NASDAQ$DRS

Leonardo Drs Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong Q3 2024 results with revenue and earnings growth, driven by robust bookings and strategic execution.

Leonardo DRS reported a strong third quarter in 2024, with a 16% increase in revenue year-over-year, a 21% increase in net earnings, and a 22% increase in adjusted EBITDA. The company also raised its 2024 guidance across all metrics and initiated a preliminary 2025 guidance framework.

  • Revenue increased by 16% year-over-year to $812 million, driven by advanced infrared sensing, force protection, and tactical radar programs.
  • Net earnings rose by 21% year-over-year to $57 million, with diluted EPS up 17% to $0.21.
  • Adjusted EBITDA increased by 22% year-over-year to $100 million, with an adjusted EBITDA margin of 12.3%.
  • Bookings totaled $1.1 billion, resulting in a book-to-bill ratio of 1.3x, and backlog reached a record $8.3 billion, up 75% year-over-year.

Headline financials

Total Revenue

$812M

Previous: $703M+15.5%
EPS

$0.21

Previous: $0.20+5.0%
Adjusted EBITDA

$100M

Previous: $82M+22.0%
Adjusted EBITDA Margin

12.3%

Previous: 11.7%+5.1%
Bookings

$1.05B

Previous: $1.1B-4.5%
Backlog

$8.26B

Previous: $4.7B+75.8%
Book-to-Bill

1.3

No prior period
Adjusted Net Earnings

$64M

No prior period
Capital Expenditures

-$56M

Previous: -$42M-33.3%
Free Cash Flow

$1M

Previous: $5M-80.0%
Net Income

$57M

Previous: $47M+21.3%
Operating Income

$75M

Previous: $59M+27.1%
Gross Profit

$179M

Previous: $162M+10.5%
Cash & Equivalents

$198M

Previous: $47M+321.3%
Total Assets

$3.86B

Previous: $3.71B+4.0%
Stock-Based Comp

$5M

Previous: $4M+25.0%

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$812M

Q3 2024+15.5%vs Q3 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 increasing its 2024 guidance and anticipates 5% to 8% revenue growth for 2025 with ~13% adjusted EBITDA margin.

Tailwinds

  • Revenue: $3,150 million - $3,200 million (increased from $3,075 million - $3,175 million)
  • Adjusted EBITDA: $387 million - $397 million (increased from $375 million - $395 million)
  • Tax Rate: 19.0% (decreased from 20.5%)
  • Diluted WASO: 268.0 million (no change)
  • Adjusted Diluted EPS: $0.88 - $0.91 (increased from $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 Q3 2024

Historical avgQ3 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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