Leonardo DRS (NASDAQ:DRS) Announces Quarterly Earnings Results

Posted by Geri Gentry on Oct 30th, 2026

Leonardo DRS (NASDAQ:DRS – Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.11, Zacks reports. Leonardo DRS had a net margin of 8.52% and a return on equity of 12.97%. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.03 billion. During the same quarter in the prior year, the business earned $0.29 earnings per share. The business’s quarterly revenue was up 11.0% compared to the same quarter last year.

Here are the key takeaways from Leonardo DRS’s conference call:

Strong third-quarter execution drove $1.1 billion of revenue, up 11% year over year, 14% adjusted EBITDA margins, and adjusted diluted EPS of $0.46, up 59%.
Bookings exceeded $1.6 billion with a 1.5x book-to-bill ratio, lifting funded backlog to a record $5.6 billion and providing substantial revenue visibility.
Management raised and narrowed 2026 guidance to $3.95–$3.985 billion of revenue, $545–$555 million of adjusted EBITDA, and $1.50–$1.53 of adjusted EPS; IMS margins are expected to sustain around 16%, while ASC is expected to continue expanding.
Demand remains strong across tactical radars, counter-drone systems, space sensing, and naval electric propulsion, including a $500 million counter-drone contract framework and the KDDX destroyer award in South Korea; management expects radar growth to outpace its broader 2027 framework.
The all-cash Raft acquisition is still expected to close in the fourth quarter and be accretive in its first full year, but is excluded from 2026 guidance; elevated fourth-quarter capital expenditures are expected to bring full-year CapEx to roughly 4% of revenue.

Leonardo DRS Stock Performance

Leonardo DRS stock opened at $39.64 on Friday. Leonardo DRS has a 12-month low of $32.43 and a 12-month high of $50.59. The company has a market capitalization of $10.58 billion, a price-to-earnings ratio of 33.31, a price-to-earnings-growth ratio of 2.14 and a beta of 0.32. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.92 and a quick ratio of 1.56. The firm’s fifty day moving average price is $36.77 and its 200 day moving average price is $42.20.

Leonardo DRS Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be issued a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, November 12th. Leonardo DRS’s dividend payout ratio (DPR) is presently 30.25%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on DRS. JPMorgan Chase & Co. upped their price target on shares of Leonardo DRS from $48.00 to $53.00 and gave the stock a “neutral” rating in a research report on Friday, July 31st. Guggenheim began coverage on Leonardo DRS in a research report on Monday, September 14th. They issued a “buy” rating and a $51.00 price objective on the stock. Weiss Ratings cut Leonardo DRS from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, October 22nd. Oppenheimer initiated coverage on Leonardo DRS in a research report on Thursday, October 22nd. They issued an “outperform” rating and a $45.00 target price for the company. Finally, Morgan Stanley lowered their target price on Leonardo DRS from $47.00 to $44.00 and set an “equal weight” rating for the company in a research note on Friday, October 16th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Leonardo DRS has an average rating of “Moderate Buy” and a consensus target price of $51.57.

Get Our Latest Stock Report on DRS

Insiders Place Their Bets

In related news, EVP Jason Rinsky sold 3,864 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $45.81, for a total value of $177,009.84. Following the transaction, the executive vice president owned 23,581 shares in the company, valued at approximately $1,080,245.61. The trade was a 14.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 20,317 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $37.18, for a total value of $755,386.06. Following the completion of the transaction, the chief financial officer directly owned 35,143 shares of the company’s stock, valued at $1,306,616.74. This represents a 36.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.25% of the company’s stock.

Key Stories Impacting Leonardo DRS

Here are the key news stories impacting Leonardo DRS this week:

Positive Sentiment: Quarterly results exceeded expectations: Adjusted EPS was $0.46 versus the $0.35 consensus estimate, while revenue reached $1.066 billion versus expectations of approximately $1.03 billion. Revenue increased 11% year over year, and net earnings rose 60% to $115 million. Leonardo DRS Announces Financial Results for Third Quarter 2026
Positive Sentiment: Profitability improved: Adjusted EBITDA rose 27% to $149 million, with the margin expanding to 14.0% from 12.2% a year earlier. Management cited favorable program mix, operating leverage, and strong execution across both major segments. Broad Strength Powers Leonardo DRS To Higher Earnings And Sales In Third Quarter
Positive Sentiment: Visibility strengthened: Record quarterly bookings of $1.6 billion produced a 1.5x book-to-bill ratio, while funded backlog climbed 21% year over year to a record $5.6 billion. This supports future revenue and reinforces the defense-demand narrative. Leonardo DRS Reports Third Quarter 2026 Results, Raises Full-Year Guidance
Positive Sentiment: Full-year guidance was raised: The company now expects 2026 revenue of $3.950 billion-$3.985 billion, adjusted EBITDA of $545 million-$555 million, and adjusted diluted EPS of $1.50-$1.53. It also declared a quarterly dividend of $0.09 per share, payable November 25 to shareholders of record November 12. Leonardo DRS Boosts FY26 Outlook; Declares Dividend
Negative Sentiment: Cash generation was softer in the quarter: Free cash flow fell to $61 million from $77 million a year earlier, partly because of increased working-capital needs. Cash and equivalents declined to $294 million, although the company reported no borrowings under its credit facility. The increased guidance also excludes the pending Raft acquisition, leaving execution and transaction risks to monitor.

Leonardo DRS Company Profile

(Get Free Report)

Leonardo DRS, Inc is a defense technology company that develops and supplies advanced products and systems for the U.S. military and government customers, as well as allied nations. The company operates as a subsidiary of Leonardo S.p.A. and focuses on technologies used in land, sea, air and space-related defense applications.

Its offerings include sensing and surveillance systems, electro-optical and infrared technologies, radar and electronic warfare products, network computing and communications systems, counter-uncrewed aircraft systems, force protection equipment, and naval power and propulsion systems.