Leonardo DRS delivered strong third quarter 2026 results, exceeding analyst expectations for both revenue and profitability. The company achieved record bookings of $1.6 billion and expanded its funded backlog to an all-time high, providing significant visibility into 2027. Operating performance was bolstered by favorable program mix and volume leverage within the Integrated Mission Systems segment.
Key Highlights
- Record funded backlog reached $5.6 billion, a 21% increase year-over-year, driven by demand for tactical radars and naval propulsion.
- Quarterly bookings of $1.6 billion yielded a 1.5x book-to-bill ratio, the strongest since the company's public debut.
- Full-year 2026 guidance was raised across all major metrics, with adjusted diluted EPS now expected between $1.50 and $1.53.
- Adjusted EBITDA margin expanded to 14.0%, up 180 basis points from the prior year period.