DRS · Leonardo DRS, Inc.

Leonardo DRS delivered a strong first quarter 2026, with revenue growth of 6% year-over-year to $846 million, driven by tactical radars, infrared sensing, and electric power and propulsion programs. Net earnings rose 24% to $62 million, and diluted EPS increased 21% to $0.23, supported by higher operational profitability and lower net interest expense. Adjusted EBITDA grew 28% to $105 million, with margin expanding 210 basis points to 12.4%, reflecting disciplined program execution—particularly on the Columbia Class program—and operating leverage from higher volume. Segment performance diverged: ASC posted 9% revenue growth and 60% operating earnings growth, while IMS saw modest 1% revenue growth but robust 1.5x book-to-bill and strong bookings in electric power and propulsion. Bookings declined year-over-year to $885 million (from $991 million), resulting in a 1.0x book-to-bill ratio versus 1.2x in Q1 2025, though funded backlog hit a record $4.7 billion (+8% YoY). Management cited 'disciplined execution, program momentum and sustained demand' as key drivers and raised full-year 2026 guidance across revenue, Adjusted EBITDA, and Adjusted Diluted EPS—signaling confidence in continued execution and demand resilience. The company maintained financial flexibility with $328 million in cash and no borrowings under its credit facility, while returning capital via a $0.09 dividend and $4 million in share repurchases. Forward-looking statements in the release caution that actual results may differ materially due to risks including U.S. government funding volatility, supply chain constraints, and cybersecurity threats.