Leonardo DRS(DRS) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 2024 was $981 million, a 6% increase from Q4 2023, and full year revenue reached$ 3.234 billion, up 14% year-over-year[4]. - Net earnings for Q4 2024 were $89 million, a 20% increase compared to Q4 2023, with full year net earnings of$ 213 million, reflecting a 27% growth[4]. - Adjusted EBITDA for Q4 2024 was $148 million, a 13% increase from Q4 2023, and full year adjusted EBITDA was$ 400 million, up 23% year-over-year[4]. - Gross profit for the year ended December 31, 2024, was $736 million, up 13.5% from$ 648 million in 2023[31]. - Net earnings for the year increased to $213 million, representing a 26.8% rise from$ 168 million in 2023[31]. - Basic earnings per share rose to $0.81 for the year, compared to$ 0.64 in 2023, marking a 26.6% increase[31]. - Adjusted Net Earnings for the twelve months ended December 31, 2024, reached $249 million, compared to$ 194 million in 2023, reflecting a 28.4% increase[43]. - Diluted EPS for the twelve months ended December 31, 2024, was $0.80, up from$ 0.64 in 2023, marking a 25% increase[43]. Bookings and Backlog - Bookings for Q4 2024 totaled $1.27 billion, with a book-to-bill ratio of 1.3, and full year bookings reached$ 4.077 billion, also with a ratio of 1.3[14]. - The backlog at year-end 2024 was $8.5 billion, representing a 10% increase from the previous year[6]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the year was$ 271 million, compared to $205 million in 2023, indicating a 32.1% increase[36]. - Free Cash Flow for Q4 2024 was$ 416 million, down from $494 million in Q4 2023, indicating a decrease of 15.8%[45]. - The company reported a net cash provided by operating activities of$ 443 million for Q4 2024, compared to $515 million in Q4 2023, a decrease of 13.9%[45]. - Capital expenditures for the year totaled$ 85 million, up from $60 million in 2023, representing a 41.7% increase[36]. - Capital expenditures for the twelve months ended December 31, 2024, totaled$ 85 million, an increase from $60 million in 2023, representing a 41.7% rise[45]. Assets and Liabilities - Total assets as of December 31, 2024, were$ 4,184 million, up from $3,921 million in 2023, reflecting a 6.7% growth[34]. - Cash and cash equivalents increased to$ 598 million from $467 million, a 27.9% increase year-over-year[34]. - The company reported a decrease in long-term debt to$ 340 million from $349 million, a reduction of 2.6%[34]. - Contract liabilities increased to$ 399 million from $335 million, reflecting a 19.1% rise year-over-year[34]. Segment Performance - The Advanced Sensing and Computing segment reported revenues of$ 660 million for Q4 2024, a 9% increase from Q4 2023, and $2.118 billion for the full year, up 16%[16]. - The Integrated Mission Systems segment achieved adjusted EBITDA margin growth to 14.1% in Q4 2024, a 290 basis points increase from the prior year[18]. Dividends and Stock Repurchase - A cash dividend of$ 0.09 per common share was declared, payable on March 27, 2025[12]. - A stock repurchase program was authorized for up to $75 million of common stock, commencing in March 2025[13]. Other Financial Metrics - The income tax provision for Q4 2024 was$ 22 million, slightly up from $21 million in Q4 2023, indicating a 4.8% increase[41]. - Restructuring costs for the twelve months ended December 31, 2024, were$ 8 million, down from $11 million in 2023, showing a decrease of 27.3%[41]. - The company experienced a decrease in interest expense, which fell to$ 4 million in Q4 2024 from $9 million in Q4 2023, a reduction of 55.6%[41].