Leonardo DRS Inc. Common Stock

Leonardo DRS Inc. Common Stock Earnings Recaps

DRS Industrials 3 recaps
Q1 2026 May 6, 2026

The 4.5% stock increase reflects investor approval of Leonardo DRS’s revenue growth, margin expansion, and raised full-year outlook, driven by strong demand in tactical radars and favorable contract wins.

Key takeaways
  • Revenue increased 6% year-over-year, fueled by robust customer demand and favorable material receipt timing.
  • Adjusted EBITDA grew 28% year-over-year, supporting adjusted diluted EPS of $0.26 per share.
  • Book-to-bill ratio remained at 1x or higher for the 17th consecutive quarter, pushing backlog to record levels.
  • Margin expansion was attributed to increasing volume, improved program mix, and operational execution.
  • Raised full-year growth and profitability expectations supported by strong contract awards, including a $533 million IDIQ contract for DAIRCM systems.
Full recap
Q3 2025 Oct 29, 2025

Leonardo DRS reported strong third-quarter results with a $1.3 billion bookings boost, leading to a record backlog of $8.9 billion and an increase in full-year revenue growth expectations to 10%–11%.

Key takeaways
  • Book-to-bill ratio reached 1.4x for Q3, supporting a year-to-date figure of 1.2x.
  • Adjusted EBITDA rose 17%, and adjusted diluted EPS increased by 21%, despite slight margin pressure from R&D investments.
  • Funded backlog grew 20% year-over-year, contributing to overall backlog increase of 8%.
  • Free cash flow significantly improved, reflecting better collection efficiency and working capital management.
  • Leadership transition underway as CEO Bill Lynn announces retirement, with COO John Baylouny set to assume the role in January 2024.
Full recap
Q2 2025 Aug 1, 2025

Leonardo DRS, Inc. delivered solid Q2 results with robust revenue growth and profitability improvements, reinforced by strong demand and a healthy order backlog.

Key takeaways
  • Achieved $853 million in bookings, maintaining a 1.0 book-to-bill ratio and a total backlog of $8.6 billion, up 9% year-over-year.
  • Organic revenue growth increased by double digits, leading to an upward revision of full-year revenue growth expectations to 9% to 11%.
  • Adjusted EBITDA rose 17% and adjusted diluted EPS increased by 28%, reflecting strong operational performance.
  • Enactment of the One Big Beautiful Bill Act highlights $150 billion in defense funding, creating significant growth opportunities aligned with national priorities.
  • Challenges remain in the supply chain, particularly concerning germanium availability, but strategies are in place to mitigate these issues moving forward.
Full recap