Leonardo DRS (NASDAQ:DRS) Releases FY 2026 Earnings Guidance

Leonardo DRS (NASDAQ:DRS) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 1.340-1.390 for the period, compared to the consensus earnings per share estimate of 1.300. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $3.9 billion.

Leonardo DRS Price Performance

Shares of Leonardo DRS stock traded down $0.92 on Thursday, hitting $45.62. The company had a trading volume of 1,175,299 shares, compared to its average volume of 955,448. Leonardo DRS has a 52 week low of $32.43 and a 52 week high of $50.59. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.86 and a quick ratio of 1.52. The company has a market cap of $12.17 billion, a PE ratio of 38.78, a PEG ratio of 3.36 and a beta of 0.36. The business has a 50-day simple moving average of $45.65 and a 200-day simple moving average of $43.90.

Leonardo DRS (NASDAQ:DRS) last released its earnings results on Thursday, July 30th. The company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.08. The firm had revenue of $913.00 million during the quarter, compared to the consensus estimate of $902.19 million. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The firm’s revenue for the quarter was up 10.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.23 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. Research analysts expect that Leonardo DRS will post 1.3 EPS for the current fiscal year.

Leonardo DRS Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th will be issued a $0.09 dividend. The ex-dividend date is Thursday, August 13th. This represents a $0.36 annualized dividend and a dividend yield of 0.8%. Leonardo DRS’s dividend payout ratio is 33.64%.

Analysts Set New Price Targets

DRS has been the subject of several research reports. Canaccord Genuity Group raised their target price on Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Truist Financial raised shares of Leonardo DRS to a “strong-buy” rating in a report on Friday, May 1st. Weiss Ratings upgraded shares of Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 23rd. Finally, Wall Street Zen raised Leonardo DRS from a “hold” rating to a “buy” rating in a report on Sunday, May 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Leonardo DRS currently has an average rating of “Moderate Buy” and a consensus price target of $53.75.

Insider Activity

In other Leonardo DRS news, CFO Michael Dippold sold 8,318 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $46.48, for a total transaction of $386,620.64. Following the completion of the sale, the chief financial officer directly owned 55,460 shares of the company’s stock, valued at approximately $2,577,780.80. This represents a 13.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Pamela Morrow sold 11,545 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $45.13, for a total transaction of $521,025.85. Following the completion of the transaction, the senior vice president owned 10,551 shares of the company’s stock, valued at approximately $476,166.63. The trade was a 52.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 65,364 shares of company stock worth $2,994,785. 0.25% of the stock is owned by company insiders.

Key Stories Impacting Leonardo DRS

Here are the key news stories impacting Leonardo DRS this week:

• Positive Sentiment: Q2 results exceeded expectations. Revenue increased 10% year over year to $913 million, topping the $902.2 million consensus estimate, while adjusted EPS rose 52% to $0.35 versus expectations of $0.27. Net earnings climbed 59% to $86 million. Leonardo DRS Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and demand improved. Adjusted EBITDA grew 33% to $128 million, with margin expanding to 14.0%. Bookings reached $1.1 billion, producing a 1.2x book-to-bill ratio, while funded backlog rose 17% to a record $5.1 billion. Leonardo DRS Announces Second-Quarter Results
• Positive Sentiment: Full-year earnings guidance was raised. DRS increased 2026 adjusted EBITDA guidance to $525 million-$540 million from $515 million-$530 million and adjusted EPS guidance to $1.34-$1.39 from $1.26-$1.30. Revenue guidance was maintained at $3.9 billion-$3.975 billion. Leonardo DRS Raises Guidance
• Positive Sentiment: Raft expands DRS’s software capabilities. The company agreed to acquire Raft for $450 million in cash, adding artificial intelligence, data fusion and mission-software technologies that could support longer-term growth in multi-domain defense programs. Leonardo DRS to Acquire Raft
• Neutral Sentiment: DRS declared another quarterly dividend of $0.09 per share, payable August 27 to shareholders of record August 13. The payout supports shareholder returns but represents a modest approximately 0.8% annual yield. Leonardo DRS Earnings Information
• Negative Sentiment: The $450 million all-cash Raft purchase is not included in current guidance and could reduce cash or require additional financing; DRS reported $270 million of cash at quarter-end. Investors may also view the stock’s elevated valuation, with a P/E above 40, as leaving limited room for execution disappointments.

Institutional Trading of Leonardo DRS

Several large investors have recently added to or reduced their stakes in the company. Quarry LP boosted its position in Leonardo DRS by 7,041.7% during the 4th quarter. Quarry LP now owns 857 shares of the company’s stock worth $29,000 after acquiring an additional 845 shares during the period. Kestra Advisory Services LLC purchased a new stake in shares of Leonardo DRS in the fourth quarter worth approximately $48,000. PNC Financial Services Group Inc. lifted its position in shares of Leonardo DRS by 435.0% in the third quarter. PNC Financial Services Group Inc. now owns 1,161 shares of the company’s stock worth $53,000 after purchasing an additional 944 shares in the last quarter. Osaic Holdings Inc. boosted its holdings in shares of Leonardo DRS by 17.0% during the second quarter. Osaic Holdings Inc. now owns 2,383 shares of the company’s stock worth $111,000 after purchasing an additional 347 shares during the period. Finally, Focus Partners Wealth acquired a new stake in shares of Leonardo DRS during the third quarter worth approximately $204,000. 18.76% of the stock is owned by institutional investors and hedge funds.

Leonardo DRS Company Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.