NASDAQ$DRS

Leonardo Drs Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong Q2 2024 results driven by healthy customer demand and improved supply chain, leading to revenue and earnings growth.

Leonardo DRS reported a strong second quarter with a 20% increase in revenue year-over-year, reaching $753 million. Net earnings increased by 9% to $38 million, and adjusted EBITDA rose by 32% to $82 million. The company also increased its 2024 guidance across various metrics.

  • Revenue increased by 20% year-over-year to $753 million.
  • Net earnings rose by 9% year-over-year to $38 million.
  • Adjusted EBITDA increased by 32% year-over-year to $82 million.
  • Backlog reached a record $7.9 billion, up 82% year-over-year.

Headline financials

Total Revenue

$753M

Previous: $628M+19.9%
EPS

$0.14

Previous: $0.15-6.7%
Adjusted EBITDA

$82M

Previous: $62M+32.3%
Adjusted EBITDA Margin

10.9%

Previous: 9.9%+10.1%
Bookings

$941M

Previous: $698M+34.8%
Backlog

$7.93B

Previous: $4.4B+80.1%
Book-to-Bill

1.2

No prior period
Adjusted Net Earnings

$47M

No prior period
Capital Expenditures

-$44M

Previous: -$27M-63.0%
Free Cash Flow

-$6M

Previous: $8M-175.0%
Net Income

$38M

Previous: $35M+8.6%
Operating Income

$55M

Previous: $42M+31.0%
Gross Profit

$169M

Previous: $145M+16.6%
Cash & Equivalents

$149M

Previous: $35M+325.7%
Total Assets

$3.82B

Previous: $3.66B+4.3%
Stock-Based Comp

$10M

Previous: $4M+150.0%

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$753M

Q2 2024+19.9%vs Q2 2023
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Leonardo DRS · $708M total across 2 segments · Q3 2023

  • Advanced Sensing & Computing
    $431M+5.6%
  • Integrated Mission Systems
    $277M+21.0%

Forward guidance

Leonardo DRS is adjusting its 2024 guidance with increased expectations for revenue and adjusted EBITDA.

Tailwinds

  • Revenue: $3,075 million - $3,175 million
  • Adjusted EBITDA: $375 million - $395 million
  • Tax Rate: 20.5%
  • Diluted Shares Outstanding: 268.0 million
  • Adjusted Diluted EPS: $0.82 - $0.88

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 2024

Historical avgQ2 2024

+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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