Leonardo DRS
DRS on Nasdaq. Leonardo DRS sells defense technology to U.S. and allied militaries. Market value $9.8bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
Should I look at this?
Good business, but not cheap right now
Why it could be worth it
What to watch out for
See cheaper Industrials stocks on the list
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $3.72 of spare cash in the past 12 months. A savings account pays about $4.
You pay 24.2 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 11 cents a year. Above 10 is good.
Quality score: 82 of 100. Price score: 49 of 100. Our list needs 70 on quality and 60 on price.
$36.60 a share, 13% above its 1-year low
Over the past year the price has ranged from $32.43 to $50.59.
Prices from Monday’s close (5 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: $363 million in the past 12 months, $227 million in the year to December 2025.
| Revenue | |||||
| Revenue | $2.9bn | $2.7bn | $2.8bn | $3.2bn | $3.6bn |
| Operating margin | |||||
| Operating margin | 8.2% | 20.8% | 8.2% | 9.1% | 9.5% |
| Debt to equity | |||||
| Debt to equity | 0.25 | 0.19 | 0.19 | 0.14 | 0.13 |
| Shares outstanding | |||||
| Shares outstanding | 0.14bn | 0.26bn | 0.26bn | 0.27bn | 0.27bn |
Health checks
- Free cash flow positive4 of 5 years
- Accounting looks honest (Beneish)Not enough data
- Financial strength (Piotroski)7 of 9
- Profit backed by cash (accruals)Yes
- Debt0.13× equity
- Revenue growth, five yearsSlow, 6.1% a year
- Buying back its own sharesNo, 84% more shares since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $913 million last quarter, up 10% on a year ago.
- Profit: $86 million, up 59% on a year ago.
- It keeps 11 cents of each $1 of sales as operating profit, up from 9 cents a year earlier.
- Spare cash over the past 12 months: $363 million, up from $235 million.
- About the same number of shares as a year ago.
- It has $121 million more cash than debt. A year ago debt was $75 million more than cash.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $812m |
| December 2024 | $981m |
| March 2025 | $799m |
| June 2025 | $829m |
| September 2025 | $960m |
| December 2025 | $1.1bn |
| March 2026 | $846m |
| June 2026 | $913m |
| Quarter to | Amount |
|---|---|
| September 2024 | $57m |
| December 2024 | $89m |
| March 2025 | $50m |
| June 2025 | $54m |
| September 2025 | $72m |
| December 2025 | $102m |
| March 2026 | $62m |
| June 2026 | $86m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 27 February 2026
- Next quarterly (estimated, 10-Q)
- 29 October 2026
Who owns it
2 long-term investors we follow own it, unchanged from 2 last quarter. 378 funds in all.
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Royce & AssociatesChuck Royce | $14m | 0.1% | Added |
| Gotham Asset ManagementJoel Greenblatt | $7m | <0.1% | Added |
Largest holders overall
- BlackRock$213mCut
- State Street$193mAdded
- AQR Capital Management$188mAdded
- Vanguard Portfolio Management$154mCut
- Vanguard Capital Management$152m
- FMR$148mCut
- First Trust Advisors LP$114mAdded
- Price T Rowe Associates$108mCut
- Voya Investment Management$107mCut
- Stephens Investment Management Group$102mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
No one has reported a stake above 5% since December 2024.
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
In the last 12 months, 1 insider bought $1m of shares on the open market. 7 sold $10m, $8m of it under preset trading plans.
- Dorfman MarkEVP, GC and SecretarySoldunder a preset trading plan
- Date
- 4 September 2026
- Shares
- 7,471
- Price
- $37.01
- Value
- $276,502
- Dippold MichaelEVP and CFOSoldunder a preset trading plan
- Date
- 2 September 2026
- Shares
- 20,317
- Price
- $37.18
- Value
- $755,386
- Rinsky JasonEVP Chief Tax and TreasurySoldunder a preset trading plan
- Date
- 4 August 2026
- Shares
- 3,864
- Price
- $45.81
- Value
- $177,010
- Rinsky JasonEVP Chief Tax and TreasurySoldunder a preset trading plan
- Date
- 7 July 2026
- Shares
- 3,865
- Price
- $45.37
- Value
- $175,355
- Baylouny JohnPresident and CEO, DirectorSoldunder a preset trading plan
- Date
- 18 June 2026
- Shares
- 36,471
- Price
- $45.67
- Value
- $2m
- Wallace SallyEVP, Chief Operating OfficerSoldunder a preset trading plan
- Date
- 11 June 2026
- Shares
- 1,300
- Price
- $50.00
- Value
- $65,000
- Dippold MichaelEVP and CFOSoldunder a preset trading plan
- Date
- 8 June 2026
- Shares
- 8,318
- Price
- $46.48
- Value
- $386,621
- Dorfman MarkEVP, GC and SecretarySoldunder a preset trading plan
- Date
- 4 June 2026
- Shares
- 5,536
- Price
- $45.75
- Value
- $253,272
- Rinsky JasonEVP Chief Tax and TreasurySoldunder a preset trading plan
- Date
- 3 June 2026
- Shares
- 3,865
- Price
- $46.87
- Value
- $181,153
- Morrow PamelaSVP and ControllerSold
- Date
- 27 May 2026
- Shares
- 11,545
- Price
- $45.13
- Value
- $521,026
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 4 September 2026 | Dorfman Mark EVP, GC and Secretary | Sold under a preset trading plan | 7,471 | $37.01 | $276,502 |
| 2 September 2026 | Dippold Michael EVP and CFO | Sold under a preset trading plan | 20,317 | $37.18 | $755,386 |
| 4 August 2026 | Rinsky Jason EVP Chief Tax and Treasury | Sold under a preset trading plan | 3,864 | $45.81 | $177,010 |
| 7 July 2026 | Rinsky Jason EVP Chief Tax and Treasury | Sold under a preset trading plan | 3,865 | $45.37 | $175,355 |
| 18 June 2026 | Baylouny John President and CEO, Director | Sold under a preset trading plan | 36,471 | $45.67 | $2m |
| 11 June 2026 | Wallace Sally EVP, Chief Operating Officer | Sold under a preset trading plan | 1,300 | $50.00 | $65,000 |
| 8 June 2026 | Dippold Michael EVP and CFO | Sold under a preset trading plan | 8,318 | $46.48 | $386,621 |
| 4 June 2026 | Dorfman Mark EVP, GC and Secretary | Sold under a preset trading plan | 5,536 | $45.75 | $253,272 |
| 3 June 2026 | Rinsky Jason EVP Chief Tax and Treasury | Sold under a preset trading plan | 3,865 | $46.87 | $181,153 |
| 27 May 2026 | Morrow Pamela SVP and Controller | Sold | 11,545 | $45.13 | $521,026 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the serious warning signs we check for were found. 1 thing worth knowing.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 27 Feb 2026, plus the 10-Q filed 30 Jul 2026 and 6 later 8-Ks.
One big customer
Worth knowingOne customer brings in a big share of sales: 80% last year. Losing that customer would hurt.
“Our primary customer is the U.S. government, from which we derived 80% of our sales in 2025.”
From the 10-K filed 27 February 2026, Item 1. Business. Read it in the filing
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
Cheap for a reason is the question the numbers cannot answer.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.