Leonardo DRS Earnings Call Transcripts
Fiscal Year 2026
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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 saw double-digit revenue and profit growth, with strong bookings and backlog. Guidance for 2025 was raised, driven by robust demand, especially in electric power and propulsion, but margin headwinds from germanium costs and higher R&D persist.
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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 and 22% adjusted EBITDA growth, with strong bookings and backlog increases. 2024 guidance was raised across all key metrics, and 2025 is projected to see 5%–8% revenue growth. Innovation and international demand continue to drive momentum.
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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.