Leonardo DRS Selected to Enable Portable Counter-Drone Laser System Under U.S. Army Program
Key Facts
Leonardo DRS was selected as a technology enabler for a portable counter-drone laser system, the company’s chief executive said on its third-quarter 2026 earnings call. The selection came from an unnamed provider, which the chief executive described as one of the leading suppliers of high-energy lasers. The system is tied to the U.S. Army’s E-HEL program, which is moving from prototype development to production. AeroVironment had received an Other Transaction Agreement from the Army to produce the system, in the first production contract the U.S. Army has awarded for a high-energy laser weapon system. No separate value was disclosed for DRS’s role, and the technology it will provide was not specified; the selection alone therefore does not mean the company has received a publicly announced contract or a direct partnership with the Army.
The E-HEL program marks a step from prototype design to production of a system intended to address unmanned aircraft threats. The Army said the weapon generates a lethal high-energy laser beam, with a low cost per shot against significant unmanned aircraft threats. The system replenishes its ammunition from the power source that operates it, according to the Army’s description, distinguishing its operating method from systems that rely on a conventional stockpile of munitions. These features matter in light of the role the Army has assigned the system in countering unmanned aerial threats. The program description places these capabilities in the context of its move to production, without specifying a delivery date or the number of systems planned for production.
The Army said the E-HEL design follows a modular open-systems approach and consists of 11 major interfaces. It added that the system is not tied to a single platform or vehicle and can be deployed at fixed bases, semi-fixed tactical sites and on mobile combat vehicles. This means the system’s architecture allows it to be used in more than one operational environment, according to the Army’s description. The design makes deployment flexibility one of the program’s core features, alongside its ability to counter unmanned aircraft at a low cost per shot. The Army did not specify the platforms to be used in production or the sites that would receive the systems.
DRS’s quarterly results show improved revenue and earnings compared with the same period a year earlier. Revenue was $1,066 million in the quarter ended September 30, 2026, compared with $960 million a year earlier, an increase of 11%. The company reported net income of $115 million, compared with $72 million in the year-earlier quarter, a rise of 60%. The company also reported $1.6 billion in bookings during the quarter, while its funded backlog reached a record $5.6 billion, up 21% year over year. These figures put DRS’s selection in the context of its quarterly results and reported order volume, without the company linking them to its role in the portable system.
Leonardo DRS raised its 2026 revenue outlook to a range of $3,950 million to $3,985 million, compared with its previous forecast of $3,900 million to $3,975 million. The revision sets out the new annual range the company announced after its third-quarter results. The outlook remains presented as a range, and the company’s statement does not include a new single-point revenue forecast. In EL7 closing data for October 30, 2026, DRS shares were at about $37.68, while AeroVironment shares closed at $126.11. These prices are the closing levels for that day and do not include a comparison with daily returns or subsequent price moves.