10-K · February 27, 2026
Leonardo DRS reported continued top-line growth in 2025 with total revenue of $3,648 million (firm‑fixed price $3,205M; flexibly priced $443M) and funded backlog rising to $4,643 million. The company emphasizes a…
Earnings analysis · 10-Q
DRS earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
Leonardo DRS reported Q1 2026 results with revenues of $846 million, a 5.9% increase year-over-year, and diluted EPS of $0.23, surpassing estimates of $0.20. The company also raised its 2026 revenue guidance to between…
Read full summary
Leonardo DRS reported Q1 2026 results with revenues of $846 million, a 5.9% increase year-over-year, and diluted EPS of $0.23, surpassing estimates of $0.20. The company also raised its 2026 revenue guidance to between $3.90 billion and $3.975 billion, reflecting strong demand across its segments despite challenges in bookings. This quarter showcased a notable improvement in operating earnings and margins, bolstered by contributions from its Advanced Sensing and Computing segment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.23
What stood out
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Revenue Growth
Total revenue reached $846 million, up 5.9% from $799 million in Q1 2025.
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Earnings Beat
Reported EPS of $0.23, beating the consensus estimate of $0.20 by 15%.
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Gross Margin Improvement
Gross margin expanded to 25.1%, a 240 basis point improvement year-over-year.
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Increased Operating Earnings
Operating earnings grew by 30.5% to $77 million compared to $59 million in the prior year.
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Segment Performance
ASC segment revenue increased by 9.4% to $559 million, while IMS segment revenue grew 1.4%.
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Raised Guidance
2026 revenue guidance raised to $3.90 billion - $3.975 billion from $3.85 billion - $3.95 billion.
What to watch
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Free Cash Flow Outflows
Net cash used in operating activities was $66 million, a decrease but still negative.
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Bookings Decline
Total bookings decreased by 10.7% to $885 million from $991 million year-over-year.
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Dependence on U.S. Government Funding
79% of total revenue derived from U.S. government contracts, exposing reliance on federal budgets.
Management's outlook
2026 guidance raised, reflects increasing demand and strong backlog.
Earlier filings 4
10-Q · October 30, 2024
Leonardo DRS reported Q3 (three months ended September 30, 2024) revenue of $812.0M, up $109.0M (+15.5%) versus $703.0M in Q3 2023, with gross profit of $179.0M and operating earnings of $75.0M (operating margin ~9.2%).…
10-Q · July 30, 2024
Leonardo DRS reported Q2 revenue of $753.0M, up $125.0M (≈19.9%) versus $628.0M a year ago, with gross profit rising to $169.0M but gross margin compressing slightly to ~22.4%. Operating earnings improved to $55.0M…
10-Q · May 4, 2023
Leonardo DRS reported Q1 FY2023 revenue of $569.0M, down from $612.0M a year earlier, with GAAP diluted EPS of $0.05 versus $0.17 in Q1 2022. Gross margin improved to ~23.0% while operating earnings fell to $25.0M from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.