Leonardo DRS, Inc. (NASDAQ: DRS)

Leonardo DRS, Inc., often referred to as DRS, operates in the defense industry, providing advanced technology solutions to national security customers in the United States and across the globe. With a legacy spanning over five decades, DRS has established itself as a trusted partner for the U.S. Department of Defense (DoD) and other defense agencies, delivering innovative and differentiated products and solutions for defense applications. The company's operations are spread across various countries and regions, with its headquarters located in Arlington, Virginia.

DRS generates revenue primarily through the sale of advanced technologies and solutions to the U.S. government and international customers. Its primary products and services include sensing and network computing technologies, electro-optical and infrared systems, electronic warfare systems, and power conversion and distribution systems. These offerings cater to a wide range of customers, with the majority of revenue coming from the U.S. government, particularly the DoD.

The company is divided into two primary segments: Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS). The ASC segment specializes in designing, developing, and manufacturing sensing and network computing technology. This segment enables real-time situational awareness for enhanced operational decision-making and execution, offering a diverse range of products such as advanced detection, precision targeting, and surveillance sensing, long-range electro-optic/infrared systems, signals intelligence systems, electronic warfare systems, and next-generation active electronically scanned array tactical radars.

On the other hand, the IMS segment focuses on designing, developing, and manufacturing power conversion, control, and distribution systems, as well as force protection systems and transportation and logistics systems. Products offered by this segment include next-generation electrical propulsion systems for the U.S. Navy, motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems for electronics and ship stores refrigeration.

DRS operates in a highly competitive market with various competitors, including large defense primes, mid-tier and smaller defense companies, and non-traditional companies. The company's competitive advantage lies in its advanced technologies, strong relationships with the DoD, and its ability to provide customized solutions tailored to meet the specific needs of its customers.

The U.S. government is DRS' largest customer, accounting for approximately 80% of the company's revenue. International sales primarily consist of transactions with foreign governments for defense applications.

DRS has a diverse portfolio of contracts, including fixed-price, cost-plus, and time-and-material contracts. The company's backlog consists of funded and unfunded amounts, with funded backlog representing the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized.

In addition to its core business, DRS has a strong commitment to research and development, focusing on enhancing existing products and developing future technologies. The company has a robust intellectual property portfolio, with patents on certain of its technologies and methods. Human capital is a crucial component of DRS' success, with the company employing approximately 6,600 people, including engineers, technicians, and other professionals. DRS is dedicated to maintaining a culture that fosters and rewards growth, agility, problem-solving, innovation, and operational excellence.

In terms of joint ventures, strategic investments, and mergers and acquisitions, DRS evaluates its existing portfolio and considers the acquisition of or investments in businesses that will expand or complement its current portfolio. The company has also divested certain businesses that no longer meet its needs or strategy.

DRS is subject to a range of laws and regulations, including procurement regulations, international trade regulations, and other specific legal requirements. The company is committed to complying with these regulations and requirements, and failure to do so could result in civil and/or criminal penalties and/or administrative sanctions.

DRS' brand names and/or trade names of its products and services include Advanced Sensing and Computing (ASC), Integrated Mission Systems (IMS), sensing and network computing technologies, electro-optical and infrared systems, electronic warfare systems, and power conversion and distribution systems, among others.