Leonardo DRS Posts 6% Revenue Growth, 28% EBITDA Rise and Record Backlog
DRS•Leonardo DRS grew revenue 6% and adjusted EBITDA 28% in Q1 2026, driven by timing of material receipts and strong tactical radar execution. The company marked its 17th straight quarter with a book-to-bill ratio of at least 1x, building a record backlog and widening margins via germanium cost savings.
1. Q1 2026 Financial Performance
Leonardo DRS delivered 6% revenue growth and a 28% increase in adjusted EBITDA in the quarter ended March 2026. Performance was driven by favorable timing of material receipts alongside strong execution on tactical radar and infrared sensing programs.
2. Book-to-Bill and Backlog Strength
The company achieved its 17th consecutive quarter with a book-to-bill ratio of at least 1x, leading to a record funded backlog that enhances visibility into full-year revenue. This backlog underscores continued customer demand for DRS’s defense technologies.
3. Margin Expansion Drivers
Margins expanded due to a shift toward higher-margin programs, operational leverage from increased volumes and lower raw material costs, particularly reductions in germanium pricing. These factors combined to support the 28% EBITDA rise.
4. Strategic Wartime Positioning
Management is operating on a 'wartime footing' to address shifts in modern warfare, including one‐way drone proliferation. A platform-agnostic approach allows its power, propulsion and sensing technologies to scale from small unmanned vessels up to Columbia-class submarines.
