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Leonardo DRS (DRS)
NASDAQ:DRS
Earnings Data
Report Date
May 06, 2026TBA (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.21Last Year’s EPS
0.2Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive outlook: the company posted double-digit organic revenue growth (13% FY), record bookings, improving profitability (adjusted EBITDA and EPS growth) and strong free cash flow while investing heavily in R&D and capacity to capture future demand. Notable operational strengths include a key space program win, expanded infrared and radar demand, and Columbia Class execution. Offsetting risks include germanium shortages and material cost pressure, a one‑off legacy program loss that dented segment results, and elevated CapEx and R&D that compressed near‑term margins. Management provided solid 2026 guidance (6%–8% revenue growth, margin improvement) and described mitigation actions for supply constraints.Company Guidance
Strong Revenue Growth
Full year 2025 revenue of $3.6 billion, representing 13% organic growth versus 2024; Q4 2025 revenue of $1.1 billion, up 8% year-over-year.
Record Bookings and Backlog Visibility
Fourth consecutive year with book-to-bill of 1.2x or better and year-end backlog of $8.7 billion, providing clear multi‑period revenue visibility.
Robust Profitability and EPS Expansion
Full year adjusted EBITDA of $453 million (up 13% YoY) with adjusted diluted EPS up 24% for the full year; Q4 adjusted EBITDA $158 million (up 7% YoY) and Q4 adjusted diluted EPS up 11%.
Exceptional Free Cash Flow and Strong Balance Sheet
Q4 free cash flow of $376 million and full year free cash flow of $227 million (19% growth in 2025); ended year with net cash and subsequently secured a new $500 million revolving credit facility.
Significant Strategic Investments
Internal R&D increased 40% in 2025 and capital expenditures rose more than 60% year-over-year; 2026 CapEx expected to trend toward ~5% of revenue to expand capacity (Charleston naval power facility, tactical radar and infrared capacity, demo assets).
Major Program Wins and Technology Demonstrations
Landmark position on SDA Tranche 3 tracking layer (space infrared sensing) and successful demonstration of secure multichannel software-defined radio for satellite communications, strengthening space market presence.
Segment Strengths and Broad-Based Demand
Broad-based growth across Advanced Sensing & Computing and Integrated Mission Systems (ASC delivered 9% Q4 / 11% FY growth; IMS delivered 5% Q4 / 15% FY growth), driven by tactical radars, electric power & propulsion, counter-UAS and advanced infrared sensing.
Improving Program Profitability
Columbia Class naval program executing well and contributing to improved profitability and margin tailwinds within IMS.
Commercial Monetization of Non-Core IP
Executed a 10-year, $100 million license agreement for laser IP with a quantum technology company, monetizing non-core commercial opportunity while keeping strategic focus on defense markets.
2026 Growth Guidance
2026 revenue guidance of $3.85–$3.95 billion (implying 6%–8% organic growth) and adjusted EBITDA guidance of $505–$525 million (implying a 70–90 bp margin improvement); adjusted diluted EPS guidance of $1.20–$1.26.
DRS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DRS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 24, 2026 | $38.14 | $43.82 | +14.89% |
Oct 29, 2025 | $40.07 | $38.33 | -4.35% |
Jul 30, 2025 | $47.97 | $43.03 | -10.29% |
May 01, 2025 | $36.70 | $39.95 | +8.85% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Leonardo DRS (DRS) report earnings?
Leonardo DRS (DRS) is schdueled to report earning on May 06, 2026, TBA (Confirmed).
What is Leonardo DRS (DRS) earnings time?
Leonardo DRS (DRS) earnings time is at May 06, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DRS EPS forecast?
DRS EPS forecast for the fiscal quarter 2026 (Q1) is 0.21.