Leonardo DRS CFO Sells $755K as Backlog Hits Record
Leonardo DRS raised full-year EPS guidance and posted record funded backlog in late July, then CFO and general counsel sold $1.21 million in shares at prices the stock has since failed to hold. The op
Leonardo DRS CFO Sells $755K as Backlog Hits Record
NEW YORK, October 11 —
When Leonardo DRS, Inc. (DRS) raised full-year EPS guidance and posted a record funded backlog in late July, three C-suite executives responded by selling $1.21 million in shares at prices the stock has since failed to hold.
- Q2 adjusted EPS up 52% to $0.35; full-year guidance raised to $1.34, $1.39 from $1.26, $1.30 per share.
- Book-to-bill of 1.2x in Q2; 18 consecutive quarters at or above 1.0x; funded backlog at record levels.
- CFO sold 20,317 shares at $37.18 on Sept. 2; stock now at $36.24, below all three C-suite exit prices.
The Demand Machine Behind the Guidance Raise
Leonardo DRS makes the sensors that find threats and the motors that power the vessels carrying them. Its Advanced Sensing and Computing segment covers infrared systems, AESA tactical radars, and electronic warfare; Integrated Mission Systems makes permanent magnet motors and power conversion for naval platforms. Q2 2026 revenue of $913 million grew 10% year over year, adjusted EBITDA margin expanded 240 basis points to 14%, and EPS topped consensus for the fourth consecutive quarter. A $533 million DAIRCM production contract, UK radar manufacturing underway with 10,000-plus panels deployed globally, and a record funded backlog are the operational facts three insiders chose to sell into.
Three Insiders, Zero Buyers
CFO Michael Dippold sold 20,317 shares at $37.18 on September 2, collecting $755,386; EVP and General Counsel Mark Dorfman sold 7,471 shares at $37.01 two days later. Both exits followed the July 30 earnings release, meaning both sellers had full visibility into the guidance raise before they sold. Net insider activity across the 90-day window: $0 in purchases, $1.21 million in open-market sales. The stock at $36.24 has since slipped below every exit price. Parent Leonardo US Holding LLC controls 71.4% of shares, keeping public float thin, which makes each C-suite sale a more visible proportional signal against the bullish operational case.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| DRS | $9.7B | 24.7x | -17.0% |
| CW | $18.9B | 29.9x | -6.9% |
| ESLT | $30.7B | 35.7x | +26.6% |
| MRCY | $4.8B | 35.6x | +3.7% |
| AIR | $4.0B | 15.0x | +23.6% |
| DCO | $2.6B | 31.8x | +80.9% |
Raft, Q3 Step-Down, and the Price to Watch
Management flagged Q3 adjusted EBITDA margin stepping down to mid-13% from Q2's 14%, as nonrecurring risk retirement gains won't repeat. The $450 million all-cash acquisition of Raft LLC, closing in Q4 2026, adds AI, data fusion, and mission software to DRS's sensing and computing core; CEO Baylouny called it complementary, but a cash deal of that scale carries integration risk alongside the known margin dip. The number to watch: full-year EPS at $1.39 or above validates the guidance raise. The price to watch: $37.18, the CFO's exit, which the stock has not recovered. Use the DCF calculator to frame the implied multiple, or run the free Leonardo DRS, Inc. deep-dive →
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Frequently Asked Questions
When did the Leonardo DRS CFO sell stock?
CFO Michael Dippold sold 20,317 shares at $37.18 on September 2, 2026, collecting $755,386. Two days later, EVP and General Counsel Mark Dorfman sold 7,471 shares at $37.01.
How did Leonardo DRS perform in Q2 2026?
Revenue grew 10% year-over-year to $913 million and adjusted EBITDA margin expanded to 14%. The company achieved a record funded backlog and raised full-year EPS guidance to $1.34, $1.39 from $1.26, $1.30.
What is the Raft acquisition?
Leonardo DRS is acquiring Raft LLC for $450 million in all-cash, closing in Q4 2026. Raft adds AI, data fusion, and mission software to Leonardo DRS's sensing and computing core.
Has Leonardo DRS's stock recovered from insider sales?
No. The stock is trading at $36.24, below the CFO's exit price of $37.18 and the EVP's exit price of $37.01.
Did Leonardo DRS insiders buy stock during this period?
No. Net insider activity across the 90-day window was zero purchases against $1.21 million in open-market sales.
Leonardo DRS this week began producing active electronically scanned array radar panels at a new UK facility and completed delivery of thermal weapon sights to the Australian Army, extending international execution as the company carries a record funded backlog into the second half of 2026. That momentum sits uneasily alongside $1.21 million in net insider sales since August, with the CFO and two other C-suite executives exiting at prices between $37 and $45—all above the current $36.24 stock.