Defense contractor Leonardo DRS Q3 profit beats estimates on strong demand, tightens sales guidance

Leonardo DRS

29/10/2025 11:42

Overview

Leonardo 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 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 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/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$960 mln
$924.80 mln (8 Analysts)
Q3 Adjusted EPS
Beat
$0.29
$0.28 (9 Analysts)
Q3 EPS
$0.26
Q3 Adjusted Net Income
Beat
$78 mln
$75.20 mln (5 Analysts)
Q3 Net Income
$72 mln
Q3 Adjusted EBITDA
Beat
$117 mln
$115.40 mln (6 Analysts)
Q3 Adjusted EBITDA Margin
12.20%


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 is $50.00, about 19.6% above its October 28 closing price of $40.18

Press Release: ID:nBwbZPVGja

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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.)