DRS Leonardo DRS, Inc.
Price Chart
Executive Summary
Leonardo DRS reported Q1 2026 results that meaningfully exceeded expectations, with revenue of $846M (+6% YoY) and GAAP diluted EPS of $0.23 (+21% YoY). The company raised its full-year 2026 guidance across revenue, Adjusted EBITDA, and Adjusted Diluted EPS, signaling accelerating operational momentum and strong defense demand.
Key Financial Metrics
Actionable Insight
The raised guidance and record backlog support continued upward momentum. Monitor the ASC segment's book-to-bill ratio (0.8x this quarter vs 1.3x last year) for potential normalization in bookings. The strong balance sheet with zero borrowings provides flexibility for M&A or accelerated buybacks.
Key Facts
- Q1 2026 revenue $846M, up 6% YoY from $799M
- GAAP diluted EPS $0.23, up 21% YoY from $0.19
- Adjusted diluted EPS $0.26, up 30% YoY from $0.20
- Adjusted EBITDA $105M, up 28% YoY from $82M; margin expanded 210bps to 12.4%
- Raised FY2026 guidance: revenue to $3.9B-$3.975B (from $3.85B-$3.95B), Adj. EBITDA to $515M-$530M (from $505M-$525M), Adj. diluted EPS to $1.26-$1.30 (from $1.20-$1.26)
- Funded backlog reached record $4.7B, up 8% YoY
- Operating cash outflow improved to -$66M from -$138M in prior year Q1
- ASC segment revenue +9% YoY; IMS segment revenue +1% YoY with strong bookings (book-to-bill 1.5x)
- No outstanding borrowings on credit facility; cash $328M
Financial Impact
Revenue beat consensus by ~$21M (2.6%); GAAP EPS $0.23 vs consensus $0.20 (15% beat); guidance raised across all key metrics
Risk Factors
- ASC segment book-to-bill declined to 0.8x from 1.3x, signaling potential demand lumpiness
- Operating cash flow remains negative (-$66M) though improved YoY
- Free cash flow was -$95M, driven by working capital build
- Defense spending dependent on U.S. government budget appropriations
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001833756-26-000023 |
| Document: drs-20260505.htm | 0001833756-26-000023 |
| Document: 0001833756-26-000023-index-headers.html | 0001833756-26-000023 |
| Document: 0001833756-26-000023-index.html | 0001833756-26-000023 |
| Document: 0001833756-26-000023.txt | 0001833756-26-000023 |
| 8-K Data (Synthetic) | 0001833756-26-000023 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 9, 2026
today
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Insider Cluster
| $47.37 awaiting T+20 | awaiting T+20 | — | $46.55 (−1.73%) |
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May 5, 2026
5w ago
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8-K
| $39.70 $47.39 | ▲ +19.37% | ▲ +14.42% | $46.55 (+17.25%) |
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Apr 3, 2026
9w ago
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DEFA14A
| $46.73 $40.00 | ▼ −14.40% | ▼ −23.38% | $46.55 (−0.39%) |
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Apr 2, 2026
9w ago
|
144
| $46.30 $40.63 | ▼ −12.25% | ▼ −22.12% | $46.55 (+0.54%) |
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Apr 1, 2026
9w ago
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3
| $46.30 $40.63 | ▼ −12.25% | ▼ −22.12% | $46.55 (+0.54%) |
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Mar 16, 2026
12w ago
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Insider Cluster
| $45.30 $47.54 | ▼ −4.94% | ▼ −1.17% | $46.55 (−2.76%) |
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Mar 3, 2026
14w ago
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Insider Cluster
| $45.42 $44.52 | ▼ −1.99% | ▲ +2.41% | $46.55 (+2.48%) |
US Market Status
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