NASDAQ$DRS

Leonardo Drs Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second quarter results with accelerating organic revenue growth and robust bookings.

Leonardo DRS reported Q2 2023 financial results with revenue of $628 million, net earnings of $35 million, and adjusted EBITDA of $62 million. The company's bookings were $698 million, resulting in a book-to-bill ratio of 1.1x, and backlog reached a record $4.4 billion. The company narrowed its 2023 guidance ranges across all metrics.

  • Revenue was $628 million.
  • Net earnings were $35 million.
  • Adjusted EBITDA was $62 million.
  • Bookings were $698 million with a book-to-bill ratio of 1.1x.

Headline financials

Total Revenue

$628M

Previous: $627M+0.2%
EPS (adj)

$0.15

Previous: $0.12+28.1%
Adjusted EBITDA

$62M

Previous: $67M-7.5%
Adjusted EBITDA Margin

9.9%

Previous: 10.8%-8.3%
Bookings

$698M

Previous: $683M+2.2%
Backlog

$4.4B

Previous: $3.05B+44.2%
Capital Expenditures

-$27M

Previous: -$22M-22.7%
Free Cash Flow

$8M

Previous: $3M+166.7%
Net Income

$35M

Previous: $25M+40.0%
Operating Income

$42M

Previous: $42M+0.0%
Gross Profit

$145M

Previous: $127M+14.2%
Cash & Equivalents

$35M

Previous: $69M-49.3%
Total Assets

$3.66B

Previous: $3.04B+20.3%
Stock-Based Comp

$4M

No prior period

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$628M

Q2 2023+0.2%vs Q2 2022
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Leonardo DRS · $630M total across 2 segments · Q2 2023

  • Advanced Sensing & Computing
    $404M-9.0%
  • Integrated Mission Systems
    $226M+20.9%

Forward guidance

Leonardo DRS updated its 2023 guidance with revenue between $2.725 billion and $2.8 billion, adjusted EBITDA between $318 million and $328 million, a tax rate of 19%, diluted shares outstanding of 266 million, and adjusted diluted EPS between $0.66 and $0.69.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

52%

13 / 25 earnings

Positive

+12.4%

Q4 2025

Best reaction

-13.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%+3.3%+16.7%
Q4 2025+12.4%+13.8%+22.0%
Q3 2025-4.3%-8.9%-15.0%
Q1 2025+8.8%+12.1%+14.4%
Q4 2024+5.6%-0.7%+11.7%
Q3 2024+5.9%+11.0%+22.4%
Q2 2024+0.0%-6.0%+0.3%
Q1 2024-2.5%+0.1%+9.4%
Q4 2023+6.7%-4.0%-10.4%
Q3 2023+2.8%+1.3%-2.8%
Q2 2023+1.5%+5.3%+5.9%
Q1 2023+2.4%+5.2%+3.4%
Q4 2022-5.1%+0.9%+16.7%
Q3 2022-4.6%-10.6%-1.8%
Q2 2022-1.1%-5.3%-6.3%
Q1 2022+0.0%-0.4%+4.4%
Q4 2021-13.8%-14.1%-8.0%
Q4 2019-13.8%-14.1%-8.0%
Q3 2020+2.3%-0.4%-8.9%
Q3 2021+2.3%-0.4%-8.9%
Q2 2021-3.1%-0.5%-5.5%
Q2 2020-3.1%-0.5%-5.5%
Q4 2020+3.2%+4.5%+0.7%
Q1 2020+3.2%+4.5%+0.7%
Q1 2021+3.2%+4.5%+0.7%

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