DRS

Leonardo DRS, Inc.

7 filings tracked

industrialsdefense contractingMID ($2B-10B)

Signal Magnitude Chart

bullish

bearish

neutral

Signal Timeline

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

bullishMay 5

Gross margin expanded by 240 basis points to 25.1% due to favorable program mix.

margin expansion

80%

bullishMay 5

Operating earnings grew 30.5% year-over-year to $77 million.

earnings beat

70%

bearishMay 5

Bookings declined 10.7%, with a sharp 35.9% drop in the ASC segment.

guidance cut

60%

bullishMay 5

Repaid $191 million term loan and secured a new $500 million revolving facility.

debt restructure

50%

Filing History

10-QMay 5, 2026

The Q1 2026 filing presents a company at a crossroads, balancing impressive short-term margin gains against deteriorating forward-looking indicators. While the immediate income statement reflects a 'margin miracle' driven by operational leverage and program execution, the decline in new bookings and the high proportion of unfunded backlog suggest a potential slowdown in momentum. The repayment of long-term debt is a positive step for the balance sheet, but the rapid decline in cash reserves warrants investor attention. Ultimately, the investment thesis hinges on whether DRS can stabilize its booking trends in the ASC segment and navigate the inherent risks of its fixed-price contract heavy portfolio. The company's ability to maintain its current trajectory will depend heavily on the FY2027 budget enactment and its success in converting its massive backlog into funded, high-margin revenue streams.