Leonardo DRS, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2025, with total revenues reaching $3.648 billion, a 12.8% increase from $3.234 billion in 2024. The company's net earnings also rose to $278 million, up 30.5% from $213 million the previous year. This growth was driven by heightened demand across its program portfolio, particularly in naval power and propulsion, counter-drone systems, and tactical radar programs. The gross profit margin improved to 23.8%, reflecting effective cost management and a favorable revenue mix, despite challenges from legacy programs and rising material costs.
In terms of operational developments, Leonardo DRS reported a total backlog of $8.448 billion, a 2.2% increase from $8.268 billion in 2024. The backlog is supported by a diversified portfolio of contracts, including significant awards for the Columbia Class submarine program. The company secured $4.245 billion in new bookings during 2025, marking a 4.1% increase from the previous year, with strong performance in the Integrated Mission Systems (IMS) segment, which saw bookings grow by 21.7%. However, the Advanced Sensing and Computing (ASC) segment experienced a decline in new orders, attributed to the absence of multi-year bookings that had been realized in the prior year.
Strategically, Leonardo DRS has focused on enhancing its capabilities through increased investments in research and development (R&D), which rose by over 40% to $129 million in 2025. The company also opened a new 140,000 square foot naval power and propulsion manufacturing facility in South Carolina, further expanding its operational capacity. The workforce as of December 31, 2025, included approximately 7,300 employees, with a commitment to maintaining a culture of innovation and operational excellence.
Looking ahead, Leonardo DRS remains optimistic about its growth trajectory, supported by the U.S. government's defense budget, which is projected to increase. The President's Fiscal Year 2026 budget request includes $848 billion in discretionary funding, with the National Defense Authorization Act authorizing $901 billion for defense. However, the company acknowledges potential risks, including government funding uncertainties, supply chain disruptions, and the need to adapt to evolving technological demands. The management's outlook emphasizes a focus on maintaining strong customer relationships and executing on existing contracts to drive future growth.
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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