Overview

* Leonardo DRS ( DRS ) Q2 revenue rises 10% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 beats consensus, rising 28% yr/yr, per LSEG data

* Company revises 2025 guidance across all metrics

Outlook

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

* Company raises 2025 adjusted EPS guidance to $1.06 - $1.11

Result Drivers

* ELECTRIC POWER AND PROPULSION - Revenue growth driven by increased volume and profitability in electric power and propulsion programs, notably Columbia Class

* ADVANCED TECHNOLOGIES - Strong demand for advanced infrared sensing and ground network computing contributed to revenue growth

* CUSTOMER DEMAND - Resilient demand for electric power and propulsion, naval network computing, and advanced infrared sensing technologies supported strong bookings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $829 mln $827.50

Revenue mln (7

Analysts

)

Q2 Beat $0.23 $0.21 (8

Adjusted Analysts

EPS )

Q2 EPS $0.2

Q2 Beat $62 mln $55.90

Adjusted mln (4

Net Analysts

Income )

Q2 Net $54 mln

Income

Q2 Beat $96 mln $93.80

Adjusted mln (5

EBITDA Analysts

)

Q2 11.6%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 $49.50, about 2.6% above its July 29 closing price of $48.20

* The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release:

(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.)