📈 Price History

Ratio Health

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By Category

📊 Peer Medians

About

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding DRS

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	194.0K	$8.6M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management used definitive language like 'sustained momentum', 'double-digit organic revenue growth', and 'increasing full year revenue growth expectations to 9%-11%'. They openly acknowledged headwinds (germanium, R&D investment) but framed them as manageable with specific mitigation plans, avoiding vagueness.

Q3 2025

Confident Specific

Management used phrases like 'continue to perform well,' 'strong bookings, revenue, and profit growth,' and 'solid cash flow generation.' They raised full-year revenue guidance to 10-11% growth, and explicitly highlighted specific program wins (Counter-UAS $250M+ contracts) and a 1.4 book-to-bill ratio.

Q4 2025

Confident Specific

Management repeatedly used phrases like 'record bookings', 'robust organic revenue growth of 13%', 'strong year', and 'exceeded our expectations'. They provided specific guidance figures for 2026 and acknowledged challenges (germanium, legacy program) but framed them as contained and isolated. The tone was forward-looking and assured, with new CEO emphasizing continuity and acceleration.

Q1 2026 latest

Confident Specific

Management uses phrases like 'strong quarterly results', 'excellent start', 'outperformance', and 'confidence to raise' full-year guidance, supported by specific metrics (revenue up 6%, EBITDA up 28%, EPS up 30%). The tone is assertive and data-driven.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears strengthened after this call. Q1 delivered significant outperformance, record backlog, and raised guidance, indicating strong execution and demand. The company is well-aligned with core U.S. defense priorities (radars, missiles, counter-UAS, shipbuilding, space) and is investing in capacity to capture multi-year growth. Margins expanded due to favorable mix, operational leverage, and raw material tailwinds (germanium). Key watch items: continued order flow in ASC segment, execution on Columbia-class, and capital deployment for M&A. Overall, the call reinforces DRS as a high-quality defense growth story with improving profitability.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Leonardo DRS Q1 2026: Revenue $846M, adjusted EBITDA up 28% YoY

Revenue & Profitability

Q1 2026 revenue was $846 million, up 6% year-over-year. Adjusted EBITDA was $105 million, a 28% increase, with margin of 12.4% (up 210 bps). Net earnings were $62 million, diluted EPS $0.23; adjusted diluted EPS $0.26 (up 30%). Full-year 2026 guidance raised: revenue $3.9B–$3.975B, adjusted EBITDA $515M–$530M, adjusted EPS $1.26–$1.30. Q2 2026 expected revenue ~$900M, mid-12% adjusted EBITDA margin.

Outlook

Management sees an elevated global threat environment with limited near-term easing, driving enduring demand for defense capabilities. The fiscal year 2027 budget request proposes $1.5 trillion in defense spending, with priorities aligned to DRS strengths: shipbuilding, air and missile defense, counter-UAS, unmanned systems, and space. The administration's reconciliation package is expected to accelerate procurement. Congress will negotiate final funding, but the prioritization supports DRS.

Growth Drivers

Growth is driven by strong demand across multiple domains: tactical radars (global demand), DAIRCM (aircraft survivability), Columbia-class electric propulsion, counter-UAS, space sensing (SDA Tracking Layer Tranche 3), and missile seekers. The company is also expanding into unmanned surface vessels and ground vehicles with integrated counter-UAS solutions. Funded backlog reached new company records, providing multi-year visibility.

Balance Sheet & CapEx

CapEx in Q1 was light due to timing but is expected to ramp during the year to approximately 5% of sales, consistent with prior guidance. The company is investing in production capacity, especially for tactical radars, and in R&D for next-generation technologies. Free cash flow conversion is targeted at ~75% of adjusted net earnings for 2026, with increased working capital investment to fund growth.

Margins

Q1 adjusted EBITDA margin expanded 210 bps year-over-year to 12.4%, driven by favorable mix (higher tactical radar and infrared sensing volume), operational leverage from higher revenue, and better raw material pricing (germanium). IMS margins improved 90 bps on strong Columbia-class execution, and ASC margins improved 290 bps. For full year 2026, margin improvement is expected to come from IMS segment. Q2 margin expected mid-12%.

Key Risks

Management noted that the timing and level of material receipts, pace of program execution, and capture/book-to-bill of new awards are primary drivers of revenue variability. The global threat environment is elevated, but no specific risks were flagged in Q&A. The company operates on a 'wartime footing' but saw no material disruption from employee reserve duty in Israel.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-30

Q2 2026 saw 10% organic revenue growth, 33% adjusted EBITDA growth, and a book-to-bill of 1.2, with strong performance across both IMS and ASC segments. The $450M Raft acquisition expands AI and software capabilities, and full-year profit guidance was raised on robust demand and record backlog.

Q1 2026 Q1 2026 2026-05-05

Strong Q1 2026 results featured 6% revenue growth and 28% adjusted EBITDA growth, prompting raised full-year guidance. Robust demand, record backlog, and operational execution support continued investment in innovation and capacity.

Q4 2025 Q4 2025 2026-02-24

Delivered record bookings, 13% organic revenue growth, and 19% free cash flow growth in 2025, with strong demand across tactical radars, infrared sensing, and naval power. 2026 guidance calls for 6–8% revenue growth and margin expansion, supported by robust backlog and increased investment in capacity and innovation.

Q3 2025 Q3 2025 2025-10-29

Q3 delivered robust revenue and profit growth, record backlog, and strong bookings, especially in Counter-UAS and electric power/propulsion. Guidance was raised for 2025, with continued investment in R&D and strategic M&A. CEO transition and supply chain actions were also highlighted.

Q2 2025 Q2 2025 2025-07-30

Q2 delivered double-digit revenue and profit growth, with strong bookings and backlog supporting raised full-year guidance. Margin expansion was driven by electric power and propulsion, while germanium supply issues and higher R&D spending present near-term headwinds.

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