Leonardo DRS (NASDAQ:DRS) Issues FY 2026 Earnings Guidance

Leonardo DRS (NASDAQ:DRS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.260-1.300 for the period, compared to the consensus EPS estimate of 1.260. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $3.9 billion.

Leonardo DRS Stock Down 0.1%

Shares of NASDAQ:DRS opened at $40.00 on Tuesday. The firm has a fifty day moving average price of $44.57 and a two-hundred day moving average price of $39.76. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.89 and a quick ratio of 1.60. Leonardo DRS has a one year low of $32.43 and a one year high of $49.31. The company has a market cap of $10.64 billion, a price-to-earnings ratio of 38.84, a PEG ratio of 2.97 and a beta of 0.29.

Leonardo DRS (NASDAQ:DRS) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.21 by $0.05. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.68%. During the same period in the prior year, the business posted $0.20 earnings per share. The business’s revenue was up 5.9% compared to the same quarter last year. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. Analysts anticipate that Leonardo DRS will post 1.26 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, March 10th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, March 10th. Leonardo DRS’s dividend payout ratio (DPR) is presently 34.95%.

Analysts Set New Price Targets

DRS has been the subject of several analyst reports. Bank of America raised their price target on shares of Leonardo DRS from $50.00 to $55.00 and gave the company a “buy” rating in a report on Wednesday, March 25th. Morgan Stanley set a $47.00 price target on shares of Leonardo DRS in a report on Wednesday, February 25th. Wall Street Zen downgraded shares of Leonardo DRS from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings upgraded shares of Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, March 20th. Finally, Truist Financial upgraded shares of Leonardo DRS to a “strong-buy” rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $51.33.

Insider Activity

In other news, SVP Pamela Morrow sold 12,000 shares of the firm’s stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $45.20, for a total transaction of $542,400.00. Following the sale, the senior vice president owned 6,494 shares in the company, valued at approximately $293,528.80. This trade represents a 64.89% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Michael Dippold sold 7,071 shares of the firm’s stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $45.38, for a total transaction of $320,881.98. Following the sale, the chief financial officer owned 63,778 shares in the company, valued at approximately $2,894,245.64. This trade represents a 9.98% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 64,361 shares of company stock worth $2,944,837. 0.25% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Leonardo DRS

Large investors have recently added to or reduced their stakes in the business. Meeder Asset Management Inc. purchased a new position in Leonardo DRS in the 4th quarter worth $261,000. Integrated Wealth Concepts LLC increased its position in shares of Leonardo DRS by 28.7% in the third quarter. Integrated Wealth Concepts LLC now owns 5,679 shares of the company’s stock valued at $258,000 after acquiring an additional 1,267 shares during the period. Polymer Capital Management US LLC purchased a new position in shares of Leonardo DRS in the third quarter valued at about $252,000. Schroder Investment Management Group purchased a new position in shares of Leonardo DRS in the fourth quarter valued at about $249,000. Finally, Cibc World Market Inc. increased its position in shares of Leonardo DRS by 6.3% in the fourth quarter. Cibc World Market Inc. now owns 7,128 shares of the company’s stock valued at $243,000 after acquiring an additional 425 shares during the period. Hedge funds and other institutional investors own 18.76% of the company’s stock.

About Leonardo DRS

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.