Leonardo DRS Lifts Full-Year Outlook as Q2 Net Earnings Jump 59% on Record Backlog
DRS sits 51% above its 52-week low of $32.43.
Summary
Leonardo DRS posted Q2 2026 earnings that exceeded expectations, with revenue up 10% and net earnings up 59%. Full-year guidance for Adjusted EBITDA and Adjusted Diluted EPS was raised, supported by a record $5.1 billion funded backlog.
Updates
· SEC 10-Q — The 10-Q reports remaining performance obligations of $8.787 billion as of June 30, 2026, with 22% expected to be recognized as revenue over the next six months.
· Reuters — Q2 revenue of $913M beat the $902M consensus and adjusted EPS of $0.35 beat the $0.27 estimate.
Key Events · Earnings and Guidance · DRS
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Q2 Earnings Beat Across the Board
Revenue of $913 million grew 10% year-over-year, net earnings of $86 million surged 59%, and Adjusted EBITDA of $128 million rose 33% with margins expanding 240 bps to 14.0%.
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Full-Year Guidance Raised
Adjusted EBITDA guidance increased to $525–$540 million (from $515–$530 million) and Adjusted Diluted EPS to $1.34–$1.39 (from $1.26–$1.30), reflecting strong first-half performance and confidence in continued momentum.
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Record Funded Backlog of $5.1 Billion
Backlog grew 17% year-over-year to a record $5.1 billion, with a book-to-bill ratio of 1.2x in Q2, signaling sustained demand across tactical radars, electric power, and infrared sensing.
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Capital Returns: Dividend and Buybacks
Declared a $0.09 per share quarterly dividend and repurchased 261,526 shares for approximately $12 million in Q2 under the existing stock repurchase program.
Analysis · DRS · Manufacturing
A standout quarter for Leonardo DRS saw revenue climb 10% and net earnings surge 59% year-over-year, fueled by broad-based demand across its defense technology portfolio. Adjusted EBITDA margins expanded 240 basis points to 14%, underscoring strong operational execution and a favorable mix. Confidence in sustained momentum is reflected in the raised full-year guidance for both Adjusted EBITDA and Adjusted Diluted EPS. Robust demand visibility is further supported by a record $5.1 billion funded backlog and a 1.2x book-to-bill ratio. These results arrive just two days after the announcement of the $450 million acquisition of Raft, reinforcing a dual narrative of organic strength and strategic M&A. With the stock trading near its 52-week high, the print validates the premium valuation.
How filings like this one have moved
In the 30 days to Nov 2, 2026, 40.4% of the 1069 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.35%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DRS was trading at $49.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $12.4B. 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.