Leonardo DRS named Sally Wallace Executive Vice President and Chief Operating Officer, effective immediately. Wallace, a 25-year company veteran, previously served as Executive Vice President of Business Operations since 2016 and led the C4ISR Group. She holds a Master’s in business from the University of Chicago, a Master’s in mechanical engineering from the University of Connecticut, and a Bachelor of Science in engineering physics from Grove City College. Reporting directly to CEO John Baylouny, Wallace will oversee day-to-day operations across Leonardo DRS’s advanced sensing, network computing, force protection, and electric power and propulsion segments, supporting the company’s goal to accelerate delivery of mission-critical systems to national security customers.

On January 1, 2026, John Baylouny officially took the helm as President and Chief Executive Officer after serving as COO. With more than 35 years at Leonardo DRS, Baylouny directed enterprise strategy across two operating segments and managed P&L leadership, engineering and design functions. He has pledged to expand the company into high-opportunity markets, increase R&D investment by 15% year-over-year and shorten development cycles by 20%. Baylouny’s mandate is to enhance agility, broaden defense and intelligence customer bases, and leverage the firm’s technical expertise to deliver disruptive technologies at mission pace.

These leadership changes reinforce Leonardo DRS’s commitment to operational excellence and innovation. Wallace’s operational oversight and Baylouny’s strategic vision position the company to capitalize on an estimated $80 billion U.S. defense modernization budget over the next five years. Investors should note the potential for improved margin profiles through streamlined operations and increased R&D efficiency, as well as the company’s intent to pursue new contracts in under-penetrated international markets. Together, these developments are expected to support sustainable revenue growth and strengthen cash flow generation.