NASDAQ$DRS

Leonardo Drs Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and year ended December 31, 2022.

Leonardo DRS reported flat revenue for the fourth quarter and a decrease for the full year, but net earnings and adjusted EBITDA increased for both periods. Strong bookings led to a record backlog, and the company initiated solid 2023 guidance.

  • Revenue was $820 million for the fourth quarter and $2.7 billion for the year.
  • Net earnings were $65 million for the fourth quarter and $405 million for the year.
  • Adjusted EBITDA was $120 million for the fourth quarter and $318 million for the year.
  • Bookings were $852 million for the fourth quarter, resulting in a record backlog of $4.3 billion.

Headline financials

Total Revenue

$820M

Previous: $820M+0.0%
EPS (adj)

$0.35

Previous: $0.28+27.0%
Adjusted EBITDA

$120M

Previous: $100M+20.0%
Adjusted EBITDA Margin

14.7%

Previous: 12.1%+21.5%
Bookings

$852M

Previous: $676M+26.0%
Backlog

$4.27B

No prior period
Capital Expenditures

$30M

Previous: $18M+66.7%
Free Cash Flow

$336M

Previous: $271M+24.0%
Net Income

$65M

Previous: $58M+12.1%
Operating Income

$87M

Previous: $81M+7.4%
Gross Profit

$184M

Previous: $153M+20.3%
Cash & Equivalents

$306M

Previous: $240M+27.5%
Total Assets

$3.68B

Previous: $3.07B+19.8%
Stock-Based Comp

$5M

No prior period

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$820M

Q4 2022+0%vs Q4 2021
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Leonardo DRS · $834M total across 2 segments · Q4 2022

  • Advanced Sensing & Computing
    $485M+7.3%
  • Integrated Mission Systems
    $349M-6.9%

Forward guidance

Leonardo DRS is initiating 2023 guidance.

Tailwinds

  • Revenue: $2.7 billion - $2.8 billion
  • Adjusted EBITDA: $315 million - $330 million
  • Adjusted Diluted EPS: $0.64 - $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 Q4 2022

Historical avgQ4 2022

+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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