Leonardo DRS Signs Agreement with Australian Heavy Engineering Company with Intent to Advance Global Maritime Defense Projects

ARLINGTON, Va.--(BUSINESS WIRE)-- Leonardo DRS, Inc. (Nasdaq: DRS) and Hofmann Engineering Pty. Ltd. today announced their intent to form a strategic partnership to examine opportunities for the joint pursuit of advanced allied navy propulsion needs, as well as providing capabilities to open capacity to accelerate U.S. Navy ship and submarine production.

Under a recently signed Memorandum of Understanding, the collaboration would build on Leonardo DRS’ deep experience in designing and developing high-performance, military-spec electric drive and hybrid electric drive propulsion systems for customers around the world, and Hofmann Engineering’s extensive large, precision manufacturing and fabrication experience.

“Integrating advanced electric propulsion systems across allied fleets is more than an upgrade in performance, it’s a strategic necessity to ensure new and existing ships and submarines maintain operational superiority in an increasingly complex and high-tech battlespace,” said Jon Miller, senior vice president and general manager of the Leonardo DRS Naval Power business unit. “We are excited about a partnership with Hofmann Engineering in an effort to identify new and emerging opportunities to deliver critical naval propulsion capabilities and further secure the supply chain for U.S. ship production. The relationship has great potential to significantly strengthen U.S. and allied fleets around the world.”

“The MOU signed today is not only a major milestone for Leonardo DRS and Hofmann Engineering but the trajectory of Australia’s sovereign capability, strengthening the AUKUS bond and strategic partnership between the US and Australia,” said Karl Hofmann, Director of Operations at Hoffman Engineering.

The strategic partnership is expected to focus on joint research, system integration, and evolution of electric and hybrid propulsion, and steam turbine systems. The two companies would also evaluate opportunities for technology co-development, production, and export in alignment with U.S. and allied defense requirements.

By combining Leonardo DRS’ global leadership in electric propulsion and advanced manufacturing, including its new state-of-the-art facility in Goose Creek, South Carolina, with Hofmann’s expanding presence in the U.S. and international markets, a collaboration would also strengthen the AUKUS alliance by enhancing U.S. supply chain resilience through international collaboration and building Australia’s industrial capacity to support the next generation of submarines and surface ships for the Royal Australian Navy.

Advanced electric and hybrid-electric naval propulsion is a key strategic focus for Leonardo DRS as it continues to be a leader in providing solutions to support next-generation submarines and surface combatants with the power flexibility and efficiency needed for modern naval missions. Support for the U.S. government and allied nations includes developing and delivering the most advanced electric drive system in the world for the U.S. Navy’s Columbia-class next-generation ballistic submarine and providing the Republic of Korea Navy’s new frigates with advanced hybrid electric drive propulsion systems.

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.

About Hofmann Engineering

Founded in 1969, Hofmann Engineering Pty Ltd has grown from a humble family business into one of Australia’s leading manufacturers of specialist engineered equipment. Headquartered in Australia and operating across a number of regions including North America, Hofmann delivers engineering excellence through innovation, quality and sustainability. Its capabilities include high-end design, precision manufacturing, repair, refurbishment and onsite services for mining, industrial, rail, aerospace and defense sectors. With advanced facilities in heat treatment, metrology and large-scale machining, Hofmann Engineering provides complete end-to-end solutions for the world’s most demanding engineering challenges.

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.

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Leonardo DRS Investor Relations Contact

Steve Vather

Senior 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

Hofmann Engineering Media Contact

Richard Baker

Defence Capability Manager

+61 458 700 226

Richard.baker@hofmannengineering.com

Source: Leonardo DRS, Inc.