Leonardo DRS Q2 Revenue Meets Expectations, Raises Full-Year Outlook

Leonardo DRS reported Q2 sales of $829 million, up 10.1% YoY, meeting analyst estimates. Full-year revenue guidance of $3.56 billion at the midpoint exceeded expectations by 1.2%. Non-GAAP profit of $0.23 per share was 7.4% above analyst estimates. The company raised its full-year adjusted EPS guidance to $1.09, a 3.3% increase, and lifted its full-year revenue guidance to $3.56 billion, a 2.5% increase.

Leonardo DRS, Inc. (NASDAQ: DRS) reported its second-quarter (Q2) results, which exceeded analyst expectations. The defense technology provider posted adjusted earnings per share (EPS) of $0.23, surpassing the consensus estimate of $0.21, and revenue of $829 million, slightly exceeding the expected $827.46 million. This marks a 10.1% year-over-year (YoY) revenue growth, driven primarily by programs related to electric power and propulsion, advanced infrared sensing, and ground network computing.

The company's net earnings jumped 42% to $54 million, while adjusted EBITDA increased 17% to $96 million. This resulted in an expanded margin of 11.6% from 10.9% a year earlier. Despite these positive results, Leonardo DRS shares dipped 1.9% in premarket trading.

Leonardo DRS also raised its full-year 2025 guidance. The company now expects revenue between $3.525 billion and $3.6 billion, up from its previous forecast of $3.425 billion to $3.525 billion. Additionally, it raised its adjusted diluted EPS guidance to $1.06-$1.11 from $1.02-$1.08 previously.

The company reported $853 million in new funded bookings during the quarter, achieving a book-to-bill ratio of 1.0x. Total backlog stood at $8.6 billion, representing a 9% increase YoY. Both operating segments showed growth, with Advanced Sensing and Computing revenues up 10% to $542 million, while Integrated Mission Systems revenues increased 9% to $290 million.

Leonardo DRS declared a quarterly cash dividend of $0.09 per share, payable on September 3, 2025. The company's Chairman and CEO, Bill Lynn, stated, "Leonardo DRS delivered another set of strong financial results marked by healthy bookings, solid organic revenue growth and continued profit and margin expansion in the second quarter."

References:
[1] https://finance.yahoo.com/news/leonardo-drs-beats-q2-expectations-121536081.html
[2] https://seekingalpha.com/news/4474198-leonardo-drs-non-gaap-eps-of-023-beats-by-002-revenue-of-829m-beats-by-154m