Leonardo DRS, Inc. (DRS) saw its shares soar 6.90% during intraday trading on Tuesday, following the release of its fourth-quarter and full-year 2025 financial results.
The defense technology provider reported quarterly revenue of $1.06 billion, surpassing the analyst consensus estimate of $1.003 billion. Adjusted earnings per share came in at $0.42, beating the estimate of $0.37. The company attributed the strong performance to robust demand for its tactical radars, electric power and propulsion systems, and advanced infrared sensing technologies.
Furthermore, Leonardo DRS issued optimistic guidance for 2026, projecting revenue between $3.85 billion and $3.95 billion, compared to the FactSet consensus estimate of $3.82 billion. It also expects adjusted EPS in the range of $1.20 to $1.26, meeting or exceeding the $1.25 estimate. The company's backlog increased 3% year-over-year to $8.7 billion, indicating sustained future demand.
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