Leonardo DRS saw its shares climb following a robust second-quarter performance and a strategic acquisition announcement. In after-hours trading the stock was up 1.4% at $47.17, after reaching an intraday peak of $49.24 during the regular session.
The company reported adjusted earnings per share of $0.35, comfortably ahead of the analyst consensus of $0.27, and posted revenue of $913 million versus the $901.51 million estimate. Revenue represented 10% growth compared with the same period a year earlier. Management responded by increasing full-year guidance, lifting adjusted EBITDA to a range of $525 million to $540 million and raising adjusted diluted EPS guidance to $1.34 to $1.39, both figures above prior ranges.
CEO John Baylouny highlighted operational momentum, noting that the company recorded more than $1 billion in bookings during the quarter and pushed its funded backlog to record levels. Those metrics were emphasized on the company’s earnings call as indicators of underlying demand.
In addition to the quarterly results, investors had time to digest a recent acquisition announcement. Two days before the earnings release, Leonardo DRS agreed to acquire Raft LLC for $450 million in cash. Raft, based in McLean, Virginia, focuses on open-architecture mission software, multi-domain data fusion, and artificial intelligence for national security customers. The deal is expected to close in Q4 2026 and is projected to be accretive to adjusted diluted EPS in its first full year. The acquisition was discussed during the earnings call and was explicitly cited by at least one analyst who reaffirmed a Buy rating and maintained a $54 price target, describing the purchase as a material enhancement to DRS’s AI capabilities.
The stock’s gains unfolded amid a wider market recovery. Major U.S. indices rebounded after a sharp sell-off earlier in the week that followed the Federal Reserve’s decision to hold interest rates. That Fed decision did not fully calm investors because three FOMC members voted in favor of a rate increase, and long-dated Treasury yields rose to multi-decade highs. On July 30 the S&P 500 rose 0.8%, the Dow added 0.6%, and the Nasdaq led with a 1.5% advance, supported by a rebound in futures and stronger-than-expected technology sector results. Geopolitical developments, including U.S. military strikes on Iranian targets, also provided a lift for defense-sector stocks.
Despite the intraday strength that carried the stock close to its 52-week high of $50.59, some investors took profits into the close and in after-hours trading, which left the reported gain more muted by the end of the session. The move combined a substantive earnings beat, upgraded full-year guidance, a strategically relevant acquisition in the AI software space, and an improving broader market to create a favorable environment for the shares.
Market reaction snapshot
- Regular session intraday high: $49.24
- After-hours price reported: $47.17
- Second-quarter adjusted EPS: $0.35 vs. $0.27 consensus
- Second-quarter revenue: $913 million vs. $901.51 million estimate (10% year-over-year growth)
- Raised 2026 adjusted EBITDA guidance: $525 million to $540 million
- Raised 2026 adjusted diluted EPS guidance: $1.34 to $1.39
- Announced acquisition: Raft LLC for $450 million in cash; expected close Q4 2026; accretive in first full year