Leonardo DRS Inc
NASDAQ:DRS

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Leonardo DRS Inc
NASDAQ:DRS
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Price: 44.16 USD -0.54%
Market Cap: $11.7B

Leonardo DRS Inc
Investor Relations

Leonardo DRS Inc. operates at the nexus of technology and defense, crafting a narrative of innovation and tactical prowess. Rooted in a legacy that intertwines with advanced defense systems and solutions, the company serves as a critical asset to the United States military and allied forces worldwide. Leonardo DRS specializes in developing and integrating cutting-edge systems across multiple domains, including aerospace, land, sea, space, and cyberspace. Their offerings span from intelligence and electronic warfare systems to power and propulsion technologies, providing the technological backbone that supports modern military operations. Through a strategic blend of research, development, and partnership with defense agencies, Leonardo DRS continually adapts its capabilities to meet evolving security needs.

The revenue streams of Leonardo DRS are predominantly derived from government contracts, particularly those with the Department of Defense, where long-term relationships underpin the consistent flow of business. The company thrives on its ability to innovate and deliver tailor-made solutions, which not only meet the stringent regulatory requirements of defense procurements but also anticipate future battlefield needs. By leveraging its sophisticated supply chain management and technological expertise, Leonardo DRS enhances operational efficiency and drives profitability. Furthermore, its investments in research and development ensure that it stays at the forefront of defense technology, securing a competitive edge in an industry where cutting-edge innovation is paramount to success.

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Last Earnings Call
Fiscal Period
Q4 2025
Call Date
Feb 24, 2026
AI Summary
Q4 2025

Revenue Growth: Leonardo DRS reported strong organic revenue growth of 13% for full year 2025, reaching $3.6 billion, with Q4 revenue up 8% year-over-year at $1.1 billion.

Bookings & Backlog: The company achieved its fourth consecutive year of a book-to-bill ratio of 1.2 or better, ending with a backlog of $8.7 billion, providing visibility into 2026 growth.

Profitability: Full year adjusted EBITDA grew 13% to $453 million, with Q4 up 7% to $158 million; margins were flat at 12.4% for the year due to higher R&D and material costs.

Cash Flow: Free cash flow for 2025 grew 19% to $227 million, with Q4 generating $376 million, despite higher CapEx.

CapEx & R&D: Internal R&D investment was up 40% and CapEx rose over 60% in 2025, with more increases planned for 2026 (CapEx trending to 5% of revenue).

Key Wins: Secured a major position on the SDA tracking layer Tranche 3 program in space and executed a $100 million quantum laser IP license agreement.

2026 Outlook: Revenue guidance for 2026 is $3.85–3.95 billion (6–8% growth), with adjusted EBITDA of $505–525 million and adjusted EPS of $1.20–1.26 per share.

Supply Chain: Challenges with critical raw materials, especially germanium, were addressed through long-term agreements and recycling initiatives.

Key Financials
Revenue
$3.6 billion
Revenue (Q4)
$1.1 billion
Book-to-Bill Ratio
1.2 or better
Backlog
$8.7 billion
Adjusted EBITDA
$453 million
Adjusted EBITDA (Q4)
$158 million
Adjusted EBITDA Margin
12.4%
Adjusted EBITDA Margin (Q4)
14.9%
Free Cash Flow
$227 million
Free Cash Flow (Q4)
$376 million
CapEx (2025)
over 60% increase
Internal R&D Investment (2025)
up 40%
Earnings Call Recording
Other Earnings Calls

Management

Mr. William J. Lynn III
Chairman & CEO
No Bio Available
Mr. Michael D. Dippold
Executive VP & CFO
No Bio Available
Mr. John A. Baylouny
Executive VP & COO
No Bio Available
Mr. Mark A. Dorfman
Executive VP, General Counsel & Secretary
No Bio Available
Ms. Sally A. Wallace
Executive Vice President of Operations
No Bio Available
Mr. Stephen Vather
Vice President of Investor Relations & Corporate Finance
No Bio Available
Dr. Philip Perconti
Chief Technology Officer
No Bio Available
Mr. Michael Mount
Vice President of Communications
No Bio Available
Mr. Michael Coulter
Senior VP of Corporate Business Development & President of International
No Bio Available
Ms. Tami E. Gesiskie
Senior Vice President of Human Resources
No Bio Available

Contacts

Address
VIRGINIA
Arlington
2345 Crystal Dr Ste 1000
Contacts
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