Leonardo DRS Receives Over $1 Billion to Support U.S. Navy’s Columbia-Class Submarine Program

Rhea-AI Summary

Leonardo DRS, Inc. (NASDAQ: DRS) announced contracts exceeding $1 billion to supply integrated electric propulsion components for the U.S. Navy’s Columbia-class submarine. This program is crucial as it will replace the aging Ohio-class submarines. CEO Bill Lynn emphasized the commitment to national security through innovative systems. Manufacturing will occur at facilities in Massachusetts, Wisconsin, Connecticut, and Missouri. DRS is recognized for its advanced electrical power technology, supporting modern naval platforms. The Columbia-class program is a top priority for the Navy.

Positive

• Awarded contracts valued at over $1 billion for critical defense systems.
• Partnership with U.S. Navy and General Dynamics Electric Boat enhances credibility.
• Manufacturing to occur in multiple U.S. states, supporting local economies.
• Focus on next-generation technology aligns with future defense needs.

Negative

• None.

ARLINGTON, Va.--(BUSINESS WIRE)-- Leonardo DRS, Inc. (NASDAQ: DRS) announced today that it has been awarded contracts valued at over $1 billion, when fully funded, to provide the integrated electric propulsion components for the U.S. Navy’s next-generation Columbia-class submarine.

“This award represents our company’s dedication to the warfighter; developing innovative systems for critical next-generation national security platforms like the Columbia-class ballistic submarine,” said Leonardo DRS CEO Bill Lynn. “We are proud to be partnered with General Dynamics Electric Boat and the U.S. Navy to provide the state-of-the-art components that are at the core of this critical U.S. Navy platform.

The Columbia-class submarine is a top priority program for the U.S. Navy and will replace the fleet of Ohio-class ballistic missile submarines.

The integrated electric propulsion components will be manufactured in the company’s Fitchburg, Massachusetts, Menominee Falls, Wisconsin, and Danbury, Connecticut facilities. Additional content will be manufactured in the DRS High Ridge, Missouri facility.

Leonardo DRS is a leading provider of next-generation electrical power conversion and propulsion technology for the U.S. Navy, with major systems for next-generation submarines and surface ships. Investments in the company’s market-leading propulsion and power generation technology have created opportunities to use proven electric drive capabilities for future naval platforms. DRS solutions are leading the way in providing power flexibility to support the increased power requirements of current and future naval platforms.

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/20230404005102/en/

Leonardo DRS Investor Relations Contacts

Steve Vather

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, Inc.

FAQ

What is the significance of the $1 billion contracts awarded to DRS?

The contracts signify a commitment to providing essential components for the U.S. Navy's Columbia-class submarines, a key defense project.

Which facilities will manufacture the integrated electric propulsion components?

Manufacturing will take place in facilities located in Massachusetts, Wisconsin, Connecticut, and Missouri.

How does the Columbia-class submarine program impact DRS's business?

The Columbia-class program is a priority for the Navy, which can lead to sustained revenue and growth opportunities for DRS.

What role does DRS play in the U.S. Navy's next-generation submarines?

DRS provides advanced electric propulsion technology critical for the operation of these next-generation naval platforms.

When was the contract announcement made by Leonardo DRS?

The contract announcement was made recently, highlighting the company's ongoing developments in defense technology.