares to $0.14 a year ago.The reported revenue represents a surprise of +7.32% over the Zacks Consensus Estimate of $744.53 million. With the consensus EPS estimate being $0.17, the EPS surprise was +17.65%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 16% in Q1, significantly above expectations, primarily due to favorable timing of material receipts [22][24] - Adjusted EBITDA for the quarter was $82 million, representing a 17% growth year-over-year, with an adjusted EBITDA margin of 10.3%, reflecting a slight year-over-year margin expansion of 10 basis points [24][26] - First quarter net earnings were $50 million, with diluted EPS of $0.19, marking a 7273% increase, while adjusted net earnings were $54 million, with adjusted diluted EPS of $0.20, up 42% [26][30] Business Line Data and Key Metrics Changes - The Advanced Sensing and Computing (ASC) segment saw a revenue growth of 18%, while the Integrated Mission Systems (IMS) segment's revenue increased by 11% [23][24] - ASC adjusted EBITDA increased by 2%, but the margin declined by 130 basis points due to negative contract adjustments and increased costs from a sole source supplier [25][26] - IMS adjusted EBITDA rose by 38%, with margin expansion of 260 basis points, driven by favorable contract adjustments and increased volume from the Columbia Class program [25][26] Market Data and Key Metrics Changes - The company secured nearly $1 billion in bookings during the quarter, resulting in a book-to-bill ratio of 1.2, marking the thirteenth consecutive quarter with a book-to-bill above one [6][20] - The backlog increased to $8.6 billion, reflecting growth on both a year-over-year and sequential basis [7][20] - Domestic growth was highlighted, while international growth faced some headwinds due to timing of deliveries [35][36] Company Strategy and Development Direction - The company is focused on enhancing its role in national defense initiatives, particularly in layered air defense, counter UAS, and shipbuilding [11][12] - The company is investing in its Charleston facility to support shipbuilding and is exploring opportunities in electric propulsion and unmanned naval platforms [17][18] - The company is also advancing its AI capabilities to enhance threat detection and situational awareness in combat vehicles [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic operating environment but expressed confidence in maintaining a book-to-bill ratio above one for 2025 [10][11] - The global threat environment remains elevated, which is expected to sustain demand for defense spending [11][12] - The company anticipates the FY '26 President's Budget Request will provide clarity on funding allocations for key priorities [11][12] Other Important Information - The company initiated a dividend payment and stock repurchases as part of its capital return initiatives [8][20] - The company is actively engaged in M&A opportunities, viewing them as a top priority for capital allocation [78][79] - The company has implemented economic price adjustment clauses in contracts to mitigate risks associated with price volatility of raw materials [81][82] Q&A Session Summary Question: Can you talk about material receipts and international growth? - The material acceleration impacted revenue holistically across the board, with domestic growth being the primary contributor while international growth faced some headwinds [35][36] Question: What are the margin expectations for ASC? - The ASC segment is expected to have a lower gross margin prospectively, but adjustments made in Q1 should mitigate some impacts moving forward [41] Question: How do you see your share of the defense budget evolving? - The company expects to grow ahead of the defense budget, aligning with the administration's priorities in shipbuilding and force protection [56][58] Question: What is the opportunity in the European defense market? - There is a substantial near-term opportunity in areas like counter-drone systems and advanced sensing programs, although competition may evolve over time [66] Question: How is the company positioned for Navy opportunities? - The company is engaged in discussions to increase its role in shipbuilding and is positioned to support the Navy's increased throughput needs [70][71] Question: What is the outlook for interest expense? - The company anticipates a lower interest burden for the full year due to improved cash position and linearity [111]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 16% in Q1, significantly above previous expectations, primarily due to favorable timing of material receipts [22][24] - Adjusted EBITDA for the quarter was $82 million, representing a 17% increase year-over-year, with an adjusted EBITDA margin of 10.3%, reflecting a slight margin expansion of 10 basis points [24][25] - First quarter net earnings were $50 million, with diluted EPS of $0.19, marking a 7273% increase, while adjusted net earnings were $54 million, with adjusted diluted EPS of $0.20, up 42% [27][28] Business Line Data and Key Metrics Changes - The Advanced Sensing and Computing (ASC) segment saw a revenue growth of 18%, while the Integrated Mission Systems (IMS) segment's revenue increased by 11% [23][24] - ASC adjusted EBITDA increased by 2%, but the margin declined by 130 basis points due to negative contract adjustments and increased costs from a sole source supplier [25][26] - IMS adjusted EBITDA rose by 38%, with margin expansion of 260 basis points, driven by favorable contract adjustments and increased volume from the Columbia Class program [26] Market Data and Key Metrics Changes - The company secured nearly $1 billion in bookings during the quarter, resulting in a book-to-bill ratio of 1.2, marking the thirteenth consecutive quarter with a book-to-bill above one [7][8] - The backlog increased to $8.6 billion, reflecting growth on both a year-over-year and sequential basis [9] - Domestic growth was highlighted as a key driver, while international growth faced headwinds due to timing issues related to support for Ukraine [35] Company Strategy and Development Direction - The company is focused on enhancing its capabilities in layered air defense, counter UAS, and shipbuilding, aligning with national defense initiatives [12][13] - The company is investing in AI technologies and electric propulsion systems, aiming to capture significant demand in these areas [19][20] - The strategic emphasis is on maintaining a strong operational performance while navigating a dynamic operating environment [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of demand despite a more dynamic operating backdrop, with expectations for continued growth in defense spending driven by global threats [11][12] - The company anticipates a revenue range of $3.425 billion to $3.525 billion for the full year, implying a 6% to 9% year-over-year growth [29] - Management noted that the operating environment is more complex than in previous years, requiring agility to adapt to new challenges [21] Other Important Information - The company initiated a dividend payment and stock repurchase program as part of its capital return initiatives [10] - The management is actively engaged in M&A opportunities, viewing it as a top priority for capital allocation [76][77] Q&A Session Summary Question: Can you discuss the impact of material receipts on revenue? - The material acceleration impacted revenue holistically across the board, with improved supplier deliveries contributing positively [34][35] Question: What are the expectations for second half revenue? - The guidance suggests a flat to 6% growth in the second half, with continued improvements in linearity expected [38][39] Question: How will ASC margins be affected going forward? - The adjustments made in Q1 are expected to lead to a lower gross margin prospectively, but a recovery is anticipated [39] Question: What are the margin expectations for the year? - The margin is expected to improve as revenue increases, driven by operational leverage [44] Question: How is the company positioned for the upcoming defense budget? - The company is well-positioned to capture growth aligned with defense priorities, particularly in shipbuilding and force protection [55][56] Question: What is the company's approach to M&A? - The company remains focused on M&A as a priority, with a robust pipeline of strategically attractive opportunities [76][77]

INVESTOR PRESENTATION May 2025 Disclaimers Forward-Looking Statements In this presentation, when using the terms the "company," "DRS," "we," "us" and "our," unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This presentation contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such ...

Leonardo DRS Announces Financial Results for First Quarter 2025 Summary Financial Results | (In millions, except per share amounts) | Three Months Ended | | | | --- | --- | --- | --- | | | March 31, | | | | | 2025 | 2024 | Change | | Revenues | $799 | $688 | 16 % | | Net Earnings | $50 | $29 | 72 % | | Diluted WASO | 268.775 | 266.443 | | | Diluted Earnings Per Share (EPS) | $0.19 | $0.11 | 73 % | | (1) Non-GAAP Financial Measures | | | | | Adjusted EBITDA | $82 | $70 | 17 % | | Adjusted EBITDA Margin | 10. ...

Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of Leonardo DRS, Inc. (DRS) and Heico Corporation (HEI) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven ...

Core Viewpoint - Leonardo DRS, Inc. has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - The upgrade for Leonardo DRS, Inc. suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [5]. - The Zacks Consensus Estimate indicates that Leonardo DRS, Inc. is expected to earn $1.07 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 15.1% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Leonardo DRS, Inc. in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Leonardo DRS, Inc. (DRS) shares soared 9% in the last trading session to close at $34.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% loss over the past four weeks.The latest uptick in DRS’ share price can be attributed to the recent announcement made by the U.S. President indicating a big boost in defense spending, as part of the upcoming U.S. fiscal 2026 budget. Notably, U.S. President Donald Trump said yesterday (9th ...