Leonardo DRS Q4 profit beats estimates on demand for radars, electric power, propulsion

Leonardo DRS

24/02/2026 12:39

Overview

Defense technology provider's Q4 revenue rose 8% yr/yr, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company's backlog increased 3% from prior year to $8.7 bln

Outlook

Leonardo DRS projects 2026 revenue between $3.85 bln and $3.95 bln

Company expects 2026 adjusted EBITDA between $505 mln and $525 mln

Leonardo DRS anticipates 2026 adjusted EPS of $1.20 to $1.26

Result Drivers

HIGH DEMAND - Strong demand for tactical radars, electric power and propulsion, and advanced infrared sensing technologies drove Q4 revenue growth

NON-ROUTINE IMPACT - Quantum laser IP license agreement contributed positively to Q4 revenue and Adjusted EBITDA

PROGRAM CONCLUSION - Conclusion of legacy foreign ground surveillance program negatively impacted IMS segment revenue and Adjusted EBITDA

Company press release: ID:nBw4M4wyja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.06 bln
$1.003 bln (9 Analysts)
Q4 Adjusted EPS
Beat
$0.42
$0.37 (10 Analysts)
Q4 EPS
$0.38
Q4 Adjusted Net Income
Beat
$114 mln
$100.02 mln (5 Analysts)
Q4 Net Income
$102 mln
Q4 Adjusted EBITDA
Beat
$158 mln
$146.95 mln (8 Analysts)
Q4 Adjusted EBITDA Margin
14.90%


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 $50.00, about 31.1% above its February 23 closing price of $38.14

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

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.)