Defense tech provider Leonardo DRS Q1 revenue beats estimates, lifts outlook

Leonardo DRS

05/05/2026 12:44

Overview

U.S. defense technology provider's Q1 revenue rose 6% yr/yr, beating analyst expectations

Adjusted EPS for Q1 increased 30% yr/yr and beat analyst expectations

Company raised 2026 guidance across key metrics

Outlook

Leonardo DRS raises 2026 revenue guidance to $3.9 bln-$3.975 bln from $3.85 bln-$3.95 bln

Company lifts 2026 adjusted EBITDA forecast to $515 mln-$530 mln from $505 mln-$525 mln

Leonardo DRS now sees 2026 adjusted diluted EPS at $1.26-$1.30, up from $1.20-$1.26

Result Drivers

PROGRAM MOMENTUM - Revenue growth driven by increases in tactical radars, infrared sensing, and electric power and propulsion programs

STRONG EXECUTION - Adjusted EBITDA and profitability gains attributed to strong program execution and operating leverage, including Columbia Class

WORKING CAPITAL EFFICIENCY - Improved working capital efficiency contributed to narrower operating and free cash outflows

Company press release: ID:nBw5DbCmfa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$846 mln
$825.05 mln (8 Analysts)
Q1 Adjusted EPS
Beat
$0.26
$0.20 (10 Analysts)
Q1 EPS
$0.23
Q1 Adjusted Net Income
Beat
$69 mln
$55.52 mln (6 Analysts)
Q1 Net Income
$62 mln
Q1 Adjusted EBITDA
Beat
$105 mln
$92.40 mln (7 Analysts)
Q1 Adjusted EBITDA Margin
12.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Leonardo DRS Inc is $52.00, about 30% above its May 4 closing price of $40.00

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)