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Jun 30, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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