UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-41565 Leonardo DRS, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 13-2632319 (I.R.S. Employer I ...

A tense geopolitical environment in certain parts of the world is boosting the business of defense sector companies like this one.Leonardo DRS (DRS +15.02%) was a defense sector stock of choice for many market participants on the second trading day of the week. The company's shares zoomed almost 15% higher on the back of a quarterly and annual earnings report that featured robust growth numbers. A solid fourth quarterLeonardo DRS's fourth quarter saw the company earn $1.06 billion in revenue, up 8% year ove ...

That frontline perspective combined with my experience over the past decade as Chief Technology Officer and, most recently, Chief Operating Officer has given me a deep appreciation for our leading market positions, our balanced and diverse portfolio, our truly differentiated technologies, and above all, our exceptionally talented people. As I look ahead, my priorities as CEO are clear. Build on our foundation of success. We have a remarkable business with distinct differentiation that is well positioned for ...

Management emphasized stepped-up internal investment. Baylouny said internal R&D spending rose 40% in 2025, while capital expenditures increased more than 60%. R&D focus areas include airborne, missiles, space, unmanned markets, and core ground-enabled domains, with emphasis on platform AI and autonomy, security and modularity, and platform-agnostic capabilities.The company also announced Sally Wallace has been named Chief Operating Officer, alongside other leadership changes described as expanded responsib ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter revenue of $1.1 billion, an 8% year-over-year increase, and full year revenue of $3.6 billion, representing 13% organic growth compared to 2024 [22][23] - Adjusted EBITDA for the fourth quarter was $158 million, with a full year total of $453 million, reflecting year-over-year growth of 7% and 13% respectively [24] - Free cash flow for the full year reached $227 million, with a fourth quarter generation of $376 million, indicating a 19% growth in full-year free cash flow [15][26] Business Line Data and Key Metrics Changes - The Advanced Sensing and Computing segment saw revenue growth of 9% in Q4 and 11% for the full year, while the Integrated Mission Systems segment delivered 5% growth in Q4 and 15% for the full year [23][24] - The company achieved a book-to-bill ratio of 1.2 or better for the fourth consecutive year, indicating strong demand across its portfolio [9] Market Data and Key Metrics Changes - The company noted significant increases in defense spending, with early signals for fiscal 2027 appropriations supporting sustained demand [9] - The company is well-positioned in high-growth markets such as airborne, missiles, space, and unmanned systems, with a focus on advancing capabilities in these areas [10] Company Strategy and Development Direction - The company aims to build on its foundation of success, accelerate operational cadence, and invest in its workforce to meet customer needs [6][8] - The strategy includes substantial increases in R&D investment by 40% and capital expenditures by over 60% in 2025, with expectations for continued growth in 2026 [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand due to global threats and evolving warfare, emphasizing the need for next-generation capabilities [8][9] - The company anticipates a revenue range of $3.85 billion to $3.95 billion for 2026, implying 6%-8% organic growth, supported by a strong backlog [27] Other Important Information - The company entered into a 10-year, $100 million license agreement with a quantum technology company, monetizing laser intellectual property for quantum computing applications [13] - The conclusion of a legacy foreign ground surveillance program resulted in an unanticipated loss, but management does not foresee similar impacts from other programs [14] Q&A Session Summary Question: Potential benefits from the reconciliation bill - Management noted that some funding is beginning to flow, with alignment in priority areas for potential incremental funding [34][35] Question: Future revenue growth expectations - Management expressed optimism for growth but acknowledged an elongated conversion cycle due to diverse portfolio capabilities [36] Question: Impact of winding down programs on revenue - Management indicated that while some areas may grow at different rates, overall funding environment is improving [40] Question: Capital structure and deployment - The company prioritizes organic investments first, with a focus on CapEx and R&D to drive future growth [41] Question: Profitability in Integrated Mission Systems - Strong demand and volume leverage contributed to healthy margins, with ongoing performance in naval power and Counter-UAS programs [44] Question: Opportunities in Europe - Management highlighted the conducive environment for partnerships in Europe, leveraging their parent company's capabilities for growth [85][86]

Leonardo DRS (NasdaqGS:DRS) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Company ParticipantsAndre Madrid - VP of Equity ResearchAustin Moeller - Director of Equity ResearchJohn Baylouny - President and CEOJonathan Tanwanteng - Managing DirectorMichael Ciarmoli - Managing Director of Aerospace and Defense Equity ResearchMichael Dippold - EVP and CFORobert Stallard - PartnerSeth Seifman - Executive DirectorSteve Vather - Senior Vice President of Corporate Development and Investor RelationsConference C ...

Leonardo DRS, Inc. (DRS) reported $1.06 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 8.1%. EPS of $0.42 for the same period compares to $0.38 a year ago.The reported revenue represents a surprise of +6.74% over the Zacks Consensus Estimate of $993.11 million. With the consensus EPS estimate being $0.37, the EPS surprise was +12.9%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...

Leonardo DRS (NasdaqGS:DRS) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Speaker6Ladies and gentlemen, good day, and welcome to the Leonardo DRS fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. Following the company's prepared remarks, there will be an opportunity to ask questions, and instructions will be provided at that time. As a reminder, this event is being recorded. I would now like to turn the conference over to Steve Vather ...

Quarterly Earnings Presentation Q4 | 2025 February 24, 2026 Disclaimers Forward-Looking Statements In this presentation, when using the terms the "company," "DRS," "we," "us" and "our," unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This presentation contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use o ...

| (In millions, except per share amounts) | | Fourth Quarter | | Full Year | | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | 2024 | Change | 2025 | 2024 | Change | | Revenues | $1,060 | $981 | 8% | $3,648 | $3,234 | 13% | | Net Earnings | $102 | $89 | 15% | $278 | $213 | 31% | | Diluted weighted average number of shares | | | | | | | | outstanding (WASO) | 268.423 | 268.955 | | 268.726 | 267.733 | | | Diluted Earnings Per Share | | | | | | | | (EPS) | $0.38 | $0.33 | 15% | $1.03 | $0.80 | 29% | | ...