Leonardo DRS raised its 2026 financial outlook Oct. 29, 2026, after reporting higher revenue, profit and orders, strengthening its production outlook while leaving substantial work still to be delivered. The defense-technology supplier reported $1.066 billion in third-quarter revenue, up 11% from a year earlier.
This Rapid News Brief draws on the company’s results announcement, its quarterly filing and management’s earnings-call discussion. The central distinction is between stronger demand and revenue already recognized.
Funded orders outpace quarterly revenue
Bookings totaled $1.639 billion, producing a book-to-bill ratio of 1.5. Funded backlog reached $5.640 billion, up 21% year over year. The company attributed revenue growth principally to radar, naval power and propulsion, and space-sensing programs.
The filing distinguishes funded backlog from unfunded orders under existing contracts. Total backlog, including both categories, was $9.381 billion; the $5.640 billion figure is the funded portion, not the entire order book.
Neither figure is quarterly revenue. Funded backlog represents remaining contract revenue supported by appropriated or otherwise authorized funding, after subtracting revenue already recognized. The distinction helps business readers avoid treating the order pipeline as completed production.
Higher profit does not mean higher quarterly cash flow
Net earnings rose 60% to $115 million. Adjusted EBITDA increased 27% to $149 million, a separate non-GAAP measure. The company said operating performance and a lower tax rate supported profit growth.
Operating cash flow was $96 million and free cash flow was $61 million. Both declined from the year-earlier quarter as more cash went into working capital, partially offset by increased earnings, according to the announcement.
For the year, Leonardo DRS now forecasts revenue of $3.950 billion to $3.985 billion, compared with $3.900 billion to $3.975 billion previously. Its adjusted EBITDA outlook increased to $545 million to $555 million from $525 million to $540 million.
The forecast excludes the pending Raft acquisition. It is management’s outlook, not completed annual performance or evidence that the transaction has closed. For suppliers and operations leaders, the report shows why orders, earnings and cash generation need separate readings even in a quarter of revenue growth.