Leonardo DRS Inc. Common Stock Q2 2025 Earnings Recap

Leonardo DRS, Inc. delivered solid Q2 results with robust revenue growth and profitability improvements, reinforced by strong demand and a healthy order backlog.

Key Takeaways

• Achieved $853 million in bookings, maintaining a 1.0 book-to-bill ratio and a total backlog of $8.6 billion, up 9% year-over-year.
• Organic revenue growth increased by double digits, leading to an upward revision of full-year revenue growth expectations to 9% to 11%.
• Adjusted EBITDA rose 17% and adjusted diluted EPS increased by 28%, reflecting strong operational performance.
• Enactment of the One Big Beautiful Bill Act highlights $150 billion in defense funding, creating significant growth opportunities aligned with national priorities.
• Challenges remain in the supply chain, particularly concerning germanium availability, but strategies are in place to mitigate these issues moving forward.