NASDAQ$DRS

Leonardo Drs Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Leonardo DRS reported excellent results driven by accelerating organic growth, robust bookings, and solid profit generation.

Leonardo DRS announced strong Q3 2023 results, with revenue reaching $703 million and net earnings of $47 million. The company saw an 11% increase in revenue compared to the previous year, driven by strong performance in naval power and computing programs. Bookings were robust at $1.1 billion, resulting in a book-to-bill ratio of 1.5x, and backlog reached a record $4.7 billion.

  • Revenue increased by 11% year-over-year, reaching $703 million.
  • Net earnings totaled $47 million, with diluted EPS at $0.18.
  • Adjusted EBITDA grew by 41% to $82 million, with an adjusted EBITDA margin of 11.7%.
  • Bookings were strong at $1.1 billion, resulting in a book-to-bill ratio of 1.5x, and backlog reached a record $4.7 billion.

Headline financials

Total Revenue

$703M

Previous: $634M+10.9%
EPS (adj)

$0.20

Previous: $1.32-84.9%
Adjusted EBITDA

$82M

Previous: $58M+41.4%
Adjusted EBITDA Margin

11.7%

Previous: 9.2%+27.2%
Bookings

$1.1B

Previous: $874M+25.9%
Backlog

$4.7B

Previous: $3.14B+49.8%
Capital Expenditures

-$42M

Previous: -$35M-20.0%
Free Cash Flow

$5M

Previous: $244M-98.0%
Net Income

$47M

Previous: $279M-83.2%
Operating Income

$59M

Previous: $376M-84.3%
Gross Profit

$162M

Previous: $130M+24.6%
Cash & Equivalents

$47M

Previous: $63M-25.4%
Total Assets

$3.71B

Previous: $2.93B+26.7%
Stock-Based Comp

$4M

No prior period

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$703M

Q3 2023+10.9%vs Q3 2022
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 updating its 2023 guidance to narrow the ranges for revenue and adjusted EBITDA and raise the range for adjusted diluted EPS.

Tailwinds

  • Revenue: $2,735 million - $2,785 million
  • Adjusted EBITDA: $319 million - $325 million
  • Tax Rate: 13%
  • Diluted Shares Outstanding: 266 million
  • Adjusted Diluted EPS: $0.70 - $0.72

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 Q3 2023

Historical avgQ3 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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