Leonardo DRS Successfully Tests New Satellite Data Transport Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy DRS?
Source: Newsfilter
- Technological Breakthrough: Leonardo DRS successfully completed the first on-orbit test of its multi-channel software-defined radio (SDR) in Low Earth Orbit, marking a significant advancement in establishing a new standard for military satellite data transport.
- Secure Communication Capability: The new eXtended Crypto Module3-Space (XCM3-Space) integrates advanced cryptography, enabling high-performance secure satellite communications across multiple frequencies and networks simultaneously, significantly enhancing the ability to counter cyber and electronic warfare threats.
- Rapid R&D Investment: The company completed internal R&D investments in less than 12 months, demonstrating its capability to rapidly design, build, test, and launch unique operational capabilities, aligning with the Department of War's call for innovation from the industrial base.
- Future Development Plans: A second system is scheduled for launch in 2026 to demonstrate additional edge processing and waveform capabilities, further advancing the future of data transport in Low Earth Orbit.
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Analyst Views on DRS
Wall Street analysts forecast DRS stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 37.770
Low
40.00
Averages
47.33
High
54.00
Current: 37.770
Low
40.00
Averages
47.33
High
54.00
About DRS
Leonardo DRS, Inc. is a provider of advanced defense technology to the United States national security customers and allies around the world. It specializes in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other mission-critical technologies. It is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. Its segments include Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS). The ASC segment designs, develops, and manufactures sensing and network computing technology that enables real-time situational awareness required for operational decision making and execution by its customers. The IMS segment designs, develops, manufactures, and integrates power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation and logistics systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
VisionWave Holdings Strategic Expansion and Technology Integration
- Defense Budget Surge: The Pentagon's 2026 budget authorization reaches $900.6 billion, prompting a comprehensive overhaul of electronic warfare and sensing technologies to address the complexities of modern threats, with the electronic warfare market projected to hit $20.01 billion this year, highlighting the urgent demand for AI signal processing.
- Strategic Transaction: VisionWave Holdings has entered into a strategic exchange agreement valued at $7 million with SaverOne 2014 Ltd., aiming to acquire approximately 51% of the company, which will integrate VisionWave's RF sensing and AI analytics into SaverOne's VRU platform to enhance concealed threat detection capabilities.
- Technology Acquisition and Integration: VisionWave recently acquired the qSpeed computational acceleration engine, valued at $99.6 million, designed to reduce decision latency between threat detection and response execution from minutes to seconds, with a commercially deployable solution expected to be demonstrated in 2026, further enhancing its market competitiveness.
- Southern Europe Market Expansion: VisionWave, through its subsidiary Solar Drone Ltd., has secured follow-on hardware orders and distribution agreements in Italy and Spain, planning to invest up to $10 million over the next 6 to 12 months to accelerate commercialization timelines and meet the demands of the infrastructure maintenance market.
See More
VisionWave Holdings Strategic Expansion and Technology Integration
- Defense Budget Surge: The 2026 U.S. defense budget reaches $900.6 billion, propelling the electronic warfare market to an expected $20.01 billion, highlighting a critical demand for AI signal processing technologies and creating significant market opportunities for companies like VisionWave Holdings.
- Strategic Transaction: VisionWave has entered into a strategic exchange agreement valued at $7 million with SaverOne, aiming to acquire approximately 51% of the company, which will integrate VisionWave's RF sensing and AI analytics into SaverOne's VRU platform to enhance concealed threat detection capabilities.
- Technology Acquisition and Integration: VisionWave's acquisition of the qSpeed computational acceleration engine, valued at $99.6 million, is expected to reduce decision latency from minutes to seconds, enhancing the responsiveness of its WaveStrike fire control systems and Argus counter-drone technology, thereby strengthening its competitive position in the market.
- Southern Europe Market Expansion: Through its subsidiary Solar Drone Ltd., VisionWave has secured follow-on hardware orders in Italy and Spain, planning to invest up to $10 million over the next 6 to 12 months to accelerate commercialization timelines, further solidifying its position in the critical infrastructure maintenance market.
See More
Leonardo DRS Opens New Naval Power Facility in South Carolina, Expanding Production Capacity
- Facility Opening: Leonardo DRS has officially opened a new naval power and propulsion manufacturing and testing facility in Charleston, South Carolina, covering over 140,000 square feet, underscoring the company's ongoing commitment to the U.S. Navy and defense industrial base.
- Production Capacity Enhancement: The facility focuses on advanced manufacturing, final assembly, integration, and testing of large components, aimed at supporting the Columbia-class ballistic missile submarine program, significantly boosting the U.S. Navy's production capabilities.
- Strategic Investment: Executives at Leonardo DRS stated that this investment is not only a national asset but also modernizes manufacturing infrastructure to ensure the U.S. military has access to critical capabilities when needed, thereby strengthening the defense industrial base.
- Future Demand Response: As the Navy fields more power-intensive weapons and sensors, the facility will provide scalable integrated power architectures essential for mission success in next-generation surface combatants and submarines.
See More
Leonardo DRS Options Analysis: $40 Put Contract Yield Boost at 12.99%
- Put Option Appeal: The current bid for the $40.00 put option is $1.75, and if an investor sells this contract, they commit to buying the stock at $40.00, effectively lowering their cost basis to $38.25, which is approximately a 3% discount from the current price of $41.23, making it attractive for those interested in DRS shares.
- Yield Analysis: Should the put option expire worthless, it would yield a 4.38% return, or an annualized 12.99%, making this contract an appealing investment choice, particularly in the current market environment.
- Call Option Potential: The $45.00 call option has a current bid of $0.95, and if an investor buys DRS shares at $41.23 and sells this contract, they could achieve an 11.45% total return if the stock is called away at expiration, highlighting the potential profitability of this strategy.
- Risk Assessment: Current analytics suggest a 61% chance that the $40.00 put option will expire worthless, while the $45.00 call option has a 59% chance of the same outcome, indicating that investors should carefully evaluate the balance of risk and reward when selecting options contracts.
See More
Leonardo vs. Rheinmetall: Defense Stock Performance Comparison
- Defense Industry Growth: In 2025, the global defense sector thrived with the S&P Global Aerospace & Defense Select Industry Index surging 51.5%, reflecting countries' urgent need to enhance military capabilities, particularly as U.S. military spending approaches $1 trillion, driving strong stock performance.
- Leonardo's Performance: Leonardo saw a nearly 24% increase over the past year and a five-year return of approximately 303%, with a stable 5% compound annual revenue growth rate and 14% earnings per share growth, underscoring its robust position in the U.S. defense market.
- Rheinmetall's Rise: Rheinmetall achieved a remarkable 232% return in the past year and about 1,880% over five years, fueled by the German government's commitment to invest €650 billion over the next five years to meet NATO's 3.5% GDP defense spending target, rapidly elevating it to the fourth-largest defense spender globally.
- Future Outlook: Rheinmetall projects a 30% compound annual growth rate in sales and a 45% compound annual growth rate in backlog, alongside a 270 basis point increase in operating margin since 2023, indicating strong growth potential in the defense sector.
See More
Leonardo DRS Shares Rise 24% Amid German Defense Spending Surge
- Stock Performance: Leonardo DRS shares increased by 24% over the past year, with a nearly 303% return over five years, indicating its stable growth potential in the U.S. defense market.
- Industry Comparison: Rheinmetall's stock surged by 232% in the last year and approximately 1,880% over five years, highlighting its strong performance in the European defense sector.
- Defense Spending Commitment: The German government has pledged €650 billion over the next five years to meet NATO's defense spending target of 3.5% of GDP, which will further drive Rheinmetall's growth.
- Market Trends: As global attention on defense spending intensifies, the growth trajectories of both Leonardo DRS and Rheinmetall suggest increasing opportunities for investors in the defense industry.
See More
VisionWave Holdings Strategic Expansion and Technology Integration
- Defense Budget Surge: The Pentagon's 2026 budget authorization reaches $900.6 billion, prompting a comprehensive overhaul of electronic warfare and sensing technologies to address the complexities of modern threats, with the electronic warfare market projected to hit $20.01 billion this year, highlighting the urgent demand for AI signal processing.
- Strategic Transaction: VisionWave Holdings has entered into a strategic exchange agreement valued at $7 million with SaverOne 2014 Ltd., aiming to acquire approximately 51% of the company, which will integrate VisionWave's RF sensing and AI analytics into SaverOne's VRU platform to enhance concealed threat detection capabilities.
- Technology Acquisition and Integration: VisionWave recently acquired the qSpeed computational acceleration engine, valued at $99.6 million, designed to reduce decision latency between threat detection and response execution from minutes to seconds, with a commercially deployable solution expected to be demonstrated in 2026, further enhancing its market competitiveness.
- Southern Europe Market Expansion: VisionWave, through its subsidiary Solar Drone Ltd., has secured follow-on hardware orders and distribution agreements in Italy and Spain, planning to invest up to $10 million over the next 6 to 12 months to accelerate commercialization timelines and meet the demands of the infrastructure maintenance market.
See More
VisionWave Holdings Strategic Expansion and Technology Integration
- Defense Budget Surge: The 2026 U.S. defense budget reaches $900.6 billion, propelling the electronic warfare market to an expected $20.01 billion, highlighting a critical demand for AI signal processing technologies and creating significant market opportunities for companies like VisionWave Holdings.
- Strategic Transaction: VisionWave has entered into a strategic exchange agreement valued at $7 million with SaverOne, aiming to acquire approximately 51% of the company, which will integrate VisionWave's RF sensing and AI analytics into SaverOne's VRU platform to enhance concealed threat detection capabilities.
- Technology Acquisition and Integration: VisionWave's acquisition of the qSpeed computational acceleration engine, valued at $99.6 million, is expected to reduce decision latency from minutes to seconds, enhancing the responsiveness of its WaveStrike fire control systems and Argus counter-drone technology, thereby strengthening its competitive position in the market.
- Southern Europe Market Expansion: Through its subsidiary Solar Drone Ltd., VisionWave has secured follow-on hardware orders in Italy and Spain, planning to invest up to $10 million over the next 6 to 12 months to accelerate commercialization timelines, further solidifying its position in the critical infrastructure maintenance market.
See More
Leonardo DRS Opens New Naval Power Facility in South Carolina, Expanding Production Capacity
- Facility Opening: Leonardo DRS has officially opened a new naval power and propulsion manufacturing and testing facility in Charleston, South Carolina, covering over 140,000 square feet, underscoring the company's ongoing commitment to the U.S. Navy and defense industrial base.
- Production Capacity Enhancement: The facility focuses on advanced manufacturing, final assembly, integration, and testing of large components, aimed at supporting the Columbia-class ballistic missile submarine program, significantly boosting the U.S. Navy's production capabilities.
- Strategic Investment: Executives at Leonardo DRS stated that this investment is not only a national asset but also modernizes manufacturing infrastructure to ensure the U.S. military has access to critical capabilities when needed, thereby strengthening the defense industrial base.
- Future Demand Response: As the Navy fields more power-intensive weapons and sensors, the facility will provide scalable integrated power architectures essential for mission success in next-generation surface combatants and submarines.
See More
Leonardo DRS Options Analysis: $40 Put Contract Yield Boost at 12.99%
- Put Option Appeal: The current bid for the $40.00 put option is $1.75, and if an investor sells this contract, they commit to buying the stock at $40.00, effectively lowering their cost basis to $38.25, which is approximately a 3% discount from the current price of $41.23, making it attractive for those interested in DRS shares.
- Yield Analysis: Should the put option expire worthless, it would yield a 4.38% return, or an annualized 12.99%, making this contract an appealing investment choice, particularly in the current market environment.
- Call Option Potential: The $45.00 call option has a current bid of $0.95, and if an investor buys DRS shares at $41.23 and sells this contract, they could achieve an 11.45% total return if the stock is called away at expiration, highlighting the potential profitability of this strategy.
- Risk Assessment: Current analytics suggest a 61% chance that the $40.00 put option will expire worthless, while the $45.00 call option has a 59% chance of the same outcome, indicating that investors should carefully evaluate the balance of risk and reward when selecting options contracts.
See More
Leonardo vs. Rheinmetall: Defense Stock Performance Comparison
- Defense Industry Growth: In 2025, the global defense sector thrived with the S&P Global Aerospace & Defense Select Industry Index surging 51.5%, reflecting countries' urgent need to enhance military capabilities, particularly as U.S. military spending approaches $1 trillion, driving strong stock performance.
- Leonardo's Performance: Leonardo saw a nearly 24% increase over the past year and a five-year return of approximately 303%, with a stable 5% compound annual revenue growth rate and 14% earnings per share growth, underscoring its robust position in the U.S. defense market.
- Rheinmetall's Rise: Rheinmetall achieved a remarkable 232% return in the past year and about 1,880% over five years, fueled by the German government's commitment to invest €650 billion over the next five years to meet NATO's 3.5% GDP defense spending target, rapidly elevating it to the fourth-largest defense spender globally.
- Future Outlook: Rheinmetall projects a 30% compound annual growth rate in sales and a 45% compound annual growth rate in backlog, alongside a 270 basis point increase in operating margin since 2023, indicating strong growth potential in the defense sector.
See More
Leonardo DRS Shares Rise 24% Amid German Defense Spending Surge
- Stock Performance: Leonardo DRS shares increased by 24% over the past year, with a nearly 303% return over five years, indicating its stable growth potential in the U.S. defense market.
- Industry Comparison: Rheinmetall's stock surged by 232% in the last year and approximately 1,880% over five years, highlighting its strong performance in the European defense sector.
- Defense Spending Commitment: The German government has pledged €650 billion over the next five years to meet NATO's defense spending target of 3.5% of GDP, which will further drive Rheinmetall's growth.
- Market Trends: As global attention on defense spending intensifies, the growth trajectories of both Leonardo DRS and Rheinmetall suggest increasing opportunities for investors in the defense industry.
See More
