Leonardo DRS Q2 revenue beats on higher tactical radars demand

Leonardo DRS

30/07/2026 12:54

Overview
U.S. defense tech firm's Q2 revenue rose 10% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose 52% and beat analyst expectations
Company announced $450 mln Raft acquisition to expand AI and mission software

Outlook
Leonardo DRS raises 2026 Adjusted EBITDA guidance to $525 mln-$540 mln from $515 mln-$530 mln
Company lifts 2026 Adjusted Diluted EPS guidance to $1.34-$1.39 from $1.26-$1.30
Leonardo DRS maintains 2026 revenue guidance at $3.9 bln-$3.975 bln

Result Drivers
PROGRAM DEMAND - Co said Q2 revenue growth was led by tactical radars, electric power and propulsion, infrared sensing and force protection programs
EXECUTION AND MIX - Disciplined program execution, favorable mix and leverage from increased volume fueled robust Adjusted EBITDA growth and margin expansion
LOWER EXPENSES - Lower net interest expense and a lower tax rate supported yr/yr growth in net earnings and adjusted EPS

Company press release: ID:nGNXbR1YC3

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$913 mln
$902.14 mln (8 Analysts)
Q2 Adjusted EPS
Beat
$0.35
$0.27 (9 Analysts)
Q2 EPS
 
$0.32
 
Q2 Adjusted Net Income
Beat
$94 mln
$72.10 mln (6 Analysts)
Q2 Net Income
 
$86 mln
 
Q2 Adjusted EBITDA
Beat
$128 mln
$112.57 mln (7 Analysts)
Q2 Adjusted EBITDA Margin
 
14.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $54.50, about 17.1% above its July 29 closing price of $46.54

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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.)