Leonardo DRS Reports Strong Q2 Earnings Growth Amid Strategic Expansion
Leonardo DRS (DRS) reported strong second-quarter results for fiscal 2026, with revenue reaching $913 million—a 10% year-over-year increase—driven by growth in tactical radars, electric propulsion, and force protection programs. Adjusted EBITDA rose to $128 million, a 33% improvement from the prior year, while adjusted diluted EPS climbed 52%. The company also exceeded $1 billion in bookings for the quarter with a book-to-bill ratio of 1.2x. Leonardo DRS raised its full-year guidance across key metrics: revenue is now expected between $3.9 billion and $3.975 billion, adjusted EBITDA has been increased to $525 million–$540 million, and adjusted diluted EPS forecasts have risen to $1.34–$1.39 per share from a previous range of $1.26–$1.30. The company also announced the acquisition of Raft LLC for $450 million in cash to enhance its AI and mission software capabilities. Notable contract wins include a $533 million IDIQ order for infrared countermeasure systems, orders related to naval propulsion platforms like the Columbia class submarine, and a high-volume production deal with a major drone manufacturer. The company expects continued strong performance into Q3 2026.
Tickers: $DRS
Topics: acquisition backlog book-to-bill ratio ebitda eps revenue