How did Leonardo DRS (NASDAQ:DRS) perform in Q1 2026?

Leonardo DRS reported Q1 2026 revenue of $846 million, a 6% year-over-year increase. Net earnings for the quarter rose 24% to $62 million, or $0.23 per diluted share. On an adjusted basis, diluted earnings per share (EPS) increased by 30% to $0.26, and adjusted EBITDA climbed 28% to $105 million, driven by operational efficiencies and a favorable program mix.

How did Leonardo DRS manage its profitability in Q1 2026?

Leonardo DRS experienced strong profitability in Q1 2026, with net earnings rising 24% to $62 million. Adjusted earnings per share (EPS) increased 30% to $0.26, reflecting the company’s operational efficiencies and favorable program mix. Adjusted EBITDA grew 28% to $105 million, showing the company’s ability to drive higher margins amid increasing demand for its products.

What is the significance of Leonardo DRS's book-to-bill ratio?

Leonardo DRS reported a healthy book-to-bill ratio of 1.0x for Q1 2026, with $885 million in new bookings. This ratio is a key indicator of future growth and suggests that the company is seeing strong demand for its products, with new contracts and orders providing clear visibility into its future revenue and backlog.

What is Leonardo DRS’s backlog and how does it impact future growth?

Leonardo DRS’s funded backlog reached $4.7 billion in Q1 2026, an 8% year-over-year increase. The strong backlog, driven by high-priority defense programs, provides the company with clear visibility into the remainder of 2026 and reflects a strong pipeline of work that supports future growth and revenue generation.

Defence

Image for illustrative purposes only. Not a real photo.

Leonardo DRS raises forecast as defense backlog hits record $4.7B

Written by Liezl GambePublished May 5, 2026, 12:00 AMLast Updated Jul 6, 2026, 10:28 AM

Leonardo DRS (NASDAQ:DRS) raised its financial outlook for the year as the defense contractor capitalizes on a record $4.7 billion backlog and surging demand for advanced sensing and electric power systems.

The Arlington, Virginia-based company reported first-quarter revenue of $846 million, a 6% increase compared to the same period last year.

The growth was primarily driven by high-priority defense programs, including tactical radars, infrared sensing, and electric propulsion technologies for the U.S. Navy.

Net earnings for the quarter rose 24% to $62 million, or $0.23 per diluted share.

On an adjusted basis, which excludes certain one-time items, diluted earnings per share jumped 30% to $0.26.

Adjusted EBITDA also saw significant momentum, climbing 28% to $105 million as margins expanded behind operational efficiencies and a favorable program mix.

The company’s "book-to-bill" ratio—a key indicator of future growth—remained healthy at 1.0x, with $885 million in new bookings during the quarter.

This activity pushed the company’s funded backlog to $4.7 billion, an 8% increase year-over-year, providing what management described as "clear visibility" into the remainder of 2026.

Leonardo DRS now expects full-year 2026 revenue to range between $3.9 billion and $3.975 billion, up from its previous forecast.

The company also increased its adjusted EBITDA guidance to a range of $515 million to $530 million.