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Dec 31, 2024
Leonardo DRS Q4 2024 Earnings Report
Leonardo DRS reported strong financial results for Q4 2024, exceeding expectations with record bookings, revenue growth, and improved profitability.
Key Takeaways
Leonardo DRS delivered solid financial performance in Q4 2024, with revenue of $981 million, net earnings of $89 million, and adjusted EBITDA of $148 million. The company achieved a book-to-bill ratio of 1.3 and generated strong free cash flow. Growth was driven by demand for tactical radars, naval network computing, advanced infrared sensing, and electric power and propulsion.
Revenue grew 6% year-over-year to $981 million.
Net earnings increased 20% to $89 million.
Adjusted diluted EPS rose 23% to $0.38.
Strong bookings of $1.3 billion resulted in a book-to-bill ratio of 1.3.
Revenue by Segment
Forward Guidance
Leonardo DRS expects continued revenue growth in 2025, driven by strong demand for advanced defense technologies, with revenue projected between $3.425 billion and $3.525 billion. Adjusted EBITDA is expected to rise to between $435 million and $455 million, and adjusted diluted EPS to range from $1.02 to $1.08.
Positive Outlook
- Revenue expected to grow to $3.425B - $3.525B.
- Adjusted EBITDA projected to increase to $435M - $455M.
- Tax rate expected to remain stable at 19.0%.
- Strong backlog of $8.5B provides revenue visibility.
- Stock repurchase program of up to $75M announced.
Challenges Ahead
- Higher tax expense could offset earnings growth.
- Potential delays in defense contracts due to government policies.
- Margin pressure from cost increases in supply chain.
- Competitive pricing in defense sector may impact profitability.
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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