Logo

DRS

Leonardo DRS, Inc.

DRS

Leonardo DRS, Inc. • NASDAQ
$34.17 ▲ 1.42% (+0.48)
Market Cap $9.09 B
52w High $49.31
52w Low $28.17
Dividend Yield 0.36%
P/E 34.52
Volume 389.07K
Outstanding Shares 266.03M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $960M ▲ $129M ▲ $72M ▲ 7.5% ▲ $0.27 ▲ $114M ▲
Q2-2025 $829M ▲ $127M ▲ $54M ▲ 6.514% ▲ $0.2 ▲ $92M ▲
Q1-2025 $799M ▼ $122M ▲ $50M ▼ 6.258% ▼ $0.19 ▼ $82M ▼
Q4-2024 $981M ▲ $115M ▲ $89M ▲ 9.072% ▲ $0.34 ▲ $138M ▲
Q3-2024 $812M $104M $57M 7.02% $0.22 $97M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $309M ▲ $4.245B ▲ $1.597B ▲ $2.648B ▲
Q2-2025 $278M ▼ $4.079B ▼ $1.479B ▼ $2.6B ▲
Q1-2025 $380M ▼ $4.096B ▼ $1.525B ▼ $2.571B ▲
Q4-2024 $598M ▲ $4.184B ▲ $1.627B ▲ $2.557B ▲
Q3-2024 $198M $3.861B $1.387B $2.474B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $72M ▲ $107M ▲ $-45M ▼ $-31M ▲ $31M ▲ $77M ▲
Q2-2025 $54M ▲ $-28M ▲ $-28M ▲ $-46M ▲ $-102M ▲ $-56M ▲
Q1-2025 $50M ▼ $-138M ▼ $-32M ▼ $-48M ▼ $-218M ▼ $-170M ▼
Q4-2024 $89M ▲ $443M ▲ $-29M ▼ $-14M ▼ $400M ▲ $414M ▲
Q3-2024 $57M $59M $-11M $1M $49M $47M

Revenue by Products

Product Q3-2024Q1-2025Q2-2025Q3-2025
Advanced Sensing And Computing Segment
Advanced Sensing And Computing Segment
 $0 ▲$0 ▲$470.00M ▲$510.00M ▲
Integrated Mission Systems Segment
Integrated Mission Systems Segment
 $0 ▲$290.00M ▲$300.00M ▲$380.00M ▲
Product
Product
 $760.00M ▲$0 ▼$0 ▲$0 ▲
Service
Service
 $50.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has generally been trending upward over the past few years, with the most recent period showing a clear step up in sales. Profitability has improved compared with earlier years, with wider margins than in the past, although there has been some lumpiness in operating profit and earnings per share, suggesting the impact of mix shifts, one‑offs, or program timing. Overall, the income statement tells a story of a defense contractor growing its top line and gradually strengthening its profitability, but with year‑to‑year volatility that is typical for project‑driven defense businesses.

Balance Sheet

Balance Sheet The balance sheet looks progressively stronger over time. Total assets have grown steadily, and shareholder equity has built up, which points to retained earnings and a more robust capital base. Cash levels have improved meaningfully from earlier years, giving the company more financial flexibility, while debt has remained fairly stable and modest relative to equity. This combination suggests a conservative use of leverage and a balance sheet that appears well positioned to support ongoing contracts and future investment without looking stretched.

Cash Flow

Cash Flow Cash generation has improved noticeably in the most recent years. Operating cash flow was weak at one point, despite solid accounting profits, which hinted at working capital swings or timing issues on contracts. Since then, cash flow from operations has strengthened, and free cash flow has moved from marginal or negative to solidly positive. Capital spending has been steady and relatively modest, which supports free cash flow. The overall picture is of cash flow quality that has improved over time, though still exposed to the usual project and payment timing risks of the defense sector.

Competitive Edge

Competitive Edge Leonardo DRS occupies attractive, specialized niches within the broader defense market rather than competing head‑to‑head across every category. It has long‑standing, deeply embedded relationships with the U.S. Department of Defense and allied customers, including roles on critical long‑duration programs such as advanced submarines. The company focuses on areas where it can lead technologically—like advanced sensing, naval power and propulsion, and electronic warfare—rather than trying to match the largest prime contractors in scale. High regulatory barriers, security clearances, long qualification cycles, and its track record on key programs all help form a meaningful competitive moat, though it still faces powerful competitors and depends heavily on government budgets and program decisions.

Innovation and R&D

Innovation and R&D The company’s innovation engine appears to be a central part of its strategy and moat. It is pushing into high‑value areas such as electro‑optical and infrared sensing, edge computing, electric and hybrid propulsion, electronic warfare, and counter‑drone systems. Its work on quantum‑related technologies—highlighted by its specialized semiconductor laser—and the launch of its AI‑driven SAGEcore platform suggest an effort to stay at the forefront of next‑generation defense tech. These capabilities position DRS to benefit from trends like autonomous systems, higher‑power naval platforms, and more sophisticated threat detection. The key uncertainties are execution risk, the pace of adoption of quantum and AI solutions, and the timing and size of future program awards tied to these innovations.

Summary

Leonardo DRS combines a strengthening financial profile with a focused, technologically differentiated role in the defense ecosystem. Revenue and margins have generally improved, the balance sheet has become more resilient with higher cash and moderate debt, and cash flows have recovered from earlier softness. Strategically, the company is anchored in important defense priorities—advanced sensing, power and propulsion, electronic warfare, and counter‑UAS—supported by deep government relationships and high barriers to entry. At the same time, results can be volatile from year to year due to contract timing, and the business remains dependent on defense budgets and specific programs. Overall, DRS appears to be a specialized defense technology player with solid financial footing and meaningful exposure to emerging areas like AI and quantum, but with the usual policy and program risks that come with serving government customers.

NEWS

November 13, 2025 · 4:15 PM UTC

Leonardo DRS and Chaiseri Defense Strengthen Partnership with New Battle Management System Contract to Support Royal Thai Army

Read more

November 4, 2025 · 4:49 PM UTC

Leonardo DRS Signs Agreement with Australian Heavy Engineering Company with Intent to Advance Global Maritime Defense Projects

Read more

October 29, 2025 · 7:45 AM UTC

Leonardo DRS Announces Board and CEO Transition

Read more

October 29, 2025 · 7:30 AM UTC

Leonardo DRS Announces Financial Results for Third Quarter 2025

Read more

October 14, 2025 · 4:00 PM UTC

Leonardo DRS Awarded Contract to Develop Advanced Vehicle-Based Power Generation Capability for U.S. Army

Read more