Leonardo DRS Raises Fiscal 2026 Revenue and Earnings Guidance

Leonardo DRS reported $1.1 billion in revenue for its third quarter of fiscal 2026, an 11% increase from the year-earlier quarter. The company also raised its fiscal-year guidance for revenue, adjusted EBITDA and adjusted diluted earnings per share.

Key details

• Leonardo DRS reported third-quarter net earnings of $115 million, compared with $72 million in the same quarter a year earlier.
• Adjusted EBITDA reached $149 million, up 27% year over year.
• Diluted earnings per share were $0.43; adjusted diluted earnings per share were $0.46.
• Funded bookings totaled $1.6 billion, with a 1.5x book-to-bill ratio.
• Funded backlog stood at $5.6 billion at quarter-end, up 21% year over year.
• Fiscal 2026 revenue guidance rose to $3.95 billion–$3.99 billion from $3.9 billion–$3.98 billion.
• Adjusted EBITDA guidance increased to $545 million–$555 million from $525 million–$540 million.
• Adjusted diluted EPS guidance moved to $1.50–$1.53 per share from $1.34–$1.39.
• The updated outlook assumes a 13% tax rate and 269 million weighted-average shares outstanding.

Leonardo DRS reported $1.6 billion in third-quarter funded bookings and a 1.5x book-to-bill ratio.

Why it matters

Leonardo DRS supplies defense and space systems, so its results offer a view of demand for those products and the company’s financial outlook. Its reported bookings exceeded quarterly revenue, while its funded backlog grew year over year.

What happens next

Leonardo DRS now expects higher fiscal 2026 revenue, adjusted EBITDA and adjusted EPS than it projected earlier. How will the company’s next results compare with its updated outlook?