Leonardo DRS Q2 Revenue Beats, Raises 2026 Guidance on Radar Demand
DRS sits 51% above its 52-week low of $32.43.
Summary
Leonardo DRS delivered a strong Q2 beat across the board: revenue of $913M topped the $902M consensus, adjusted EPS of $0.35 crushed the $0.27 estimate, and adjusted EBITDA of $128M exceeded the $112.6M expectation. The beat was driven by surging demand for tactical radars, electric power and propulsion, and infrared sensing programs. Management raised full-year 2026 adjusted EBITDA guidance to $525M-$540M (from $515M-$530M) and adjusted diluted EPS to $1.34-$1.39 (from $1.26-$1.30), while maintaining revenue guidance of $3.9B-$3.975B. This follows the recent $450M Raft acquisition announcement, adding AI and mission software capabilities. The stock is trading near its 52-week high of $50.59, and the raised guidance signals confidence in sustained momentum. With 8 buy ratings and a median price target of $54.50, the earnings beat and guidance hike reinforce the bullish thesis.
At the time of this announcement, DRS was trading at $49.00 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $32.43 to $50.59. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.