Leonardo DRS, Inc. (DRS) Earnings
Leonardo DRS, Inc. is expected to report next earnings on July 29, 2026 (in NaN days), with a consensus EPS estimate of $0.27. DRS has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +11.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.21 | $0.26 | +23.8% | $846M | +2.5% |
| Feb 24, 2026 | $0.37 | $0.42 | +13.5% | $1.1B | +27.2% |
| Oct 29, 2025 | $0.28 | $0.29 | +3.6% | $960M | -3.7% |
| Jul 30, 2025 | $0.22 | $0.23 | +4.5% | $829M | -8.5% |
| May 1, 2025 | $0.17 | $0.20 | +21.1% | $799M | +8.5% |
| Feb 20, 2025 | $0.36 | $0.38 | +5.6% | $981M | +33.2% |
| May 1, 2024 | $0.11 | $0.14 | +27.3% | $688M | +1.2% |
| Feb 27, 2024 | $0.30 | $0.31 | +3.3% | $926M | +44.8% |
| Nov 2, 2023 | $0.16 | $0.20 | +25.0% | $703M | -21.1% |
| Aug 2, 2023 | $0.11 | $0.15 | +36.4% | $628M | -7.9% |
| May 3, 2023 | $0.05 | $0.07 | +40.0% | $569M | -9.8% |
| Aug 17, 2022 | $0.06 | $-0.09 | -250.0% | $627M | +2052.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Strong quarterly results: Revenue up 6% YOY, adjusted EBITDA grew 28% YOY, adjusted diluted EPS $0.26. 17th consecutive book-to-build of at least one times revenue, funded backlog at new records. - Strategic backdrop: Global threat environment elevated, defense funding budget favorable with $1.5 trillion proposed for fiscal year 27. Portfolio strengths in tactical radars, infrared sensing, electric power and propulsion, force protection solutions, etc. - Innovation and growth: Focus on R&D and capital expenditures, investment in next-generation multi-domain counter-UAS, command and control architectures, space sensing capabilities. Open architecture approach with software like SageCore.
Guidance
- Increased full-year outlook: Revenue range revised to $3.9 billion to $3.975 billion, implying 7% - 9% organic revenue growth. Adjusted EBITDA range between $515 and $530 million. Adjusted diluted EPS projected in $26 to $30 per share range. - Second quarter expectations: Revenue expected to trend around $900 million, adjusted EBITDA margins mid-12% range, modestly free cash flow positive.
Segment performance
In Q1, revenue was $846 million, up 6% year over year. Adjusted EBITDA was $105 million, up 28% year over year. ASC adjusted EBITDA was up 48% with margin expanding 290 basis points, driven by improved execution, better mix, and operational leverage. IMS adjusted EBITDA grew 8% with margin expanding 90 basis points due to strong program execution including on the Columbia class. Revenue for ASC was boosted by tactical radars and infrared sensing, while IMS revenue growth was more modest with electric power and propulsion strength offset by tough compares and force protection program timing issues.
Analyst Q&A
Q: Peter Armand from Baird asked about fiscal 27 budget opportunities and DRS portfolio alignment.
A: Peter, the $1.5 trillion defense budget request has elements aligning with DRS capabilities like shipbuilding, air and missile defense, etc.
Q: Seth Safeman from J.P. Morgan asked about IMS margin and Columbia class.
A: Alex, IMS margins strong due to execution, especially Columbia Class, and program-level efficiency.
Q: Andre Madrid from VTIG asked about M&A pipeline and IRAD spend.
A: Andre, primary focus on organic investment, but still looking for technology gap fulfillment in M&A, with IRAD spend on highest demand areas like shipbuilding, missiles, counter UAS.
Q: Austin Mueller from Conaccord Genuity asked about ASC margin drivers and underwater platforms.
A: Austin, ASC margin expansion from favorable mix, tactical radar demand, and raw material cost improvement. Underwater platforms involve counter UAS on unmanned surface and ground vehicles.
Q: John from CJS Securities asked about radar operations in Israel and budget with Congress change.
A: John, radar operations in Israel have rising backlog and demand, team increasing production. Prioritization in budget aligns with DRS capabilities regardless of Congress changes.
Q: Alexandra Mandari from Truist Securities asked about resource prioritization and execution improvement.
A: Alexandra, resources prioritized based on growth rates in shipbuilding, air and missile defense, etc. Execution improvement due to material favorability, operational leverage, and reduced IRED and G&A headwinds.
Q: Ron Epstein from Bank of America asked about shipbuilding output and second sourcing.
A: Ron, working on second sourcing steam turbine generators for submarines and investing in electric propulsion for surface combatants to support modular architecture.
Q: Alex Preston on for Ron asked about base and reconciliation budgets.
A: Alex, reconciliation elements are needed now, base budget prioritization aligns with DRS capabilities, plan not dependent on $1.5 trillion budget.