Leonardo DRS(DRS) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $960 million, an 18% increase year-over-year[4] - Net earnings reached $72 million, up 26% compared to Q3 2024[5] - Adjusted EBITDA was $117 million, reflecting a 17% year-over-year growth[5] - Adjusted diluted EPS for Q3 2025 was $0.29, a 21% increase from the previous year[5] - Revenues for Q3 2025 reached $960 million, a 18.2% increase from $812 million in Q3 2024[27] - Gross profit for Q3 2025 was $222 million, up 24.0% from $179 million in Q3 2024[27] - Net earnings for the nine months ended September 30, 2025, were $176 million, compared to $124 million for the same period in 2024, reflecting a 42.0% increase[27] - Adjusted Net Earnings for Q3 2025 were $78 million, compared to $64 million in Q3 2024, reflecting a 21.9% increase[38] - Diluted EPS rose to $0.26 in Q3 2025, up from $0.21 in Q3 2024, marking a 23.8% increase[38] - For the nine months ended September 30, 2025, net earnings reached $176 million, compared to $124 million in the same period of 2024, a 42% increase[38] - Adjusted Diluted EPS for the nine months ended September 30, 2025, was $0.73, compared to $0.56 in the same period of 2024, reflecting a 30.4% increase[38] Cash Flow and Investments - Cash flow from operating activities was $107 million, with free cash flow of $77 million for the quarter[8] - Cash and cash equivalents decreased to $309 million as of September 30, 2025, from $598 million at the beginning of the year[30] - The company reported a net cash used in operating activities of $59 million for the nine months ended September 30, 2025, an improvement from $172 million in the same period of 2024[30] - Free Cash Flow for Q3 2025 was $77 million, compared to $48 million in Q3 2024, indicating a 60.4% increase[40] - Free Cash Flow for the nine months ended September 30, 2025, was negative $149 million, an improvement from negative $226 million in the same period of 2024[40] - The company invested $15 million in Hoverfly Technologies, increasing its stake to approximately 25%[10] Guidance and Future Outlook - The company revised its 2025 revenue guidance to $3.550 billion - $3.600 billion[15] - Bookings totaled $1.3 billion with a book-to-bill ratio of 1.4x, indicating strong demand[5] - Backlog increased by 8% year-over-year to a record $8.9 billion[12] Capital Expenditures - The company incurred capital expenditures of $90 million for the nine months ended September 30, 2025, compared to $56 million in the same period of 2024[30] - Capital expenditures in Q3 2025 were $30 million, up from $12 million in Q3 2024, representing a 150% increase[40] Dividends and Stockholder Equity - A cash dividend of $0.09 per share was declared, payable on December 2, 2025[9] - Total stockholders' equity rose to $2,648 million as of September 30, 2025, up from $2,557 million at the end of 2024[29]