Leonardo DRS stock jumped 4% in premarket trading after the defense technology provider reported fourth-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings per share of $0.42, beating the consensus estimate of $0.37, while revenue reached $1.1 billion, up 8% year-over-year and surpassing expectations of $994.79 million.

For fiscal 2026, Leonardo DRS issued revenue guidance of $3.85 billion to $3.95 billion, with a midpoint of $3.9 billion that exceeds the analyst consensus of $3.82 billion. However, the company's adjusted EPS guidance of $1.20 to $1.26 for fiscal 2026 fell slightly below the analyst estimate of $1.26. The company generated $376 million in free cash flow during the fourth quarter and $227 million for the full year.

Full year 2025 revenue reached $3.6 billion, up 13% year-over-year, while adjusted diluted EPS increased 24% to $1.15. Fourth quarter bookings totaled $1.1 billion, driven by electric power and propulsion programs, along with demand for advanced infrared sensing and tactical radar technologies. Total backlog increased 3% to $8.7 billion, reflecting strong customer demand for the company's mission-critical defense capabilities.