Leonardo DRS Announces Financial Results for First Quarter 2026

About this update from Leonardo Drs, Inc.

ARLINGTON, Va., May 05, 2026--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the first quarter 2026, which ended March 31, 2026. CEO Commentary "Leonardo DRS delivered a strong start to the year. Our first quarter 2026 results meaningfully outperformed expectations thanks to disciplined execution, program momentum and sustained demand for our differentiated technologies. We expanded profitability, while simultaneously increasing investment in innovation and expanding capacity to support the critical missions of our customers. We are encouraged by the performance in the first quarter but remain focused on delivering differentiated capabilities to our customers to generate consistent, profitable growth and long-term value for our stockholders," said John Baylouny, President and CEO of Leonardo DRS. First quarter 2026 revenue growth was 6% year-over-year, reflecting increases on programs supporting tactical radars, infrared sensing and electric power and propulsion. Adjusted EBITDA grew 28% over the prior year and was accompanied by meaningful margin expansion. Increased Adjusted EBITDA profitability was driven by strong program execution across the portfolio, including Columbia Class, and also reflected operating leverage on higher volume. First quarter net earnings, Adjusted Net Earnings, diluted EPS and Adjusted Diluted EPS were all higher year-over-year, driven primarily by higher operational profitability and lower net interest expense. Cash Flow Net cash flow used in operating activities was $66 million for the first quarter. The company’s free cash outflow was $95 million in the quarter. Both operating and free cash outflows narrowed compared to first quarter 2025 driven by higher profitability and better working capital efficiency. Dividends and Stock Repurchases During the first quarter, the company paid dividends to stockholders totaling approximately $24 million or $0.09 per share of common stock. Leonardo DRS today announced that its Board of Directors declared a cash dividend of $0.09 per share of common stock payable on June 2, 2026, to stockholders of record on May 19, 2026. Additionally, the company repurchased 91,238 shares of its common stock for approximately $4 million in the first quarter, pursuant to a previously announced stock repur...

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