Leonardo DRS Beats Q3, Raises 2026 Guidance; Backlog Hits Record $5.6B
DRS is trading near its 52-week low of $32.43 (13% above the low).
Summary
Leonardo DRS reported Q3 2026 revenue of $1.07 billion (up 11%) and net earnings of $115 million (up 60%), then raised full-year guidance on record $5.6 billion funded backlog and 1.5x book-to-bill bookings.
Key Events · Earnings and Guidance · DRS
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Q3 Revenue Up 11% to $1.07B
Revenue of $1,066 million versus $960 million a year ago, led by tactical radars, naval power and propulsion, and space sensing programs.
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Earnings Growth Outpaced Revenue
Net earnings rose 60% to $115 million and diluted EPS rose 65% to $0.43; Adjusted EBITDA of $149 million was up 27% at a 14.0% margin.
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Record Backlog and Strong Bookings
Bookings of $1,639 million produced a 1.5x book-to-bill, lifting funded backlog to a record $5,640 million, up 21% year-over-year.
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2026 Guidance Raised
Revenue outlook lifted to $3,950-$3,985 million, Adjusted EBITDA to $545-$555 million and Adjusted Diluted EPS to $1.50-$1.53, with the tax rate cut to 13.0% from 16.5%. Guidance excludes the pending Raft LLC acquisition.
Analysis · DRS · Manufacturing
Revenue grew 11% to $1.07 billion while net earnings jumped 60% to $115 million, prompting management to raise full-year revenue, Adjusted EBITDA and Adjusted Diluted EPS guidance. Demand is the bigger story: bookings of $1.6 billion produced a 1.5x book-to-bill and pushed funded backlog to a record $5.6 billion, up 21% year-over-year. That visibility underpins the higher outlook, which also assumes a lower expected tax rate of 13.0% versus 16.5% previously. Guidance excludes the pending Raft LLC acquisition, leaving the deal a separate swing factor.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 38.8% of the 970 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.46%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DRS was trading at $36.77 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $9.5B. The 52-week trading range was $32.43 to $50.59. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.