NASDAQ$DRS

Leonardo Drs Inc · Q4 2025 earnings

Q4 2025 earnings · · Before market open · Investor relations

Briefing

Leonardo DRS reported Q4 2025 revenue of $1.06B, net earnings of $102M, and adjusted diluted EPS of $0.42.

Fourth-quarter revenue grew 8% to $1.06 billion; net earnings rose 15% to $102 million. Adjusted diluted EPS was $0.42. Full-year bookings were $4.2 billion (1.2x book-to-bill) and backlog reached $8.7 billion. 2026 guidance calls for revenue of $3.85–3.95 billion and adjusted EPS of $1.20–1.26.

  • Q4 revenue $1.06B (+8%); net earnings $102M (+15%).
  • Adjusted diluted EPS $0.42; Q4 free cash flow $376M.
  • Backlog $8.7B; full-year book-to-bill 1.2x.
  • 2026 revenue guide $3.85B–$3.95B.

Headline financials

Total Revenue

$1.06B

Previous: $981M+8.1%
EPS (adj)

$0.42

Previous: $0.38+10.5%
Free Cash Flow

$376M

No prior period
Net Income

$102M

Previous: $89M+14.6%
Operating Income

$126M

Previous: $120M+5.0%
Gross Profit

$269M

Previous: $235M+14.5%

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$1.06B

Q4 2025+8.1%vs Q4 2024
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Leonardo DRS · $708M total across 2 segments · Q3 2023

  • Advanced Sensing & Computing
    $431M+5.6%
  • Integrated Mission Systems
    $277M+21.0%

Forward guidance

2026 revenue $3.85B–$3.95B; adjusted EBITDA $505M–$525M; adjusted diluted EPS $1.20–$1.26.

Tailwinds

  • Backlog $8.7B with 1.2x book-to-bill for full year 2025.
  • Defense demand for radars, power, and sensing.
  • Dividend $0.09/share and share repurchases.

Headwinds

  • Adjusted EBITDA margin pressure from mix and input costs.
  • Non-routine quantum license and legacy program impacts in 2025.
  • Defense budget and program execution risk.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

+0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

52%

13 / 25 earnings

Positive

+12.4%

Q4 2025

Best reaction

-13.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%+3.3%+16.7%
Q4 2025+12.4%+13.8%+22.0%
Q3 2025-4.3%-8.9%-15.0%
Q1 2025+8.8%+12.1%+14.4%
Q4 2024+5.6%-0.7%+11.7%
Q3 2024+5.9%+11.0%+22.4%
Q2 2024+0.0%-6.0%+0.3%
Q1 2024-2.5%+0.1%+9.4%
Q4 2023+6.7%-4.0%-10.4%
Q3 2023+2.8%+1.3%-2.8%
Q2 2023+1.5%+5.3%+5.9%
Q1 2023+2.4%+5.2%+3.4%
Q4 2022-5.1%+0.9%+16.7%
Q3 2022-4.6%-10.6%-1.8%
Q2 2022-1.1%-5.3%-6.3%
Q1 2022+0.0%-0.4%+4.4%
Q4 2021-13.8%-14.1%-8.0%
Q4 2019-13.8%-14.1%-8.0%
Q3 2020+2.3%-0.4%-8.9%
Q3 2021+2.3%-0.4%-8.9%
Q2 2021-3.1%-0.5%-5.5%
Q2 2020-3.1%-0.5%-5.5%
Q4 2020+3.2%+4.5%+0.7%
Q1 2020+3.2%+4.5%+0.7%
Q1 2021+3.2%+4.5%+0.7%

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