10-Q · May 5, 2026
Leonardo DRS reported Q1 2026 results with revenues of $846 million, a 5.9% increase year-over-year, and diluted EPS of $0.23, surpassing estimates of $0.20. The company also raised its 2026 revenue guidance to between…
Earnings analysis · 10-Q
DRS earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Leonardo DRS delivered strong third-quarter growth, with revenue of $1.066 billion and diluted EPS of $0.46, both materially above the prior-year period and consensus revenue and EPS estimates. Bookings of $1.639…
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Leonardo DRS delivered strong third-quarter growth, with revenue of $1.066 billion and diluted EPS of $0.46, both materially above the prior-year period and consensus revenue and EPS estimates. Bookings of $1.639 billion and raised 2026 revenue and adjusted EPS guidance support a bullish outlook. Key risks include supply-chain inflation, the pending Raft acquisition being excluded from guidance, and competing uses of capital, although the company had no borrowings under its revolving facility at September 30, 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
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Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.46
What stood out
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Revenue accelerated and beat estimates
Revenue was $1.066 billion, up approximately 16.8% from $913 million in the prior quarter and 11.0% from $960 million in the prior-year quarter. Revenue exceeded the $1.029 billion consensus estimate by approximately 3.6%.
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EPS growth materially outpaced revenue
Diluted EPS was $0.46 versus $0.32 in the prior quarter and $0.26 in the prior-year quarter, representing sequential growth of approximately 43.8% and year-over-year growth of approximately 76.9%.
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Bookings reached $1.639 billion
The company reported $1.639 billion of bookings, supporting a strong demand and backlog profile.
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2026 outlook was raised
2026 revenue guidance was raised to $3.950-$3.985 billion from the prior outlook, while adjusted diluted EPS guidance was raised to $1.50-$1.53 from $1.34-$1.39.
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Share repurchases continued
The company repurchased 288,633 shares during the quarter under its $75 million repurchase authorization; $13 million remained available at September 30, 2026.
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Financial controls remained effective
Management concluded that disclosure controls were effective as of September 30, 2026, and reported no change in internal control over financial reporting that materially affected or was reasonably likely to materially affect controls.
What to watch
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Supply-chain inflation may pressure margins
Inflationary pressure on supply-chain costs, including micro-electronics and metals, has affected profitability. Management stated that costs could rise further and may not be mitigated, potentially negatively affecting future results.
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Potential variable-rate exposure
The company had no amounts outstanding under the 2026 Revolving Credit Facility at September 30, 2026, but remains exposed to interest-rate risk on variable-rate borrowings if the facility is drawn.
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Pending acquisition is excluded from outlook
The 2026 outlook excludes the pending Raft acquisition, creating potential transaction, integration, and forecast-adjustment risk if the transaction closes or conditions change.
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Capital allocation competes with liquidity
The company repurchased 288,633 shares during the quarter while approximately $13 million remained under the repurchase program, reducing liquidity available for other capital uses.
Management's outlook
Management raised 2026 adjusted diluted EPS guidance to $1.50-$1.53 and revenue guidance to $3.950-$3.985 billion; the outlook excludes the pending Raft acquisition.
Earlier filings 4
10-K · February 27, 2026
Leonardo DRS reported continued top-line growth in 2025 with total revenue of $3,648 million (firm‑fixed price $3,205M; flexibly priced $443M) and funded backlog rising to $4,643 million. The company emphasizes a…
10-Q · October 30, 2024
Leonardo DRS reported Q3 (three months ended September 30, 2024) revenue of $812.0M, up $109.0M (+15.5%) versus $703.0M in Q3 2023, with gross profit of $179.0M and operating earnings of $75.0M (operating margin ~9.2%).…
10-Q · July 30, 2024
Leonardo DRS reported Q2 revenue of $753.0M, up $125.0M (≈19.9%) versus $628.0M a year ago, with gross profit rising to $169.0M but gross margin compressing slightly to ~22.4%. Operating earnings improved to $55.0M…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.