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Why Leonardo DRS Stock Deserves a Spot in Your Portfolio Right Now
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Key Takeaways
Leonardo DRS' 2025 EPS estimate rose 2.8% to $1.11, with revenues projected to grow 10.9% year over year.
DRS' backlog climbed 8.6% to $8.61B on new awards in Advanced Sensing and Integrated Mission Systems.
DRS boosted shareholder value with dividends, buybacks, and shares rallying 47.2% in the past year.
Leonardo DRS, Inc. (DRS - Free Report) focuses on delivering advanced defense systems, products, and solutions to the U.S. Department of Defense and allied partners. Given its strong growth and rising backlog, Leonardo DRS makes for a solid investment option in the Zacks Aerospace-Defense Equipment industry.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
DRS’ Growth Outlook & Surprise History
The Zacks Consensus Estimate for DRS’ 2025 earnings per share (EPS) has increased 2.8% to $1.11 per share over the past 60 days.
The Zacks Consensus Estimate for Leonardo DRS’ total revenues for 2025 stands at $3.59 billion, which indicates year-over-year growth of 10.9%.
The company’s long-term (three to five years) earnings growth rate is 17.3%. DRS surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 11.94%.
DRS’ Advanced Sensing Capabilities
Leonardo DRS leads the market in Advanced Sensing Technologies, offering sensing systems for targeting, surveillance, and protection through electro-optical, infrared, electronic warfare and tactical radar systems.
The company’s Distributed Aperture Infrared Counter Measures system distributed sensors deliver 360-degree aircraft self-protection, with potential for future situational awareness applications.
Rising Backlog of DRS
Leonardo DRS’ total backlog as of June 30, 2025 increased 8.6% to $8.61 billion from the year-ago reported figure. The rise in the backlog was primarily attributed to the receipt of new awards within the company's Advanced Sensing and Computing and Integrated Mission Systems segment.
DRS’ Liquidity Position
The company’s current ratio at the end of the second quarter of 2025 was 2.11, higher than the industry’s average of 1.83. The ratio, being greater than one, indicates Leonardo DRS’ ability to meet its future short-term liabilities without difficulties.
DRS’ Debt Profile at a Glance
Currently, Leonardo DRS’ total debt to capital is 11.95%, much better than the industry’s average of 49.30%.
DRS’ times interest earned ratio (TIE) at the end of the second quarter of 2025 was 26.4. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
DRS’ Return to Shareholders
Leonardo DRS has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 9 cents per share, resulting in an annualized dividend of 36 cents. The company’s current dividend yield is 0.87%, better than the industry’s average of 0.15%.
In the second quarter of 2025, DRS repurchased 265,120 shares of common stock for roughly $11 million.
DRS Stock Price Performance
In the past year, DRS shares have rallied 45% compared with the industry’s rise of 33.1%.
HEI’s long-term earnings growth rate is 18.1%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $4.70, which calls for a year-over-year improvement of 28.1%.
The Zacks Consensus Estimate for LOAR’s 2025 EPS stands at 79 cents per share, which suggests massive growth of 88.1%. The Zacks Consensus Estimate for 2025 sales stands at $495.2 million, which calls for an increase of 22.9%.
The Zacks Consensus Estimate for ATRO’s 2025 EPS stands at $1.60 per share, which implies a jump of 46.8%. The Zacks Consensus Estimate for 2025 sales is pegged at $850.8 million, which calls for an increase of 7%.
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Why Leonardo DRS Stock Deserves a Spot in Your Portfolio Right Now
Key Takeaways
Leonardo DRS, Inc. (DRS - Free Report) focuses on delivering advanced defense systems, products, and solutions to the U.S. Department of Defense and allied partners. Given its strong growth and rising backlog, Leonardo DRS makes for a solid investment option in the Zacks Aerospace-Defense Equipment industry.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
DRS’ Growth Outlook & Surprise History
The Zacks Consensus Estimate for DRS’ 2025 earnings per share (EPS) has increased 2.8% to $1.11 per share over the past 60 days.
The Zacks Consensus Estimate for Leonardo DRS’ total revenues for 2025 stands at $3.59 billion, which indicates year-over-year growth of 10.9%.
The company’s long-term (three to five years) earnings growth rate is 17.3%. DRS surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 11.94%.
DRS’ Advanced Sensing Capabilities
Leonardo DRS leads the market in Advanced Sensing Technologies, offering sensing systems for targeting, surveillance, and protection through electro-optical, infrared, electronic warfare and tactical radar systems.
The company’s Distributed Aperture Infrared Counter Measures system distributed sensors deliver 360-degree aircraft self-protection, with potential for future situational awareness applications.
Rising Backlog of DRS
Leonardo DRS’ total backlog as of June 30, 2025 increased 8.6% to $8.61 billion from the year-ago reported figure. The rise in the backlog was primarily attributed to the receipt of new awards within the company's Advanced Sensing and Computing and Integrated Mission Systems segment.
DRS’ Liquidity Position
The company’s current ratio at the end of the second quarter of 2025 was 2.11, higher than the industry’s average of 1.83. The ratio, being greater than one, indicates Leonardo DRS’ ability to meet its future short-term liabilities without difficulties.
DRS’ Debt Profile at a Glance
Currently, Leonardo DRS’ total debt to capital is 11.95%, much better than the industry’s average of 49.30%.
DRS’ times interest earned ratio (TIE) at the end of the second quarter of 2025 was 26.4. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
DRS’ Return to Shareholders
Leonardo DRS has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 9 cents per share, resulting in an annualized dividend of 36 cents. The company’s current dividend yield is 0.87%, better than the industry’s average of 0.15%.
In the second quarter of 2025, DRS repurchased 265,120 shares of common stock for roughly $11 million.
DRS Stock Price Performance
In the past year, DRS shares have rallied 45% compared with the industry’s rise of 33.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are HEICO Corporation (HEI - Free Report) , Loar Holdings, Inc. (LOAR - Free Report) and Astronics Corp. (ATRO - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HEI’s long-term earnings growth rate is 18.1%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $4.70, which calls for a year-over-year improvement of 28.1%.
The Zacks Consensus Estimate for LOAR’s 2025 EPS stands at 79 cents per share, which suggests massive growth of 88.1%. The Zacks Consensus Estimate for 2025 sales stands at $495.2 million, which calls for an increase of 22.9%.
The Zacks Consensus Estimate for ATRO’s 2025 EPS stands at $1.60 per share, which implies a jump of 46.8%. The Zacks Consensus Estimate for 2025 sales is pegged at $850.8 million, which calls for an increase of 7%.