Overview

* Leonardo DRS ( DRS ) Q3 revenue grows 18% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, rising 21% yr/yr

* Company revises 2025 guidance for revenue and adjusted diluted EPS

Outlook

* Leonardo DRS ( DRS ) revises 2025 revenue guidance to $3.55 bln-$3.6 bln from $3.525 bln-$3.6 bln

* Company maintains 2025 adjusted EBITDA guidance at $437 mln-$453 mln

* Leonardo DRS ( DRS ) lowers 2025 tax rate forecast to 18% from 19%

Result Drivers

* REVENUE GROWTH - Driven by strong demand in counter UAS, electric power and propulsion, naval network computing, and advanced infrared sensing programs

* ADJUSTED EBITDA GROWTH - Increased volume and higher profitability on electric power and propulsion programs, despite slight margin decline due to R&D investments

* STRONG BOOKINGS - $1.3 bln in new funded bookings with a book-to-bill ratio of 1.4x, reflecting robust customer demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $960 mln $924.80

Revenue mln (8

Analysts

)

Q3 Beat $0.29 $0.28 (9

Adjusted Analysts

EPS )

Q3 EPS $0.26

Q3 Beat $78 mln $75.20

Adjusted mln (5

Net Analysts

Income )

Q3 Net $72 mln

Income

Q3 Beat $117 mln $115.40

Adjusted mln (6

EBITDA Analysts

)

Q3 12.20%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for Leonardo DRS Inc ( DRS ) is $50.00, about 19.6% above its October 28 closing price of $40.18

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)