•
Dec 31, 2023

Leonardo DRS Q4 2023 Earnings Report

Reported financial results for the fourth quarter and full year ended December 31, 2023.

Key Takeaways

Leonardo DRS reported strong Q4 2023 results with a 13% increase in revenue compared to 2022. Net earnings increased by 14% and adjusted EBITDA grew by 9%. The company's backlog reached a record $7.8 billion, up 82% from the prior year.

Revenue for the fourth quarter was $926 million, a 13% increase year-over-year.

Net earnings for the fourth quarter were $74 million, up 14% year-over-year.

Adjusted EBITDA for the fourth quarter was $131 million, a 9% increase year-over-year.

Backlog reached a record $7.8 billion, up 82% from the prior year.

Total Revenue
$926M
Previous year: $820M
+12.9%
EPS
$0.31
Previous year: $0.35
-11.4%
Adjusted EBITDA
$131M
Previous year: $120M
+9.2%
Adjusted EBITDA Margin
14.1%
Previous year: 14.7%
-4.1%
Bookings
$1B
Previous year: $852M
+17.4%
Gross Profit
$204M
Previous year: $184M
+10.9%
Cash and Equivalents
$467M
Previous year: $306M
+52.6%
Free Cash Flow
$494M
Previous year: $336M
+47.0%
Total Assets
$3.92B
Previous year: $3.68B
+6.6%

Leonardo DRS

Leonardo DRS

Leonardo DRS Revenue by Segment

Forward Guidance

Leonardo DRS initiates 2024 guidance with revenue expected to be between $2.925 billion and $3.025 billion and adjusted diluted EPS between $0.74 and $0.82.

Positive Outlook

  • Revenue between $2,925 million - $3,025 million
  • Adjusted EBITDA between $365 million - $390 million
  • Adjusted Diluted EPS between $0.74 - $0.82

Challenges Ahead

  • Tax Rate 22.5%
  • Diluted Shares Outstanding 268.0 million
  • Increase capital expenditures for 2024 and reduce free cash flow conversion of adjusted net earnings to approximately 80% for the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income