Leonardo DRS Q3 2026: Revenue Up 11% to $1.07B, EPS $0.43, Backlog $9.38B
DRS sits 22% above its 52-week low of $32.43 on elevated volume (2.3× avg).
Summary
Leonardo DRS's Q3 2026 10-Q confirms 11% revenue growth to $1.07 billion, 60% higher net earnings of $115 million and $0.43 diluted EPS, with margins expanding and backlog at $9.38 billion. The $450 million Raft LLC acquisition remains on track to close in Q4 2026.
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, driven by tactical radars, electric power and propulsion, and space payload programs.
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Margins Expand, EPS $0.43
Gross margin rose 160 bps to 24.7% and operating earnings grew 24.7% to $116 million; net earnings of $115 million were up 59.7% and diluted EPS $0.43 versus $0.26.
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Backlog and Bookings Strengthen
Total backlog reached $9,381 million versus $8,669 million a year earlier, and Q3 bookings of $1,639 million rose 25.4%, led by IMS naval power and propulsion funding.
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Debt Cut, New $500M Revolver
The $191 million 2022 Term Loan A was repaid and the 2022 Credit Agreement terminated in January 2026; total debt is $175 million against a new undrawn $500 million revolver maturing January 2031. Cash fell to $294 million from $647 million at December 31, 2025.
Analysis · DRS · Manufacturing
The 10-Q puts full financials behind this morning's earnings release: revenue of $1,066 million (up 11.0%), net earnings of $115 million (up 59.7%) and diluted EPS of $0.43, with gross margin expanding 160 basis points to 24.7%. The quality of the beat matters more than the headline — operating earnings rose 24.7% to $116 million and both segments improved margins (ASC to 8.6%, IMS to 15.0%). Backlog of $9,381 million and quarterly bookings of $1,639 million (up 25.4%) support the forward revenue base, and the balance sheet is clean: total debt down to $175 million after the $191 million term loan repayment, with a new undrawn $500 million revolver. The main watch item is the pending $450 million Raft LLC acquisition, expected to close in Q4 2026 and to be funded with cash on hand plus revolver borrowings — cash already fell to $294 million from $647 million at year-end.
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.
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 $39.64 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $10.6B. 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.