| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 31.3x | 17.6x | Bottom tier | |
Growth | 70 | 10.5% | 7.1% | Top tier | |
Quality | 59 | 10.9% | 4.5% | Around median | |
Safety | 86 | — | 2.6x | Top tier | |
Capital Return | 45 | — | 2.15% | Around median | |
Momentum | 37 | 8.9% | 2.3% | Bottom tier | |
Sentiment | 44 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Leonardo DRS operates in the defense technology and national security market, generating revenue by supplying sensing, computing, communications, and protection solutions, along with naval power and propulsion systems. Its business drivers include tactical radars, infrared sensing, counter-unmanned aircraft systems, aircraft protection, naval computing, and components for platforms such as THAAD, Columbia, Virginia, DDG-51, and LPD. Its strategy is based on providing modular, platform-agnostic components and systems, then gradually advancing toward integrated solutions that combine hardware and software.
In Q2 of fiscal year 2026, revenue reached $913 million, an annual increase of 10%, while gross profit was $237 million, equivalent to a gross margin of approximately 26.0%. Net income was $86 million, up 59%, and diluted earnings per share was $0.32, up 60%. Adjusted earnings before interest, taxes, depreciation, and amortization also rose 33% to $128 million, while its margin expanded by 240 basis points to 14%.
The IMS segment led revenue growth in Q2 of fiscal year 2026 with a 15% increase, supported by execution and business volume in naval propulsion and protection programs, while the ASC segment grew 8% due to tactical radars and infrared sensing. For the twelve months ended in 2026, the company recorded revenue of $3.8 billion, gross profit of $940 million, and net income of $322 million, compared with revenue of $3.6 billion and net income of $278 million in fiscal year 2025.
The average analyst target is $54, which is also both the highest and lowest target, with a consensus rating of Buy; this indicates no dispersion in the available sample, but it also limits the diversity of views. The $54 target is approximately 6.7% above the 52-week range high of $50.59, while the full range extends from $32.43 to $50.59. No price-to-earnings ratio is available in the data despite a market capitalization of $10.3 billion, so the analyst target should be weighed against the risks of margin contraction after the nonrecurring gain, capital expenditure requirements, and the acquisition.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue rose 10% to $913 million, led by tactical radars, power and electric propulsion, infrared sensing, and force protection. The IMS segment grew 15%, while the ASC segment grew 8%. Adjusted earnings before interest, taxes, depreciation, and amortization increased 33% to $128 million, driven by execution, program mix, operating leverage, and a gain from risk retirement on a program.
Leonardo DRS agreed to acquire RAFT for $450 million in cash, with closing expected in Q4 of fiscal year 2026. RAFT provides open-architecture mission software, multi-domain data integration, and artificial intelligence capabilities, and the U.S. Army selected it for its next-generation command-and-control software architecture. The company expects the transaction to add customers in the Air Force, Space Force, special operations, and the intelligence community, and to be accretive to adjusted diluted earnings per share in the first full year of ownership.
The company expects revenue between $3.9 billion and $3.975 billion, reflecting organic growth between 7% and 9%. It raised its adjusted earnings before interest, taxes, depreciation, and amortization range to $525–540 million and also raised its adjusted diluted earnings per share range to $1.34–1.39. This guidance excludes any contribution from RAFT and assumes conversion of 75% of adjusted net income into free cash flow.
Automated analysis for informational purposes only — not investment advice.
The company's tactical radars are used in counter-unmanned aircraft systems deployed globally, and management said order flow exceeds supply capacity, so it is adding production capacity. The company is developing modular solutions deployable across different platforms that integrate multiple effectors and technologies. It also received an initial order in Q2 of fiscal year 2026 to produce 50,000 infrared camera core units for a leading manufacturer of low-cost unmanned aircraft.
The adjusted earnings before interest, taxes, depreciation, and amortization margin reached 14%, up 240 basis points, but it benefited from a nonrecurring gain resulting from risk retirement on a ship program. Management indicated that the IMS margin would have been close to 15% excluding this effect. It therefore expects a margin in the mid-13% range for Q3 of fiscal year 2026, while emphasizing that the sequential decline does not reflect weaker underlying execution.
Bookings exceeded $1 billion in Q2 of fiscal year 2026, and the book-to-bill ratio reached 1.2 times. This was the eighteenth consecutive quarter in which the company recorded a ratio of 1.0 times or higher, and it ended the period with a record funded backlog. Orders included naval propulsion and computing programs for the Columbia, Virginia, DDG-51, and LPD platforms, along with strong demand for tactical radars and aircraft protection.
