Leonardo DRS Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue rose 11% and bookings topped $1.6B, lifting funded backlog to $5.6B. Strong margins and cash flow drove higher FY 2026 guidance, while counter-drone, radar and naval wins underpin growth prospects.
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Q2 2026 saw 10% organic revenue growth, 33% adjusted EBITDA growth, and a book-to-bill of 1.2, with strong performance across both IMS and ASC segments. The $450M Raft acquisition expands AI and software capabilities, and full-year profit guidance was raised on robust demand and record backlog.
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Directors and senior management were introduced, and all board nominees were elected. Executive compensation and the appointment of the independent auditor were approved, with a focus on operational agility and long-term value under current leadership.
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Strong Q1 2026 results featured 6% revenue growth and 28% adjusted EBITDA growth, prompting raised full-year guidance. Robust demand, record backlog, and operational execution support continued investment in innovation and capacity.
Fiscal Year 2025
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Delivered record bookings, 13% organic revenue growth, and 19% free cash flow growth in 2025, with strong demand across tactical radars, infrared sensing, and naval power. 2026 guidance calls for 6–8% revenue growth and margin expansion, supported by robust backlog and increased investment in capacity and innovation.
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Q3 delivered robust revenue and profit growth, record backlog, and strong bookings, especially in Counter-UAS and electric power/propulsion. Guidance was raised for 2025, with continued investment in R&D and strategic M&A. CEO transition and supply chain actions were also highlighted.
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Q2 delivered double-digit revenue and profit growth, with strong bookings and backlog supporting raised full-year guidance. Margin expansion was driven by electric power and propulsion, while germanium supply issues and higher R&D spending present near-term headwinds.
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Q1 delivered strong revenue and profit growth, record backlog, and robust bookings, driven by diversified demand and operational execution. Guidance for 2025 is maintained, with margin expansion expected, especially in IMS, despite supply chain and raw material cost headwinds.
Fiscal Year 2024
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Record bookings, 14% organic revenue growth, and 23% adjusted EBITDA growth were achieved, with a strong $8.5B backlog and robust international demand. FY2025 guidance calls for 6–9% organic growth, margin expansion, and increased R&D and CapEx investment.
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Q3 saw 16% organic revenue growth, 22% adjusted EBITDA growth, and strong bookings, with both ASC and IMS segments contributing. 2024 guidance was raised, and 2025 is projected to see 5%-8% revenue growth. Innovation and international demand are key drivers.
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Q2 saw 20% organic revenue growth, record backlog, and strong margin expansion, driven by robust demand and supply chain recovery. Full-year guidance was raised across all key metrics, with both ASC and IMS segments contributing to growth.