Leonardo DRS, Inc. announced on January 27, 2026 that it has secured a subcontract to design, build, integrate, and test advanced infrared mission payloads for the Space Development Agency’s (SDA) Tracking Layer Tranche 3 (TRKT3) program.
The TRKT3 program is part of the U.S. Department of Defense’s proliferated warfighter space architecture, which aims to provide global missile warning and tracking from launch through interception. Infrared sensors are critical for detecting ballistic and hypersonic missiles, and the payloads will deliver fire‑control quality tracks to interceptor systems.
The award underscores Leonardo DRS’s leadership in multi‑domain sensing and expands its footprint in the space‑based defense arena. The company reported a 12.27% revenue increase over the past year, driven by strong demand in its defense and aerospace segments, and posted a 14.44% rise in 2024 revenue to $3.23 billion.
The subcontract fits into a broader trend of U.S. defense spending on space‑based missile defense, with competitors such as Lockheed Martin, Rocket Lab, Northrop Grumman, and L3Harris also bidding for satellite payloads. The contract’s value and timeline were not disclosed, but the program’s launch schedule is slated for fiscal year 2029, indicating a long‑term revenue opportunity for Leonardo DRS.
John Baylouny, CEO, said the award “allows our people to push the boundaries of advanced sensing and space payload manufacturing to support a wide range of national security priorities.” Jerry Hathaway, SVP and GM of the Electro‑Optical and Infrared Systems business unit, added that the award builds on the company’s next‑generation technologies and expertise in complex space mission payload design.
Analysts have maintained a moderate buy consensus on Leonardo DRS, citing the subcontract as evidence of sustained demand for space‑based missile defense capabilities and the company’s strong execution track record.
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