Overview & Key Highlights

• Leonardo DRS, Inc. (Nasdaq: DRS) reported its financial results for the second quarter ended June 30, 2026.
• Net earnings for the quarter reached \$86 million, with six-month earnings totaling \$148 million.
• Revenues for the second quarter were \$449 million, with six-month gross profit at \$179 million.
• Basic earnings per share for the quarter were \$0.33, and diluted earnings per share were \$0.32. For the six months, basic EPS was \$0.56, diluted EPS \$0.55.
• As of July 29, 2026, there were 266,891,515 shares outstanding.

Financial Performance Details

Income Statement Highlights

• Operating income for Q2 was \$70 million; for the six months, \$179 million.
• Net income for Q2: \$86 million; for the six months: \$148 million.
• Comprehensive income for Q2: \$85 million; for the six months: \$146 million.
• Cash flow from operating activities for the six months was \$148 million.

Balance Sheet Highlights

• Total assets as of June 30, 2026: \$4.486 billion.
• Total stockholders’ equity as of June 30, 2026: \$2.803 billion.
• Short-term borrowings and current portion of long-term debt are not specifically quantified, but no preferred stock is issued.
• Common stock authorized: 350 million shares; issued and outstanding: 266.8 million as of Q2.

Cash Flow & Capital Management

• Net cash used in investing activities for the six months: (\$58 million).
• Capital expenditures for the period: not specifically broken out, but investing cash flow is negative.
• Proceeds from stock issuance: \$5 million.
• Repurchases of common stock: (\$16 million) for the six months.
• Dividends paid: (\$34 million) for the six months.
• Payments of employee taxes withheld from stock-based awards: (\$25 million).

Shareholder-sensitive Disclosures & Potential Price Movers

• No preferred stock issued; only common shares outstanding.
• Repurchase of shares and payment of dividends may positively affect share value by reducing the float and returning capital to shareholders.
• Strong net income and comprehensive income for Q2 and six-month periods indicate healthy profitability and cash generation.
• Effective management of operating cash flow and capital expenditures.
• The company emphasizes forward-looking statements and warns investors about risks tied to technological changes, economic downturns, inventory management, contract value realization, insurance adequacy, and potential changes in US tax laws.
• Risks and uncertainties are highlighted, including those discussed under “Risk Factors” in the latest 10-K, which could materially affect results.

Forward-Looking Statements & Risk Factors

The company cautions investors that forward-looking statements are subject to risks and uncertainties, including but not limited to:

• Ability to respond to rapid technological changes.
• Impact of global and regional economic downturns, including rising interest rates.
• Effectiveness of internal controls over financial reporting.
• Appropriate inventory management.
• Realization of contract value or bookings.
• Prolonged work stoppages.
• Adequacy of insurance and liability protections.
• Future changes in US tax laws and regulations.
• Obligations related to Leonardo S.p.A., which may divert resources.

Shareholders should be aware that these factors may materially impact the company’s performance and share price.

Summary for Investors

• Leonardo DRS, Inc. delivered solid earnings and cash flow for Q2 and the first half of 2026.
• Dividend payments and share repurchases demonstrate commitment to shareholder returns.
• Risks remain, especially related to macroeconomic factors, technological change, and contract realization.
• The company remains compliant with all SEC filing requirements, and continues to invest in its business.