Leonardo DRS Inc (NASDAQ: DRS) is a defense technology company that develops and manufactures advanced sensing, electronics, and force protection systems for military customers. Revenue is generated primarily through long-term government contracts, recognized using the percentage-of-completion cost-to-cost method, where cumulative costs incurred relative to estimated total contract costs determine revenue recognized in each period. The cost-to-cost method reflects the transfer of control to customers over time, consistent with the long-duration nature of defense procurement programs. Contract assets and contract liabilities on the balance sheet reflect the timing differences between billing milestones and revenue recognition. The business carries goodwill and intangible assets on its balance sheet, indicating acquisition-driven growth. Pension and other postretirement benefit plan liabilities represent a structural cost obligation. As of December 31, 2025, the company reported accumulated deficit in stockholders' equity, reflecting historical capital structure decisions rather than current operating losses.

Revenue model

Long-term government defense contracts recognized on the percentage-of-completion cost-to-cost method. Revenue accrues as costs are incurred relative to total estimated contract costs at completion.

Products and services

Advanced sensing systems, defense electronics, and force protection products for military applications. Specific product lines are not itemized in the available filing excerpts.

Customers and end markets

Military and government customers. End markets are defense procurement programs. Specific customer names, concentration percentages, and program details are not itemized in the available filing excerpts.

Value-chain role

Prime contractor and subcontractor on long-term U.S. defense programs. Manages subcontractor performance as part of contract execution.

Geographic exposure

Geographic revenue breakdown is not itemized in the available filing excerpts.

Source: SEC 10-K, filed 2026-02-27

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