Core Insights - Leonardo DRS reported strong Q2 2025 earnings, with revenue of $829 million and adjusted diluted EPS of $0.23, both exceeding analyst expectations [1][2] - The company experienced a 10% year-over-year revenue growth and a 42% increase in net earnings, reflecting solid demand and profitability [5][6] - Despite a decline in bookings to $853 million, backlog increased to $8.6 billion, indicating strong future revenue visibility [6][9] Financial Performance - Revenue reached $829 million, surpassing the $827.46 million estimate, and increased from $753 million in Q2 2024, marking a 10% growth [2][5] - Adjusted diluted EPS was $0.23, exceeding the $0.21 estimate and up from $0.18 in the previous year, representing a 28% increase [2][5] - Net earnings rose to $54 million from $38 million a year ago, reflecting a 42% increase [2][5] - Adjusted EBITDA increased by 17% year-over-year to $96 million [2][5] Segment Performance - The Advanced Sensing and Computing segment saw a 10% revenue growth, although margins were impacted by increased R&D investments and supplier disruptions [7][8] - The Integrated Mission Systems segment reported a 9% revenue increase and a 41% jump in adjusted EBITDA, with a margin of 13.1% [8] Strategic Focus - The company is focused on innovation, enhancing defense technology capabilities, and securing large contracts with the U.S. government [4] - Management is addressing supply chain risks and aligning with shifting Department of Defense priorities to ensure timely execution of programs [4][10] Future Outlook - Management raised its fiscal 2025 revenue guidance to a range of $3.53 billion to $3.60 billion, with adjusted diluted EPS expected between $1.06 and $1.11 [9] - Continued margin expansion is anticipated in the electric power and propulsion business [9]