For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Leonardo DRS, Inc. (DRS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Leonardo DRS, Inc. is one of 81 individual stocks in the Aerospace sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Leonardo DRS, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DRS' full-year earnings has moved 7.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, DRS has moved about 0.6% on a year-to-date basis. In comparison, Aerospace companies have returned an average of -13.7%. This means that Leonardo DRS, Inc. is outperforming the sector as a whole this year.
Another Aerospace stock, which has outperformed the sector so far this year, is Embraer (EMBJ - Free Report) . The stock has returned 7.5% year-to-date.
The consensus estimate for Embraer's current year EPS has increased 5.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Leonardo DRS, Inc. belongs to the Aerospace - Defense Equipment industry, a group that includes 38 individual stocks and currently sits at #72 in the Zacks Industry Rank. Stocks in this group have lost about 12.8% so far this year, so DRS is performing better this group in terms of year-to-date returns.
Embraer, however, belongs to the Aerospace - Defense industry. Currently, this 42-stock industry is ranked #95. The industry has moved -14.1% so far this year.
Investors interested in the Aerospace sector may want to keep a close eye on Leonardo DRS, Inc. and Embraer as they attempt to continue their solid performance.
Leonardo DRS, Inc. (DRS) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
ARLINGTON, Va., Oct. 14, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) has been awarded a 10-year prime contract under NASA’s Solutions for Enterprise-Wide Procurement (SEWP) VI Program. The government-wide acquisition contract (GWAC) vehicle gives federal agencies a proven and streamlined path to rapidly procure approved Leonardo DRS products and services through 2036.
NASA administers the government-wide SEWP acquisition contract. The award extends DRS's role as a SEWP prime contractor, a position the company has held since 2015. The DRS award covers a broad range of the company’s products and services. DRS currently lists 368 contract line items representing vetted approved products, parts and services from multiple business units in its SEWP V catalog. These offerings are expected to transition to the SEWP VI contract, subject to final program requirements.
Recent task orders have supported the U.S. Army, Navy, Air Force, Army Communications-Electronics Command, the Defense Logistics Agency (DLA) and Foreign Military Sales (FMS). Government agencies have already procured more than $110 million in DRS products and services through SEWP V. NASA documented an “Excellent” performance rating for DRS in January 2026.
DRS is not a traditional reseller. DRS focuses on providing its own products directly to US Government customers via SEWP, complemented by commercial off-the-shelf offerings available through teaming relationships with stocking distributors. The ten-year SEWP VI ordering period opens Nov. 1, 2026, through October 31, 2036. All SEWP VI awards are indefinite-delivery/indefinite-quantity contracts with the ability to issue firm-fixed-price, labor-hour, time-and-materials and other pricing-arrangement task orders. The current SEWP V contract will continue to be administered through April 30, 2027.
"This award recognizes a decade of proven performance, and directly benefits to our current and future customers," said Denny Crumley, senior vice president and general manager of the DRS Land Electronics business unit. "In today's dynamic environment, our customers need more contracting options and faster paths to buy and field trusted capability. This award preserves a rapid, low-cost procurement path for the next decade. We are proud of the team that earned it and DRS is committed to delivering for every customer who uses it."
The SEWP contract provides streamlined access to commercial products and services, including hardware, software, cloud services, cybersecurity tools, engineering and consulting services, and data-intensive mission support. SEWP VI areas of focus include: information technology, computing, software, navigation, communications and power technologies. The program also introduces stand-alone services, giving agencies greater flexibility to acquire solutions that address mission and program requirements.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
ARLINGTON, Va., Oct. 14, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has been awarded a $500 million ceiling indefinite-delivery/indefinite-quantity (IDIQ) contract with three-year period of performance from the Joint Interagency Task Force 401 (JIATF-401). The award positions DRS to support JIATF-401 mission needs through the rapid fielding of operationally relevant capabilities.
The JIATF-401 IDIQ is designed to increase speed and agility in delivering vetted Counter UAS (C-UAS) technologies and systems to operators. Under this contract, DRS will be eligible to compete for task orders that enable the rapid delivery of integrated C-UAS sensing capabilities supporting force protection and low-altitude air defense missions.
“Today’s threat environment is evolving faster than ever, and our customers need proven capabilities delivered at operational speed. This JIATF IDIQ positions DRS to accelerate the delivery of integrated C-UAS sensing technologies through rapid fielding of operationally relevant capabilities that help protect forces and strengthen low-altitude air defense as new threats emerge,” said John Baylouny, president and chief executive officer of Leonardo DRS.
“Our counter UAS and air defense radars have demonstrated proven detection, tracking, and force protection performance in operational environments,” said Max Cohen, senior vice president, general manager at Leonardo DRS RADA Technologies business unit. “We design, manufacture, and deliver combat-proven sensing systems at speed, and we’re ready now to support JIATF with mission-ready expeditionary radar capability that can be fielded rapidly as operational needs for C-UAS evolve.”
DRS manufacturers combat-proven radar and sensing solutions that support mission sets including counter-UAS, counter-rocket, artillery, and mortar, and short-range air defense, helping to provide persistent situational awareness and threat tracking for deployed forces. Backed by deep mission expertise and rapid design and manufacturing capabilities, the team supports customers from concept through production and sustainment to meet evolving threats with speed, scale, and reliability.
This IDIQ contract award positions DRS to compete for future task orders throughout the contract’s period of performance.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
ARLINGTON, Va., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has been awarded a contract by the U.S. Army Combat Capabilities Development Command, or DEVCOM, C5ISR Center to support the Delivering Unmatched Thermal Capability Hastened, or DUTCH, initiative.
Supported by the Office of the Assistant Secretary of War for Critical Technologies, the DUTCH initiative is focused on accelerating the development and transition of next-generation uncooled thermal infrared (IR) sensing capabilities for defense applications. The initiative is intended to advance high-performance, affordable thermal-imaging technology that can support rapid integration across a broad range of platforms and operational environments.
Under the award, DRS will demonstrate high-definition, high-frame-rate uncooled thermal camera cores engineered to deliver advanced sensitivity, image quality and responsiveness. Potential applications include unmanned aerial systems (UAS), counter-UAS, missile and rocket seekers, weapon sights, night-vision systems, ground-vehicle sensing and targeting, unmanned surface vessels and other emerging applications.
“DRS is committed to meeting the rapidly growing demand for high-performance thermal imaging solutions across the defense enterprise,” said Jerry Hathaway, senior vice president and general manager of Leonardo DRS Electro-Optical and Infrared Systems business unit. “Our selection for the DUTCH initiative reflects the depth of our uncooled IR technology portfolio, our understanding of operational needs and our ability to transition advanced sensing capabilities into scalable production.”
DRS has established experience in uncooled IR sensing through sustained investment in advanced detector, camera-core and system technologies. The company’s portfolio is designed to provide thermal-imaging performance, size, weight, power and cost, or SWaP-C, advantages for crewed and uncrewed platforms, as well as fixed and mobile systems.
The company is also expanding its capacity and resiliency to support increased demand for thermal sensing products. DRS maintains dual-site camera assembly and test facilities in Dallas, Texas, and Melbourne, Florida, and continues to broaden its supply base across key components. This production approach is designed to strengthen supply-chain continuity and support scalable delivery of mission-ready IR sensing products.
“Today’s operational environment requires thermal-sensing solutions that can be produced at scale, integrated efficiently and perform reliably in the most challenging conditions,” Hathaway added. “DRS is investing in the technology, manufacturing capacity and supply-chain resilience necessary to remain a trusted, go-to provider of high-performance, cost-effective IR sensing solutions for the warfighter.”
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS Media Contact
Charles Jones
Director, Marketing and Corporate Communications
+1 571-737-8800 [email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d04e06ef-945f-4c94-bff9-5577dd222f7b
Photo: Thermal imagery captured with a Leonardo DRS uncooled infrared camera core Under the U.S. Army’s DUTCH initiative, Leonardo DRS will demonstrate high-definition, high-frame-ra...
ARLINGTON, Va., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has received a $63 million production order from the U.S. Army for its next-generation Family of Weapon Sights – Individual, or FWS-I, thermal weapon sight system. The order was placed under the Army’s existing indefinite-delivery/indefinite-quantity, or IDIQ, contract for advanced, battlefield-proven, thermal weapon sight systems supporting dismounted soldiers.
FWS-I is a lightweight, uncooled thermal imaging system designed to wirelessly integrate with solider-worn vision devices, including the Enhanced Night Vision Goggle–Binocular, or ENVG-B, and the Integrated Visual Augmentation System, or IVAS. This wireless connection allows soldiers to view thermal imagery from the weapon sight through their helmet-mounted display, enabling rapid target acquisition without needing to shoulder the weapon. Maintaining situational awareness provides a critical advantage in complex, high-threat environments.
“Modernization at the tactical edge depends on giving soldiers the information they need without adding unnecessary complexity,” said John Baylouny, president and chief executive officer of Leonardo DRS. “The FWS-I production order reflects the Army’s continued focus on advanced sensing, connected soldier systems and mission-ready capability. DRS is proud to support that mission by delivering practical technologies designed to help soldiers detect threats, make decisions faster and Own the Edge™.”
As adversaries employ more sophisticated concealment techniques and operate in low-visibility conditions, thermal weapon sights can help soldiers identify and assess potential threats across a range of operational environments, including urban terrain, dense foliage, smoke, fog and darkness. at close and extended ranges. FWS-I uses thermal imaging to help soldiers detect heat signatures in conditions where camouflage, lighting, or weather may reduce the effectiveness of traditional visual observation.
“This cutting-edge technology ensures soldiers will have the most advanced weapon sight systems on the battlefield today,” said Jerry Hathaway, senior vice president and general manager of Leonardo DRS Electro-Optical Infrared Systems. “FWS-I combines advanced uncooled thermal imaging with soldier-worn display integration to help improve target acquisition and situational awareness for dismounted soldiers. We are proud the U.S. Army continues to trust DRS to deliver this vital capability that enhances survivability and effectiveness in multi-domain operations.”
FWS-I features uncooled infrared technology designed to provide rugged thermal imaging performance without the need of cryogenic cooling. Its clip-on design provides flexibility for use across multiple weapon platforms. The wireless link to soldier-worn systems ensures speed, accuracy, and situational awareness without compromising mobility.
The award builds on DRS’s long-standing relationship with the U.S. Army and its experience in electro-optical and infrared, or EO/IR technologies. In addition to FWS-I, DRS provides a broad range of EO/IR technologies supporting mounted and unmounted operations, airborne platforms, and aircraft survivability.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
ARLINGTON, Va., Oct. 12, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that John Baylouny, the company’s president and chief executive officer, received the Association of the United States Army’s John W. Dixon Award during the 2026 AUSA Annual Meeting and Exposition.
Established in 1989, the John W. Dixon Award recognizes distinguished service in the industrial community resulting in outstanding contributions to national defense. The annual award honors leaders whose work has made a lasting impact on the U.S. Army, the defense industrial base and the nation’s security.
Baylouny brings more than 35 years of aerospace and defense industry experience, including more than 15 years in executive leadership roles. He became president and chief executive officer of Leonardo DRS in January 2026 after serving as the company’s chief operating officer since 2018.
During Baylouny’s executive leadership tenure—first as chief operating officer and now as president and chief executive officer—Leonardo DRS has continued to strengthen Army readiness, survivability, and operational advantage for Soldiers through innovative solutions supporting counter-UAS, air and missile defense, precision munitions, and the Army’s migration to Next Generation Command and Control. DRS supplies cutting-edge technologies, including advanced cooled and uncooled electro-optical/infrared products for soldier, ground-vehicle, and airborne applications; ground- and air-platform survivability equipment; edge mission-computing and rugged display systems; integrated counter-UAS mission packages; missile-launcher, targeting, seeker, and tracker systems; mortar fire control; and test and diagnostics, power-management, and power-distribution solutions for combat platforms. These products are deployed across a diverse portfolio of Army platforms and weapon systems, including the Abrams, Bradley, AMPV, Joint Assault Bridge; and Paladin combat vehicles; Apache, Black Hawk, and Chinook helicopters; the SGT Stout/M-LIDS air-defense and counter-UAS systems; JLTV and Infantry Squad Vehicle fleets; and THAAD, Javelin, TOW II, HIMARS, and PATRIOT missile programs—helping the Army field, sustain, and modernize formations for future operations.
“I am deeply humbled and honored to receive the John W. Dixon Award from the Association of the United States Army,” said John Baylouny, president and chief executive officer of Leonardo DRS. “This recognition reflects the commitment and expertise of the entire DRS team, as well as the trust our Army customers place in us to rapidly deliver mission-ready technologies that provide a decisive capability edge for America’s Soldiers. We remain focused on advancing the capabilities of our armed forces so they can strengthen national security, meet the challenges of an increasingly complex operational environment - prevail and return home safely.”
Baylouny has also supported AUSA’s Greater Los Angeles Chapter for many years, contributing his time and expertise to strengthen chapter programs, expand industry engagement and foster connections between the Army and the defense industrial base. He serves as an adviser to the chapter’s annual Space Symposium and supports its Army Ball and “Give a Soldier a Night Out” program.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS (NASDAQ:DRS – Get Free Report) and BWX Technologies (NYSE:BWXT – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.
Profitability This table compares Leonardo DRS and BWX Technologies’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Leonardo DRS 8.52% 12.97% 8.29% BWX Technologies 10.11% 30.83% 9.34% Insider & Institutional Ownership 18.8% of Leonardo DRS shares are owned by institutional investors. Comparatively, 94.4% of BWX Technologies shares are owned by institutional investors. 0.3% of Leonardo DRS shares are owned by insiders. Comparatively, 0.6% of BWX Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation This table compares Leonardo DRS and BWX Technologies”s revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Leonardo DRS $3.65 billion 2.65 $278.00 million $1.19 30.45 BWX Technologies $3.51 billion 3.75 $328.95 million $3.86 37.23 BWX Technologies has lower revenue, but higher earnings than Leonardo DRS. Leonardo DRS is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk Leonardo DRS has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Analyst Recommendations This is a breakdown of recent ratings for Leonardo DRS and BWX Technologies, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Leonardo DRS 0 2 3 2 3.00 BWX Technologies 0 5 10 1 2.75 Leonardo DRS currently has a consensus target price of $53.17, indicating a potential upside of 46.71%. BWX Technologies has a consensus target price of $208.33, indicating a potential upside of 44.95%. Given Leonardo DRS’s stronger consensus rating and higher possible upside, analysts clearly believe Leonardo DRS is more favorable than BWX Technologies.
Dividends Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. BWX Technologies pays an annual dividend of $1.08 per share and has a dividend yield of 0.8%. Leonardo DRS pays out 30.3% of its earnings in the form of a dividend. BWX Technologies pays out 28.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BWX Technologies has increased its dividend for 2 consecutive years.
Summary BWX Technologies beats Leonardo DRS on 13 of the 18 factors compared between the two stocks.
About Leonardo DRS (Get Free Report)
Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.
(Get Free Report)
BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.
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Leonardo DRS (NASDAQ:DRS – Get Free Report) and Sidus Space (NASDAQ:SIDU – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership 18.8% of Leonardo DRS shares are held by institutional investors. Comparatively, 17.9% of Sidus Space shares are held by institutional investors. 0.3% of Leonardo DRS shares are held by insiders. Comparatively, 0.1% of Sidus Space shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk Leonardo DRS has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Sidus Space has a beta of -0.79, suggesting that its stock price is 179% less volatile than the S&P 500.
Analyst Ratings This is a breakdown of current ratings and recommmendations for Leonardo DRS and Sidus Space, as reported by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Leonardo DRS 0 2 3 2 3.00 Sidus Space 1 0 0 0 1.00 Leonardo DRS presently has a consensus target price of $53.17, indicating a potential upside of 46.71%. Given Leonardo DRS’s stronger consensus rating and higher possible upside, analysts plainly believe Leonardo DRS is more favorable than Sidus Space.
Profitability This table compares Leonardo DRS and Sidus Space’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Leonardo DRS 8.52% 12.97% 8.29% Sidus Space -970.56% -30.71% -27.09% Valuation and Earnings This table compares Leonardo DRS and Sidus Space”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Leonardo DRS $3.65 billion 2.65 $278.00 million $1.19 30.45 Sidus Space $3.38 million 46.42 -$29.47 million ($0.69) -2.25 Leonardo DRS has higher revenue and earnings than Sidus Space. Sidus Space is trading at a lower price-to-earnings ratio than Leonardo DRS, indicating that it is currently the more affordable of the two stocks.
Summary Leonardo DRS beats Sidus Space on 14 of the 15 factors compared between the two stocks.
About Leonardo DRS (Get Free Report)
Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.
About Sidus Space (Get Free Report)
Sidus Space, Inc., a space-as-a-service company, engages in the design, manufacture, launch, and data collection of commercial satellite worldwide. Its space services include satellite/space hardware manufacturing; Low Earth Orbit (LEO) launch and deployment services; and space-based geospatial intel, imagery, and data analytics. The company also provides platforms, such as External Flight Test Platform (EFTP) which offers multiple industries to develop, test, and fly experiments, hardware, materials, and advanced electronics on the ISS at a reduced cost and schedule; LizzieSat; Space Station Integrated Kinetic Launcher for Orbital Payload Systems; and Phoenix Deployer. In addition, it offers aerospace and defense manufacturing services, including 3D printing; mechanical/electrical assembly and test; design engineering; and program management comprising of supply chain management, customer requirement compliance, logistics and configuration management, resource and budget control, and schedule. It serves commercial space, aerospace, and defense industries, as well as government and commercial customers. The company was founded in 2012 and is headquartered in Merritt Island, Florida. Sidus Space, Inc. is a subsidiary of Craig Technical Consulting, Inc.
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Final delivery and training under LAND 159 Tranche 1 supports Australian Army sniper capability | Source: Leonardo DRS, Inc.
ARLINGTON, Va., Oct. 05, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) has completed final training and delivery for the Improved Night/Day Observation Device (INOD) Block III thermal weapon sights provided to the Australian Army under the LAND 159 Tranche 1 program.
The INOD Block III is a clip-on thermal weapon sight designed to help snipers and special operations forces detect, identify and engage targets in low-light and degraded visual conditions, including darkness, smoke, haze and adverse weather. Mounted in front of an existing direct-view optic, the system is designed to preserve the operator’s zeroed scope and is compatible with magnifications from 5x to greater than 25x.
“Completing delivery and training for the Australian Army is an important milestone for our team,” said Jerry Hathaway, senior vice president and general manager of Leonardo DRS Electro-Optical and Infrared Systems business unit. “The INOD Block III provides a thermal sighting capability intended to support sniper operations in demanding conditions, and the training helps ensure personnel are prepared to operate and maintain the system.”
The sight uses a micro-cooled, 640-by-480 mid-wave infrared focal plane array to provide thermal imagery and target discrimination in conditions that can limit conventional optics.
Designed for sustained field use, the system uses lithium batteries with hot-swap capability, allowing battery changes without interrupting operation. The sight can also use external power for extended static-surveillance tasks. A rear-facing focus knob, wired remote control and glove-compatible, one-handed operation support use in field conditions.
For the Australian Army, the LAND 159 Tranche 1 acquisition represents a step-change in long-range lethality. Australian snipers will now carry the same generation of thermal sight currently fielded with U.S. Army Special Operations Forces, strengthening interoperability with Australia’s primary alliance partner across joint and coalition operations. Beyond the hardware, DRS provided hands-on training to Australian Army personnel to support operation and maintenance of the systems. The company is a provider of individual weapon sights and thermal targeting systems to the U.S. Army. The INOD family is part of DRS’s thermal sighting portfolio, which also includes the Family of Weapon Sights program.
Australian defense company NIOA is the prime contractor for LAND 159 Tranche 1 and managed local program coordination and delivery logistics on behalf of the Australian Army.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
New DRS UK capability will support growing demand for counter-UAS, air defence and active protection system applications | Source: Leonardo DRS, Inc.
ARLINGTON, Va., Oct. 05, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced the establishment of DRS UK, a new subsidiary created to support the company’s business in the United Kingdom, along with the launch of local production of tactical radars in the UK.
The newly purpose-built production site expands DRS’s manufacturing footprint and creates a dedicated local presence to support UK defence customers, industry partners and system integrators. The company said the investment is intended to strengthen long-term support for UK programmes and provide greater flexibility to meet evolving operational requirements.
DRS tactical radars are designed to detect, track and classify a wide range of airborne and ground threats, including unmanned aircraft systems (UAS) and rockets, artillery and mortars (RAM). The radars support counter-UAS, air defence, force protection and active protection system applications.
DRS said more than 10,000 radar panels have been deployed worldwide with operational service with the United States Armed Forces, NATO allies and other international customers.
“Establishing DRS UK and launching a full local tactical radar capability, strengthens our ability to support customers and partners with the proximity, responsiveness and manufacturing capacity needed to meet evolving operational requirements,” said John Baylouny, president and chief executive officer of Leonardo DRS. “This investment enables closer collaboration with UK industry partners and integrators to deliver counter-UAS, air defence and force protection capabilities that help protect the warfighter.”
“Our investment in UK-based manufacturing for advanced sensing technologies reinforces the industrial capability, supply chain resilience and skilled workforce needed to support critical defence priorities,” said Max Cohen, senior vice president and general manager overseeing DRS’s tactical radar portfolio. “By establishing this local capacity, we are creating high-value engineering and manufacturing opportunities while positioning DRS UK to support future export growth and deliver greater value to customers across the UK and Europe.”
The UK operation will serve as a strategic hub for DRS’s tactical radar business in the UK and Europe, the company said.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
ARLINGTON, Va., Sept. 29, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) has scheduled a conference call for Thursday, October 29, 2026 beginning at 10:00 a.m. (ET) to discuss its third quarter 2026 results. The company plans to issue its quarterly earnings press release prior to the conference call.
The live audio broadcast of Leonardo DRS’s conference call with corresponding press release and supplemental information will be available on the company’s investor relations website. To attend the conference call or webcast, participants should register online at https://investors.leonardodrs.com.
A replay will be available on the company’s website approximately two hours after the conclusion of the conference call and will remain available for 90 days.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Corient Private Wealth LP bought a new position in Leonardo DRS, Inc. (NASDAQ:DRS – Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund bought 22,035 shares of the company’s stock, valued at approximately $940,000.
Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Leonardo DRS in the 2nd quarter worth about $212,883,000. Norges Bank bought a new position in Leonardo DRS during the 4th quarter valued at about $37,481,000. Stephens Investment Management Group LLC raised its position in Leonardo DRS by 107.6% in the 1st quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company’s stock worth $94,308,000 after purchasing an additional 1,098,108 shares during the period. Bank of America Corp DE purchased a new stake in Leonardo DRS in the 2nd quarter worth about $24,941,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in Leonardo DRS in the second quarter worth about $24,857,000. 18.76% of the stock is currently owned by hedge funds and other institutional investors.
Leonardo DRS Stock Performance Shares of Leonardo DRS stock opened at $37.16 on Monday. The company has a market capitalization of $9.92 billion, a PE ratio of 31.23, a P/E/G ratio of 2.29 and a beta of 0.35. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.56 and a current ratio of 1.92. The company has a 50-day simple moving average of $41.31 and a two-hundred day simple moving average of $43.49. Leonardo DRS, Inc. has a one year low of $32.43 and a one year high of $50.59.
Leonardo DRS (NASDAQ:DRS – Get Free Report) last released its quarterly earnings results on Friday, July 31st. The company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.08. The business had revenue of $913.00 million for the quarter, compared to analysts’ expectations of $903.27 million. Leonardo DRS had a net margin of 8.52% and a return on equity of 12.97%. The company’s revenue was up 10.1% compared to the same quarter last year. During the same period last year, the business earned $0.23 EPS. Research analysts expect that Leonardo DRS, Inc. will post 1.37 EPS for the current fiscal year. Leonardo DRS Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Thursday, August 13th. Leonardo DRS’s payout ratio is currently 30.25%.
Insider Buying and Selling at Leonardo DRS In other news, CFO Michael Dippold sold 20,317 shares of the firm’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $37.18, for a total value of $755,386.06. Following the completion of the sale, the chief financial officer owned 35,143 shares of the company’s stock, valued at $1,306,616.74. This trade represents a 36.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Rinsky sold 3,865 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $45.37, for a total value of $175,355.05. Following the transaction, the executive vice president owned 27,445 shares in the company, valued at approximately $1,245,179.65. This trade represents a 12.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 28,046 shares of company stock worth $1,107,751 over the last ninety days. Corporate insiders own 0.25% of the company’s stock.
Analysts Set New Price Targets A number of analysts have weighed in on the company. Weiss Ratings upgraded Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 6th. Guggenheim started coverage on shares of Leonardo DRS in a research note on Monday, September 14th. They set a “buy” rating and a $51.00 target price for the company. Finally, JPMorgan Chase & Co. upped their price target on shares of Leonardo DRS from $48.00 to $53.00 and gave the stock a “neutral” rating in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Leonardo DRS has an average rating of “Buy” and a consensus target price of $53.17.
Check Out Our Latest Analysis on Leonardo DRS
Leonardo DRS Profile (Free Report)
Leonardo DRS, Inc is a defense technology company that develops and manufactures advanced products and systems for the U.S. Department of Defense, other government agencies and allied military customers. The company supports land, sea and air platforms as well as command, control, communications, computers, intelligence, surveillance and reconnaissance missions.
Its offerings include electro-optical and infrared sensing systems, network computing and communications equipment, electronic warfare technologies, power and propulsion systems, thermal management solutions, force protection products and advanced battle-management systems.
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ARLINGTON, Va., Sept. 17, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has entered into a contract with Doosan Enerbility to provide the electric propulsion system for the Republic of Korea Navy's KDDX destroyer program, the lead ship of which is being built by Hanwha Ocean. KDDX is a next-generation guided-missile destroyer, considered a cornerstone of South Korea’s future naval fleet requirements. The program is expected to deliver at least six destroyers and represents South Korea’s first indigenously designed and built destroyer program.
Under the award, DRS will supply an integrated electric power and propulsion solution featuring its power-dense 100-Series permanent magnet propulsion motors and matched high-performance, compact variable frequency drives. The system is designed to provide efficient, reliable propulsion in a compact configuration for next-generation naval platforms
Doosan Enerbility and DRS will collaborate on the destroyer’s integrated power and propulsion system, which includes electrical and mechanical equipment extending from the prime movers to the propellers.
The KDDX program is expected to introduce the Republic of Korea Navy's first full-electric-drive surface combatants, as part of a planned class of next-generation destroyers designed to meet the demanding multi-mission requirements of a modern blue-water fleet. As navies worldwide move toward integrated electric propulsion to support advanced sensors, weapons and mission systems, the KDDX program represents a significant milestone in the adoption of full electric drive for front-line surface combatants.
“Modern naval platforms require electric power and propulsion systems that can meet current operational demands while providing the flexibility to support future mission needs,” said John Baylouny, president and chief executive officer of Leonardo DRS. “Our advanced electric-propulsion technologies are designed to deliver the power capacity, efficiency, reliability and adaptability required for advanced radars, advanced EW systems, directed energy systems, the charging of unmanned vehicles, the launch of drone swarms and other increasingly power-intensive mission capabilities.”
“DRS is proud to support the Republic of Korea Navy’s KDDX destroyer program with proven electric propulsion technology,” said Jon Miller, senior vice president and general manager of Naval Power Systems at Leonardo DRS. “For more than a decade our systems have supported Republic of Korea Navy FFX II/III/IV frigates, and we have demonstrated the ability to scale our electric-propulsion technology for the most demanding naval applications, including the COLUMBIA-class submarine program. This technology is designed to support efficient propulsion, compact installation and the electrical demands of advanced shipboard systems. We look forward to working with Doosan Enerbility and Hanwha Ocean in support of this important program.”
The DRS permanent magnet motor technology is designed to provide high torque density in a compact architecture, helping reduce size and weight compared with conventional electric machines. Paired with the company's variable-frequency drive, the system delivers precise, and highly efficient propulsion control while reducing engine-room footprint and supporting greater flexibility in ship design. The system is designed, built, and delivered by DRS to meet applicable military requirements for power quality, shock, and vibration, as well as Republic of Korea Navy operational requirements.
This selection builds on a long record of DRS electric propulsion success with the Republic of Korea Navy, including hybrid electric drive systems provided for the 20 anti-submarine warfare frigates in the FFX Batch II, III and IV frigate programs. DRS is a leading provider of next-generation electric power and propulsion technology for the U.S. Navy and allied navies worldwide. The KDDX program reinforces the company’s role as a trusted provider of integrated electric drive solutions for the world's most advanced naval platforms.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
NAVAIR contract supports Leonardo DRS’ strategy to deliver secure, modular, open-architecture and multi-network connectivity for EA-18G Growler missions, helping aircrews maintain communications, threat awareness and mission advantage in contested environments | Source: Leonardo DRS, Inc.
ARLINGTON, Va., Sept. 14, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that its Airborne and Intelligence Systems business unit has been awarded a $39.6 million contract by Naval Air Systems Command (NAVAIR) for the production and delivery of Joint Tactical Terminal Transceiver (JTT-X) units. The firm-fixed-price, cost-plus-fixed-fee contract includes non-recurring engineering, production, aircraft integration, qualification, and production support for the EA-18G Growler aircraft.
The award supports the Navy’s Global Lightning initiative with continued investment in resilient communications, enhanced threat warning, and improved situational awareness for Naval Aviation operating in contested and complex mission environments.
JTT-X is a critical upgrade to the Navy’s primary, alternate, contingency, and emergency (PACE) layered communications architecture. As a Hybrid SATCOM Terminal, JTT-X is designed to communicate across a variety of government and commercial network pathways, including proliferated Low Earth Orbit (pLEO) satellite communications architectures. This capability provides resilient, flexible, and survivable communications options for Naval Aviation missions.
JTT-X is designed with a modular open systems approach (MOSA) including 3U VPX expansion slots for technology insertion and future capability growth. DRS’ SOSA-aligned (Sensor Open Systems Architecture), Transceiver Crypto Module (XCM3) cards provide both Embedded Crypto Module (ECM) and UHF secure tactical comms capability. The ECM has been developed to the latest NSA SERD 2.0 High Assurance Internet Protocol Encryption (HAIPE) standards.
“This award is an important milestone for our team and reflects the Navy’s continued confidence in Leonardo DRS to deliver secure, resilient communications for Naval Aviation,” said Larry Ezell, senior vice president and general manager of Leonardo DRS Airborne and Intelligence Systems. “JTT-X strengthens the layered communications architecture aircrews rely on in highly contested environments. We are proud to continue supporting the EA-18G community with technology that enhances threat awareness, improves situational understanding, and supports mission success.”
Leonardo DRS provides platform-agnostic tactical terminals and beyond-line-of-sight communications solutions that support enhanced situational awareness across air, land and maritime operations. To learn more about the company’s Joint Tactical Terminal family and Integrated Broadcast Service capabilities, visit www.LeonardoDRS.com/what-we-do/products-and-services/joint-tactical-terminal-integrated-broadcast-service-jtt-ibs/.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
ARLINGTON, Va., Sept. 10, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has been awarded contracts totaling $96 million to provide critical electronics hardware for the MK 41 Vertical Launching System (VLS). The MK 41 VLS is the U.S. Navy’s premier shipborne missile launching system and is also fielded by 14 allied navies worldwide. The awards reinforce Leonardo DRS’s role in supporting naval combat system readiness with trusted, mission-critical electronics.
Under the awards, Leonardo DRS will provide a range of advanced electronics hardware, including Programmable Power Supplies (PPS), Launch Control Units (LCU), and Module Transformer Platform/System Transformer Platform (MTP/STP) systems. These technologies are deployed aboard U.S. Navy destroyers and allied naval force vessels supporting key launcher system functions essential to shipboard missile operations.
The MK 41 VLS is one of the world’s most widely deployed naval missile launching systems, serving the U.S. Navy and allied navies around the world. The system delivers exceptional performance, firepower, and flexibility through its architecture supporting multiple missile types design, enabling the launch of a broad range of missile types from a common system architecture.
Leonardo DRS hardware supports the operation of the MK 41 VLS through ruggedized, mission-critical electronics and power systems. These components are designed to provide reliable performance in demanding naval environments and support the continued readiness and effectiveness of the launcher system.
“Leonardo DRS Naval Electronics is proud to continue providing the U.S. Navy and allied partners with critical MK 41 vertical launch system electronics hardware, supporting the program for over 15 years,” said Cari Ossenfort, senior vice president and general manager of the Leonardo DRS Naval Electronics business unit.
The contract awards were issued on July 22-23, 2026, as option modifications to multiple-year contracts. Work will be performed at Leonardo DRS Naval Electronics production facilities in Johnstown, Pennsylvania, and Largo, Florida.
Leonardo DRS continues its strong partnership with the U.S. Navy and its closest allies on this critical program and remains a leading provider of critical weapons systems hardware supporting surface ships.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS receives a Buy rating, driven by operational progress, robust upgrade cycles, and strong positioning in defense electronics and power systems. DRS's business model leverages installed hardware, recurring upgrade opportunities, and integration advantages, supporting durable revenue streams across multiple military platforms. Valuation reflects a growth premium—current multiples require sustained earnings improvement, with a 12-month target price of $43 offering 17% upside.
Jupiter Topco LLC bought a new position in shares of Leonardo DRS, Inc. (NASDAQ:DRS – Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 50,037 shares of the company’s stock, valued at approximately $2,136,000.
Several other large investors have also recently bought and sold shares of the company. Erste Asset Management GmbH raised its position in shares of Leonardo DRS by 503.6% in the fourth quarter. Erste Asset Management GmbH now owns 142,750 shares of the company’s stock worth $4,872,000 after buying an additional 119,100 shares in the last quarter. Swedbank AB grew its position in Leonardo DRS by 1,026.0% during the fourth quarter. Swedbank AB now owns 96,205 shares of the company’s stock worth $3,280,000 after buying an additional 87,661 shares in the last quarter. Stephens Investment Management Group LLC increased its stake in Leonardo DRS by 24.8% in the 4th quarter. Stephens Investment Management Group LLC now owns 1,020,223 shares of the company’s stock worth $34,779,000 after acquiring an additional 202,758 shares during the last quarter. BlackRock Inc. bought a new position in Leonardo DRS in the 2nd quarter worth about $212,883,000. Finally, AXQ Capital LP increased its stake in Leonardo DRS by 301.6% in the 4th quarter. AXQ Capital LP now owns 44,872 shares of the company’s stock worth $1,530,000 after acquiring an additional 33,699 shares during the last quarter. 18.76% of the stock is owned by institutional investors.
Analyst Ratings Changes DRS has been the subject of a number of research analyst reports. JPMorgan Chase & Co. lifted their price target on Leonardo DRS from $48.00 to $53.00 and gave the company a “neutral” rating in a research report on Friday, July 31st. Wall Street Zen upgraded shares of Leonardo DRS from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Finally, Weiss Ratings raised shares of Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $53.60.
View Our Latest Analysis on Leonardo DRS Insider Transactions at Leonardo DRS In other Leonardo DRS news, EVP Sally Wallace sold 1,300 shares of Leonardo DRS stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $50.00, for a total transaction of $65,000.00. Following the transaction, the executive vice president directly owned 57,053 shares of the company’s stock, valued at approximately $2,852,650. This trade represents a 2.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 8,318 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $46.48, for a total transaction of $386,620.64. Following the completion of the sale, the chief financial officer owned 55,460 shares of the company’s stock, valued at approximately $2,577,780.80. The trade was a 13.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 53,818 shares of company stock worth $2,469,616 in the last three months. Corporate insiders own 0.25% of the company’s stock.
Leonardo DRS Stock Performance NASDAQ DRS opened at $37.02 on Friday. The company has a quick ratio of 1.56, a current ratio of 1.92 and a debt-to-equity ratio of 0.05. The stock’s 50-day simple moving average is $43.50 and its two-hundred day simple moving average is $44.18. Leonardo DRS, Inc. has a twelve month low of $32.43 and a twelve month high of $50.59. The company has a market capitalization of $9.88 billion, a price-to-earnings ratio of 31.11, a PEG ratio of 2.25 and a beta of 0.35.
Leonardo DRS (NASDAQ:DRS – Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.08. The firm had revenue of $913.00 million during the quarter, compared to analysts’ expectations of $903.27 million. Leonardo DRS had a return on equity of 12.97% and a net margin of 8.52%.The company’s revenue for the quarter was up 10.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.23 EPS. Research analysts forecast that Leonardo DRS, Inc. will post 1.39 EPS for the current fiscal year.
Leonardo DRS Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were given a $0.09 dividend. The ex-dividend date was Thursday, August 13th. This represents a $0.36 dividend on an annualized basis and a yield of 1.0%. Leonardo DRS’s payout ratio is presently 30.25%.
Leonardo DRS Profile (Free Report)
Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.
The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.
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ARLINGTON, Va., Sept. 01, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced it has been awarded an Other Transaction Agreement contract for Prototype by the U.S. Space Force to advance next-generation technology designed to further strengthen U.S. national defense capabilities.
Under the award, Leonardo DRS will further develop affordable and scalable sensor technology that helps defense systems detect, identify, track, and target fast-moving threats in challenging conditions in support of mission needs for U.S. space superiority and space control efforts.
A key focus of the program is improving affordability and producibility, leveraging advancements in sensing and processing and moving toward designs that can be manufactured more efficiently, scaled to meet demand, and built with a resilient supply chain to support urgent national security needs.
“This award recognizes our innovative best-in-class sensor technology, proven experience and continued investment in space-based capabilities for critical national security programs,” said John Baylouny, President and CEO of Leonardo DRS. “These investments allow our company to push the boundaries of advanced sensing and targeting and implement scaled manufacturing to support national security priorities.”
“We are incredibly proud to support this vital space-based mission,” said Jerry Hathaway, senior vice president and general manager, Leonardo DRS Electro-Optical and Infrared Systems. “This award builds upon our current and next-generation affordable sensing technologies developed by our innovative space and sensor engineering teams and leverages our proven performance and expertise in sensor design and manufacturing.”
Leonardo DRS is a leading provider of advanced infrared sensing systems used by the U.S. government and allied nations across ground, sea, air, and space missions. The company’s advanced sensing, secure communications, and laser technologies support critical efforts including Counter-UAS, autonomous maritime fleet protection, and mounted and dismounted ground combat systems.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS Investor Relations Contact
Steve Vather
Senior Vice President, Corporate Development (M&A) and Investor Relations
+1 703 409 2906 [email protected]
Leonardo DRS Media Contact
Charles Jones
Director, Marketing and Corporate Communications
+1 571 737 8800 [email protected]
For more information regarding this OTA award, please click here.
Leonardo DRS, Inc. (DRS - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 19.5% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why DRS Could Experience a TurnaroundThe heavy selling of DRS shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 26.76. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering DRS in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 7.1% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, DRS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
BlackRock Inc. purchased a new position in shares of Leonardo DRS, Inc. (NASDAQ:DRS – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 4,989,059 shares of the company’s stock, valued at approximately $212,883,000. BlackRock Inc. owned 1.87% of Leonardo DRS as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors also recently modified their holdings of the company. Pallas Capital Advisors LLC bought a new stake in Leonardo DRS in the second quarter valued at approximately $309,000. Deutsche Bank AG bought a new stake in shares of Leonardo DRS in the 2nd quarter valued at $4,726,000. Global Retirement Partners LLC bought a new stake in shares of Leonardo DRS in the 2nd quarter valued at $31,000. Bank of New York Mellon Corp acquired a new stake in shares of Leonardo DRS during the second quarter worth $21,437,000. Finally, Focus Partners Advisor Solutions LLC bought a new position in Leonardo DRS during the second quarter worth $527,000. Institutional investors own 18.76% of the company’s stock.
Analysts Set New Price Targets Several equities analysts recently issued reports on DRS shares. JPMorgan Chase & Co. boosted their target price on shares of Leonardo DRS from $48.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, July 31st. Wall Street Zen raised Leonardo DRS from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Weiss Ratings raised Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, August 6th. Canaccord Genuity Group upped their target price on Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Finally, Truist Financial raised Leonardo DRS to a “strong-buy” rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $53.60.
Get Our Latest Report on Leonardo DRS Insider Buying and Selling In related news, EVP Sally Wallace sold 1,300 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $50.00, for a total value of $65,000.00. Following the completion of the sale, the executive vice president directly owned 57,053 shares of the company’s stock, valued at approximately $2,852,650. This represents a 2.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Rinsky sold 3,864 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $45.81, for a total transaction of $177,009.84. Following the completion of the sale, the executive vice president directly owned 23,581 shares of the company’s stock, valued at $1,080,245.61. The trade was a 14.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 57,683 shares of company stock worth $2,650,769. 0.25% of the stock is owned by corporate insiders.
Leonardo DRS Stock Up 0.8% Shares of NASDAQ:DRS opened at $38.92 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.56 and a current ratio of 1.92. Leonardo DRS, Inc. has a 52-week low of $32.43 and a 52-week high of $50.59. The business’s 50 day simple moving average is $44.25 and its two-hundred day simple moving average is $44.21. The firm has a market cap of $10.39 billion, a P/E ratio of 32.71, a PEG ratio of 2.35 and a beta of 0.35.
Leonardo DRS (NASDAQ:DRS – Get Free Report) last issued its earnings results on Friday, July 31st. The company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.08. The company had revenue of $913.00 million for the quarter, compared to analyst estimates of $903.27 million. Leonardo DRS had a return on equity of 12.97% and a net margin of 8.52%.Leonardo DRS’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.23 earnings per share. As a group, research analysts forecast that Leonardo DRS, Inc. will post 1.39 EPS for the current fiscal year.
Leonardo DRS Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were issued a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Thursday, August 13th. Leonardo DRS’s payout ratio is currently 30.25%.
Leonardo DRS Company Profile (Free Report)
Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.
The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.
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For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Leonardo DRS, Inc. (DRS - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
Leonardo DRS, Inc. is one of 76 individual stocks in the Aerospace sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Leonardo DRS, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DRS' full-year earnings has moved 7.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, DRS has gained about 24.9% so far this year. In comparison, Aerospace companies have returned an average of 5.1%. As we can see, Leonardo DRS, Inc. is performing better than its sector in the calendar year.
One other Aerospace stock that has outperformed the sector so far this year is Outdoor Holding Company (POWW - Free Report) . The stock is up 33.3% year-to-date.
Over the past three months, Outdoor Holding Company's consensus EPS estimate for the current year has increased 160%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Leonardo DRS, Inc. belongs to the Aerospace - Defense Equipment industry, a group that includes 36 individual stocks and currently sits at #41 in the Zacks Industry Rank. This group has gained an average of 7.4% so far this year, so DRS is performing better in this area. Outdoor Holding Company is also part of the same industry.
Investors with an interest in Aerospace stocks should continue to track Leonardo DRS, Inc. and Outdoor Holding Company. These stocks will be looking to continue their solid performance.
Have you been paying attention to shares of Moog (MOG.A - Free Report) ? Shares have been on the move with the stock up 11.7% over the past month. The stock hit a new 52-week high of $433.79 in the previous session. Moog has gained 75.4% since the start of the year compared to the 7% gain for the Zacks Aerospace sector and the 9.7% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 31, 2026, Moog reported EPS of $3.72 versus consensus estimate of $2.67.
For the current fiscal year, Moog is expected to post earnings of $11.41 per share on $4.37 in revenues. This represents a 31.3% change in EPS on a 12.99% change in revenues. For the next fiscal year, the company is expected to earn $11.8 per share on $4.67 in revenues. This represents a year-over-year change of 3.42% and 6.96%, respectively.
Valuation MetricsThough Moog has recently hit a 52-week high, what is next for Moog? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Moog has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 37.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 36.7X. On a trailing cash flow basis, the stock currently trades at 35.4X versus its peer group's average of 32.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Moog currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Moog meets the list of requirements. Thus, it seems as though Moog shares could have a bit more room to run in the near term.
How Does MOG.A Stack Up to the Competition?Shares of MOG.A have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Leonardo DRS, Inc. (DRS - Free Report) . DRS has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Leonardo DRS, Inc. beat our consensus estimate by 29.63%, and for the current fiscal year, DRS is expected to post earnings of $1.37 per share on revenue of $3.95 billion.
Shares of Leonardo DRS, Inc. have gained 3.8% over the past month, and currently trade at a forward P/E of 32.6X and a P/CF of 29.67X.
The Aerospace - Defense Equipment industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MOG.A and DRS, even beyond their own solid fundamental situation.
ABU DHABI, United Arab Emirates, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Space42, the UAE-based AI-powered SpaceTech company with global reach has signed a Memorandum of Understanding (MoU) with Leonardo DRS. The agreement establishes a framework to integrate Leonardo DRS mission systems with Space42's secure satellite connectivity to boost sovereign national security across the United Arab Emirates.
ARLINGTON, Va., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that the company's SGT STOUT M-SHORAD Mission Equipment Package (MEP) successfully defeated Group 1–2 small, unmanned aircraft system (UAS) threats during a U.S. Government test event, demonstrating the system's ability to adapt rapidly to evolving air threats through a modular, open-architecture design.
New 141,000-square-foot facility will consolidate operations from three Connecticut sites, strengthening support for critical U.S. Navy programs and positioning the business for growth across the evolving nuclear energy landscape August 04, 2026 16:01 ET | Source: Leonardo DRS, Inc.
ARLINGTON, Va., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has signed an agreement for a new facility in Brookfield, Connecticut, that will expand and consolidate operations for its Naval Power Systems business, strengthening increased throughput and support for critical U.S. Navy programs and positioning the company for future growth across the evolving nuclear energy landscape.
Located at 120 Park Ridge Road in Brookfield, the new site will provide 141,087 square feet of space and bring together operations currently spread across three locations in Danbury and Bethel, Connecticut. Initial occupancy is expected in early 2027, with the potential for limited occupancy in late 2026, depending on final design and tenant improvement construction.
“This new facility represents an important investment in the future of our Naval Power Systems business and in our ability to support mission-critical customer requirements,” said John Baylouny, chief executive officer of Leonardo DRS. “By bringing these operations together in Brookfield, we are strengthening collaboration, improving efficiency, and creating the foundation needed to support continued growth across naval nuclear propulsion and the broader nuclear energy market.”
The Brookfield facility will replace the business's current footprint of three locations in Danbury and Bethel, Connecticut.
As the nuclear industry enters a new era shaped by plant modernization, advanced reactor development, energy security priorities, and maritime nuclear innovation, Leonardo DRS expects the new Brookfield facility to provide the space and infrastructure needed to support continued growth and customer demand. The new site will create a more unified operating environment for employees and programs, supporting collaboration, efficiency, and long-term execution across the business.
“Leonardo DRS has a long history of delivering highly reliable technologies for some of the most demanding nuclear environments,” said Jon Miller, senior vice president and general manager of the Leonardo DRS Naval Power Systems business. “This investment gives us the space, infrastructure, and operational alignment to better serve our Navy customers today while also positioning the business to support emerging opportunities across the evolving nuclear sector.”
The project reflects the continued commitment of Leonardo DRS to investing in its facilities, workforce, and technical capabilities in support of national security priorities and the evolving needs of its customers.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS Investor Relations Contact
Steve Vather
Senior Vice President, Corporate Development (M&A) and Investor Relations
+1 703 409 2906 [email protected]
Leonardo DRS Media Contact
Charles Jones
Director, Marketing & Corporate Communications
+1 571 737 8800 [email protected]
The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Leonardo DRS, Inc. (DRS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Leonardo DRS, Inc. is one of 76 individual stocks in the Aerospace sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Leonardo DRS, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DRS' full-year earnings has moved 8.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, DRS has returned 34.4% so far this year. Meanwhile, the Aerospace sector has returned an average of 6.2% on a year-to-date basis. This means that Leonardo DRS, Inc. is performing better than its sector in terms of year-to-date returns.
Another stock in the Aerospace sector, Outdoor Holding Company (POWW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 27.5%.
Over the past three months, Outdoor Holding Company's consensus EPS estimate for the current year has increased 80%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Leonardo DRS, Inc. belongs to the Aerospace - Defense Equipment industry, a group that includes 36 individual companies and currently sits at #61 in the Zacks Industry Rank. On average, stocks in this group have gained 8.8% this year, meaning that DRS is performing better in terms of year-to-date returns. Outdoor Holding Company is also part of the same industry.
Going forward, investors interested in Aerospace stocks should continue to pay close attention to Leonardo DRS, Inc. and Outdoor Holding Company as they could maintain their solid performance.
Leonardo's new CEO told CNBC he expects to pursue further acquisitions to support the company's long-term growth, as Europe's defense spending boom gathers pace.
"The ramping gap in how we fulfil the demand is really the key element to deliver to our customers what they need… both for our European arm and for the U.S. arm," Lorenzo Mariani told CNBC's Carolin Roth in Rome, pointing to M&A, including over the past few days, as an area of opportunity.
Europe's defense industry is scrambling to meet soaring demand for new military equipment, amid Russia's full-scale invasion of Ukraine and increased NATO spending targets.
Alongside investment in factories and hiring, contractors are using acquisitions to add technologies, secure supply chains and expand industrial capabilities more quickly.
"What really matters today is accelerating all our processes," Mariani said.
Defense dealmakingMariani said the company would continue pursuing acquisitions and strategic partnerships to support long-term growth. His comments come as Leonardo has broadened its defense portfolio through acquisitions in land systems, cybersecurity and AI-enabled mission software.
It completed a 1.6-billion-euro ($1.8 billion) acquisition of Iveco Defence Vehicles in March. Its U.S. subsidiary Leonardo DRS this week agreed to buy software company Raft for $450 million to expand its AI and mission software capabilities.
Earlier this year, the group also agreed to acquire British cybersecurity company Becrypt.
More defense news‘Project Firepower’: Inside Rheinmetall’s gunpowder expansion as Europe races to replenish its ammunitionEurope’s defense boom faces a new test: Can it actually deliver weapons?Ukraine’s drone playbook is wreaking havoc in Russia — and upending where NATO wants to investTank maker KNDS postpones IPO amid market struggles for defenseDefense stocks plummet on reports Germany is scrapping warships; Rheinmetall stock down 18%Why Europe is suddenly betting big on dronesLeonardo's Italian peer Fincantieri recently unveiled what CEO Pierroberto Folgiero described to CNBC as the company's "second M&A wave," announcing major stakes in four underwater technology companies as part of plans to build an international leader in the rapidly expanding underwater defense sector.
Meanwhile, German defense electronics maker Hensoldt this year acquired Dutch optronics specialist Nedinsco to secure supply chains and expand production capacity.
Record order backlogLike most of its peers, Leonardo reported a record order backlog in its earnings on Thursday, rising 30% year-on-year to 59 billion euros by the quarter ended June.
The partly Italian state-owned company hiked its full-year guidance after reporting a 45% rise in new orders in the first six months of the year. It now sees earnings before interest, tax, and amortization of 2.21 billion euros, up from 2.03 billion euros previously.
Leonardo is in a perfect position to benefit from increased European defense spending due to its multi-domain approach and differentiated offering, Mariani told CNBC.
Defense stocks have been under pressure this year after a years-long boom following Russia's full-scale invasion of Ukraine.
Defense stocks' performance over the past 12 months.
As government spending translated to soaring order books for defense companies, some investors now question whether valuations have run ahead of the industry's ability to ramp up production.
Leonardo shares are up about 11% year-to-date, similar to the gains of the pan-European blue-chip index Stoxx 600.
In its earnings, Leonardo said it now sees full-year new orders at 28.2 billion euros, up from 25 billion euros previously.
Leonardo is leaning heavily into defense technologies as wars in Ukraine and Iran exemplify how modern war has changed, with an increasing emphasis on unmanned systems and AI-powered weapons.
Leonardo DRS NASDAQ: DRS reported second-quarter fiscal 2026 revenue growth of 10% and sharply higher profitability, supported by demand across tactical radar, naval propulsion, infrared sensing and force-protection programs. The company also raised its full-year profit outlook and announced an agreement to acquire mission software provider Raft for $450 million in cash.
President and CEO John Baylouny said bookings exceeded $1 billion during the quarter, resulting in a book-to-bill ratio of 1.2 times. The company has now recorded book-to-bill of at least 1.0 times for 18 consecutive quarters and exited the period with record funded backlog, according to management.
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“Demand was apparent throughout the portfolio,” Baylouny said, citing customer modernization priorities and an elevated global threat environment. He said the company remains aligned with demand for layered air defense, counter-unmanned aircraft systems, resilient sensing architectures, munitions and naval capabilities.
Revenue and Profitability Rise Revenue totaled $913 million, up 10% from the prior-year period. Growth accelerated from the first quarter and was led by tactical radar, electric power and propulsion, infrared sensing, and force-protection programs, Chief Financial Officer Mike Dippold said.
The Integrated Mission Systems, or IMS, segment posted 15% revenue growth, while the Advanced Sensing and Computing, or ASC, segment grew 8%. Dippold said the first-half results showed balanced growth contributions from both segments.
Adjusted EBITDA increased 33% year over year to $128 million, while adjusted EBITDA margin rose 240 basis points to 14%. The company attributed the improvement to program execution, favorable program mix, higher production volume and the retirement of program risk under fixed-price contract accounting.
IMS adjusted EBITDA rose 55% from the prior-year quarter, with margin expanding 460 basis points. ASC adjusted EBITDA increased 19%, with margin up 110 basis points. Dippold said the favorable risk retirement occurred in the naval business on a surface ship program, though execution improvements were broader across the segment. Excluding that risk retirement, IMS margin would have been closer to 15% for the quarter, he said.
Net earnings increased 59% to $86 million. Diluted earnings per share rose 60% to $0.32. Adjusted net earnings increased 52% to $94 million. Adjusted diluted EPS increased 52% to $0.35. The company generated positive free cash flow in the quarter, aided by profitability and working-capital efficiency, while continuing capital investments intended to expand production capacity.
Raft Deal Expands Software and AI Capabilities Leonardo DRS announced an agreement to acquire Raft, a provider of open-architecture mission software for multi-domain data fusion and artificial intelligence, for $450 million in cash. Management expects the transaction to close in the fourth quarter, subject to closing conditions and regulatory approvals.
Baylouny said Raft’s software capabilities complement DRS’s existing sensing, computing, networking and mission-systems portfolio. Raft has been selected for the U.S. Army’s next-generation command-and-control software architecture data layer, according to Baylouny, and also expands DRS’s access to customers in the Air Force, Space Force, special operations and the intelligence community.
The acquisition is intended to help the company provide integrated hardware-and-software solutions rather than individual components and subsystems. Baylouny described the combination as a way to bring sensing, computing and integration closer to where battlefield decisions are made.
Dippold said the company does not expect Raft to make a meaningful contribution to 2026 results because of the anticipated late-year close. However, management expects the acquisition to be accretive to adjusted diluted EPS in its first full year of ownership. The company did not provide Raft revenue or margin figures, but said the acquisition is expected to be accretive to DRS’s growth and margin profile.
Defense Demand Supports Investments Management highlighted continued demand for counter-UAS systems, tactical radars, aircraft survivability systems, missile-related components, drone sensing payloads and naval propulsion and computing systems.
Baylouny said order flow for the company’s tactical radars continues to exceed supply and that DRS is adding production capacity. He also cited international demand for air-defense capabilities, particularly as allies seek to address gaps exposed by recent conflicts.
In infrared sensing, the company secured an initial order for 50,000 camera-core units from a low-cost drone manufacturer. Baylouny said the munitions and drone-related business remains a small part of DRS today but is expected to grow faster than the company overall.
For naval programs, the company booked orders across power capabilities for Columbia-class and Virginia-class submarines, DDG 51 destroyers and LPD platforms. Dippold said the first phase of the Charleston facility expansion is nearing completion and is designed to support the insourcing of Columbia-class work, with margin benefits expected to begin in the second half of 2027. A second phase could support additional work, including a potential second-source opportunity for steam turbine generators.
Research and development spending increased 16% year over year in the first half and approached 4% of revenue. DRS is investing in infrared sensing for space-based interception, modular counter-UAS offerings, tactical radar enhancements and naval propulsion. Capital expenditures are expected to be in the mid-4% range of full-year revenue.
2026 Profit Outlook Raised Leonardo DRS maintained its full-year revenue outlook of $3.9 billion to $3.975 billion, representing projected organic growth of 7% to 9%. The company said its forecast reflects the timing of material receipts and program milestones, with a larger contribution expected in the second half of the year.
Management raised its adjusted EBITDA outlook to $525 million to $540 million, from a prior range of $515 million to $530 million. The company also increased its adjusted diluted EPS forecast to $1.34 to $1.39 and updated its full-year tax-rate assumption to 16.5%.
For the third quarter, DRS expects revenue above $1 billion, adjusted EBITDA margin in the mid-13% range and free cash flow that is modestly positive and above the second-quarter level. Dippold said the anticipated sequential margin decline reflects the nonrecurring program-risk retirement benefit recorded in the second quarter rather than a change in underlying execution.
About Leonardo DRS (NASDAQ:DRS)Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy's Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.
The company's portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Leonardo DRS, Inc. (DRS) Q2 2026 Earnings Call July 30, 2026 10:00 AM EDT
Company Participants
Stephen Vather - Senior VP of Corporate Development (M&A) & Investor Relations
John Baylouny - President, CEO & Director
Michael Dippold - Executive VP & CFO
Conference Call Participants
Peter Arment - Robert W. Baird & Co. Incorporated, Research Division
Robert Stallard - Vertical Research Partners, LLC
Edward Morgan - BTIG, LLC, Research Division
Jonathan Tanwanteng - CJS Securities, Inc.
Seth Seifman - JPMorgan Chase & Co, Research Division
Ronald Epstein - BofA Securities, Research Division
Noah Poponak - Goldman Sachs Group, Inc., Research Division
Justin Lang - Morgan Stanley, Research Division
Alexandra Eleni Mandery - Truist Securities, Inc., Research Division
Austin Moeller - Canaccord Genuity Corp., Research Division
Presentation
Operator
Ladies and gentlemen, good day, and welcome to the Leonardo DRS Second Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this event is being recorded.
I would now like to turn the conference over to Steve Vather, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.
Stephen Vather
Senior VP of Corporate Development (M&A) & Investor Relations
Good morning, and welcome, everyone. Thank you for joining today's quarterly earnings conference call. With me today are John Baylouny, our President and CEO; and Mike Dippold, our CFO. They will discuss our strategy, operational highlights, financial results and outlook. Today's call is being webcast on the Investor Relations section of the website, where you can find the earnings release and supplemental presentation.
Management may also make forward-looking statements during the call regarding future events, future trends and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward-looking statements due to a
Leonardo DRS, Inc. (DRS - Free Report) reported $913 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 10.1%. EPS of $0.35 for the same period compares to $0.23 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $899.45 million, representing a surprise of +1.51%. The company delivered an EPS surprise of +29.63%, with the consensus EPS estimate being $0.27.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Leonardo DRS, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Integrated Mission Systems (IMS): $333 million versus the two-analyst average estimate of $324.9 million. The reported number represents a year-over-year change of +14.8%.Revenue- Advanced Sensing and Computing (ASC): $587 million versus $585.36 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.Adjusted EBITDA- Integrated Mission Systems (IMS): $59 million versus $48.4 million estimated by two analysts on average.Adjusted EBITDA- Advanced Sensing and Computing (ASC): $69 million compared to the $65.86 million average estimate based on two analysts.View all Key Company Metrics for Leonardo DRS, Inc. here>>>
Shares of Leonardo DRS, Inc. have returned +9% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Leonardo DRS, Inc. (DRS - Free Report) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +29.63%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.26, delivering a surprise of +23.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Leonardo DRS, Inc., which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $913 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $829 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Leonardo DRS, Inc. shares have added about 36.5% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Leonardo DRS, Inc.?While Leonardo DRS, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Leonardo DRS, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $1.03 billion in revenues for the coming quarter and $1.30 on $3.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Karman Holdings Inc. (KRMN - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +30%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Karman Holdings Inc.'s revenues are expected to be $179.91 million, up 56.3% from the year-ago quarter.
Revenue: $913 million, up 10% year-over-yearNet Earnings: $86 million, up 59% year-over-yearAdjusted EBITDA: $128 million, up 33% year-over-yearDiluted EPS: $0.32, up 60% year-over-yearAdjusted Diluted EPS: $0.35, up 52% year-over-yearBookings: $1.1 billion (book-to-bill ratio of 1.2x)Record Funded Backlog: $5.1 billion, up 17% year-over-yearIncreases 2026 guidance for Adjusted EBITDA and Adjusted Diluted EPSAnnounced the $450 million acquisition of Raft, expanding DRS’s multi-domain AI, data fusion and mission software capabilitiesDividend: Company declares cash dividend of $0.09 per share to be paid on August 27, 2026 ARLINGTON, Va., July 30, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the second quarter 2026, which ended June 30, 2026.
CEO Commentary
“Leonardo DRS delivered an exceptional second quarter. Our results reflect disciplined execution and sustained demand for DRS’s differentiated technologies. We captured over $1 billion in bookings, which increased funded backlog to record levels, drove double-digit organic revenue growth and meaningfully expanded margins and profitability. We are encouraged by our first half performance, which gives us the conviction to support increasing our full year guidance for Adjusted EBITDA and Adjusted Diluted EPS. Building on this momentum, the announced acquisition of Raft accelerates our multi-domain AI, data fusion and mission software position and reflects the disciplined capital deployment that underpins our long-term strategy. We are confident that our continued dedication to solving our customers’ toughest challenges will drive consistent, profitable growth and create meaningful long-term value for our stockholders,” said John Baylouny, President and CEO of Leonardo DRS.
Summary Financial Results
(In millions, except per share amounts)Three Months Ended Six Months Ended June 30, June 30, 2026
2025
Change 2026
2025
ChangeRevenues $913 $829 10% $1,759 $1,628 8% Net Earnings $86 $54 59% $148 $104 42%Net Margin 9.4% 6.5% 290 bps 8.4% 6.4% 200 bps Diluted weighted average number of shares outstanding (WASO) 268.935 269.025 268.661 268.802 Diluted Earnings Per Share (EPS) $0.32 $0.20 60% $0.55 $0.39 41% Non-GAAP Financial Measures (1) Adjusted EBITDA $128 $96 33% $233 $178 31%Adjusted EBITDA Margin 14.0% 11.6% 240 bps 13.2% 10.9% 230 bps Adjusted Net Earnings $94 $62 52% $163 $116 41%Adjusted Diluted EPS $0.35 $0.23 52% $0.61 $0.43 42%
(1) The company reports its financials in accordance with U.S. generally accepted accounting principles (“GAAP”). Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."
The company delivered 10% revenue growth in the second quarter 2026. The year-over-year growth was primarily led by programs related to tactical radars, electric power and propulsion, infrared sensing and force protection.
Disciplined program execution across the portfolio, favorable mix and leverage from increased volume fueled robust Adjusted EBITDA growth and margin expansion. Additionally, strong operational performance, lower net interest expense and a lower tax rate supported year-over-year growth in second quarter net earnings, Adjusted Net Earnings, diluted EPS and Adjusted Diluted EPS.
Cash Flow
Net cash flow provided by operating activities was $35 million for the second quarter. The company’s Free Cash Flow was $6 million in the quarter. Both operating and Free Cash Flow increased year-over-year in the second quarter due to higher profitability and better working capital efficiency. The strong second quarter cash flow performance continues the trend of improved quarterly linearity versus the prior year.
Dividends and Stock Repurchases
During the second quarter, the company paid dividends to stockholders totaling approximately $24 million or $0.09 per share of common stock. Leonardo DRS today announced that its Board of Directors declared a cash dividend of $0.09 per share of common stock payable on August 27, 2026, to stockholders of record on August 13, 2026.
Additionally, the company repurchased 261,526 shares of its common stock for approximately $12 million in the second quarter, pursuant to a previously announced stock repurchase program.
Balance Sheet
At the end of the second quarter, the company held $270 million of cash and had no outstanding borrowings under its credit facility. This balance sheet strength provides the flexibility to fund organic and inorganic growth initiatives to create stockholder value.
Bookings and Funded Backlog
(Dollars in millions)Three Months Ended
Six Months Ended
June 30,
June 30,
2026 2025 2026 2025 Bookings $1,085 $853 $1,970 $1,844 Book-to-Bill1.2x 1.0x 1.1x 1.1x Funded Backlog $5,092 $4,355 $5,092 $4,355
Second quarter new funded bookings totaled $1.1 billion. Customer demand remained resilient, with the strongest contributions from electric power and propulsion, infrared sensing, tactical radars and naval network computing. At quarter end, funded backlog stood at a record $5.1 billion, a 17% increase year-over-year and also up sequentially.
Segment Results
Advanced Sensing and Computing (ASC) Segment
(Dollars in millions)Three Months Ended Six Months Ended June 30, June 30, 2026
2025
Change 2026
2025
ChangeRevenues $587 $542 8% $1,146 $1,053 9%Operating Earnings $49 $37 32% $89 $62 44%Operating Margin 8.3% 6.8% 150 bps 7.8% 5.9% 190 bpsBookings $691 $559 $1,120 $1,228 Book-to-Bill1.2x 1.0x 1.0x 1.2x Non-GAAP Financial Measures (1) Segment Adjusted EBITDA $69 $58 19% $131 $100 31%Segment Adjusted EBITDA Margin 11.8% 10.7% 110 bps 11.4% 9.5% 190 bps
(1) The company reports its financials in accordance with U.S. GAAP. Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."
ASC quarterly bookings were supported by healthy demand for infrared sensing, tactical radars and naval network computing. The segment’s revenue growth was primarily attributable to programs related to tactical radars and infrared sensing. Adjusted EBITDA and margin rose versus second quarter 2025 on favorable mix, strong operational execution and leverage from higher volume, despite increased investment in internal research and development.
Integrated Mission Systems (IMS) Segment
(Dollars in millions)Three Months Ended Six Months Ended June 30, June 30, 2026
2025
Change 2026
2025
ChangeRevenues $333 $290 15% $628 $581 8%Operating Earnings $53 $33 61% $90 $67 34%Operating Margin 15.9% 11.4% 450 bps 14.3% 11.5% 280 bpsBookings $394 $294 $850 $616 Book-to-Bill1.2x 1.0x 1.4x 1.1x Non-GAAP Financial Measures (1) Segment Adjusted EBITDA $59 $38 55% $102 $78 31%Segment Adjusted EBITDA Margin 17.7% 13.1% 460 bps 16.2% 13.4% 280 bps
(1) The company reports its financials in accordance with U.S. GAAP. Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."
Electric power and propulsion programs drove quarterly bookings in the IMS segment. Broad-based revenue growth reflected momentum across the segment. Adjusted EBITDA and margin expanded significantly over second quarter 2025, reflecting outstanding program execution and operational leverage from higher volume.
2026 Guidance
Leonardo DRS is increasing 2026 guidance for Adjusted EBITDA and Adjusted Diluted EPS based on strong first half performance, as specified in the table below:
MeasureCurrent 2026 Guidance Prior 2026 GuidanceRevenue$3,900 million - $3,975 million $3,900 million - $3,975 millionAdjusted EBITDA$525 million - $540 million $515 million - $530 millionTax Rate16.5% 18.5%Diluted WASO269.0 million 269.0 millionAdjusted Diluted EPS$1.34 - $1.39 $1.26 - $1.30
The guidance excludes the pending acquisition of Raft.
The company does not provide a reconciliation of forward-looking Adjusted EBITDA and Adjusted Diluted EPS due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measures without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.
Conference Call
Leonardo DRS management will host a conference call beginning at 10:00 a.m. ET on July 30, 2026 to discuss the financial results for its second quarter 2026.
A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leonardo DRS Investor Relations website (https://investors.leonardodrs.com).
A replay of the conference call will be available on the Leonardo DRS website approximately 2 hours after the conclusion of the conference call.
About Leonardo DRS
Headquartered in Arlington, VA, Leonardo DRS, Inc. is an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world. We specialize in the design, development and manufacture of advanced sensing, network computing, force protection, electric power and propulsion and other leading mission-critical technologies. Our innovative people are leading the way in developing disruptive technologies for autonomous, dynamic, interconnected and multi-domain capabilities to defend against new and emerging threats. For more information and to learn more about our full range of capabilities, visit www.LeonardoDRS.com.
Leonardo DRS Contacts
Investors MediaSteve Vather Carrie RobinsonSVP, Corporate Development & Investor Relations VP, Marketing and Corporate Communications+1 703 409 2906 +1 321 266 [email protected][email protected]
Forward-Looking Statements
In this press release, when using the terms the “company”, “Leonardo DRS”, “we”, “us” and “our,” unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This press release contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “strives,” “targets,” “projects,” “guidance,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this press release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations, the proposed acquisition of Raft LLC (“Raft”), including the expected timing of completion of the transaction, the satisfaction of closing conditions, the receipt of regulatory approvals, the anticipated benefits of the transaction, the expected impact of the transaction on DRS or Raft LLC’s financial results, including expected accretion and tax benefits, the expected financing of the transaction, plans for the integration of the acquired business, and the impact of prevailing economic conditions.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if future performance and outcomes are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect and it is not possible for us to predict all of them. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: disruptions, including from government shutdowns, or deteriorations in our relationship with the relevant agencies of the U.S. government, as well as any failure to pass routine audits or otherwise comply with governmental requirements including those related to security clearance or procurement rules, including the False Claims Act; significant delays, including from government shutdowns, or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly; any failure to comply with the amended and restated proxy agreement with the U.S. Department of War (“DoW”); the effect of inflation and other cost pressures on our supply chain and/or our labor costs; our mix of fixed-price, cost-plus and time-and-materials type contracts and any resulting impact on our cash flows due to cost overruns; failure to properly comply with various covenants of the agreements governing our debt could negatively impact our business; our dependence on U.S. government contracts, which often are only partially funded and are subject to immediate termination, some of which are classified and the concentration of our customer base in the U.S. defense industry; our use of estimates in pricing and accounting for many of our programs that are inherently uncertain and which may not prove to be accurate; our ability to realize the full value of our backlog; our ability to predict future capital needs or to obtain additional financing if needed, on terms acceptable to us, if at all; our ability to respond to the rapid technological changes in the markets in which we compete; the effect of global and regional economic downturns and rising interest rates; our ability to maintain an effective system of internal control over financial reporting; our inability to appropriately manage our inventory; our inability to fully realize the value of our total estimated contract value or bookings; our ability to compete efficiently, including due to U.S. government organizational conflict of interest rules which may limit new contract opportunities or require us to wind down existing contracts; our relationships with other industry participants, including any contractual disputes or the inability of our key suppliers to timely deliver our components, parts or services; preferences or set-asides for small or small disadvantaged businesses could impact our ability to be a prime contractor; any failure to meet our contractual obligations including due to potential impacts to our business from supply chain risks, such as longer lead times and shortages of electronics and other components; any security breach, including any cyber-attack, cyber intrusion, insider threat, or other significant disruption of our IT networks and related systems, as well as any act of terrorism or other threat to our physical security and personnel; our ability to fully exploit or obtain patents or other intellectual property protections necessary to secure our proprietary technology, including our ability to avoid infringing upon the intellectual property of third parties or prevent third parties from infringing upon our own intellectual property; the conduct of our employees, agents, affiliates, subcontractors, suppliers, business partners or joint ventures in which we participate which may impact our reputation and ability to do business; the outcome of litigation, arbitration, investigations, claims, disputes, enforcement actions and other legal proceedings in which we are involved; various geopolitical and economic factors, laws and regulations including the Foreign Corrupt Practices Act, the Export Control Act, the International Traffic in Arms Regulations, the Export Administration Regulations, recent U.S. tariffs imposed or threatened to be imposed on other countries and any related retaliatory actions taken by such countries and those that we are exposed to as a result of our international business; our ability to obtain export licenses necessary to conduct certain operations abroad, including any attempts by Congress to prevent proposed sales to certain foreign governments; our ability to attract and retain technical and other key personnel; the occurrence of prolonged work stoppages; the unavailability or inadequacy of our insurance coverage, customer indemnifications or other liability protections to cover all of our significant risks or to pay for material losses we incur; future changes in U.S. tax laws and regulations or interpretations thereof; future changes in the DoW’s and other governments’ budgets; certain limitations on our ability to use our net operating losses to offset future taxable income; termination of our leases or our inability to renew our leases on acceptable terms; changes in estimates used in accounting for our pension plans, including with respect to the funding status thereof; changes in future business or other market conditions that could cause business investments and/or recorded goodwill or other long-term assets to become impaired; risks related to our proposed acquisition of Raft, including the failure to complete the transaction on the anticipated timeline or at all, the failure to realize the anticipated benefits of the transaction, including expected accretion and tax benefits, integration difficulties, retention of key personnel, transaction and integration costs, and increased indebtedness incurred to fund the transaction; adverse consequences from any acquisitions such as operating difficulties, dilution and other harmful consequences or any modification, delay or prevention of any future acquisition or investment activity by the Committee on Foreign Investment in the United States; natural disasters, severe weather or other significant disruptions; failure to properly contain a global pandemic in a timely manner could materially affect how we and our business partners operate; our compliance with environmental laws and regulations and any environmental liabilities that may affect our reputation or financial position; any conflict of interest that may arise because Leonardo US Holding, LLC, our majority stockholder, or Leonardo S.p.A., our indirect majority stockholder, may have interests that are different from, or conflict with, those of our other stockholders, including as a result of any ongoing business relationships Leonardo S.p.A. may have with us and their significant ownership in us may discourage change of control transactions (our amended and restated certificate of incorporation provides that we waive any interest or expectancy in corporate opportunities presented to Leonardo S.p.A); or our obligations to provide certain services to Leonardo S.p.A., which may divert human and financial resources from our business.
You should read this press release completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this press release and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise and changes in future operating results over time or otherwise.
Other risks, uncertainties and factors, including those discussed in our latest SEC filings under “Risk Factors” of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the investor relations section of our website at www.LeonardoDRS.com, could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read the discussion of these factors carefully to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.
Consolidated Statements of Earnings (Unaudited)
(Dollars in millions, except per share amounts)Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenues 913 829 1,759 1,628 Cost of revenues (676) (632) (1,310) (1,250)Gross profit 237 197 449 378 General and administrative expenses (129) (121) (259) (238)Amortization of acquired intangible assets (6) (6) (11) (11)Operating earnings 102 70 179 129 Interest income (expense), net 2 (2) 2 (3)Other, net (4) (1) (4) (1)Earnings before taxes 100 67 177 125 Income tax provision (14) (13) (29) (21)Net earnings $86 $54 $148 $104 Net earnings per share from common stock: Basic earnings per share $0.33 $0.20 $0.56 $0.39 Diluted earnings per share $0.32 $0.20 $0.55 $0.39 Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share amounts)June 30, December 31, 2026 2025 ASSETS Current assets: Cash and cash equivalents $270 $647 Accounts receivable, net 319 334 Contract assets 1,002 931 Inventories 383 352 Prepaid expenses 29 26 Other current assets 37 36 Total current assets 2,040 2,326 Noncurrent assets: Property, plant and equipment, net 526 512 Intangible assets, net 100 112 Goodwill 1,238 1,238 Deferred tax assets 81 88 Other noncurrent assets 212 210 Total noncurrent assets 2,157 2,160 Total assets $4,197 $4,486 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $10 $26 Accounts payable 182 351 Contract liabilities 598 585 Other current liabilities 275 269 Total current liabilities 1,065 1,231 Noncurrent liabilities: Long-term debt 139 321 Pension and other postretirement benefit plan liabilities 31 35 Deferred tax liabilities 3 3 Other noncurrent liabilities 156 166 Total noncurrent liabilities $329 $525 Stockholders' equity: Preferred stock, $0.01 par value: 10,000,000 shares authorized; none issued $— $— Common stock, $0.01 par value: 350,000,000 shares authorized; 266,832,196 and 265,822,404 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 3 3 Additional paid-in capital 5,010 5,083 Accumulated deficit (2,167) (2,315)Accumulated other comprehensive loss (43) (41)Total stockholders' equity 2,803 2,730 Total liabilities and stockholders' equity $4,197 $4,486 Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)Six Months Ended June 30, 2026 2025 Operating activities Net earnings $148 $104 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation and amortization 50 46 Deferred income taxes — 1 Stock-based compensation expense 11 14 Changes in assets and liabilities: Accounts receivable 15 (12)Contract assets (72) (144)Inventories (31) (42)Prepaid expenses (3) 1 Other current assets (3) 20 Other noncurrent assets 6 9 Defined benefit obligations (4) (5)Accounts payable (159) (156)Contract liabilities 13 37 Other current liabilities 13 (32)Other noncurrent liabilities (15) (7)Net cash used in operating activities (31) (166)Investing activities Capital expenditures (59) (60)Proceeds from sales of assets 1 — Net cash used in investing activities (58) (60)Financing activities Net decrease in borrowings (maturities of 90 days or less) (5) (3)Repayments of borrowings (191) (6)Proceeds from stock issuance 5 3 Repurchases of common stock (16) (14)Payments of employee taxes withheld from stock-based awards (25) (21)Dividends paid (14) (14)Dividends paid to related party (34) (34)Other (8) (5)Net cash used in financing activities (288) (94)Effect of exchange rate changes on cash and cash equivalents — — Net decrease in cash and cash equivalents (377) (320)Cash and cash equivalents at beginning of year 647 598 Cash and cash equivalents at end of period $270 $278
Non-GAAP Financial Measures (Unaudited)
In addition to the results reported in accordance with U.S. GAAP included throughout this document, the company has provided information regarding “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Segment Adjusted EBITDA,” “Segment Adjusted EBITDA Margin,” “Adjusted Net Earnings,” “Adjusted Diluted Earnings Per Share” and “Free Cash Flow” (each, a non-GAAP financial measure).
We believe the non-GAAP financial measures presented in this document will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.
We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business.
We define these non-GAAP financial measures as:
Adjusted EBITDA and Adjusted EBITDA Margin are defined as net earnings before income taxes, net interest expense, amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts), then in the case of Adjusted EBITDA Margin dividing Adjusted EBITDA by revenues.
(Dollars in millions)Three Months Ended Six Months EndedJune 30,June 30, 2026
2025
2026
2025
Net earnings $86 $54 $148 $104 Income tax provision 14 13 29 21 Interest (income) expense, net (2) 2 (2) 3 Amortization of intangibles 6 6 11 11 Depreciation 20 17 39 35 Other one-time non-operational events 4 4 8 4 Adjusted EBITDA $128 $96 $233 $178 Adjusted EBITDA Margin 14.0 % 11.6 % 13.2 % 10.9 %
Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin are defined as operating earnings before amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events, then in the case of Segment Adjusted EBITDA Margin dividing Segment Adjusted EBITDA by revenues.
(Dollars in millions)Three Months Ended Six Months Ended June 30,June 30, 2026
2025
2026
2025
Operating earnings $53 $33 $90 $67 Depreciation 6 5 12 11 Segment Adjusted EBITDA $59 $38 $102 $78 Segment Adjusted EBITDA Margin 17.7 % 13.1 % 16.2 % 13.4 %
Adjusted Net Earnings and Adjusted Diluted EPS are defined as net earnings excluding amortization of acquired intangible assets, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts) and the related tax impacts, then in the case of Adjusted Diluted EPS dividing Adjusted Net Earnings by the diluted weighted average number of shares outstanding (WASO).
(In millions, except per share amounts)Three Months Ended Six Months EndedJune 30,June 30, 2026 2025 2026 2025 Net earnings $86 $54 $148 $104 Amortization of intangibles 6 6 11 11 Other one-time non-operational events 4 4 8 4 Tax effect of adjustments (1) (2) (2) (4) (3)Adjusted Net Earnings $94 $62 $163 $116 Per share information Diluted WASO 268.935 269.025 268.661 268.802 Diluted EPS $0.32 $0.20 $0.55 $0.39 Adjusted Diluted EPS $0.35 $0.23 $0.61 $0.43
(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.
Free Cash Flow is defined as the sum of the cash flows provided by (used in) operating activities, transaction-related expenditures (net of tax), capital expenditures and proceeds from sale of assets.
(Dollars in millions)Three Months Ended Six Months EndedJune 30, June 30, 2026 2025 2026 2025 Net cash provided by (used in) operating activities $35 ($28) ($31) ($166)Capital expenditures (29) (28) (59) (60)Proceeds from sales of assets — — 1 — Free Cash Flow $6 ($56) ($89) ($226)
Bank of Nova Scotia cut its holdings in shares of Leonardo DRS, Inc. (NASDAQ:DRS – Free Report) by 63.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 56,300 shares of the company’s stock after selling 97,038 shares during the quarter. Bank of Nova Scotia’s holdings in Leonardo DRS were worth $2,506,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Bank of Montreal Can increased its position in shares of Leonardo DRS by 1.6% during the fourth quarter. Bank of Montreal Can now owns 19,513 shares of the company’s stock worth $665,000 after acquiring an additional 309 shares during the period. Sequoia Financial Advisors LLC boosted its holdings in Leonardo DRS by 4.7% in the fourth quarter. Sequoia Financial Advisors LLC now owns 7,228 shares of the company’s stock valued at $246,000 after purchasing an additional 322 shares during the period. Osaic Holdings Inc. grew its stake in Leonardo DRS by 17.0% during the 2nd quarter. Osaic Holdings Inc. now owns 2,383 shares of the company’s stock worth $111,000 after purchasing an additional 347 shares in the last quarter. Stephens Inc. AR grew its stake in Leonardo DRS by 3.3% during the 4th quarter. Stephens Inc. AR now owns 12,165 shares of the company’s stock worth $415,000 after purchasing an additional 389 shares in the last quarter. Finally, Cibc World Market Inc. increased its holdings in Leonardo DRS by 6.3% during the 4th quarter. Cibc World Market Inc. now owns 7,128 shares of the company’s stock worth $243,000 after purchasing an additional 425 shares during the period. Hedge funds and other institutional investors own 18.76% of the company’s stock.
Leonardo DRS Stock Up 1.6% Leonardo DRS stock opened at $49.21 on Wednesday. Leonardo DRS, Inc. has a 1-year low of $32.43 and a 1-year high of $50.59. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.86 and a quick ratio of 1.52. The stock has a market cap of $13.13 billion, a PE ratio of 45.99, a P/E/G ratio of 3.50 and a beta of 0.36. The stock’s fifty day moving average is $45.59 and its two-hundred day moving average is $43.81.
Leonardo DRS (NASDAQ:DRS – Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.05. The business had revenue of $846.00 million during the quarter, compared to analysts’ expectations of $825.05 million. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The business’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.20 EPS. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, sell-side analysts expect that Leonardo DRS, Inc. will post 1.3 EPS for the current fiscal year.
Leonardo DRS Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Tuesday, May 19th. Leonardo DRS’s dividend payout ratio is 33.64%.
Insider Transactions at Leonardo DRS In other news, SVP Pamela Morrow sold 11,545 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $45.13, for a total transaction of $521,025.85. Following the completion of the sale, the senior vice president owned 10,551 shares in the company, valued at approximately $476,166.63. The trade was a 52.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Jason Rinsky sold 3,865 shares of the company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $46.87, for a total transaction of $181,152.55. Following the completion of the transaction, the executive vice president owned 31,310 shares of the company’s stock, valued at approximately $1,467,499.70. The trade was a 10.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 65,364 shares of company stock valued at $2,994,785 over the last three months. 0.25% of the stock is owned by corporate insiders.
Wall Street Analysts Forecast Growth A number of research firms have issued reports on DRS. Canaccord Genuity Group increased their price target on Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Truist Financial upgraded shares of Leonardo DRS to a “strong-buy” rating in a research note on Friday, May 1st. Wall Street Zen raised shares of Leonardo DRS from a “hold” rating to a “buy” rating in a report on Sunday, May 10th. Finally, Weiss Ratings raised shares of Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $53.75.
Read Our Latest Research Report on Leonardo DRS
Leonardo DRS Company Profile (Free Report)
Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.
The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.
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ARLINGTON, Va., July 28, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) today announced that it has entered into a definitive agreement to acquire Raft LLC (“Raft”) in an all-cash transaction valued at $450 million. Founded in 2018 and headquartered in McLean, Virginia, Raft provides open-architecture mission software, specializing in multi-domain data fusion and artificial intelligence (AI) that supports real-time situational awareness and faster operational decision-making for national security customers.
The acquisition is aligned with DRS’s strategy and enhances its ability to deliver integrated, mission-focused technologies that help customers operate with greater speed, clarity and confidence in complex operational environments. Defense customers increasingly manage large volumes of data from distributed sensors and systems; fragmented data architectures can slow decision-making. Raft’s technology is designed to address this challenge by fusing disparate data into a common operating picture and helping reduce the cognitive burden on operators across domains and mission threads. Raft’s open-architecture software, AI and data integration capabilities are highly complementary and additive to DRS’s existing technology portfolio and customer relationships, enhancing the company’s ability to deliver integrated, advanced sensing and network computing capabilities with software to turn sensor data into actionable decision advantage.
“Our customers increasingly require integrated hardware, software, data and autonomy to support mission outcomes. The acquisition of Raft will build on and accelerate the organic investment that DRS has made in that evolution,” said John Baylouny, President and Chief Executive Officer of Leonardo DRS. “Raft adds proven software talent and open-architecture technology that complement our existing sensing and computing capabilities and strengthen our ability to deliver AI-enabled mission solutions at the speed our customers demand.”
“Joining DRS is a natural next step for our team and our mission,” said Shubhi Mishra, Founder and Chief Executive Officer of Raft. “Our open-architecture platform was built to integrate across systems, not lock customers in, and pairing it with DRS’s sensing and computing franchises will accelerate our ability to deliver mission capability at a global scale.”
The $450 million all-cash transaction is subject to customary post-closing purchase price adjustments. As a result of the transaction, DRS expects to realize a tax benefit over the next 15 years, the present value of which is calculated to be approximately $50 million. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the fourth quarter of 2026. The acquisition is expected to be accretive to Adjusted Diluted Earnings Per Share (1) in the first full year of ownership. DRS expects to fund the transaction through cash on hand and borrowings under its revolving credit facility.
Advisors
Morgan Stanley & Co. LLC is serving as financial advisor to Leonardo DRS and J.P. Morgan Securities LLC is serving as exclusive financial advisor to Raft. Sullivan & Cromwell LLP, Kirkland & Ellis LLP and Kilpatrick Townsend & Stockton LLP are serving as legal advisors to Leonardo DRS and Greenberg Traurig, LLP is serving as legal advisor to Raft.
Conference Call
Leonardo DRS will discuss the acquisition in conjunction with its previously announced second quarter 2026 earnings conference call on Thursday, July 30, 2026, beginning at 10:00 a.m. (ET).
The live audio broadcast of Leonardo DRS’s conference call will be available on the company’s investor relations website. To attend the conference call or webcast, participants should register online at https://investors.leonardodrs.com.
A replay will be available on the company’s website approximately two hours after the conclusion of the conference call and will remain available for 90 days.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
About Raft
Founded in 2018 and headquartered in McLean, Virginia, Raft is a leading provider of open-standard mission software, specializing in multi-domain data fusion and artificial intelligence that enable real-time awareness and faster operational decision-making for U.S. government and defense customers. Raft’s operator-focused, software-first products fuse and stream data and enable trusted human-AI partnership from the tactical edge to the enterprise.
Forward-Looking Statements
In this release, when using the terms the “company,” “DRS,” “we,” “us” and “our,” unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This release contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “strives,” “targets,” “projects,” “guidance,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations, the proposed acquisition of Raft LLC, including the expected timing of completion of the transaction, the satisfaction of closing conditions, the receipt of regulatory approvals, the anticipated benefits of the transaction, the expected impact of the transaction on DRS or Raft LLC’s financial results, including expected accretion and tax benefits, the expected financing of the transaction and plans for the integration of the acquired business, and the impact of prevailing economic conditions.
These statements are subject to numerous assumptions, risks, and uncertainties, many of which are outside of our control, and include the risks and uncertainties that are identified in the Risk Factors section in our latest Annual Report on Form 10-K, and in other periodic and current reports we file with the SEC as well as risks and uncertainties relating to the proposed acquisition of Raft LLC, including: the possibility that regulatory approvals are not obtained on the expected timeline or at all; the risk that the closing conditions are not satisfied or that the transaction does not close within the anticipated timeframe or at all; the risk that the anticipated benefits of the transaction, including expected accretion and tax benefits, are not realized in whole or in part or within the expected timeframe; higher-than-expected transaction, integration or financing costs; difficulties in integrating Raft’s business, personnel, systems or operations; potential disruption to our or Raft’s ongoing operations or relationships with customers, suppliers or employees as a result of the announcement or pendency of the transaction; the diversion of management’s time and attention; and potential unknown or contingent liabilities of the acquired business. While the forward-looking statements herein reflect our current expectations, no assurance can be given that the results or events described in such statements will be achieved, and our actual results may differ materially from the results we anticipate. We undertake no obligation, other than as may be required by law, to revise or update any of these forward-looking statements (whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise) that may arise after the date of this release.
Non-GAAP Financial Measures
(1) The company references Adjusted Diluted Earnings Per Share, a non-GAAP financial measure, in this release. Adjusted Diluted EPS is defined as net earnings excluding amortization of acquired intangible assets, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts) and the related tax impacts, divided by the diluted weighted average number of shares outstanding (WASO).
We believe the non-GAAP financial measures presented in this document will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.
We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP and should not rely on any single financial measure to evaluate our business.
Leonardo DRS Investor Relations Contact
Steve Vather
Senior Vice President, Corporate Development (M&A) and Investor Relations
+1 703 409 2906 [email protected]
Leonardo DRS Media Contact
Carrie Robinson
Vice President, Marketing and Corporate Communications
+1 321 266 7691 [email protected]
ARLINGTON, Va., July 15, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) announced today the company has signed a contract to supply more than 50,000 Tenum® Orbit™ thermal imaging cameras under a blanket purchase agreement, marking a major production milestone for the company and underscoring growing demand for advanced thermal imaging technology across emerging mission applications.
The agreement positions Leonardo DRS to support high-volume customer requirements for compact, high-performance thermal imaging systems used in applications including unmanned systems and other rapidly evolving platforms. It also reflects customer confidence in the company’s manufacturing capacity and ability to deliver sophisticated sensing technologies at scale.
“This agreement demonstrates the strength of our thermal imaging technology and our readiness to deliver at scale,” said Jerry Hathaway, senior vice president and general manager of the Leonardo DRS EO/IS business unit. “We have made strategic investments in our production capabilities so we can respond quickly and reliably to growing customer demand across a wide range of mission applications.”
Developed for high-volume production across multiple end uses, including drones, the Tenum® Orbit™ thermal imaging module is backed by Leonardo DRS investments in factory infrastructure and manufacturing capacity designed to support annual production in the hundreds of thousands of units. The Tenum® Orbit™ is also designed to support exportability and compliance with applicable international trade regulations, helping customers integrate advanced thermal imaging technology more efficiently across global markets.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS Investor Relations Contact
Steve Vather
Senior Vice President, Corporate Development (M&A) and Investor Relations
+1 703 409 2906 [email protected]
Leonardo DRS Media Contact
Carrie Robinson
Vice President, Marketing and Corporate Communications
+1 321 266 7691 [email protected]
Leonardo DRS remains a buy, driven by robust demand for radar, power management, and defense electronics in a multi-domain defense supercycle. DRS is positioned to benefit from expanding defense budgets, sensor-rich battlefield trends, and program ramp-ups across naval, air, and land domains. Valuation is attractive with 13–20% upside, supported by EBITDA margin expansion, strong free cash flow growth, and a net cash balance.
ARLINGTON, Va., June 30, 2026 (GLOBE NEWSWIRE) -- Leonardo DRS, Inc. (Nasdaq: DRS) has scheduled a conference call for Thursday, July 30, 2026 beginning at 10:00 a.m. (ET) to discuss its second quarter 2026 results. The company plans to issue its quarterly earnings press release prior to the conference call.
The live audio broadcast of Leonardo DRS’s conference call with corresponding press release and supplemental information will be available on the company’s investor relations website. To attend the conference call or webcast, participants should register online at https://investors.leonardodrs.com.
A replay will be available on the company’s website approximately two hours after the conclusion of the conference call and will remain available for 90 days.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.
Leonardo DRS Investor Relations Contact
Steve Vather
Senior Vice President, Corporate Development (M&A) and Investor Relations
+1 703 409 2906 [email protected]
Leonardo DRS Media Contact
Carrie Robinson
Vice President, Marketing and Corporate Communications
+1 321 266 7691 [email protected]
Leonardo DRS, Inc. (NASDAQ: DRS - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eight analysts that are covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1 year target
ATSP5 award enables Leonardo DRS to provide advanced engineering to accelerate next-generation electronic systems for the U.S. military.
ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today that it has been awarded an engineering solutions contract for the Advanced Technology Support Program V (ATSP5) to support the U.S. military in rapidly fielding emerging technologies. The indefinite-delivery, indefinite-quantity, multiple award contract has a total potential value of more than $25 billion over ten years.
Leonardo DRS is one of thirteen companies awarded this contract, which positions the Company to offer its cutting-edge technologies and advanced engineering expertise to the development of next-generation electronic systems.
“As a company built around rapid delivery of trusted advanced technologies, we are excited and proud to be one of the few awardees of this contract. This is an important contract vehicle that will provide another avenue for customers to swiftly access DRS’s advanced technologies and engineering solutions. We look forward to delivering innovation and capability to our customers in support of their critical missions,” said John Baylouny, President and CEO of Leonardo DRS.
Under the contract, Leonardo DRS can deliver work in critical areas ranging from advanced sensing and computing to integrated mission systems. The contract also positions Leonardo DRS to help customers advance emerging technologies and capabilities, including research and development in quantum computing and nanoelectronics, three-dimensional and other additive manufacturing methods, and submicron engineering to design circuitry at smaller scales.
This IDIQ contract award positions Leonardo DRS to compete for future task orders throughout the contract’s period of performance.
About Leonardo DRS
Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statement.
ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today the introduction of THOR - Tactical, High-Performance Embedded Computing, Open Architecture, Rugged - a rugged, open-architecture 3U VPX embedded computing chassis purpose-built to deliver high-performance processing at the tactical edge. Designed for combat vehicles, tactical platforms, and emerging mission environments, THOR provides the scalable computing backbone warfighters need to run artificial intelligence.
Leonardo DRS, Inc. (NASDAQ: DRS - Get Free Report) EVP Sally Wallace sold 28,960 shares of Leonardo DRS stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $46.35, for a total value of $1,342,296.00. Following the completion of the sale, the executive vice president owned 58,353 shares in
ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) has scheduled a conference call for Tuesday, May 5, 2026 beginning at 10:00 a.m. (ET) to discuss its first quarter 2026 results. The company plans to issue its quarterly earnings press release prior to the conference call. The live audio broadcast of Leonardo DRS's conference call with corresponding press release and supplemental information will be available on the company's investor relations website. To attend the conference c.
Leonardo DRS's growth is propelled by advanced sensing, electric propulsion, and tactical radar, but supply chain risks—especially rare earths—threaten operational continuity. ASC segment shows margin improvement, but IMS faces profit conversion challenges; Q4 2025 saw IMS margins drop sharply despite revenue growth. Expansion initiatives, including a new naval facility and increased capex, support future ambitions, yet rare earth supply risks remain unresolved and material.
ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today it has successfully integrated its Maritime Mission Equipment Package (M-MEP) on an autonomous unmanned surface vessel (AUSV), delivering a new counter-unmanned aerial system (C-UAS) capability designed to detect, track, identify, and defeat aerial unmanned threats operating in the maritime domain. Built for rapid integration on crewed and uncrewed platforms, the solution provides a mission-ready layer of protecti.
ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today it is introducing a new 2 kVA AC Uninterruptible Power Supply (UPS) in the company's uninterruptible power supply family of products, delivering clean, conditioned backup power to help keep mission-critical electronics online through shipboard power disturbances. The product is designed and positioned as IP54-hardened, and military-qualified—built for harsh and unforgiving operating environments. “We designed this.
B-2 Spirit Stealth Bomber proceeds to an undisclosed location after completing a mission over Iraq March 27, 2003. (Photo by Cherie A. Thurlby/U.S. Air Force/Getty Images)
Getty Images
The United States Air Force has no plans to retire its remaining fleet of Boeing B-52 Stratofortress bombers for at least a couple more decades, and the old "BUFFs" as they are known, will be in service until the late 2040s or early 2050s, perhaps even longer. However, even as the Air Force will adopt the Northrop Grumman B-21 Raiders in the coming year, the B-52s won't be the only old workhorses that will remain in the bomber fleet.
The Air Force is now planning to invest up to $1.7 billion to modernize its Rockwell B-1B Lancer and Northrop B-2 Spirit bombers by the early 2030s.
That is a course correction for the U.S. Air Force, which had previously called for retiring both the Lancers and Spirits as the Raiders entered service. Operation Epic Fury's air campaign against Iran highlighted that both aircraft remain capable combat aircraft, with the B-2s having flown CONUS-to-CONUS missions from the United States, spending 37 hours or more in the air, and the B-1B Lancers and B-52 Stratofortresses hitting the Islamic Republic from bases in the UK.
Keeping The Bombers Flying Is ExpensiveThe U.S. Air Force has, for years, sought to retire aging aircraft to free up funding for the acquisition of new fighters and bombers. Now it is finding the old warbirds have some fight left in them. That was certainly the case with the Fairchild Republic A-10 Thunderbolt II, which found a new lease on life after the war in Iran, after being written off as ill-suited to modern aerial combat.
After proving capable of striking Iran's vast fleet of small speedboats, the A-10 close air support aircraft's retirement has been delayed by at least a year. Yet, it won't get any funding for upgrades. By contrast, the Air Force is seeking to invest $342 million to further modernize its remaining B-1s between 2027 and 2031.
There are currently 45 active-duty B-1B Lancers stationed at Ellsworth Air Force Base, South Dakota, and Dyess AFB, Texas.
"This request provides the necessary funding to modernize the platform, ensuring its lethality and relevance through 2037," a newly released Air Force budget document explained.
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An additional $1.35 billion will fund upgrading the remaining 19 B-2 Spirits, all of which operate from Whiteman AFB, Missouri, over the same period.
A USAF Rockwell B-1 Lancer bomber takes off on a sortie from RAF Fairford over the Cotswold village of Kempsford and the village church of St. Mary the Virgin on March 21, 2026 in Fairford, England. (Photo by Christopher Furlong/Getty Images)
Getty Images
Getting The Job DoneThe fastest operational U.S. bomber, the B-1B, also has the largest payload, carrying upwards of 75,000 pounds internally, including 84 500-pound Mk-82 or 24 2,000-pound general-purpose bombs. Following the end of the Cold War, the Lancer's nuclear capabilities were removed, shifting its role from a nuclear deterrent to a conventional bomber.
It lacks stealth, but that hasn't been an issue with the conflict in Iran, where it has struck Iranian missile infrastructure using a mix of precision-guided munitions, including stand-off weapons and heavy "bunker buster" bombs.
Seven B-2s were also used to great fanfare in last June's Operation Midnight Hammer, where those bombers targeted Iran's nuclear facility. The B-2 was used in the operation as it is the only U.S. Air Force aircraft certified to carry the 30,000-pound GBU-57 Massive Ordnance Penetrator, the so-called "bunker buster" bomb considered to be the only ordnance in any military arsenal capable of destroying Iran's underground nuclear facilities.
An infographic titled "Long-range stealth bomber B-2 Spirit" (Photo by Mehmet Yaren Bozgun/Anadolu via Getty Images)
Anadolu via Getty Images
The B-21 was also designed to carry the MOP, but each B-2 Spirit can carry two, while the smaller Raider bomber can only carry one. Given that situation, it isn't surprising the Air Force will want to keep those 19 B-2s in service for as long as possible.
Not Enough BombersOperation Epic Fury certainly demonstrated the capabilities of the U.S. Air Force to cripple an adversary's air defenses quickly. It also made clear the Air Force could be stretched thin.
Current Pentagon plans call for the Air Force to acquire approximately 100 B-21s, but some Air Force officials have argued that the service will need at least 145, and possibly more than 200, aircraft to meet long-term strategic demands.
Instead of having a two-bomber fleet split between the Cold War-era B-52s, of which around 74 are now in service, and the B-21s, the Air Force will now ensure the Raider will be supported by the B-1s and B-2s, at least until the Pentagon is confident there are enough B-21s to get the job done.
"Given the skyrocketing demand [for bomber capacity], it makes perfect sense to buy back the B-1 and B-2," Col. Mark Gunzinger, USAF (retired), director of future concepts and capability assessments for AFA's Mitchell Institute for Aerospace Studies, told Air & Space Forces magazine.
"The B-2 is the only fully operational stealth bomber that we have, and frankly, long-range penetrating strike capability is one of the most significant shortfalls in our military," Gunzinger added. "So why divest the B-2 early? It was completely budget-driven and resource driven."
In this image provided by the U.S. Air Force, the B-21 Raider is seen on Nov. 28, 2022, in Palmdale, Calif. (U.S. Air Force via AP)
Associated Press
It now appears that the B-21s will operate from Ellsworth AFB beginning next year, possibly alongside the base's Lancer fleet. The B-21s will also be stationed at Whiteman AFB, the current home of the B-2 fleet.
"The operational demand for bombers continues to go in one direction: up," Gunzinger added. "That is both peacetime demand for bombers, to support bomber task force operations which help maintain deterrence globally, but also for operations like Midnight Hammer."
The B-21 Raider is now in low-rate initial production and continues to undergo flight testing. Northrop Grumman built the first six prototype aircraft using the same tools and processes that are now manufacturing the aircraft. That approach enabled the production engineers and technicians to capture lessons learned and apply them directly to follow-on aircraft, driving home a focus on repeatability, producibility, and quality.
However, it could still take a decade or longer for even 100 to enter service, and the demand for bombers will likely delay the retirement of the B-1Bs and B-2s.
Of course, there is the issue of retaining the pilots who can fly those aging bombers, but the Air Force may try to solve the problem by throwing money at it. Earlier this month, the service announced new aviation bonuses for fiscal year 2026, offering up to $600,000 to experienced pilots willing to remain in the cockpit for another dozen years.
ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the first quarter 2026, which ended March 31, 2026.
CEO Commentary
“Leonardo DRS delivered a strong start to the year. Our first quarter 2026 results meaningfully outperformed expectations thanks to disciplined execution, program momentum and sustained demand for our differentiated technologies. We expanded profitability, while simultaneously increasing investment in innovation and expanding capacity to support the critical missions of our customers. We are encouraged by the performance in the first quarter but remain focused on delivering differentiated capabilities to our customers to generate consistent, profitable growth and long-term value for our stockholders,” said John Baylouny, President and CEO of Leonardo DRS.
Summary Financial Results
(In millions, except per share amounts)
First Quarter
2026
2025
Change
Revenues
$846
$799
6
%
Net Earnings
$62
$50
24
%
Net Margin
7.3
%
6.3
%
100 bps
Diluted weighted average number of shares outstanding (WASO)
268.670
268.775
Diluted Earnings Per Share (EPS)
$0.23
$0.19
21
%
Non-GAAP Financial Measures (1)
Adjusted EBITDA
$105
$82
28
%
Adjusted EBITDA Margin
12.4
%
10.3
%
210 bps
Adjusted Net Earnings
$69
$54
28
%
Adjusted Diluted EPS
$0.26
$0.20
30
%
(1) The company reports its financials in accordance with U.S. generally accepted accounting principles (“GAAP”). Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."
First quarter 2026 revenue growth was 6% year-over-year, reflecting increases on programs supporting tactical radars, infrared sensing and electric power and propulsion.
Adjusted EBITDA grew 28% over the prior year and was accompanied by meaningful margin expansion. Increased Adjusted EBITDA profitability was driven by strong program execution across the portfolio, including Columbia Class, and also reflected operating leverage on higher volume.
First quarter net earnings, Adjusted Net Earnings, diluted EPS and Adjusted Diluted EPS were all higher year-over-year, driven primarily by higher operational profitability and lower net interest expense.
Cash Flow
Net cash flow used in operating activities was $66 million for the first quarter. The company’s free cash outflow was $95 million in the quarter. Both operating and free cash outflows narrowed compared to first quarter 2025 driven by higher profitability and better working capital efficiency.
Dividends and Stock Repurchases
During the first quarter, the company paid dividends to stockholders totaling approximately $24 million or $0.09 per share of common stock. Leonardo DRS today announced that its Board of Directors declared a cash dividend of $0.09 per share of common stock payable on June 2, 2026, to stockholders of record on May 19, 2026.
Additionally, the company repurchased 91,238 shares of its common stock for approximately $4 million in the first quarter, pursuant to a previously announced stock repurchase program.
Balance Sheet
At first quarter end, the company had $328 million of cash and no outstanding borrowings under the company’s credit facility. The company’s strong balance sheet provides ample financial flexibility to fund growth initiatives and return capital over time.
Bookings and Funded Backlog (Dollars in millions)
First Quarter
2026
2025
Bookings
$885
$991
Book-to-Bill
1.0x
1.2x
Funded Backlog
$4,686
$4,354
The company received $885 million in new funded bookings in the first quarter. Customer demand was resilient across the portfolio, with the greatest momentum in electric power and propulsion, tactical radars and force protection. Exiting the first quarter, funded backlog reached a new record of $4.7 billion and was up 8% over the prior year.
Segment Results
Advanced Sensing and Computing (ASC) Segment
(Dollars in millions)
First Quarter
2026
2025
Change
Revenues
$559
$511
9
%
Operating Earnings
$40
$25
60
%
Operating Margin
7.2
%
4.9
%
230 bps
Bookings
$429
$669
Book-to-Bill
0.8x
1.3x
Non-GAAP Financial Measures (1)
Segment Adjusted EBITDA
$62
$42
48
%
Segment Adjusted EBITDA Margin
11.1
%
8.2
%
290 bps
(1) The company reports its financials in accordance with U.S. GAAP. Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."
ASC quarterly bookings reflected solid demand for multi-modal sensing, including tactical radars, infrared and RF-based sensing technologies. Revenue growth in the segment came from programs related to tactical radars and infrared sensing. Adjusted EBITDA increased meaningfully, driven by improved program execution, favorable mix and higher volume.
Integrated Mission Systems (IMS) Segment
(Dollars in millions)
First Quarter
2026
2025
Change
Revenues
$295
$291
1
%
Operating Earnings
$37
$34
9
%
Operating Margin
12.5
%
11.7
%
80 bps
Bookings
$456
$322
Book-to-Bill
1.5x
1.1x
Non-GAAP Financial Measures (1)
Segment Adjusted EBITDA
$43
$40
8
%
Segment Adjusted EBITDA Margin
14.6
%
13.7
%
90 bps
(1) The company reports its financials in accordance with U.S. GAAP. Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures." Programs related to electric power and propulsion and force protection drove robust quarterly bookings in the IMS segment. Revenue increased modestly over first quarter 2025 on higher contribution from electric power and propulsion programs. Adjusted EBITDA growth and margin expansion were primarily driven by strong program execution throughout the segment, led by Columbia Class.
2026 Guidance
Leonardo DRS is increasing 2026 guidance as specified in the table below:
Measure
Current 2026 Guidance
Prior 2026 Guidance
Revenue
$3,900 million - $3,975 million
$3,850 million - $3,950 million
Adjusted EBITDA
$515 million - $530 million
$505 million - $525 million
Tax Rate
18.5%
18.5%
Diluted WASO
269.0 million
269.0 million
Adjusted Diluted EPS
$1.26 - $1.30
$1.20 - $1.26
The company does not provide a reconciliation of forward-looking Adjusted EBITDA and Adjusted Diluted EPS due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measures without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.
Conference Call
Leonardo DRS management will host a conference call beginning at 10:00 a.m. ET on May 5, 2026 to discuss the financial results for its first quarter 2026.
A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leonardo DRS Investor Relations website (https://investors.leonardodrs.com).
A replay of the conference call will be available on the Leonardo DRS website approximately 2 hours after the conclusion of the conference call.
About Leonardo DRS
Headquartered in Arlington, VA, Leonardo DRS, Inc. is an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world. We specialize in the design, development and manufacture of advanced sensing, network computing, force protection and electric power and propulsion and other leading mission-critical technologies. Our innovative people are leading the way in developing disruptive technologies for autonomous, dynamic, interconnected and multi-domain capabilities to defend against new and emerging threats. For more information and to learn more about our full range of capabilities, visit www.LeonardoDRS.com.
Forward-Looking Statements
In this press release, when using the terms the “company”, “Leonardo DRS”, “we”, “us” and “our,” unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This press release contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “strives,” “targets,” “projects,” “guidance,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this press release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations and the impact of prevailing economic conditions.
Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if future performance and outcomes are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect and it is not possible for us to predict all of them. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: disruptions, including from government shutdowns, or deteriorations in our relationship with the relevant agencies of the U.S. government, as well as any failure to pass routine audits or otherwise comply with governmental requirements including those related to security clearance or procurement rules, including the False Claims Act; significant delays, including from government shutdowns, or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly; any failure to comply with the amended and restated proxy agreement with the U.S. Department of War (“DoW”); the effect of inflation and other cost pressures on our supply chain and/or our labor costs; our mix of fixed-price, cost-plus and time-and-materials type contracts and any resulting impact on our cash flows due to cost overruns; failure to properly comply with various covenants of the agreements governing our debt could negatively impact our business; our dependence on U.S. government contracts, which often are only partially funded and are subject to immediate termination, some of which are classified and the concentration of our customer base in the U.S. defense industry; our use of estimates in pricing and accounting for many of our programs that are inherently uncertain and which may not prove to be accurate; our ability to realize the full value of our backlog; our ability to predict future capital needs or to obtain additional financing if needed, on terms acceptable to us, if at all; our ability to respond to the rapid technological changes in the markets in which we compete; the effect of global and regional economic downturns and rising interest rates; our ability to maintain an effective system of internal control over financial reporting; our inability to appropriately manage our inventory; our inability to fully realize the value of our total estimated contract value or bookings; our ability to compete efficiently, including due to U.S. government organizational conflict of interest rules which may limit new contract opportunities or require us to wind down existing contracts; our relationships with other industry participants, including any contractual disputes or the inability of our key suppliers to timely deliver our components, parts or services; preferences or set-asides for small or small disadvantaged businesses could impact our ability to be a prime contractor; any failure to meet our contractual obligations including due to potential impacts to our business from supply chain risks, such as longer lead times and shortages of electronics and other components; any security breach, including any cyber-attack, cyber intrusion, insider threat, or other significant disruption of our IT networks and related systems, as well as any act of terrorism or other threat to our physical security and personnel; our ability to fully exploit or obtain patents or other intellectual property protections necessary to secure our proprietary technology, including our ability to avoid infringing upon the intellectual property of third parties or prevent third parties from infringing upon our own intellectual property; the conduct of our employees, agents, affiliates, subcontractors, suppliers, business partners or joint ventures in which we participate which may impact our reputation and ability to do business; the outcome of litigation, arbitration, investigations, claims, disputes, enforcement actions and other legal proceedings in which we are involved; various geopolitical and economic factors, laws and regulations including the Foreign Corrupt Practices Act, the Export Control Act, the International Traffic in Arms Regulations, the Export Administration Regulations, recent U.S. tariffs imposed or threatened to be imposed on other countries and any related retaliatory actions taken by such countries and those that we are exposed to as a result of our international business; our ability to obtain export licenses necessary to conduct certain operations abroad, including any attempts by Congress to prevent proposed sales to certain foreign governments; our ability to attract and retain technical and other key personnel; the occurrence of prolonged work stoppages; the unavailability or inadequacy of our insurance coverage, customer indemnifications or other liability protections to cover all of our significant risks or to pay for material losses we incur; future changes in U.S. tax laws and regulations or interpretations thereof; future changes in the DoW’s and other governments’ budgets; certain limitations on our ability to use our net operating losses to offset future taxable income; termination of our leases or our inability to renew our leases on acceptable terms; changes in estimates used in accounting for our pension plans, including with respect to the funding status thereof; changes in future business or other market conditions that could cause business investments and/or recorded goodwill or other long-term assets to become impaired; adverse consequences from any acquisitions such as operating difficulties, dilution and other harmful consequences or any modification, delay or prevention of any future acquisition or investment activity by the Committee on Foreign Investment in the United States; natural disasters, severe weather or other significant disruptions; failure to properly contain a global pandemic in a timely manner could materially affect how we and our business partners operate; our compliance with environmental laws and regulations and any environmental liabilities that may affect our reputation or financial position; any conflict of interest that may arise because Leonardo US Holding, LLC, our majority stockholder, or Leonardo S.p.A., our indirect majority stockholder, may have interests that are different from, or conflict with, those of our other stockholders, including as a result of any ongoing business relationships Leonardo S.p.A. may have with us and their significant ownership in us may discourage change of control transactions (our amended and restated certificate of incorporation provides that we waive any interest or expectancy in corporate opportunities presented to Leonardo S.p.A); or our obligations to provide certain services to Leonardo S.p.A., which may divert human and financial resources from our business.
You should read this press release completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this filing and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise and changes in future operating results over time or otherwise.
Other risks, uncertainties and factors, including those discussed in our latest SEC filings under “Risk Factors” of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the investor relations section of our website at www.LeonardoDRS.com, could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read the discussion of these factors carefully to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.
Consolidated Statements of Earnings (Unaudited)
(Dollars in millions, except per share amounts)
Three Months Ended
March 31,
2026
2025
Revenues
846
799
Cost of revenues
(634
)
(618
)
Gross profit
212
181
General and administrative expenses
(130
)
(117
)
Amortization of acquired intangible assets
(5
)
(5
)
Operating earnings
77
59
Interest expense, net
—
(1
)
Earnings before taxes
77
58
Income tax provision
(15
)
(8
)
Net earnings
$62
$50
Net earnings per share from common stock:
Basic earnings per share
$0.23
$0.19
Diluted earnings per share
$0.23
$0.19
Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share amounts)
March 31,
December 31,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$328
$647
Accounts receivable, net
324
334
Contract assets
975
931
Inventories
371
352
Prepaid expenses
27
26
Other current assets
31
36
Total current assets
2,056
2,326
Noncurrent assets:
Property, plant and equipment, net
512
512
Intangible assets, net
106
112
Goodwill
1,238
1,238
Deferred tax assets
89
88
Other noncurrent assets
210
210
Total noncurrent assets
2,155
2,160
Total assets
$4,211
$4,486
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$11
$26
Accounts payable
187
351
Contract liabilities
640
585
Other current liabilities
267
269
Total current liabilities
1,105
1,231
Noncurrent liabilities:
Long-term debt
140
321
Pension and other postretirement benefit plan liabilities
32
35
Deferred tax liabilities
4
3
Other noncurrent liabilities
160
166
Total noncurrent liabilities
$336
$525
Stockholders' equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized; none issued
$—
$—
Common stock, $0.01 par value: 350,000,000 shares authorized; 265,965,593 and 265,822,404 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
3
3
Additional paid-in capital
5,062
5,083
Accumulated deficit
(2,253
)
(2,315
)
Accumulated other comprehensive loss
(42
)
(41
)
Total stockholders' equity
2,770
2,730
Total liabilities and stockholders' equity
$4,211
$4,486
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
2026
2025
Operating activities
Net earnings
$62
$50
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization
24
23
Deferred income taxes
—
1
Stock-based compensation expense
4
8
Changes in assets and liabilities:
Accounts receivable
10
(1
)
Contract assets
(44
)
(110
)
Inventories
(19
)
(27
)
Prepaid expenses
(1
)
(1
)
Other current assets
4
14
Other noncurrent assets
4
6
Defined benefit obligations
(3
)
(5
)
Accounts payable
(152
)
(126
)
Contract liabilities
55
68
Other current liabilities
(3
)
(32
)
Other noncurrent liabilities
(7
)
(6
)
Net cash used in operating activities
(66
)
(138
)
Investing activities
Capital expenditures
(30
)
(32
)
Proceeds from sales of assets
1
—
Net cash used in investing activities
(29
)
(32
)
Financing activities
Net (decrease) increase in borrowings (maturities of 90 days or less)
(4
)
2
Repayments of borrowings
(191
)
(3
)
Proceeds from stock issuance
3
—
Repurchases of common stock
(4
)
(3
)
Payments of employee taxes withheld from stock-based awards
—
(17
)
Dividends paid
(7
)
(7
)
Dividends paid to related party
(17
)
(17
)
Other
(4
)
(3
)
Net cash used in financing activities
(224
)
(48
)
Effect of exchange rate changes on cash and cash equivalents
—
—
Net decrease in cash and cash equivalents
(319
)
(218
)
Cash and cash equivalents at beginning of year
647
598
Cash and cash equivalents at end of year
$328
$380
Non-GAAP Financial Measures (Unaudited)
In addition to the results reported in accordance with U.S. GAAP included throughout this document, the company has provided information regarding “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Segment Adjusted EBITDA,” “Segment Adjusted EBITDA Margin,” “Adjusted Net Earnings,” “Adjusted Diluted Earnings Per Share” and “Free Cash Flow” (each, a non-GAAP financial measure).
We believe the non-GAAP financial measures presented in this document will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.
We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business.
We define these non-GAAP financial measures as:
Adjusted EBITDA and Adjusted EBITDA Margin are defined as net earnings before income taxes, interest expense, amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts), then in the case of Adjusted EBITDA Margin dividing Adjusted EBITDA by revenues.
(Dollars in millions)
Three Months Ended
March 31,
2026
2025
Net earnings
$62
$50
Income tax provision
15
8
Interest expense, net
—
1
Amortization of intangibles
5
5
Depreciation
19
18
Other one-time non-operational events
4
—
Adjusted EBITDA
$105
$82
Adjusted EBITDA Margin
12.4
%
10.3
%
Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin are defined as operating earnings before amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events, then in the case of Segment Adjusted EBITDA Margin dividing Segment Adjusted EBITDA by revenues.
Integrated Mission Systems (IMS) Segment Adjusted EBITDA
(Dollars in millions)
Three Months Ended
March 31,
2026
2025
Operating earnings
$37
$34
Depreciation
6
6
Segment Adjusted EBITDA
$43
$40
Segment Adjusted EBITDA Margin
14.6
%
13.7
%
Adjusted Net Earnings and Adjusted Diluted EPS are defined as net earnings excluding amortization of acquired intangible assets, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts) and the related tax impacts, then in the case of Adjusted Diluted EPS dividing Adjusted Net Earnings by the diluted weighted average number of shares outstanding (WASO).
(In millions, except per share amounts)
Three Months Ended
March 31,
2026
2025
Net earnings
$62
$50
Amortization of intangibles
5
5
Other one-time non-operational events
4
—
Tax effect of adjustments (1)
(2
)
(1
)
Adjusted Net Earnings
$69
$54
Per share information
Diluted WASO
268.670
268.775
Diluted EPS
$0.23
$0.19
Adjusted Diluted EPS
$0.26
$0.20
(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. Free Cash Flow is defined as the sum of the cash flows provided by (used in) operating activities, transaction-related expenditures (net of tax), capital expenditures and proceeds from sale of assets.
