Leonardo DRS beats Q3 revenue and profit estimates, ups FY guidance
Overview
US defense technology firm's Q3 revenue rose 11%, beating analyst expectations
Adjusted EPS rose 59%, beating analyst expectations
Company raised 2026 guidance for revenue, adjusted EBITDA and adjusted diluted EPS
Outlook
Company raises 2026 revenue guidance to $3.95 bln-$3.99 bln from $3.9 bln-$3.98 bln
Leonardo DRS lifts 2026 Adjusted EBITDA outlook to $545 mln-$555 mln from $525 mln-$540 mln
Company increases 2026 Adjusted Diluted EPS forecast to $1.50-$1.53 from $1.34-$1.39
Result Drivers
PROGRAM DEMAND - Co said revenue growth was led by tactical radars, naval power and propulsion, and space sensing programs
EXECUTION AND MIX - Co attributed adjusted EBITDA growth and margin expansion to strong program execution, favorable mix and operating leverage
LOWER TAX RATE - Co said lower tax rate contributed to net earnings and EPS growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.07 bln | $1.03 bln (11 Analysts) |
Q3 Adjusted EPS | Beat | $0.46 | $0.35 (11 Analysts) |
Q3 EPS | $0.43 | ||
Q3 Adjusted Net Income | Beat | $124 mln | $93.36 mln (8 Analysts) |
Q3 Net Income | $115 mln | ||
Q3 Adjusted EBITDA | Beat | $149 mln | $139.23 mln (10 Analysts) |
Q3 Adjusted EBITDA Margin | 14.00% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 $54.00, about 52.1% above its October 28 closing price of $35.50
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 31 three months ago
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(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.)