Leonardo DRS reported higher revenue and earnings for the third quarter, alongside bookings that exceeded sales and a record funded backlog. The defense technology company also raised its 2026 outlook for revenue, adjusted EBITDA and adjusted diluted earnings per share, and declared a quarterly cash dividend.
- Revenue was $1.1 billion, up 11% from the third quarter of 2025.
- Net earnings rose 60% to $115 million. Adjusted EBITDA increased 27% to $149 million.
- Diluted earnings per share were $0.43, up 65% year over year; adjusted diluted EPS was $0.46, up 59%.
- Bookings totaled $1.6 billion, equal to a book-to-bill ratio of 1.5. That means the company booked more work during the quarter than it recognized as revenue.
- Funded backlog reached a record $5.6 billion, 21% higher than a year earlier.
- The company raised its 2026 guidance for revenue, adjusted EBITDA and adjusted diluted EPS. The reported materials do not provide the revised targets.
- Leonardo DRS declared a $0.09-per-share cash dividend, payable November 25, 2026.
- Management was scheduled to discuss the results on an earnings call at 10 a.m. Eastern on October 29, with a live audio broadcast and supplemental presentation available through the company’s investor-relations website.
The combination of bookings above revenue and a growing funded backlog indicates that Leonardo DRS ended the quarter with more contracted work in hand than it converted into sales during the period. The higher outlook reflects the company’s improved expectations for 2026.