Leonardo DRS Receives Contract Award for US Army 3rd Generation FLIR Sensors

Rhea-AI Summary

Leonardo DRS (DRS) has secured a contract worth $39.5 million from the U.S. Army to develop advanced infrared sensors for next-generation sighting systems. This contract, awarded on August 23, 2022, includes the production of Low-Rate Initial Production of the 3GEN Forward Looking Infrared (FLIR) Dewar Cooler Bench (DCB) sensor, enhancing situational awareness and operational effectiveness. DRS is the sole provider for this technology, positioning the company for long-term production opportunities within the U.S. Army's advanced sensor capabilities.

Positive

• Secured a $39.5 million contract with the U.S. Army, enhancing revenue prospects.
• DRS is the sole supplier for advanced infrared sensor technology, indicating a strong competitive position.
• The new sensors significantly improve situational awareness and operational effectiveness for military applications.

Negative

• None.

ARLINGTON, Va.--(BUSINESS WIRE)-- Leonardo DRS (DRS) announced today that it has received a contract award from the U.S. Army to provide advanced infrared sensors for the next-generation sighting systems. These sensors will replace the current Horizontal Technology Integration (HTI), 2^nd Generation Sensors for high-value platforms across the US Army fleet, including the Abrams Main Battle Tank, and the Optionally Manned Fighting Vehicle. The Firm-Fixed-Price and Cost Plus-Fixed-Fee contract is worth $39.5 million.

Under the contract, awarded on August 23, 2022, DRS will develop and produce Low-Rate Initial Production of the 3GEN Forward Looking Infrared (FLIR) Dewar Cooler Bench (DCB) long-range sensor. The DCB converts infrared radiation into video images and is the key enabler for the next generation of FLIR sights, providing improved situational awareness with significant improvements in range and resolution under a full spectrum of degraded weather and battlefield conditions. The US Army chose DRS as the only provider for this key technology capability.

“We are proud to be the only company chosen to provide this next-generation technology that will help ensure our warfighters are using the most advanced lifesaving technology available today,” said Jerry Hathaway, Senior Vice President and General Manager of the DRS Electro-Optical and Infrared Systems business, “For the last 20 years, we have successfully provided our customer with the HTI, the previous generation of this sensor, and this award positions DRS for multiple decades of sustained production while setting the stage to extend its position as the U.S. Army’s premier supplier of ground combat vehicle sensors and sights.”

At the core of the infrared technology is decades of experience from the company’s Electro-Optical and Infrared Systems (EOIS) business, developing and providing industry leading innovative capabilities that the U.S. and allied military forces have come to rely on.

The Leonardo DRS EOIS business is part of the advanced sensing and computing segment, which has an extensive installed base across the U.S. military. Sensing technology is a key strategic focus for Leonardo DRS as the company brings together its world-leading sensing and laser technologies for the men and women of the U.S. armed forces.

Production of these sensors will be in the company’s Electro-Optical Infrared Systems facility Melbourne, Florida.

About DRS

Leonardo DRS, Inc., headquartered in Arlington VA, develops and manufactures advanced defense products for the U.S. military, intelligence agencies and allies around the world. Our broad technology portfolio focuses on advanced sensing, network computing, force protection, and electrical power and propulsion and other defense priorities. And 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. See how we are shaping the battlefield of tomorrow with our full range of capabilities at 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 management’s current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements, which include contract values, contract performance and our development and production of products, 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. DRS does not undertake any obligation to update these statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221205005732/en/

Leonardo DRS Investor Relations Contacts

Steve Vather

Vice President, Investor Relations and Corporate Finance

+1 703 409 2906

stephen.vather@drs.com

Cody Slach or Jeff Grampp, CFA

Gateway Group

+1 949 574 3860

DRS@GatewayIR.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 contract awarded to Leonardo DRS?

The contract awarded to Leonardo DRS is worth $39.5 million.

When was the contract for advanced infrared sensors awarded?

The contract was awarded on August 23, 2022.

What technology will Leonardo DRS provide to the U.S. Army?

Leonardo DRS will provide advanced infrared sensors for next-generation sighting systems.

What is the purpose of the 3GEN Forward Looking Infrared Dewar Cooler Bench sensor?

The 3GEN Forward Looking Infrared Dewar Cooler Bench sensor enhances situational awareness by converting infrared radiation into video images.

Which military platforms will benefit from the new infrared sensors from DRS?

The new infrared sensors will be used in high-value platforms including the Abrams Main Battle Tank and the Optionally Manned Fighting Vehicle.