DRS
Leonardo DRS, Inc.33.12
-0.56-1.66%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A reaffirms, adds capex details
Q&A largely reaffirmed prepared remarks on robust demand and 2026 guidance, but added color on pacing factors. Management highlighted a diverse portfolio—network computing lags others—tempering revenue acceleration despite four years of 1.2+ book-to-bill. Organic investments like CapEx for naval capacity, tactical radars, and USVs trump picky M&A pursuits. Charleston facility supports modular electric architectures across ship sizes, from frigates to battleships. Europe growth eyed via parent Leonardo collaborations. No bombshells dropped. Watch capacity execution amid steady demand.
Key Stats
Market Cap
8.81BP/E (TTM)
33.45Basic EPS (TTM)
0.99Dividend Yield
0.01%Recent Filings
8-K
Board refresh via proxy holders
Leonardo DRS announced David W. Carey's retirement from the Board effective March 31, 2026, with no disagreements noted. Reuben Jeffery III, ex-Rockefeller CEO and U.S. government official, steps in April 1 as Class C proxy holder director through 2029, joining Audit, Nominating, and Government Security Committees. Dr. Louis Brothers' proxy term also extended to 2029. Continuity preserved.
10-K
FY2025 results
Leonardo DRS posted FY2025 revenue of $3.65B, up 12.8% y/y, with ASC at $2.36B (+11.2%) and IMS at $1.31B (+14.9%), fueled by naval power, C-UAS radars, and a quantum laser license; yet Q4 faced charges from a legacy ground surveillance wrap-up and germanium cost spikes, dragging net EAC adjustments to -2% of revenue. Operating earnings hit $348M (+18.8%), margins firming to 9.5% on volume leverage despite IR&D jumping 40% to $129M. Backlog edged to $8.4B on strong bookings ($4.2B, book-to-bill 1.2x), cash swelled to $647M after $366M ops flow. Funded backlog stands firm. Supply disruptions threaten Q4 momentum.
8-K
Q4 revenue up 8%, FY up 13%
Leonardo DRS reported Q4 revenue of $1.1B, up 8% year-over-year, and full-year $3.6B, up 13%, with net earnings jumping 31% to $278M. Bookings hit $4.2B at 1.2x book-to-bill; backlog grew 3% to $8.7B. Strong demand fueled growth, offset by IMS hit from legacy program closure. Guidance eyes $3.85B-$3.95B revenue, $1.20-$1.26 adjusted EPS.
8-K
DRS inks $500M revolver
Leonardo DRS secured a fresh $500M five-year senior unsecured revolver from JPMorgan on Jan 28, 2026, terminating its prior Bank of America facility with zero borrowings or penalties. Funds support working capital, general corporate needs, and share repurchases; initial SOFR margin sits at 1.250% with leverage-linked adjustments. Leverage covenant caps at 3.75x, spiking to 4.00x post-material buys. New liquidity bolsters flexibility.
8-K
Wallace named COO
Leonardo DRS appointed Sally Wallace, a 20-year veteran, as EVP and COO effective January 1, 2026, succeeding John Baylouny promoted to CEO. Wallace, previously EVP Business Operations, gets $540,000 base salary, 70% target bonus, and $700,000 equity split between RSUs and PRSUs. Leadership stays internal. Smooth transition bolsters operations.
IPO
Website
Employees
Sector
Industry
AVAV
AeroVironment, Inc.
234.65-0.67
BAESF
BAE Systems PLC
22.21-0.31
ESLT
Elbit Systems Ltd.
523.08+9.81
GD
General Dynamics Corporation
337.49-3.20
ISSC
Innovative Solutions and Suppor
11.90+0.70
KTOS
Kratos Defense & Security Solut
73.13-1.13
LHX
L3Harris Technologies, Inc.
282.85-5.68
LMT
Lockheed Martin Corporation
477.06-7.36
MRCY
Mercury Systems Inc
71.80-2.69
NOC
Northrop Grumman Corporation
568.72-7.07