If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Aerospace and defense stocks have been selling off on potential reductions to the defense budgets. Leonardo DRS is no exception. The stock has lost around 22% of its value since my last coverage in November . Back then, I hadDhierin runs the invest ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $981 million, a 6% year-over-year increase, while full-year revenue reached $3.2 billion, representing a 14% organic growth over 2023 [40][41] - Adjusted EBITDA for Q4 was $148 million, up 13% year-over-year, and for the full year, it was $400 million, reflecting a 23% increase [42][43] - Diluted EPS and adjusted diluted EPS increased by 18% and 23% year-over-year in Q4, respectively, and for the full year, they rose by 25% and 27% [45][46] - Free cash flow for Q4 was robust at $416 million, leading to a total of $190 million for the full year [46][47] Business Line Data and Key Metrics Changes - Advanced Sensing and Computing segment revenue grew by 9% in Q4 and 16% for the full year, while Integrated Mission Systems segment revenue decreased slightly by 1% in Q4 but increased by 11% for the full year [41][44] - Adjusted EBITDA for the Advanced Sensing and Computing segment increased by 9% in Q4 and 22% for the full year, while the Integrated Mission Systems segment saw a 24% increase in Q4 and 27% for the full year [44] Market Data and Key Metrics Changes - International revenue rose to 13% in 2024, marking the fourth consecutive year of increased international business [30] - The company secured over $4 billion in contract awards throughout the year, resulting in a 1.3% book-to-bill ratio for both Q4 and the year [10][11] Company Strategy and Development Direction - The company plans to increase investments in R&D and capital expenditures by approximately 25% year-over-year, focusing on advanced sensing modalities, directed energy capabilities, and AI applications [12][51] - The company maintains a strong focus on execution excellence and aims to drive innovation and capability to meet customer needs while generating value for shareholders [19][38] Management's Comments on Operating Environment and Future Outlook - The management highlighted an elevated global threat environment, which is expected to drive continued defense investment from the US and allied nations [13][14] - The company anticipates 2025 to be another strong year, with revenue guidance set between $3.425 billion and $3.525 billion, implying 6% to 9% organic growth [48][49] Other Important Information - The company announced a cash dividend of $0.09 per share and a share buyback program totaling $75 million over the next two years [35][36] - The new facility in Charleston, South Carolina, is expected to enhance capabilities in steam turbine systems and support the Columbia class program [26][27] Q&A Session Summary Question: Impact of Doge effort on the company - Management indicated that the Doge effort has not yet reached the Department of Defense and remains focused on the new administration's strategic priorities [60] Question: Clarification on one-off items in Q4 - The CFO explained that the adjustments were primarily due to currency shifts affecting balance sheet items [63] Question: Margin targets for 2026 and other contributing areas - Management noted that smaller sensing and force protection programs transitioning from development to production phases would contribute to margin improvements alongside the Columbia program [68][69] Question: Status of KDDX and DDGX programs - Management confirmed ongoing engagement with the Korean customer for KDDX and noted growing interest in electric propulsion for DDGX [79][80] Question: Concerns about raw material supply - The CFO stated that while germanium remains a focus, overall supply chain stability has improved, with no significant concerns outside of germanium [85][86] Question: Implications of potential budget cuts - Management expressed confidence in their balanced exposure across services and highlighted growth areas in counter UAS and AI-supported computing [92][94] Question: Foreign military sales impact due to geopolitical tensions - Management noted a slight increase in revenue from Ukraine but anticipated a tapering off as negotiations progress, while European demand for American systems may rise [111][112]

Quarterly Earnings Presentation Q4 | 2024 February 20, 2025 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 ...

Core Insights - Leonardo DRS, Inc. reported revenue of $981 million for the quarter ended December 2024, reflecting a year-over-year increase of 5.9% [1] - The earnings per share (EPS) for the quarter was $0.38, up from $0.31 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $942.62 million by 4.07%, and the EPS also surpassed the consensus estimate of $0.36 by 5.56% [1] Financial Performance Metrics - Revenue from the IMS segment was $326 million, slightly below the average estimate of $329.20 million from three analysts [4] - Revenue from the ASC segment was $660 million, exceeding the average estimate of $619.13 million from three analysts [4] - Adjusted EBITDA for the IMS segment was $46 million, surpassing the estimated $44.69 million, while the ASC segment's adjusted EBITDA was $102 million, above the average estimate of $96.86 million [4] Stock Performance - Over the past month, shares of Leonardo DRS, Inc. have declined by 20.2%, contrasting with a 2.6% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Leonardo DRS, Inc. reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 5.56% [1] - The company achieved revenues of $981 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.07%, compared to $926 million in the same quarter last year [2] - Over the last four quarters, Leonardo DRS has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - The stock has underperformed, losing about 8.6% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $756.87 million, and for the current fiscal year, it is $1.07 on revenues of $3.43 billion [7] - The Aerospace - Defense Equipment industry is currently ranked in the bottom 49% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Performance - Revenue for Q4 2024 was $981 million, a 6% increase from Q4 2023, and full year revenue reached $3.234 billion, up 14% year-over-year[4]. - Net earnings for Q4 2024 were $89 million, a 20% increase compared to Q4 2023, with full year net earnings of $213 million, reflecting a 27% growth[4]. - Adjusted EBITDA for Q4 2024 was $148 million, a 13% increase from Q4 2023, and full year adjusted EBITDA was $400 million, up 23% year-over-year[4]. - Gross profit for the year ended December 31, 2024, was $736 million, up 13.5% from $648 million in 2023[31]. - Net earnings for the year increased to $213 million, representing a 26.8% rise from $168 million in 2023[31]. - Basic earnings per share rose to $0.81 for the year, compared to $0.64 in 2023, marking a 26.6% increase[31]. - Adjusted Net Earnings for the twelve months ended December 31, 2024, reached $249 million, compared to $194 million in 2023, reflecting a 28.4% increase[43]. - Diluted EPS for the twelve months ended December 31, 2024, was $0.80, up from $0.64 in 2023, marking a 25% increase[43]. Bookings and Backlog - Bookings for Q4 2024 totaled $1.27 billion, with a book-to-bill ratio of 1.3, and full year bookings reached $4.077 billion, also with a ratio of 1.3[14]. - The backlog at year-end 2024 was $8.5 billion, representing a 10% increase from the previous year[6]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the year was $271 million, compared to $205 million in 2023, indicating a 32.1% increase[36]. - Free Cash Flow for Q4 2024 was $416 million, down from $494 million in Q4 2023, indicating a decrease of 15.8%[45]. - The company reported a net cash provided by operating activities of $443 million for Q4 2024, compared to $515 million in Q4 2023, a decrease of 13.9%[45]. - Capital expenditures for the year totaled $85 million, up from $60 million in 2023, representing a 41.7% increase[36]. - Capital expenditures for the twelve months ended December 31, 2024, totaled $85 million, an increase from $60 million in 2023, representing a 41.7% rise[45]. Assets and Liabilities - Total assets as of December 31, 2024, were $4,184 million, up from $3,921 million in 2023, reflecting a 6.7% growth[34]. - Cash and cash equivalents increased to $598 million from $467 million, a 27.9% increase year-over-year[34]. - The company reported a decrease in long-term debt to $340 million from $349 million, a reduction of 2.6%[34]. - Contract liabilities increased to $399 million from $335 million, reflecting a 19.1% rise year-over-year[34]. Segment Performance - The Advanced Sensing and Computing segment reported revenues of $660 million for Q4 2024, a 9% increase from Q4 2023, and $2.118 billion for the full year, up 16%[16]. - The Integrated Mission Systems segment achieved adjusted EBITDA margin growth to 14.1% in Q4 2024, a 290 basis points increase from the prior year[18]. Dividends and Stock Repurchase - A cash dividend of $0.09 per common share was declared, payable on March 27, 2025[12]. - A stock repurchase program was authorized for up to $75 million of common stock, commencing in March 2025[13]. Other Financial Metrics - The income tax provision for Q4 2024 was $22 million, slightly up from $21 million in Q4 2023, indicating a 4.8% increase[41]. - Restructuring costs for the twelve months ended December 31, 2024, were $8 million, down from $11 million in 2023, showing a decrease of 27.3%[41]. - The company experienced a decrease in interest expense, which fell to $4 million in Q4 2024 from $9 million in Q4 2023, a reduction of 55.6%[41].

Leonardo DRS, Inc. (DRS) , with a strong backlog, rising earnings estimates and efficient debt management, offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.DRS’ Growth Projections & Surprise History The Zacks Consensus Estimate for DRS’ 2025 earnings per share (EPS) has increased 0.9% to $1.07 per share in the past 60 days. The Zacks Consensus Estimate for Leona ...

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Has Leonardo DRS, Inc. (DRS) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Leonardo DRS, Inc. is a member of the Aerospace sector. This group includes 46 individual stocks and currently holds a Zacks Sector Rank of #6. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the ...

Company Overview - Leonardo DRS, Inc. currently holds a Momentum Style Score of B, indicating potential for strong performance in the momentum investing strategy [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical track record of outperforming the market [4] Price Performance - Over the past week, shares of DRS have increased by 19.11%, significantly outperforming the Zacks Aerospace - Defense Equipment industry, which rose by 4.86% during the same period [6] - In a longer time frame, DRS shares have gained 22.34% over the past quarter and 85.97% over the last year, while the S&P 500 has only increased by 9.45% and 33.9%, respectively [7] Trading Volume - The average 20-day trading volume for DRS is currently 719,897 shares, which serves as a useful baseline for assessing price movements [8] Earnings Outlook - In the past two months, four earnings estimates for DRS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.84 to $0.90 [10] - For the next fiscal year, four estimates have also moved upwards without any downward revisions, indicating positive sentiment regarding future earnings [10]

Growth stock Leonardo DRS, Inc. (NASDAQ: DRS ) has had a year of rapidly rising share prices, a whopping 79.59%. And that obviously leads to the question: Will it continue to grow profitably or will this uptrendRobert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident o ...