Leonardo DRS beats Q3 revenue and profit estimates, raises 2026 guidance
DRS•Leonardo DRS reported Q3 revenue of $1.07 billion and adjusted EPS of $0.46, beating estimates of $1.03 billion and $0.35. It raised its 2026 revenue, adjusted EBITDA and adjusted diluted EPS outlooks.
1. Q3 results
Revenue rose 11% to $1.07 billion, above the $1.03 billion analyst estimate. Adjusted EPS increased 59% to $0.46, beating the $0.35 estimate; adjusted EBITDA was $149 million, compared with an estimate of $139.23 million.
2. Higher 2026 outlook
Leonardo DRS raised its 2026 revenue guidance to $3.95 billion-$3.99 billion from $3.9 billion-$3.98 billion. It lifted its adjusted EBITDA outlook to $545 million-$555 million from $525 million-$540 million and its adjusted diluted EPS forecast to $1.50-$1.53 from $1.34-$1.39. The company attributed revenue growth to tactical radars, naval power and propulsion, and space sensing programs; it cited execution, favorable mix and operating leverage for adjusted EBITDA growth and margin expansion.
