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thedefensewatch.comAUG 134 min read$DRS

Leonardo DRS Wins $39.6M Navy Contract For F/A-18 Tactical Terminals

Leonardo DRS said the U.S. Navy, via NAVAIR, awarded it a $39,608,346 contract (N0001926C1012) for up to 55 Joint Tactical Terminal transceiver units for F/A-18E/F Super Hornets and EA-18G Growlers, including engineering, integration, qualification testing, and production support. Work is in Beavercreek, Ohio, with completion expected by Feb 2028.

Original reporting
thedefensewatch.com
Published Aug 13, 2026, 3:07 AM UTC
Analysis
alphai AI DeskAI-generated
Added to alphai Aug 13, 2026, 6:25 AM UTC. Informational, not investment advice.
How this was made
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Leonardo DRS Wins $39.6M Navy Contract For F/A-18 Tactical Terminals — source image
Source · thedefensewatch.com
Decision brief

The 30-second read

$DRSBullishMed
01

Why it matters

A firm-fixed-price plus cost-plus-fixed-fee structure suggests the program splits production deliverables from higher-uncertainty engineering/integration work, affecting timing of cash flows and margins.

02

Market read

This is a concrete US Navy procurement award for tactical communications hardware and integration, improving near-term backlog visibility for Leonardo DRS’s JTT family.

03

What to watch

Execution risk remains (qualification aboard aircraft and integration milestones), and the article does not quantify follow-on quantities beyond the maximum 55 terminals.

Relevance 8/10Novelty 8/10Timing: contract award reported today; completion expected by Feb 2028

Background

The Navy is modernizing Super Hornet and Growler fleets toward network-centric operations and resilient communications in contested electromagnetic environments.

Company-level read

Ticker impact

$DRSBullishMedium confidence
Context

Leonardo DRS won a $39.6M Navy award for up to 55 Joint Tactical Terminal transceiver units integrated on F/A-18E/F and EA-18G.

Expected impact

Near-term: modest positive bias for defense electronics order-flow expectations; medium-term: supportive if follow-on awards materialize for JTT-NG and Growler modernization.

Evidence & confidence

The article discloses a specific, dated contract award value, scope (terminals plus engineering/integration/qualification), and completion timeline, which can support incremental backlog and execution visibility, though the dollar amount is unlikely to be market-moving alone.

Market effects

Sector

Supports demand visibility for tactical communications and electronic warfare integration work tied to non-geostationary satellite resilience and Growler modernization.

Regional

Work location is Beavercreek, Ohio, which may reinforce local defense manufacturing activity.

Global

Highlights continued US Navy investment in networked, contested-electromagnetic operations, relevant to defense comms and EW supply chains.

Counterpoint

What could challenge this read

Because the award includes substantial engineering, integration, and qualification, revenue recognition and margin may be less straightforward than a pure hardware buy.

Key entities

  • company
    Leonardo DRS

    Awarded the Joint Tactical Terminal transceiver contract for F/A-18E/F and EA-18G integration.

  • government agency
    Naval Air Systems Command (NAVAIR)

    Contracting activity for the $39.6M award (contract number N0001926C1012).

  • platform
    EA-18G Growler

    Electronic attack aircraft whose modernization includes Next Generation Jammer support.

  • platform
    F/A-18E/F Super Hornet

    Fighter platform receiving integration for the tactical communications terminal.

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