Leonardo DRS Q3 2024 Earnings Report
Key Takeaways
Leonardo DRS reported a strong third quarter in 2024, with a 16% increase in revenue year-over-year, a 21% increase in net earnings, and a 22% increase in adjusted EBITDA. The company also raised its 2024 guidance across all metrics and initiated a preliminary 2025 guidance framework.
Revenue increased by 16% year-over-year to $812 million, driven by advanced infrared sensing, force protection, and tactical radar programs.
Net earnings rose by 21% year-over-year to $57 million, with diluted EPS up 17% to $0.21.
Adjusted EBITDA increased by 22% year-over-year to $100 million, with an adjusted EBITDA margin of 12.3%.
Bookings totaled $1.1 billion, resulting in a book-to-bill ratio of 1.3x, and backlog reached a record $8.3 billion, up 75% year-over-year.
Leonardo DRS
Leonardo DRS
Leonardo DRS Revenue by Segment
Forward Guidance
Leonardo DRS is increasing its 2024 guidance and anticipates 5% to 8% revenue growth for 2025 with ~13% adjusted EBITDA margin.
Positive Outlook
- Revenue: $3,150 million - $3,200 million (increased from $3,075 million - $3,175 million)
- Adjusted EBITDA: $387 million - $397 million (increased from $375 million - $395 million)
- Tax Rate: 19.0% (decreased from 20.5%)
- Diluted WASO: 268.0 million (no change)
- Adjusted Diluted EPS: $0.88 - $0.91 (increased from $0.82 - $0.88)
Revenue & Expenses
Visualization of income flow from segment revenue to net income