On November 2, 2023, Leonardo DRS Inc (DRS, Financial), a leading provider of advanced defense technologies, announced its financial results for the third quarter of 2023, which ended on September 30, 2023.
Financial Performance
The company reported an 11% increase in revenue, reaching $703 million for the third quarter compared to $634 million in the same period last year. Net earnings for the quarter were $47 million, a significant decrease from $279 million in Q3 2022. This decrease was due to an unfavorable comparison as Q3 2022 net earnings contained a one-time net gain of approximately $270 million related to the divestitures of the company's Global Enterprise Solutions (GES) business and Advanced Acoustic Concepts Joint Venture.
Adjusted EBITDA for the quarter was $82 million, a 41% increase from $58 million in Q3 2022. The company's diluted earnings per share (EPS) stood at $0.18, while the adjusted diluted EPS was $0.20.
Bookings and Backlog
Leonardo DRS Inc (DRS, Financial) reported robust bookings of $1.1 billion for the quarter, driven by increased demand for the company’s ground vehicle and dismounted soldier sensing, force protection, tactical communications, and naval computing solutions. The company's backlog stood at a record level of $4.7 billion, representing a 50% increase year-over-year.
Segment Results
The Advanced Sensing and Computing (ASC) segment reported revenues of $431 million, a 6% increase from the same period last year. The Integrated Mission Systems (IMS) segment reported a 21% increase in revenues, reaching $277 million.
2023 Guidance
Leonardo DRS Inc (DRS, Financial) updated its 2023 guidance, narrowing the ranges for revenue and adjusted EBITDA and raising the range for adjusted diluted EPS. The company now expects revenue to be between $2,735 million and $2,785 million, and adjusted EBITDA to be between $319 million and $325 million. The adjusted diluted EPS is expected to be between $0.70 and $0.72.
CEO Bill Lynn commented on the results, stating,
Leonardo DRS delivered another quarter of excellent results as evidenced by our accelerating organic growth, robust bookings and solid profit generation. The strength of our diverse and differentiated technology, customer and program portfolio is clearly reflected in our financial results. Furthermore, our consistent execution throughout the year positions us well to meet our full year commitments."
Explore the complete 8-K earnings release (here) from Leonardo DRS Inc for further details.
