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Jun 30
Leonardo DRS Q2 2025 Earnings Report
Leonardo DRS reported strong financial results for the second quarter of 2025, with significant year-over-year growth in revenue, net earnings, and EPS, driven by healthy bookings and profit expansion.
Key Takeaways
Leonardo DRS delivered a robust second quarter in 2025, marked by a 10% increase in revenue to $829 million and a 42% surge in net earnings to $54 million. Diluted EPS rose by 43% to $0.20, and Adjusted EBITDA grew by 17% to $96 million, reflecting strong operational performance and increased profitability. The company also reported healthy bookings of $853 million, resulting in a book-to-bill ratio of 1.0x, and an increased backlog of $8.6 billion.
Revenue increased by 10% year-over-year to $829 million, primarily driven by programs in electric power and propulsion, advanced infrared sensing, and ground network computing.
Net Earnings grew by 42% to $54 million, and Diluted EPS increased by 43% to $0.20, supported by strong operational performance and reduced interest expense.
Adjusted EBITDA rose by 17% to $96 million, with Adjusted EBITDA Margin expanding to 11.6%, mainly due to increased volume and higher profitability on electric power and propulsion programs.
Bookings reached $853 million, maintaining a book-to-bill ratio of 1.0x, and the total backlog increased by 9% year-over-year to $8.6 billion, indicating resilient customer demand.
Leonardo DRS
Leonardo DRS
Leonardo DRS Revenue by Segment
Revenue by Segment
Advanced Sensing and Computing Revenue
CapyFin.comIntegrated Mission Systems Revenue
CapyFin.com Forward Guidance
Leonardo DRS has revised its 2025 guidance, increasing the revenue outlook while maintaining a strong Adjusted EBITDA range and raising the Adjusted Diluted EPS forecast.
Positive Outlook
- Revised 2025 revenue guidance increased to $3,525 million - $3,600 million from $3,425 million - $3,525 million.
- Adjusted Diluted EPS guidance raised to $1.06 - $1.11 from $1.02 - $1.08.
- Maintained a strong Adjusted EBITDA guidance range of $437 million - $453 million.
- Diluted Weighted Average Shares Outstanding (WASO) guidance slightly lowered to 269 million from 270 million, indicating potential for higher EPS.
- The company's ability to revise guidance upwards reflects confidence in continued strong performance and market demand.
Challenges Ahead
- No specific negative revisions were provided in the guidance update.
- The report does not provide a reconciliation of forward-looking non-GAAP measures, citing inherent difficulties in forecasting.
- Potential for material changes to unquantified adjustments could significantly affect future GAAP results.
- The guidance is subject to various risks and uncertainties, including government appropriations, supply chain issues, and economic conditions.
- While the Adjusted EBITDA range is strong, the upper end was slightly reduced from the prior guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income