Leonardo DRS(US:DRS) ZACKSยท2025-09-22 15:16Core Viewpoint - Leonardo DRS, Inc. is positioned as a strong investment option in the Aerospace-Defense Equipment industry due to its robust growth, increasing backlog, and solid financial metrics [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for DRS' 2025 earnings per share (EPS) has risen by 2.8% to $1.11 per share over the last 60 days [2] - Total revenue for DRS in 2025 is projected at $3.59 billion, reflecting a year-over-year growth of 10.9% [2] - The company's long-term earnings growth rate is estimated at 17.3%, with an average earnings surprise of 11.94% over the last four quarters [2] Advanced Sensing Capabilities - DRS leads in Advanced Sensing Technologies, providing systems for targeting, surveillance, and protection through various advanced technologies [3] Rising Backlog - As of June 30, 2025, DRS' total backlog increased by 8.6% to $8.61 billion, driven by new awards in Advanced Sensing and Integrated Mission Systems [4] Liquidity Position - DRS' current ratio at the end of Q2 2025 was 2.11, surpassing the industry average of 1.83, indicating strong short-term liability management [5] Debt Profile - The total debt to capital ratio for DRS is 11.95%, significantly lower than the industry average of 49.30% [6] - The times interest earned (TIE) ratio was 26.4, suggesting the company can comfortably meet its interest obligations [6] Return to Shareholders - DRS has been enhancing shareholder value through dividends and share buybacks, with a 47.2% increase in shares over the past year [8] - The quarterly dividend is currently 9 cents per share, leading to an annualized dividend of 36 cents and a dividend yield of 0.87%, outperforming the industry average of 0.15% [9] Stock Price Performance - Over the past year, DRS shares have increased by 45%, compared to a 33.1% rise in the industry [12]