Leonardo DRS Q4 Revenue Climbs 8% to $1.06 B, EPS Jumps 13%
Leonardo DRS posted Q4 2025 revenue of $1.06 billion, up 8% YoY, and delivered adjusted EPS of $0.42, a 13% increase that beat forecasts. It projected 2026 revenue of $3.85 billion to $3.95 billion and adjusted EPS of $1.20-$1.26, citing strong demand for tactical radars and infrared sensing.
1. Q4 2025 Financial Results
Leonardo DRS reported Q4 revenue of $1.06 billion, marking an 8% year-over-year gain, and achieved adjusted EPS of $0.42, a 13% rise. Both figures surpassed consensus estimates of $993 million in revenue and $0.37 in EPS, highlighting operational efficiency and pricing power.
2. Segment Performance Drivers
Growth was driven by the tactical radar segment, which saw double-digit order intake increases, and advanced infrared sensing products that benefited from expanded defense budgets. Strong program execution and backlog conversion further supported top-line momentum.
3. 2026 Guidance Details
Management forecast full-year 2026 revenue between $3.85 billion and $3.95 billion, and adjusted EPS ranging from $1.20 to $1.26. The outlook assumes sustained demand in key markets and ongoing delivery on major platform contracts.
4. Market Reaction
Shares of Leonardo DRS surged 15% on the trading session following the earnings release, reflecting investor confidence in both near-term results and the robust forward guidance. Analysts are revisiting models to factor in stronger margins and order visibility.