Leonardo DRS's second quarter revenue and EPS beat estimates, leading to a raised 2026 profit outlook.

Leonardo DRS reported second quarter revenue of $913 million, up 10% year-over-year and beating estimates of $798.5 million. Diluted EPS of $0.32 grew 60% from the prior year and exceeded the $0.27 analyst consensus.

Key Highlights

• Bookings reached $1.1 billion for the quarter, resulting in a strong book-to-bill ratio of 1.2x.
• Funded backlog grew 17% year-over-year to a record $5.1 billion, indicating sustained customer demand across its portfolio.
• The company raised its full-year 2026 guidance for Adjusted EBITDA to a range of $525-$540 million and for Adjusted Diluted EPS to $1.34-$1.39.