NASDAQ$DRS

Leonardo Drs Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year ended December 31, 2023.

Leonardo DRS reported strong Q4 2023 results with a 13% increase in revenue compared to 2022. Net earnings increased by 14% and adjusted EBITDA grew by 9%. The company's backlog reached a record $7.8 billion, up 82% from the prior year.

  • Revenue for the fourth quarter was $926 million, a 13% increase year-over-year.
  • Net earnings for the fourth quarter were $74 million, up 14% year-over-year.
  • Adjusted EBITDA for the fourth quarter was $131 million, a 9% increase year-over-year.
  • Backlog reached a record $7.8 billion, up 82% from the prior year.

Headline financials

Total Revenue

$926M

Previous: $820M+12.9%
EPS (adj)

$0.31

Previous: $0.35-11.4%
Adjusted EBITDA

$131M

Previous: $120M+9.2%
Adjusted EBITDA Margin

14.1%

Previous: 14.7%-4.1%
Bookings

$1B

Previous: $852M+17.4%
Backlog

$7.8B

Previous: $4.27B+82.7%
Capital Expenditures

-$18M

Previous: $30M-160.0%
Net Income

$74M

Previous: $65M+13.8%
Operating Income

$105M

Previous: $87M+20.7%
Gross Profit

$204M

Previous: $184M+10.9%
Stock-Based Comp

$5M

Previous: $5M+0.0%

Revenue & EPS history

Leonardo DRS · Revenue · Quarterly

$926M

Q4 2023+12.9%vs Q4 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 initiates 2024 guidance with revenue expected to be between $2.925 billion and $3.025 billion and adjusted diluted EPS between $0.74 and $0.82.

Tailwinds

  • Revenue between $2,925 million - $3,025 million
  • Adjusted EBITDA between $365 million - $390 million
  • Adjusted Diluted EPS between $0.74 - $0.82

Headwinds

  • Tax Rate 22.5%
  • Diluted Shares Outstanding 268.0 million
  • Increase capital expenditures for 2024 and reduce free cash flow conversion of adjusted net earnings to approximately 80% for the year.

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 2023

Historical avgQ4 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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