Q2 2024 Leonardo DRS Inc Earnings Call Transcript
Key Points
- Leonardo DRS Inc (DRS) posted a consecutive quarter of 1.2 book-to-bill ratio, indicating strong demand.
- Total backlog reached over $7.9 billion, up 82% year over year.
- Organic revenue growth of 20% year over year, driven by easing supply chain constraints.
- Adjusted EBITDA grew by 32%, with a margin expansion of 100 basis points.
- Adjusted net earnings and adjusted diluted EPS increased by 21% and 20%, respectively.
- IMS segment faced efficiency issues related to a land integration program, causing delays and increased costs.
- Despite improvements, supply chain constraints still exist, particularly in electronic components.
- Inflation remains a challenge, with higher input pricing in some business areas.
- Revenue growth from supply chain recovery is expected to be contained to this year, with future growth aligning with mid-single digit projections.
- IMS segment's adjusted EBITDA margin contracted by 130 basis points due to unfavorable program mix and less efficient execution.
Hello. Thank you for standing by. Welcome to Leonardo DRS second quarter 2024 earnings call. (Operator Instructions)
I would now like to hand the call over to Steve Vather. Sir, you may begin.
Good morning, and welcome, everyone. Thanks for participating on today's quarterly earnings conference call. With me today are Bill Lynn, our Chairman and CEO; and Mike Dippold, our CFO. They'll discuss our strategy, operational highlights, financial results and forward outlook.
Today's call is being webcast on the Investor Relations portion of the website, where you will also find the earnings release and supplemental presentation. Management may also make forward-looking statements during the call regarding future events, anticipated future trends and the anticipated future performance of the company.
We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
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