New York, May 24, 2026, 17:03 (EDT)
Leonardo DRS closed Friday at $44.92, up 0.83% on the day. The company is now facing a new labor issue going into the U.S. market holiday, with IAM Local 2782 rejecting its latest contract proposal over the weekend.
Nasdaq shuts for Memorial Day on Monday, with trading set to restart Tuesday. That means investors can’t respond to the union vote in regular hours until then, after the stock stayed steady last week on bets around defense demand.
Leonardo DRS (DRS) closed Friday at $44.92, not far from its session high of $45.39. Shares opened at $44.55. The LSEG-based price table shows the stock climbing from $42.84 at Monday’s close, with Wednesday driving most of the move.
Defense shares traded higher, with large caps also seeing gains. L3Harris picked up 1.84% Friday, RTX was up 0.57%. The SPDR S&P 500 ETF Trust gained 0.37%. DRS’s market cap was around $12 billion.
Nearly 300 IAM members locked out at Leonardo DRS’s West Plains, Missouri site turned down the latest contract offer, the union said. According to IAM, the workers assemble equipment such as M-SHORAD, a short-range air defense system meant for countering drones and low-flying threats, in addition to surveillance and bridge systems.
IAM International President Brian Bryant called the lockout “unacceptable,” and IAM District 9 rep BJ Wear said the company had “no excuse” for what the union called an offer that did not match demand for the systems workers make. Leonardo DRS had no new investor-relations release about the labor vote on its latest company news page. IAM Union
Leonardo DRS debuted a new product last week, not a contract win. The company said May 18 it rolled out the Tenum 640 Orbit, an uncooled thermal camera module for unmanned air, ground and maritime platforms, launching it during SOF Week in Tampa. “Unmanned systems are fielding at scale,” said Greg Christison, vice president for Sensors & Aviation. He added integrators want cameras that are “mission-capable and integration-friendly.” Leonardo DRS
Earnings and backlog are still the main points for the bull case. Leonardo DRS said on May 5 that Q1 revenue was $846 million, up 6% year over year. Net earnings came in at $62 million, a 24% gain. Adjusted EBITDA was $105 million, up 28%. Adjusted EBITDA strips out some items as well as interest, taxes, depreciation and amortization. The company lifted its 2026 outlook and reported $4.7 billion in funded backlog, which is customer-funded work.
Leonardo DRS President and CEO John Baylouny described the quarter as a “strong start to the year,” pointing to execution, program momentum and demand for its tech. The company said it saw growth in tactical radars, infrared sensing and electric power and propulsion programs—areas tied to current U.S. and allied military spending priorities. Leonardo DRS
But the risk is clear. If the West Plains dispute keeps going, it might complicate production planning or push up labor costs at a time when investors are already paying for growth; the price-to-earnings ratio sits around 42 at the latest quote. Leonardo DRS has also said that government shutdowns, funding setbacks, lower appropriations, or changes in U.S. government priorities could hit its results.
Trading this week is light, but the signals are still there. Markets are closed Monday. When things reopen Tuesday, traders will be watching if DRS still gets defense-growth flows or if the labor fight weighs more on the stock.
