Leonardo DRS beats estimates, raises 2026 EPS guidance

Investing.com -- Leonardo DRS, Inc. (NASDAQ: DRS) reported second-quarter results on Thursday, exceeding analyst expectations.

Adjusted earnings per share came in at $0.35 compared to the consensus estimate of $0.27. Revenue reached $913 million, surpassing the $901.51 million estimate and marking a 10% increase YoY.

The defense technology provider raised its full-year 2026 guidance for adjusted EBITDA to a range of $525 million to $540 million, up from the prior range of $515 million to $530 million.

The company also increased its adjusted diluted EPS guidance to $1.34 to $1.39, compared to the previous range of $1.26 to $1.30. The midpoint of the new adjusted EBITDA guidance of $532.5 million represents an increase from the prior midpoint of $522.5 million. Shares fell 1% following the announcement.

"Leonardo DRS delivered an exceptional second quarter. Our results reflect disciplined execution and sustained demand for DRS's differentiated technologies," said John Baylouny, President and CEO of Leonardo DRS.

The company reported adjusted EBITDA of $128 million for the quarter, up 33% YoY, with adjusted EBITDA margin expanding to 14.0% from 11.6% in the prior year period. Net earnings rose 59% YoY to $86 million, while diluted EPS increased 60% to $0.32.

Leonardo DRS captured $1.1 billion in bookings during the quarter, achieving a book-to-bill ratio of 1.2x. Funded backlog reached a record $5.1 billion, up 17% YoY.

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