GuruFocus·Jun 25, 2026
AV Appoints William J. Lynn III to Board of DirectorsAeroVironment, Inc. (âAVâ) (NASDAQ: AVAV) today announced the appointment of William J. Lynn III to its Board of Directors, effective June 24, 2026.âBill'
Leonardo DRS, Inc.(DRS)Earnings, Financials & Key Ratios
DRS•NASDAQ
$42.69
41.4× P/E·Price updated Jul 2, 2026
AboutLeonardo DRS, Inc., together with its subsidiaries, provides defense products and technologies in the land, air, sea, space, cyber and security, and commercial domains for military applications. It operates in two segments, Advanced Sensing and Computing, and Integrated Mission Systems. The company offers advanced sensor technologies, including infrared systems and sensors for threat detection and situational awareness; uncooled infrared systems and brownout solutions; airborne, ground vehicle mounted, and dismounted soldier electronic warfare (EW) systems; and EW software and training systems, and intelligence solutions. It also provides computing systems for ground vehicles, ships, and submarines; network and data distribution applications; sensor systems; and networked computing infrastructure on military platform. In addition, the company offers force protection systems, such as solutions for counter-unmanned aerial systems, short-range air defense systems, and active protection systems; and power control, distribution, conversion, and propulsion systems, as well as hybrid electric drive propulsion systems, energy storage, gas turbine packages, nuclear instrumentation and controls, and thermal management and refrigeration equipment. It serves the U.S. military, aerospace and defense prime contractors, government intelligence agencies, and international military customers. The company was founded in 1969 and is based in Arlington, Virginia.Show more
- Revenue$3.65B+12.8%
- EBITDA$441M+14.8%
- Net Income$278M+30.5%
- EPS (Diluted)1.03+28.7%
- Gross Margin23.22%+2.0%
- EBITDA Margin12.09%+1.8%
- Operating Margin9.54%+5.3%
- Net Margin7.62%+15.7%
- ROE10.52%+20.5%
DRS Price & Volume
Leonardo DRS, Inc. (DRS) stock price & volume — 10-year historical chart
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Lumpy Revenue Cycles Mask Underlying Margin Constraints
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Contract-based revenue volatility
Key Thesis Takeaways
- Leonardo DRS exhibits a strengthening balance sheet with a debt-to-equity ratio reduced to 0.05 as of 2026Q1, providing significant flexibility for future operations.
- However, the company faces structural challenges as gross margins hover near 23%, suggesting a product mix heavily weighted toward lower-margin hardware integration.
- Investors should monitor the volatility in cash conversion, where OCF/NI ratios have swung from -9.14 to 6.96, as this inconsistency complicates the valuation of the firm's long-term earnings power.
Verdict Logic
while the balance sheet is robust with $328 million in cash, the current P/E of 41.24 appears elevated given the inconsistent revenue growth and the persistent $2.3 billion deficit in retained earnings.
DRS Growth Metrics
Leonardo DRS, Inc. (DRS) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years5.6%
3 Years10.65%
TTM10.46%
Profit CAGR
10 Years-
5 Years26.74%
3 Years-11.79%
TTM23.93%
EPS CAGR
10 Years-
5 Years12.56%
3 Years-18.17%
TTM24.14%
Return on Capital
10 Years10.55%
5 Years12.91%
3 Years9.71%
Last Year10.78%
DRS Recent Earnings
Leonardo DRS, Inc. (DRS) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
May 5, 2026Metric
Actual
Est
EPS
$0.26+23.8%
$0.21
Rev
$846M+2.5%
$825M
Q1 2026
Feb 24, 2026Metric
Actual
Est
EPS
$0.42+13.5%
$0.37
Rev
$1.1B+6.5%
$995M
Q4 2025
Oct 29, 2025Metric
Actual
Est
EPS
$0.29+3.6%
$0.28
Rev
$960M-3.7%
$996M
Q3 2025
Jul 30, 2025Metric
Actual
Est
EPS
$0.23+4.5%
$0.22
Rev
$829M-8.5%
$906M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 5, 2026 | $0.26vs $0.21+23.8% | $846Mvs $825M+2.5% |
| Q1 2026 | Feb 24, 2026 | $0.42vs $0.37+13.5% | $1.1Bvs $995M+6.5% |
| Q4 2025 | Oct 29, 2025 | $0.29vs $0.28+3.6% | $960Mvs $996M-3.7% |
| Q3 2025 | Jul 30, 2025 | $0.23vs $0.22+4.5% | $829Mvs $906M-8.5% |
Based on last 12 quarters of dataView full earnings history →
Latest DRS News
Recent stock market news and headlines for Leonardo DRS, Inc. (DRS)
Peers Comparison
Key metrics vs top competitors for Leonardo DRS, Inc. (DRS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $42.69 | $11.39B | 41.44 | 12.8% | 7.62% | 10.52% | 0.84% | |
| $123.05 | $7.38B | -189.31 | 9.19% | -1.46% | -0.96% | — | |
| $53.04 | $9.95B | 408.00 | 18.52% | 2.08% | 1.26% | — | |
| $359.70 | $50.11B | 73.41 | 16.26% | 16.08% | 16.23% | — | |
| $757.76 | $27.97B | 58.88 | 12.08% | 14.17% | 19.64% | — | |
| $20.96 | $894.99M | 8.06 | -2.91% | 2.85% | 6.26% | — |
Compare DRS vs Peers
Leonardo DRS, Inc. (DRS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
DRS SEC Filings & Documents
Leonardo DRS, Inc. (DRS) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 5, 2026·SEC
Material company update
Mar 10, 2026·SEC
Material company update
Feb 24, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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DRS Frequently Asked Questions
Leonardo DRS, Inc. (DRS) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Leonardo DRS, Inc.'s revenue?
Leonardo DRS, Inc. (DRS) reported $3.69B in revenue for fiscal year 2025. This represents a 113% increase from $1.74B in 2005.
How fast is Leonardo DRS, Inc. growing?
Leonardo DRS, Inc. (DRS) grew revenue by 12.8% over the past year. This is steady growth.
Is DRS profitable?
Yes, Leonardo DRS, Inc. (DRS) is profitable, generating $290.0M in net income for fiscal year 2025 (7.6% net margin).
Dividend & Returns
Does DRS pay dividends?
Yes, Leonardo DRS, Inc. (DRS) pays a dividend with a yield of 0.84%. This makes it attractive for income-focused investors.
What is DRS's return on equity?
Leonardo DRS, Inc. (DRS) has a return on equity (ROE) of 10.5%. This is reasonable for most industries.
What is Leonardo DRS, Inc.'s free cash flow?
Leonardo DRS, Inc. (DRS) generated $397.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.