Leonardo DRS (DRS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Leonardo DRS

NasdaqGS•Industrials•Aerospace & Defense

$38.51+1.59(0.04%)Market open

Market Cap

$10.37B

P/E

28.4x

P/S

2.7x

P/B

3.6x

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC.

How this company scores

GoodMetricSide Score: 75/100

Strongest: Balance Sheet & Red Flags (21/25); weakest: Cash & Earnings Quality (16/25).

Profitability18/25

Growth20/25

Balance Sheet & Red Flags21/25

Cash & Earnings Quality16/25

Strengths

Rising free cash flowRising earningsLow leverageProfit converts from growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 28.4x5y range 16.0x – 51.9x

Currently below its 19-quarter median.

P/S · 2.7x5y range 1.9x – 3.6x

Currently near its 19-quarter median.

P/B · 3.6x5y range 3.0x – 4.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.5x) — earnings may be inflated by non-cash items or aggressive accounting.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Price & Volume

Market Cap $10.37B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $3.88B
Q. Revenue: $1.07B
TTM EBITDA: $522.00M
TTM Op. Income: $421.00M
Q. Op. Income: $116.00M
TTM Net Income: $365.00M
Q. Net Income: $115.00M
EPS: $0.43
Shares Out.: $266.80M

$3.88B in TTM revenue grew 8.9% YoY, reaching $1.07B last quarter. TTM EBITDA of $522.00M and TTM operating income of $421.00M show growth is flowing through to the bottom line. TTM net income of $365.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 24.7%
EBITDA Margin: 13.4%
Op. Margin: 10.9%
Net Margin: 10.8%

Op. margin of 10.9% is up 1.2% YoY — cost efficiency is improving. Net margin at 10.8% and gross margin of 24.7% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 12% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 28.4x
P/S Ratio: 2.7x
P/B Ratio: 3.6x

At 28.4x P/E, the stock trades within typical market levels. P/S of 2.7x and P/B of 3.6x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.37B
Cash: $294.00M
Long-Term Debt: $165.00M
Book Value: $2.89B
D/E Ratio: 0.1
Debt/EBITDA: 1.2

With $4.37B in assets and $165.00M in long-term debt, D/E is 0.1and book value is $2.89B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 54% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $96.00M
TTM Free Cash Flow: $344.00M
FCF Margin: 8.9%
FCF / Net Income: 0.9

TTM FCF of $344.00M on $96.00M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 30% — a weakening trend.