Is Leonardo DRS, Inc. (DRS) Halal?

NASDAQ Industrials United States $11.9B
✓ HALAL
Confidence: 83/100
Leonardo DRS, Inc. (DRS) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 3.7% against the AAOIFI threshold of 30%, Leonardo DRS, Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 3.7%
/ 30%
4.8%
/ 30%
9.1%
/ 30%
N/A ✓ HALAL
DJIM 3.7%
/ 33%
4.8%
/ 33%
9.1%
/ 33%
N/A ✓ HALAL
MSCI 10.9%
/ 33%
14.3%
/ 33%
26.9%
/ 33%
N/A ✓ HALAL
S&P 3.7%
/ 33%
4.8%
/ 33%
9.1%
/ 33%
N/A ✓ HALAL
FTSE 10.9%
/ 33%
14.3%
/ 33%
26.9%
/ 50%
N/A ✓ HALAL

Financial Highlights

P/E Ratio
43.5
Forward: 31.9
EPS
$1.03
Dividend Yield
80.0%
Payout: 34.9%
P/B Ratio
4.4
EV/EBITDA
26.5
EV: $11.7B
Revenue
$3.6B
Growth: 8.1%
Beta
0.3
Low volatility
Current Ratio
1.9

Profitability

Gross Margin 23.8%
Operating Margin 12.0%
Net Margin 7.6%
Return on Equity (ROE) 10.5%
Return on Assets (ROA) 5.0%

Cash Flow & Balance Sheet

Operating Cash Flow$366M
Free Cash Flow$227M
Total Debt$470M
Debt-to-Equity17.2
Current Ratio1.9
Total Assets$4.5B

Price & Trading

Last Close$46.53
50-Day MA$42.67
200-Day MA$41.07
Avg Volume1.2M
Beta0.3
52-Week Range
$28.17
$49.31

About Leonardo DRS, Inc. (DRS)

CEO
Mr. John A. Baylouny
Employees
7,300
Sector
Industrials
Industry
Aerospace & Defense
Country
United States
Exchange
NASDAQ
Market Cap
$11.9B
Currency
USD

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC

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Frequently Asked Questions

Is Leonardo DRS, Inc. (DRS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Leonardo DRS, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Leonardo DRS, Inc.'s debt ratio?

Leonardo DRS, Inc.'s debt ratio is 3.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.9%.

What are Leonardo DRS, Inc.'s key financial metrics?

Leonardo DRS, Inc. has a market capitalization of $11.9B, trailing P/E ratio of 43.5, and revenue of $3.6B. The company maintains a gross margin of 23.8% and a net margin of 7.6%. Return on equity stands at 10.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.