ARLINGTON, Va. - Defense contractor Leonardo DRS, Inc. (NASDAQ:DRS) has secured a contract exceeding $49 million to manufacture additional Joint Assault Bridge (JAB) systems for the U.S. Army and Romanian military, facilitated via a Foreign Military Sales agreement. This contract underlines the company's role in providing advanced military engineering solutions.
The JAB is an armored engineer vehicle based on the M1A1 Abrams Main Battle Tank chassis, featuring advanced capabilities for armored forces to ensure mobility across challenging terrains. Aaron Hankins, senior vice president and general manager of Leonardo DRS Land Systems business unit, stated that the system enhances navigational capabilities for armored vehicles on the battlefield. He highlighted that over 100 units have already been delivered, showcasing the system's advanced infrared vision technology, rapid deployment, and retrieval, as well as its superior mobility.
Leonardo DRS is recognized for its integration expertise in various defense domains, including force protection, networking, and C5I systems, along with naval power and propulsion technologies. The company's focus on advanced defense technology caters to the needs of the U.S. national security apparatus and international allies.
This latest contract award reflects Leonardo DRS's commitment to supporting the U.S. military and allied nations with state-of-the-art defense technology. The company's continued partnership with the U.S. Army in delivering these systems is indicative of its established position in the defense sector.
Investors and stakeholders should note that forward-looking statements regarding the company's performance and economic conditions are subject to risks and uncertainties that could affect actual results.
The information for this article is based on a press release statement from Leonardo DRS.
In other recent news, defense contractor Leonardo DRS secured a $52 million order from the U.S. Army for advanced Sniper Weapon Sights, maintaining its ongoing partnership with the military. The company's second quarter of 2024 was marked by significant growth, with a record-high backlog and a 20% increase in organic revenue year-over-year (YoY). Adjusted EBITDA and adjusted net earnings rose by 32% and 21%, respectively, prompting the company to revise its full-year guidance for revenue, adjusted EBITDA, and adjusted diluted EPS upwards.
Baird responded to these developments by raising its price target on Leonardo DRS shares to $30.00, maintaining an Outperform rating. The firm's confidence in Leonardo DRS is underpinned by the company's strong revenue trajectory and anticipated improvement in profit margins. Despite efficiency issues in the IMS division and persistent supply chain challenges, the company remains optimistic about the defense budget.
In addition to these financial milestones, Leonardo DRS also highlighted its facility expansion in Charleston, South Carolina, and its recognition with the Cogswell Award for industrial security commitment as recent developments. The company's backlog reached a new high of $7.9 billion, an 82% YoY increase, driven by strong customer demand across segments. These developments underscore Leonardo DRS's role in supporting the U.S. military's operational capabilities and its commitment to delivering advanced technology solutions.
InvestingPro Insights
Leonardo DRS, Inc. (NASDAQ:DRS), with its recent contract to bolster the U.S. and Romanian military capabilities, has showcased its robust position in the defense industry. Investors keeping an eye on DRS will find the company's financial health and market performance to be of particular interest. With a market capitalization of $7.4 billion, the company reflects a substantial presence in the sector.
InvestingPro data indicates that Leonardo DRS has a forward P/E ratio of 38.08, suggesting that the market has optimistic expectations of its future earnings. The company's revenue growth has been impressive, with a 15.81% increase in the last twelve months as of Q2 2024, and an even higher quarterly revenue growth of 19.9% in Q2 2024. These figures underscore the company's expanding business in a competitive industry.
Another notable metric is the company's EBITDA growth, which stands at 36.12% for the same period, reflecting strong operational efficiency and profitability. Investors might also appreciate the company's gross profit margin of 22.61%, which indicates a healthy difference between revenue and the cost of goods sold.
For those seeking guidance on the stock's valuation, InvestingPro provides a fair value estimate of $19.9, which is based on various fundamental analysis techniques. Additionally, there are more InvestingPro Tips available that can provide deeper insights into DRS's valuation and performance. For instance, there are 12 additional InvestingPro Tips that can help investors make more informed decisions.
As Leonardo DRS continues to secure significant contracts and expand its technological offerings, these financial metrics and InvestingPro Tips can serve as valuable tools for stakeholders to assess the company's current standing and future prospects in the defense sector.
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