Leonardo DRS beats Q3 revenue and profit estimates, ups FY guidance

Leonardo DRS

29/10/2026 11:39

Overview
US defense technology firm's Q3 revenue rose 11%, beating analyst expectations
Adjusted EPS rose 59%, beating analyst expectations
Company raised 2026 guidance for revenue, adjusted EBITDA and adjusted diluted EPS

Outlook
Company raises 2026 revenue guidance to $3.95 bln-$3.99 bln from $3.9 bln-$3.98 bln
Leonardo DRS lifts 2026 Adjusted EBITDA outlook to $545 mln-$555 mln from $525 mln-$540 mln
Company increases 2026 Adjusted Diluted EPS forecast to $1.50-$1.53 from $1.34-$1.39

Result Drivers
PROGRAM DEMAND - Co said revenue growth was led by tactical radars, naval power and propulsion, and space sensing programs
EXECUTION AND MIX - Co attributed adjusted EBITDA growth and margin expansion to strong program execution, favorable mix and operating leverage
LOWER TAX RATE - Co said lower tax rate contributed to net earnings and EPS growth

Company press release: ID:nGNX57kBGZ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.07 bln
$1.03 bln (11 Analysts)
Q3 Adjusted EPS
Beat
$0.46
$0.35 (11 Analysts)
Q3 EPS
 
$0.43
 
Q3 Adjusted Net Income
Beat
$124 mln
$93.36 mln (8 Analysts)
Q3 Net Income
 
$115 mln
 
Q3 Adjusted EBITDA
Beat
$149 mln
$139.23 mln (10 Analysts)
Q3 Adjusted EBITDA Margin
 
14.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 $54.00, about 52.1% above its October 28 closing price of $35.50
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads
Oct 29 - L3Harris beats Q3 revenue estimates, raises FY guidance range
Oct 29 - Huntington Ingalls Q3 revenue beats on shipbuilding volumes
Oct 29 - Kongsberg Q3 orders jump on strong missile, air defence demand

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.)