Leonardo DRS, Inc. (DRS) Form 10-Q — Oct 29, 2026
Leonardo DRS delivered a standout third quarter with revenue of $1,066 million, up 11.0% year over year, and net earnings of $115 million, up 59.7%, with diluted EPS of $0.43 versus $0.26 a year ago. Operating earnings rose 24.7% to $116 million as gross margin expanded 160 basis points to 24.7%, though the earnings surge was amplified by an unusually low 0.9% effective tax rate driven by discrete tax benefits including reversal of unrecognized tax benefits. Demand indicators were strong: backlog grew 8.2% to $9,381 million and Q3 bookings jumped 25.4% to $1,639 million, led by tactical radar and naval power and propulsion awards.
Key figures
- Eps
- 0.43
- Revenue
- 1066
- Net Income
- 115
- Total Debt
- 175
- Revenue Yoy
- 11.0%
- Total Assets
- 4374
- Cash Position
- 294
- Shares Outstanding
- 266621085
- Backlog
- 9381
- Backlog yoy
- 8.2%
- Q3 bookings
- 1639
- Funded backlog
- 5640
- Q3 2025 revenue
- 960
- Q3 bookings yoy
- 25.4%
- Unfunded backlog
- 3741
- Nine month revenue
- 2825
- Q3 2025 diluted eps
- 0.26
- Gross margin q3 2025
- 23.1%
- Gross margin q3 2026
- 24.7%
- Q3 2025 net earnings
- 72
- Nine month diluted eps
- 0.98
- Nine month revenue yoy
- 9.2%
- Raft acquisition price
- 450
- Nine month net earnings
- 263
- Q3 operating earnings yoy
- 24.7%
- Revolving credit facility
- $500M (undrawn, expires January 2031)
- Effective tax rate q3 2025
- 17.2%
- Effective tax rate q3 2026
- 0.9%
- Q3 2025 operating earnings
- 93
- Q3 2026 operating earnings
- 116
- Dividend per share quarterly
- 0.09
- Remaining performance obligations
- 9381
- Repurchase authorization remaining
- 13
- Us government revenue pct nine months
- 82%
AI analysis
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