Leonardo DRS – the US division of the Italian multinational, Leonardo S.p.A – will provide new electronic combat control and sonar systems for installation across submarine fleets in the US and Australian navies.

Known as ‘Technology Insertion-26’ (TI-26), the $417m contract will cover the design, procurement, production, sparing, test, installation and support of a range of hardware systems. This includes displays, workstations, processors and network systems.

TI-26 is the latest generation of a continuously evolving family of hardware systems in support of the US Navy’s (USN) Submarine Warfare Federated Tactical System family of systems required on Navy submarines.

The deal combines purchases for the USN and the Royal Australian Navy, under a Foreign Military Sales agreement.

DRS has served as the design agent for previous USN technology insertions for submarines. Besides this, the company is also a trusted integrator and producer of subcomponents across the USN fleet.

For its second quarter financials, the company reported a backlog increase up 82% year-on-year, valued at $7.9bn, as well as $753m in revenue, an increase of up to 20% year-on-year. Chairman and CEO, Bill Lynn, commented “demand, along with an improving supply chain, is unlocking revenue growth above our expectations,” demonstrating its position within the US defence industrial base.

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At the end of February, DRS went so far as to sign a land lease in South Carolina to build a manufacturing, assembly and testing space for naval propulsion systems due to be fitted to USN Columbia-class nuclear-powered ballistic missile submarines (SSBN 826).

When complete, Leonardo will set up a complex across 140,000 square feet in the coastal region. The supplier aims for initial operating capability in 2026.