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Leonardo DRS Awarded NAVAIR Contract to Produce DAIRCM Aircraft Survivability System

Hardware production will take place at DRS facilities in Dallas and San Diego, with integration and logistics activities in Fort Walton Beach.

(Neutral)

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Leonardo DRS (DRS) has received a three-year Naval Air Systems Command contract for initial production of its DAIRCM aircraft survivability system.

The indefinite-delivery/indefinite-quantity (IDIQ) contract covers low-rate initial production, aircraft integration, systems engineering, program management and logistics support. The award follows the Engineering and Manufacturing Development phase, during which DRS incorporated capability and producibility enhancements. DAIRCM has already been deployed on aircraft operating under a Joint Urgent Operational Need Statement.

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2 points · 0 major

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0 major · 0 points

How the balance works

Positive

  • Moderate pointNAVAIR awarded a three-year IDIQ contract covering DAIRCM low-rate initial production, integration and support.
  • Minor pointDevelopment-phase enhancements to capability and producibility were incorporated before the low-rate initial production award.

Negative

  • None.

Key Figures

Contract term: Three years
Contract term
Three years
NAVAIR IDIQ contract for DAIRCM low-rate initial production

Key Terms

indefinite-delivery/indefinite-quantity (idiq), low-rate initial production, directed infrared countermeasures
3 terms
indefinite-delivery/indefinite-quantity (idiq) technical
"a three-year indefinite-delivery/indefinite-quantity (IDIQ) contract"
An indefinite-delivery/indefinite-quantity (IDIQ) contract is a purchasing agreement where a buyer commits to order goods or services over a set period but does not promise exact quantities up front, instead placing individual orders as needs arise within agreed limits. For investors, IDIQs matter because they can create steady, multi-year revenue opportunities and backlog visibility like a supplier having a standing store account — but actual cash depends on each future order and on the buyer’s budget and timing.
low-rate initial production technical
"for low-rate initial production of the AN/AAQ-45"
Low-rate initial production is a controlled, small-scale manufacturing run used to build a limited number of units to validate production processes, supply chains, and product performance before committing to full-scale output. For investors, it signals that a product has moved beyond development toward commercialization but will generate only modest near-term revenue while reducing technical and manufacturing risk—think of it as a rehearsal before opening the factory doors wide.
directed infrared countermeasures technical
"advanced missile warning, directed infrared countermeasures, laser warning"
Directed infrared countermeasures are defensive systems installed on aircraft or other platforms that detect incoming heat-seeking missiles and use focused infrared energy—usually laser beams—to confuse, blind, or steer the missile’s infrared seeker away from the target. They combine sensors that spot the missile’s plume with a targeting and laser subsystem that directs modulated infrared light at the missile to break its lock; effectiveness varies with the missile seeker technology and engagement geometry. These systems are defensive (not designed to destroy the missile) and are commonly subject to military export controls and regulatory restrictions.

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Three-year IDIQ contract supports production of a lightweight, integrated capability that helps protect military aircraft and crews in contested environments

ARLINGTON, Va., Nov. 10, 2026 (GLOBE NEWSWIRE) -- Naval Air Systems Command (NAVAIR) has awarded Leonardo DRS a three-year indefinite-delivery/indefinite-quantity (IDIQ) contract for low-rate initial production of the AN/AAQ-45 Distributed Aperture Infrared Countermeasure, or DAIRCM, aircraft survivability system.

The DRS DAIRCM system is a combat-proven lightweight aircraft survivability suite designed for small- and medium-sized aircraft with demanding size, weight and integration requirements. The integrated modular system combines advanced missile warning, directed infrared countermeasures, laser warning and hostile-fire indication to help protect aircraft and crews from surface-to-air threats in contested environments.

Under the contract, DRS will provide hardware production, aircraft integration, systems engineering, program management and associated logistics support. DAIRCM hardware will be manufactured at DRS facilities in Dallas, Texas, and San Diego, California. Aircraft-integration and logistics activities will be conducted from the company’s Fort Walton Beach, Florida site.

To date DAIRCM has been deployed on aircraft operating under a Joint Urgent Operational Need Statement. The low-rate initial production award follows the program’s Engineering and Manufacturing Development phase, during which DRS incorporated capability and producibility enhancements into the system configuration.

“This award moves the DRS DAIRCM System into low-rate initial production and expands our ability to provide critical integrated aircraft survivability capabilities to our military customers,” said John Baylouny, president and chief executive officer of Leonardo DRS. “We are proud to help address evolving aircraft survivability requirements and to enhance crew protection with a cost-effective advanced integrated capability.”

The DAIRCM program expands DRS’s aircraft survivability portfolio with an integrated capability designed for increasingly complex threat environments. It addresses the increasing evolution and proliferation of threats to airborne platforms.

For more information about DRS aircraft sensing and aircraft survivability technologies, visit Leonardo DRS Aircraft Sensing.

About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete 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.

Investor Relations Contact:
Camilla Yanushevsky
Director, Investor Relations
+1 571 309 8216
investorrelations@drs.com

Media Contact:
Charles Jones
Director, Marketing & Corporate Communications
+1 571 737 8800
charles.jones@drs.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/97dffd50-682b-4b1d-83ce-2502fec76fd8


FAQ

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What does Leonardo DRS’s NAVAIR DAIRCM contract cover?

The three-year indefinite-delivery/indefinite-quantity contract covers low-rate initial production of the AN/AAQ-45 DAIRCM aircraft survivability system. DRS will provide hardware production, aircraft integration, systems engineering, program management and associated logistics support.

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