Leonardo DRS Awarded $49 Million Contract for Additional Advanced Joint Assault Bridge Systems

Rhea-AI Summary

Leonardo DRS (NASDAQ: DRS) has secured a $49 million contract to produce additional Joint Assault Bridge (JAB) systems for the U.S. Army and Romanian military. The JAB, built on a modified M1A1 Abrams tank chassis, is a next-generation armored engineer vehicle designed to provide assault-bridging capabilities for armored forces. Key features include:

- Advanced infrared vision technology
- Rapid assault launch and retrieve capability
- Superior mobility

Leonardo DRS has already delivered over 100 JAB systems, demonstrating its expertise in integration across various military domains. This contract reinforces the company's position as a leading supplier of advanced military engineering solutions.

Positive

• Secured a $49 million contract for additional Joint Assault Bridge systems
• Expanding international presence through Foreign Military Sales agreement with Romania
• Successfully delivered over 100 JAB systems to date
• Demonstrates expertise in military integration across multiple domains

Negative

• None.

Insights

Defense Industry Analyst

The $49 million contract for additional Joint Assault Bridge (JAB) systems represents a positive development for Leonardo DRS. This award demonstrates continued demand for the company's advanced military engineering solutions, both domestically and internationally. The inclusion of Romania in this deal through Foreign Military Sales highlights potential for further export opportunities.

The JAB's integration with the M1A1 Abrams chassis showcases Leonardo DRS's ability to leverage existing platforms, potentially reducing costs and improving interoperability. This contract reinforces the company's position in the military engineering sector and could lead to long-term revenue streams through maintenance and upgrade contracts.

Investors should note that while this contract is significant, it's relatively small compared to major defense programs. However, it contributes to a stable order backlog and supports Leonardo DRS's diverse portfolio strategy across multiple defense domains.

Military Technology Expert

The Joint Assault Bridge system represents a critical capability for modern armored warfare. Its ability to provide rapid mobility solutions in complex terrains can be a game-changer in high-intensity conflicts. The system's advanced features, including infrared vision and quick launch/retrieve capabilities, address key operational needs.

The continued procurement by the U.S. Army and expansion to allies like Romania indicates strong battlefield relevance. This technology's compatibility with the Abrams platform ensures seamless integration into existing force structures, potentially accelerating adoption by other Abrams operators.

From a technological standpoint, the JAB system aligns with modern warfare trends emphasizing rapid maneuver and adaptability. Its success could pave the way for further innovations in military engineering solutions, potentially opening new market segments for Leonardo DRS.

Financial Analyst

While the $49 million contract is relatively modest in the context of major defense programs, it represents a solid addition to Leonardo DRS's order book. The company's ability to secure follow-on orders and expand to international customers through FMS channels is a positive indicator of product satisfaction and market demand.

Investors should consider the potential for margin improvement as production continues, given the learning curve effects and economies of scale. The JAB program's success could also enhance Leonardo DRS's competitive position for future military engineering contracts.

While this contract alone may not significantly impact the company's overall financial performance, it contributes to a diversified revenue stream. The long-term value lies in the potential for sustained orders, maintenance contracts and possible technology spin-offs. Investors should monitor the company's ability to leverage this success into broader market opportunities within the defense sector.

ARLINGTON, Va.--(BUSINESS WIRE)-- Leonardo DRS, Inc. (NASDAQ: DRS) announced today that it has been awarded a contract to build additional advanced Joint Assault Bridge systems for the U.S. Army and the Romanian military (through a Foreign Military Sales agreement). Under the contract, the award is worth more than $49 million.

The Joint Assault Bridge (JAB) is a next-generation track-wheeled armored engineer vehicle built on a modified M1A1 Abrams Main Battle Tank chassis. It is designed to deliver assault-bridging capabilities and provide freedom of maneuver to U.S and allied armored forces.

“We are proud to continue to deliver this robust and reliable system to the U.S. Army and allied militaries to ensure armored vehicles can better navigate complex battlefield conditions,” said Aaron Hankins, senior vice president and general manager of the Leonardo DRS Land Systems business unit. “In partnership with the U.S. Army, we have successfully delivered more than 100 of these next-generation Joint Assault Bridge systems. JAB is a force multiplier and provides warfighters with advanced infrared vision technology, rapid assault launch and retrieve capability and superior mobility.”

The Joint Assault Bridge system is an example of DRS’s deep experience as a leading integrator supporting a wide range of missions for the U.S. military and allies around the world. The company’s integration capability extends across all domains to support force protection, computer networking and C5I, as well as naval power and propulsion systems.

About Leonardo DRS

Headquartered in Arlington, VA, Leonardo DRS, Inc. is an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world. We specialize in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other leading mission-critical technologies. Our innovative people are leading the way in developing disruptive technologies for autonomous, dynamic, interconnected, and multi-domain capabilities to defend against new and emerging threats. For more information and to learn more about our full range of capabilities, visit www.LeonardoDRS.com.

Forward-Looking Statements

This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240822745937/en/

Leonardo DRS Investor Relations Contact

Steve Vather

Senior Vice President, Investor Relations and Corporate Finance

+1 703 409 2906

stephen.vather@drs.com

Leonardo DRS Media Contact

Michael Mount

Vice President, Communications and Public Affairs

+1 571 447 4624

mmount@drs.com

Source: Leonardo DRS

FAQ

What is the value of the new contract awarded to Leonardo DRS for Joint Assault Bridge systems?

Leonardo DRS has been awarded a contract worth more than $49 million for additional Joint Assault Bridge systems.

Who are the customers for the Joint Assault Bridge systems in this contract?

The customers are the U.S. Army and the Romanian military (through a Foreign Military Sales agreement).

What is the purpose of the Joint Assault Bridge system?

The JAB is designed to deliver assault-bridging capabilities and provide freedom of maneuver to U.S and allied armored forces in complex battlefield conditions.

How many Joint Assault Bridge systems has Leonardo DRS (DRS) delivered so far?

Leonardo DRS has successfully delivered more than 100 Joint Assault Bridge systems to date.