New York, Jan 8, 2026, 13:17 (EST) — Regular session
- Leonardo DRS shares rise about 7.5% in early afternoon trade, riding a defense-sector bid
- Trump’s proposed 2027 military budget and talk of tighter rules on payouts refocus attention on defense contractors
- Company recently disclosed a chief operating officer appointment in an SEC filing
Leonardo DRS shares climbed about 7.5% on Thursday, extending a sharp run higher as defense stocks rallied in early afternoon New York trade.
The move followed President Donald Trump’s call for a $1.5 trillion U.S. military budget for 2027, far above the $901 billion approved for 2026, which pushed investors back into defense names. “There is significant uncertainty associated with a final defense budget,” RBC Capital Markets analysts led by Ken Herbert wrote. 1
In the broader market, defense shares stood out even as tech stocks dragged on the Nasdaq, and the S&P 500 aerospace and defense sub-index touched an all-time high. “The defense budget is growing, if anything,” said Joe Saluzzi, partner and co-founder at Themis Trading, arguing investors were brushing off political pressure for now. 2
Leonardo DRS also filed an 8-K on Jan. 6 under SEC rules for corporate events, flagging changes under the section covering senior officer appointments. 3
The company said it named long-time executive Sally Wallace as executive vice president and chief operating officer, with Chief Executive John Baylouny calling her “a strong leader and a trusted partner.” Wallace said she was “honored to take on this increased responsibility.” 4
Leonardo DRS sells defense electronics and related systems and services to U.S. military customers, and its largest stockholder is Italy’s Leonardo S.p.A., a recent quarterly filing shows. 5
Still, the policy backdrop is messy. Trump criticized contractors’ use of dividends and share buybacks — repurchases that shrink the share count — and has pushed companies to speed up production, a stance that could collide with how the sector returns cash to investors. 6
