Leonardo DRS beats third-quarter estimates and raises 2026 revenue and earnings outlook
Revenue of $1.07 billion came in above the $1.04 billion expected.
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Chart: DRS, one-minute prices, three sessions
Leonardo DRS reported third-quarter earnings per share (EPS) of $0.46, which was $0.11 better than expected. Revenue was $1.07 billion, against $1.04 billion expected.
John Baylouny, the company's president and chief executive, said record bookings and backlog, along with better visibility into the fourth quarter, gave the company confidence to raise and narrow its full-year outlook.
For 2026, the company now expects revenue of $3,950 million to $3,985 million. That is up from a prior range of $3,900 million to $3,975 million. It expects adjusted diluted EPS of $1.50 to $1.53, up from a prior range of $1.34 to $1.39.
The company also declared a cash dividend of $0.09 per share. It is payable on November 25, 2026, to stockholders of record on November 12, 2026.
The change to guidance matters more than the earnings beat. The company raised the low end of both its revenue and adjusted EPS ranges and narrowed them. The adjusted EPS floor rose from $1.34 to $1.50. Management credited record bookings, backlog and better visibility into the fourth quarter. That suggests the raise leans on work already booked. Narrower ranges leave less room for a late-year shortfall to go unnoticed, so fourth-quarter results will test whether the higher floors hold.
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