NASDAQ$DRS
Leonardo Drs Inc · Q4 2024 earnings
Q4 2024 earnings · · Before market open · Investor relations
Briefing
Leonardo DRS reported strong financial results for Q4 2024, exceeding expectations with record bookings, revenue growth, and improved profitability.
Leonardo DRS delivered solid financial performance in Q4 2024, with revenue of $981 million, net earnings of $89 million, and adjusted EBITDA of $148 million. The company achieved a book-to-bill ratio of 1.3 and generated strong free cash flow. Growth was driven by demand for tactical radars, naval network computing, advanced infrared sensing, and electric power and propulsion.
- Revenue grew 6% year-over-year to $981 million.
- Net earnings increased 20% to $89 million.
- Adjusted diluted EPS rose 23% to $0.38.
- Strong bookings of $1.3 billion resulted in a book-to-bill ratio of 1.3.
Headline financials
Revenue & EPS history
Leonardo DRS · Revenue · Quarterly
$981M
Revenue by segment
Leonardo DRS · $708M total across 2 segments · Q3 2023
- Advanced Sensing & Computing$431M+5.6%60.9%
- Integrated Mission Systems$277M+21.0%39.1%
Forward guidance
Leonardo DRS expects continued revenue growth in 2025, driven by strong demand for advanced defense technologies, with revenue projected between $3.425 billion and $3.525 billion. Adjusted EBITDA is expected to rise to between $435 million and $455 million, and adjusted diluted EPS to range from $1.02 to $1.08.
Tailwinds
- Revenue expected to grow to $3.425B - $3.525B.
- Adjusted EBITDA projected to increase to $435M - $455M.
- Tax rate expected to remain stable at 19.0%.
- Strong backlog of $8.5B provides revenue visibility.
- Stock repurchase program of up to $75M announced.
Headwinds
- Higher tax expense could offset earnings growth.
- Potential delays in defense contracts due to government policies.
- Margin pressure from cost increases in supply chain.
- Competitive pricing in defense sector may impact profitability.
- Uncertainty in global defense spending due to geopolitical risks.
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 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
| Quarter | Report date | Reaction (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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