Leonardo DRS, Inc. was selected to provide engineering solutions for the U.S. Department of Defense’s Advanced Technology Support Program V (ATSP5). The award is a ten‑year, indefinite‑delivery, indefinite‑quantity, multiple‑award contract with a ceiling of $25.4 billion, positioning the company as a key partner in rapidly fielding emerging defense technologies.
The ATSP5 program is a government‑wide vehicle administered by the Defense Microelectronics Activity that accelerates the development, acquisition, and deployment of advanced sensing, computing, electric power, quantum computing, nanoelectronics, and additive manufacturing solutions. Leonardo DRS is among the 13 awardees named in most sources, although a few reports list 10 awardees; the discrepancy reflects differing counts in early announcements.
The contract’s long‑term value and recurring revenue potential will expand Leonardo DRS’s backlog, which stood at $8.7 billion as of Q4 2025. The company’s Q4 2025 results—$1.06 billion in revenue, up 8.1% YoY, and $278 million in net earnings, up 31% YoY—demonstrate the strength of its core business and the momentum that the ATSP5 win will reinforce.
Management highlighted the strategic fit of the award: "As a company built around rapid delivery of trusted advanced technologies, we are excited and proud to be one of the few awardees of this contract. This is an important contract vehicle that will provide another avenue for customers to swiftly access DRS’s advanced technologies and engineering solutions. We look forward to delivering innovation and capability to our customers in support of their critical missions."
Investors have responded positively to the announcement, citing Leonardo DRS’s robust financial performance, strategic focus on high‑growth defense technologies, and the long‑term revenue visibility that the ATSP5 contract provides. The company’s 2026 guidance—revenue of $3.85 billion to $3.95 billion and adjusted diluted EPS of $1.20 to $1.26—reflects confidence in continued demand and effective cost management.
The ATSP5 win strengthens Leonardo DRS’s competitive position in the defense contracting landscape, enhances its backlog, and aligns with its broader strategy of delivering advanced sensing, computing, and electric power solutions to the Department of Defense. The contract is expected to generate recurring revenue streams across multiple fiscal years, reinforcing the company’s long‑term growth trajectory.
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