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Leonardo DRS, Inc. DRS Operating margin

Operating margin at other companies

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General DynamicsGD
10.2%0.0pp
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10.9%+2.7pp
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L3Harris TechnologiesLHX
10.2%+1.0pp
Lockheed Martin logo
Lockheed MartinLMT
9.9%-0.4pp
Northrop Grumman logo
Northrop GrummanNOC
11.6%+2.0pp
HEICO logo
HEICOHEI
23.5%+1.5pp

Other financials

Income statement

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Revenue$846.0M+5.9%
Gross profit$212.0M+17.1%
Operating income$77.0M+30.5%
Net income$62.0M+24.0%
EPS (diluted)$0.23+21.1%

Balance sheet

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Cash & equivalents$328.0M-13.7%
Total debt$170.0M-53.7%
Total equity$2.8B+7.7%
Total assets$4.2B+2.8%

Cash flow

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Operating cash flow-$66.0M+52.2%
CapEx$30.0M-6.3%
Free cash flow-$96.0M+43.5%

Valuation

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Market cap$12.29B+35.8%
Enterprise value$12.13B+34.1%
P/E42.4×+3.7×
P/S3.3×+0.6×

Profitability

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Gross margin24.4%+1.5pp
Net margin7.8%+0.9pp
FCF margin8.1%

Returns & leverage

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Return on equity10.9%+1.4pp
Debt / equity0.1×-0.1×
Current ratio1.9×-0.2×

Where this comes from

Calculated from Leonardo DRS, Inc.’s reported figures.

Based on trailing twelve months.

The official record: Leonardo DRS, Inc.’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Leonardo DRS, Inc.'s operating margin?
Leonardo DRS, Inc. (DRS) reported operating margin of 9.9% in Q1 2026.
How has Leonardo DRS, Inc.'s operating margin changed year-over-year?
Leonardo DRS, Inc.'s operating margin increased by 7.2% year-over-year, from 9.2% to 9.9%.
What is the long-term trend for Leonardo DRS, Inc.'s operating margin?
Over 5 years (2020 to 2025), Leonardo DRS, Inc.'s operating margin has grown at a 7.9% compound annual growth rate (CAGR), from 6.5% to 9.5%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.