Leonardo DRS, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $960 million for the three months ended September 30, 2025, an increase of 18.2% compared to $812 million in the same period last year. For the nine months ending September 30, 2025, total revenues were $2.588 billion, up 14.9% from $2.253 billion in the prior year. The company’s net earnings also saw a notable rise, increasing by 26.3% to $72 million for the third quarter and by 41.9% to $176 million for the nine-month period. This growth was reflected in earnings per share, which rose to $0.27 for the third quarter and $0.66 for the nine months, compared to $0.22 and $0.47, respectively, in the previous year.
The company’s operational performance was bolstered by a 7.8% increase in total backlog, which reached $8.909 billion as of September 30, 2025, compared to $8.264 billion a year earlier. This growth was driven by new awards in both the Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS) segments. Bookings for the third quarter also increased significantly, totaling $1.307 billion, a 24.4% rise from $1.051 billion in the same quarter of 2024. The ASC segment reported revenues of $580 million, up 8.8%, while the IMS segment saw a 34.4% increase to $383 million.
In terms of operational changes, Leonardo DRS has focused on enhancing its capabilities in advanced sensing, network computing, and force protection systems. The company has also made strategic investments, including a $15 million stake in Hoverfly Technologies, a tethered UAV company, and has expanded its naval operations in South Carolina. The company’s workforce included approximately 6% of employees based in Israel, reflecting its international presence and potential exposure to geopolitical risks.
The filing also highlighted challenges, including inflationary pressures affecting supply chain costs and the potential impact of U.S. government budget uncertainties. The company noted that its revenues are heavily reliant on U.S. government contracts, which accounted for approximately 81% of total revenues for the nine months ended September 30, 2025. The ongoing U.S. government shutdown, which began on October 1, 2025, could lead to delays in contract awards and funding, posing risks to future operations.
Looking ahead, Leonardo DRS remains optimistic about its growth trajectory, driven by a strong backlog and ongoing demand for its defense technologies. The company anticipates continued revenue recognition from its long-term contracts, particularly in electric power and propulsion programs with the U.S. Navy, which are expected to contribute significantly to future earnings.
About Leonardo DRS, Inc.
Leonardo DRS, Inc. provides advanced defense technology, specializing in sensing, network computing, power systems, and force protection for U.S. military and allied forces. Its core offerings include electro-optical sensors, electronic warfare, naval propulsion, and electrical systems. Serving primarily the U.S. government, the company operates through long-term contracts, emphasizing innovation, system integration, and multi-domain defense solutions across land, sea, air, space, and cyber markets.
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