# Leonardo DRS raises 2026 outlook as defense backlog and margins strengthen

> Third-quarter revenue rose 11% year over year, while adjusted EBITDA grew 27%; the company also reported a record funded backlog and higher full-year guidance.

Source page: https://stoqly.net/news/leonardo-drs-q3-2026-guidance

- **Published:** 2026-11-01T07:45:00+00:00
- **Section:** Quarterly results
- **Company:** Leonardo DRS, Inc. (DRS), https://stoqly.net/companies/drs.md

Leonardo DRS reported third-quarter 2026 revenue of $1.066 billion, up 11% from $960 million a year earlier. Net earnings rose to $115 million from $72 million, and diluted earnings per share increased to $0.43 from $0.26.

The operating improvement was visible in margins: operating earnings increased to $116 million from $93 million. Adjusted EBITDA reached $149 million, according to the company’s results release, while third-quarter bookings were approximately $1.6 billion and book-to-bill was 1.5 times.

Leonardo DRS raised its 2026 outlook to revenue of $3.950 billion–$3.985 billion, adjusted EBITDA of $545 million–$555 million and adjusted diluted EPS of $1.50–$1.53. The revised ranges were previously $3.900 billion–$3.975 billion, $525 million–$540 million and $1.34–$1.39, respectively. The guidance excludes the proposed acquisition of Raft.

Cash generation remains an important qualification. For the nine months ended September 30, operating cash flow was $65 million, compared with an operating cash outflow of $59 million in the prior-year period. Capital expenditure was $97 million, while cash and equivalents ended the period at $294 million versus $647 million at year-end 2025, after financing outflows and debt repayments.

**Why it matters** Higher guidance and a record funded backlog improve visibility for a defense-electronics business, but the cash balance decline and dependence on government programs remain relevant execution and funding considerations.

- Q3 revenue: $1.066B +11% year over year
- Net earnings: $115M +60% year over year
- Adjusted EBITDA: $149M +27% year over year
- Funded backlog: $5.6B record level

- [Leonardo DRS Form 10-Q for quarter ended September 30, 2026](https://www.sec.gov/Archives/edgar/data/1833756/000183375626000044/drs-20260930.htm)
- [Leonardo DRS Q3 2026 results release](https://investors.leonardodrs.com/news-releases/news-release-details/leonardo-drs-announces-financial-results-third-quarter-2026)
- [Leonardo DRS earnings consensus comparison](https://www.benzinga.com/quote/DRS/earnings-forecasts)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.