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ARLINGTON - Leonardo DRS, Inc. (NASDAQ:DRS) reported strong third quarter results on Wednesday, with revenue and earnings exceeding analyst expectations as defense demand remained robust across its business segments.
The company’s shares rose 1.52% in pre-market trading following the announcement.
The defense technology provider posted adjusted earnings of $0.29 per share for the quarter, beating the analyst consensus of $0.29, while revenue surged 18% YoY to $960 million. The company’s impressive performance was driven by strong demand for counter UAS systems, electric power and propulsion, naval network computing, and advanced infrared sensing programs.
"Broad-based customer demand was evident in our exceptional bookings and organic revenue growth in the third quarter," said Bill Lynn, Chairman and CEO of Leonardo DRS. "Our year-to-date performance puts us on a solid path to deliver double-digit revenue growth and to execute against our financial commitments for 2025."
The company reported robust bookings of $1.3 billion for the quarter, resulting in a book-to-bill ratio of 1.4x and pushing total backlog to a record $8.9 billion, up 8% from the previous year. Adjusted EBITDA increased 17% to $117 million, though the margin contracted slightly to 12.2% from 12.3% a year earlier.
Following the strong performance, Leonardo DRS raised its full-year 2025 revenue guidance to $3.55-3.6 billion from its previous forecast of $3.525-3.6 billion. The company also slightly increased its adjusted EPS outlook to $1.07-1.12 from $1.06-1.11 previously.
The Integrated Mission Systems segment was particularly strong, with revenue jumping 34% YoY to $383 million and adjusted EBITDA surging 47% to $53 million. Meanwhile, the Advanced Sensing and Computing segment saw revenue increase 9% to $580 million, though adjusted EBITDA remained flat at $64 million.
The company also declared a quarterly dividend of $0.09 per share, payable on December 2, 2025, to shareholders of record as of November 18, 2025.
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