U.S. Army Taps Leonardo DRS to Provide Additional M-LIDS Counter-UAS Platforms

Rhea-AI Summary

Leonardo DRS, Inc. (Nasdaq: DRS) has been awarded a significant contract to supply additional counter unmanned aircraft system (C-UAS) platforms to support the U.S. Army’s Mobile-Low, Slow, Small Unmanned Aircraft System Integrated Defeat System (M-LIDS) program. This new task order is part of an indefinite delivery/indefinite quantity contract, enhancing the company's role in providing advanced defense technologies. Previous contracts amounting to $60 million were received in late 2022, underlining the ongoing commitment to deliver M-LIDS vehicles that protect U.S. and allied forces.

Positive

• Awarded contract for additional C-UAS platforms enhances revenue potential.
• Continuation of previous contracts totaling $60 million indicates strong demand for M-LIDS.
• M-LIDS capabilities directly support U.S. Army’s defense strategies, fostering long-term business relationships.

Negative

• None.

ARLINGTON, Va.--(BUSINESS WIRE)-- Leonardo DRS, Inc. (Nasdaq: DRS) announced today it was awarded a contract to provide additional counter unmanned aircraft system (C-UAS) platforms in support of U.S. Army’s Integrated Fires/Rapid Capabilities Office’s on-going Mobile-Low, Slow, Small Unmanned Aircraft System Integrated Defeat System (M-LIDS) program.

U.S. Army Mobile-Low, Slow, Small Unmanned Aircraft System Integrated Defeat System (M-LIDS) vehicles produced by Leonardo DRS. (Photo Courtesy: U.S. Army)

On October 7, 2022, DRS received approximately $40 million and on November 11, 2022, the company was awarded approximately $20 million through a modification contract.

Under the existing indefinite delivery/indefinite quantity contract, this new task order requires DRS to deliver additional kinetic defeat vehicles and spares. M-LIDS allows soldiers to detect, identify, track, and defeat small UAS with electronic warfare and kinetic defeat systems. The M-LIDS system includes a mix of kinetic defeat effectors including the XM914 (30mm) cannon hosted by the Moog Inc’s Reconfigurable Integrated-weapons Platform (RIwP ®) turret.

“Leonardo DRS is proud to be a member of the M-LIDS team, and we appreciate the opportunity to deliver additional vehicles. Drones have become a dangerous threat to our warfighters,” said Aaron Hankins, Senior Vice President and General Manager, DRS Land Systems. “Delivering M-LIDS vehicles remains one of our highest priorities, and we are excited about this new task order.”

In March 2022, M-LIDS Increment 2 was identified as a U.S. Army ACAT III program of record, and the U.S. Army leadership directed accelerated deliveries of multiple C-UAS capabilities, including M-LIDS. The two-vehicle capability provides a balance of kinetic and non-kinetic defeat capabilities which have already completed extensive government testing. Several sets of M-LIDS Increment 2 are currently deployed overseas protecting U.S. and allied forces.

The DRS Land Systems business unit serves as the lead systems integrator for this mobile C-UAS capability.

The DRS Land Systems business is part of the company’s Integrated Mission Systems segment which provides force protection products and services including counter-unmanned aerial systems, short-range air defense systems, and active protection systems, across multiple platforms for the men and women of the U.S. armed forces.

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230105005946/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, Inc.

FAQ

What is the recent contract awarded to Leonardo DRS about?

Leonardo DRS was awarded a contract to provide additional counter unmanned aircraft system (C-UAS) platforms for the U.S. Army's M-LIDS program.

What was the value of the previous contracts received by Leonardo DRS in 2022?

In 2022, Leonardo DRS received approximately $40 million on October 7 and $20 million on November 11 through modification contracts.

How does the M-LIDS system function?

The M-LIDS system enables soldiers to detect, identify, track, and defeat small unmanned aerial systems using electronic warfare and kinetic defeat systems.

What are the potential implications of this contract for DRS shareholders?

The award of this contract is expected to enhance revenue potential and strengthen business relationships with the U.S. Army, which can positively impact shareholder value.

When was the M-LIDS identified as a program of record by the U.S. Army?

The M-LIDS Increment 2 was identified as a U.S. Army ACAT III program of record in March 2022.