Latest news with #BillLynn
CTV News
3 days ago
- Business
- CTV News
Lively man becomes Greater Sudbury's newest millionaire with HSN draw win
Health Sciences North Foundation in Sudbury is guaranteeing some big prizes in its December 50-50 cash lottery draw. A man from the Greater Sudbury community of Lively has won $1,169,522, the jackpot in December's 50/50 draw in support of Health Sciences North (HSN). Bill Lynn Bill Lynn from the Greater Sudbury community of Lively has won $1,169,522, the jackpot in December's 50/50 draw in support of Health Sciences North. (Supplied) The winner is Bill Lynn. 'You're kidding,' said Lynn, when Anthony Keating, the president of the HSN Foundation called to tell him about his win. 'You just gave me a head rush there – I almost passed out.' Though the call started with Lynn describing himself as cranky, but joy could be heard in his voice after Keating told him how much he had won. 'My, my, my,' he said with a sigh. 'I am kind of baffled here.' Lynn was definitely in shock. 'It blows my mind, though,' he said. 'I'm just waiting to wake up and realize that this is a dream.' Lynn told Keating that he buys $100 worth of tickets for the 50/50 every month and that he did not think his odds of winning were very good. 'HSN saved my life a couple of times so it's not hard for me to put a few bucks every month to a good cause,' he said in a news release. When asked what he was going to spend the money on, Lynn said his youngest daughter had recently bought a house and he intends to pay it off. 'I'm looking forward to spoiling the grandkids a little and maybe spoiling myself a bit, but this kind of money can make a big difference for my family down the road, too,' he said. 'It's exciting to think about, even if I still think I'm dreaming.' When accepting the check from the HSN Foundation, Lynn said he thought he was going to cry. 'This December has been an incredible month,' said Keating. 'We just gave somebody $1,169,522 – But it has also been a great 2023. You've made a big difference in the health care of people living in northeastern Ontario.' Since its inception, the HSN Foundation's 50/50 draw has given away more than $23 Million to winners all over Ontario. Funds raised will make a difference in the lives of those living with cancer, how the tiniest patients receive specialized pediatric care and ensuring equipment is in place when needed to provide quality patient care. 'Because of you, we are able to invest in state-of-the-art equipment, invest in more research and plan for future capital development,' said Keating. 'It is because of you that we are making a bigger difference in health care for people living here in northeastern Ontario.' The January HSN 50/50 draw is live at and the jackpot is already more than $37,500. Click here for more information. Tickets for the January draw are available to purchase right now, with sales ending at 11:59 p.m. on Jan. 25. The jackpot-winning ticket will be drawn on Jan. 26 at 10 a.m. For more information on the HSN Foundation's 50/50 draws and the work they do, visit their social media page.
Yahoo
15-05-2025
- Business
- Yahoo
DRS Q1 Earnings Call: Outperformance Driven by Defense Demand, Supply Chain Adjustments Highlight Risks
Aerospace and defense company Leonardo DRS (NASDAQ:DRS) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 16.1% year on year to $799 million. The company expects the full year's revenue to be around $3.48 billion, close to analysts' estimates. Its non-GAAP profit of $0.20 per share was 21.7% above analysts' consensus estimates. Is now the time to buy DRS? Find out in our full research report (it's free). Revenue: $799 million vs analyst estimates of $731.8 million (16.1% year-on-year growth, 9.2% beat) Adjusted EPS: $0.20 vs analyst estimates of $0.17 (21.7% beat) Adjusted EBITDA: $82 million vs analyst estimates of $78.09 million (10.3% margin, 5% beat) The company reconfirmed its revenue guidance for the full year of $3.48 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.05 at the midpoint EBITDA guidance for the full year is $445 million at the midpoint, below analyst estimates of $449.4 million Operating Margin: 7.4%, up from 6.3% in the same quarter last year Free Cash Flow was -$170 million compared to -$275 million in the same quarter last year Backlog: $8.61 billion at quarter end, up 9.8% year on year Market Capitalization: $10.74 billion Leonardo DRS began the year with results that surpassed Wall Street expectations, driven by robust customer demand across its defense technology portfolio and the favorable timing of material receipts. CEO Bill Lynn emphasized that the company's backlog reached $8.61 billion, underpinned by continued order strength in advanced infrared sensing, electric power and propulsion, and tactical radars. Management credited the acceleration of supplier deliveries and operational improvements for the quarter's revenue growth, noting that domestic programs were the primary contributors while international sales saw a temporary dip due to delivery timing. Looking ahead, management reaffirmed its full-year revenue and adjusted profit guidance, pointing to strong backlog visibility and consistent demand from U.S. defense customers. CFO Mike Dippold highlighted that quarterly results benefitted from early material receipts, which are expected to improve revenue linearity throughout the year. However, the team also acknowledged potential headwinds, including volatile germanium prices impacting margins and ongoing scrutiny of supply chain resilience. Management stressed that investments in facility expansion and technology development are intended to align DRS with evolving defense priorities and ensure readiness for future opportunities. Leonardo DRS's first quarter was shaped by a combination of strong domestic demand, operational shifts, and supply chain adjustments. Management outlined several business dynamics that influenced both the quarter's results and their expectations for the remainder of the year. Supply Chain Acceleration: The company attributed its revenue overperformance to accelerated supplier deliveries, which allowed certain material receipts to be recognized earlier than forecasted. CFO Mike Dippold indicated that this shift was broad-based rather than confined to specific programs, leading to improved confidence in the supply chain's reliability. Domestic Program Growth: Management identified domestic defense programs—especially in ground and naval network computing, tactical radars, and electric power and propulsion—as the main sources of growth. International revenue dipped slightly in the quarter, largely due to the timing of deliveries to support Ukraine. Infrared Sensing Headwinds: A supply disruption from a sole-source optics supplier, related to rare earth mineral (germanium) sourcing, resulted in higher input costs and pressured profit margins in the Advanced Sensing and Computing (ASC) segment. Management responded by adjusting contract pricing and adding economic price adjustment clauses to mitigate future volatility. Shipbuilding Expansion: DRS is accelerating the completion of its Charleston facility and expanding its role in U.S. Navy shipbuilding, including investments to become a second source for steam turbine generators. Management highlighted ongoing discussions with the Navy and new opportunities for electric power and propulsion technologies in both manned and unmanned naval platforms. Technology Advancements: The quarter saw the introduction of an AI processor for real-time threat detection and mission computing on combat vehicles, as well as successful demonstrations of electric propulsion on unmanned surface vessels. Management believes these developments position DRS for future growth in rapidly evolving defense applications. Management's outlook for the remainder of the year centers on sustaining organic growth through a strong backlog and ongoing investments, while navigating input cost pressures and potential defense budget shifts. Backlog Visibility: DRS's sizable backlog and continued healthy bookings are expected to provide stability and predictability for revenue growth, with management targeting book-to-bill ratios above one for the year. Margin Expansion Drivers: The Integrated Mission Systems (IMS) segment, supported by expanding Columbia-class submarine content and operational efficiencies, is expected to drive the majority of margin improvement, while the ASC segment faces continued headwinds from input cost volatility. Risk Mitigation Efforts: Management is proactively addressing potential headwinds from volatile input costs—particularly germanium—by incorporating economic price adjustment clauses into future contracts and diversifying raw material sourcing to reduce supply chain risk. Michael Ciarmoli (Truist Securities): Asked if accelerated material receipts were linked to specific programs. CFO Mike Dippold clarified the acceleration was broad-based and that domestic demand led growth, while international sales saw a temporary decline. Alex Ladd (JPMorgan): Sought clarification on margin expansion for the year. Dippold explained that increased revenue volume would generate operating leverage, especially in the IMS segment, driving sequential margin improvement. Jon Tanwanteng (CJS Securities): Questioned why full-year guidance remained unchanged after a strong first quarter. CEO Bill Lynn responded that improved linearity and operational pacing, rather than conservatism, guided their approach to maintaining current targets. Unidentified Analyst (Bank of America): Asked about exposure to European defense opportunities as countries localize production. Lynn noted substantial near-term opportunities, especially in counter-drone and sensing programs, but acknowledged longer-term competition from local industry. Andre Madrid (BTIG): Queried about M&A priorities and managing germanium price volatility. Lynn confirmed M&A remains a capital allocation priority, while Dippold detailed that new contract clauses and diversified sourcing are being used to address supply risks. In the coming quarters, the StockStory team will be watching (1) whether DRS can maintain its strong backlog growth and healthy book-to-bill ratios, (2) how effectively the company mitigates input cost pressures—especially around germanium—and maintains margin expansion, and (3) progress on capital projects such as the Charleston facility and new technology rollouts. Execution in these areas will provide key evidence of DRS's ability to deliver on its stated strategy amid a dynamic defense environment. Leonardo DRS currently trades at a forward P/E ratio of 37.1×. Should you load up, cash out, or stay put? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
Leonardo DRS (NASDAQ:DRS) Surprises With Q1 Sales, Stock Soars
Aerospace and defense company Leonardo DRS (NASDAQ:DRS) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 16.1% year on year to $799 million. The company expects the full year's revenue to be around $3.48 billion, close to analysts' estimates. Its non-GAAP profit of $0.20 per share was 21.1% above analysts' consensus estimates. Is now the time to buy Leonardo DRS? Find out in our full research report. Revenue: $799 million vs analyst estimates of $731.8 million (16.1% year-on-year growth, 9.2% beat) Adjusted EPS: $0.20 vs analyst estimates of $0.17 (21.1% beat) Adjusted EBITDA: $82 million vs analyst estimates of $78.09 million (10.3% margin, 5% beat) The company reconfirmed its revenue guidance for the full year of $3.48 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.05 at the midpoint EBITDA guidance for the full year is $445 million at the midpoint, below analyst estimates of $449.4 million Operating Margin: 7.4%, up from 6.3% in the same quarter last year Free Cash Flow was -$170 million compared to -$275 million in the same quarter last year Backlog: $8.61 billion at quarter end, up 9.8% year on year Market Capitalization: $9.83 billion 'Our first quarter 2025 financial results exceeded our expectations and reflect a solid start to the year. Our differentiated portfolio continues to exhibit strong customer demand, which is also translating into healthy organic revenue growth. Additionally, in the quarter we drove improved profitability and reduced free cash flow usage compared to last year. Amidst a more dynamic operating environment, we remain focused on maintaining sharp execution throughout 2025 to meet our commitments to shareholders and customers,' said Bill Lynn, Chairman and CEO of Leonardo DRS. Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last four years, Leonardo DRS grew its sales at a sluggish 3.8% compounded annual growth rate. This fell short of our benchmark for the industrials sector and is a poor baseline for our analysis. Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. Leonardo DRS's annualized revenue growth of 12.4% over the last two years is above its four-year trend, suggesting its demand recently accelerated. We can dig further into the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Leonardo DRS's backlog reached $8.61 billion in the latest quarter and averaged 54.4% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Leonardo DRS's products and services but raises concerns about capacity constraints. This quarter, Leonardo DRS reported year-on-year revenue growth of 16.1%, and its $799 million of revenue exceeded Wall Street's estimates by 9.2%. Looking ahead, sell-side analysts expect revenue to grow 6.2% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will face some demand challenges. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Leonardo DRS has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 10.5%. Analyzing the trend in its profitability, Leonardo DRS's operating margin rose by 2.1 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Leonardo DRS generated an operating profit margin of 7.4%, up 1.1 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Leonardo DRS's EPS grew at an astounding 18% compounded annual growth rate over the last two years, higher than its 12.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Leonardo DRS's earnings quality to better understand the drivers of its performance. Leonardo DRS's operating margin has expanded by 3 percentage points over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Leonardo DRS reported EPS at $0.20, up from $0.14 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Leonardo DRS's full-year EPS of $0.99 to grow 9.9%. We were impressed by how significantly Leonardo DRS blew past analysts' revenue expectations this quarter. We were also glad its EPS outperformed Wall Street's estimates. On the other hand, its full-year EBITDA guidance slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 6.3% to $39.29 immediately after reporting. Leonardo DRS put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Associated Press
20-02-2025
- Business
- Associated Press
Leonardo DRS Announces Financial Results for Fourth Quarter and Full Year 2024
ARLINGTON, Va.--(BUSINESS WIRE)--Feb 20, 2025-- Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the fourth quarter and full year ended December 31, 2024. 'Our 2024 financial results exceeded our expectations. DRS delivered record bookings, mid-teens organic revenue growth, healthy adjusted EBITDA margin expansion and solid free cash flow generation. The DRS team's focus on our customers and helping address their most challenging missions continues to generate remarkable outcomes for our shareholders. Our outstanding people, our agility and innovation combined with our differentiated technologies are foundational to both our growth and market leadership. We remain strategically focused on capitalizing on our momentum to drive continued growth,' said Bill Lynn, Chairman and CEO of Leonardo DRS. Summary Financial Results (In millions, except per share amounts) Fourth Quarter Full Year 2024 2023 Change 2024 2023 Change Revenues $ 981 $ 926 6 % $ 3,234 $ 2,826 14 % Net Earnings $ 89 $ 74 20 % $ 213 $ 168 27 % Diluted weighted average number of shares outstanding (WASO) 268.955 265.700 267.733 264.175 Diluted Earnings Per Share (EPS) $ 0.33 $ 0.28 18 % $ 0.80 $ 0.64 25 % Non-GAAP Financial Measures(1) Adjusted EBITDA $ 148 $ 131 13 % $ 400 $ 324 23 % Adjusted EBITDA Margin 15.1 % 14.1 % 100 bps 12.4 % 11.5 % 90 bps Adjusted Net Earnings $ 101 $ 83 22 % $ 249 $ 194 28 % Adjusted Diluted EPS $ 0.38 $ 0.31 23 % $ 0.93 $ 0.73 27 % (1) The company reports its financials in accordance with U.S. generally accepted accounting principles ('GAAP'). Information about the company's use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under 'Non-GAAP Financial Measures.' Revenue growth for the fourth quarter was up 6% compared to 2023. The year-over-year growth in Q4 was primarily driven by programs related to tactical radars, naval network computing, advanced infrared sensing and electric power and propulsion. Full year 2024 revenue growth was 14% over the prior year. Advanced infrared sensing, tactical radars, electric power and propulsion and force protection programs were the most significant tailwinds to growth for the full year. Both Q4 and full year 2024 adjusted EBITDA growth was as a result of improved program execution including programs moving from development to production (namely Columbia Class), favorable program mix and operational leverage from increased volume. Strong operating performance combined with decreased interest expense drove year-over-year net earnings and adjusted net earnings growth for the quarter. Similarly, full year 2024 net earnings and adjusted net earnings increased over the prior year due to solid operating performance and lower interest expense, somewhat offset by increased tax expense. The aforementioned trends also produced adjusted diluted EPS growth in the quarter and for the full year. Cash Flow and Balance Sheet Net cash flow generated by operating activities was $443 million for the fourth quarter and $271 million for the full year. Additionally, the company generated significant free cash flow in the fourth quarter of $416 million and full year free cash flow was $190 million. At year end, the balance sheet had $598 million of cash and $203 million of outstanding borrowings under the company's credit facility, which provides the company with sufficient financial capacity to deploy capital for growth and return capital to shareholders, while maintaining a healthy balance sheet. Capital Deployment DRS today announced that its Board of Directors declared a cash dividend of $0.09 per common share payable on March 27, 2025, to shareholders of record on March 13, 2025. We currently expect to continue paying quarterly cash dividends in the near future, but there can be no assurance as to those payments and their amount. Any future declarations of dividends and their record and payment dates are subject to the determination by the Board of Directors. The declaration of dividends and the amount thereof will depend on the company's financial condition, results of operations, capital requirements, alternative uses of capital and other factors that the Board of Directors may consider at its discretion. Additionally, the Board of Directors authorized a stock repurchase program for DRS to purchase up to $75 million of its common stock, at its discretion, commencing in March 2025 through March 2027 (two years). Under the stock repurchase program, DRS may purchase shares of its common stock through various means, including open market transactions, block purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and actual number of shares repurchased are subject to market conditions and legal requirements. The program may be modified, discontinued or suspended at any time without prior notice. Bookings and Backlog DRS received $1.3 billion in new funded contract awards during the fourth quarter and $4.1 billion for the full year. Remarkable customer demand was evident across the company's differentiated portfolio. Bookings in the quarter were driven primarily by demand for solutions related to electric power and propulsion, advanced infrared sensing, naval and ground network computing, tactical radars as well as airborne and intelligence sensing. For full year 2024, demand for the company's electric power and propulsion, advanced infrared sensing, naval and ground network computing and force protection solutions contributed heavily to bookings. Additionally, the strong award volume translated to an increase in total backlog, which stood at $8.5 billion at year end. (Dollars in millions) Fourth Quarter Full Year 2024 2023 Change 2024 2023 Change Revenues $ 660 $ 605 9 % $ 2,118 $ 1,831 16 % Adjusted EBITDA $ 102 $ 94 9 % $ 262 $ 215 22 % Adjusted EBITDA Margin 15.5 % 15.5 % — bps 12.4 % 11.7 % 70 bps Bookings $ 721 $ 614 $ 2,609 $ 2,307 Book-to-Bill 1.1x 1.0x 1.2x 1.3x ASC enjoyed healthy bookings for both the fourth quarter and full year 2024. Strong demand was diverse and balanced across the company's advanced sensing and network computing portfolio. ASC revenues increased in Q4 and for the full year. The growth in both periods was bolstered by programs related to advanced infrared sensing, tactical radars and naval network computing. Adjusted EBITDA growth in Q4 was volume driven. Adjusted EBITDA and adjusted EBITDA margin increased for the full year due to improved program execution, favorable program mix and operational leverage from increased volume. Integrated Mission Systems ('IMS') Segment IMS bookings for the fourth quarter and full year were primarily driven by strong demand for the company's electric power and propulsion technologies. The slight year-over-year decline of IMS revenue in the quarter was driven by program timing on force protection efforts. Full year 2024 growth was evident across the segment with strong contribution from force protection and electric power and propulsion programs. Adjusted EBITDA and adjusted EBITDA margin growth in the fourth quarter was propelled primarily by improved profitability on the Columbia Class program. This trend was also evident for the full year. Additionally, adjusted EBITDA and margin benefited from operational leverage on higher volume. 2025 Guidance Leonardo DRS is formalizing 2025 guidance as specified in the table below: Measure 2025 Guidance 2024 Results Revenue $3,425 million - $3,525 million $3,234 million Adjusted EBITDA $435 million - $455 million $400 million Tax Rate 19.0% 19.3% Diluted WASO 270.0 million 267.7 million Adjusted Diluted EPS $1.02 - $1.08 $0.93 The company does not provide a reconciliation of forward-looking adjusted EBITDA and adjusted diluted EPS due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measures without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results. Conference Call Leonardo DRS management will host a conference call beginning at 10:00 a.m. ET on February 20, 2025 to discuss the financial results for its fourth quarter and full year 2024. A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leonardo DRS Investor Relations website ( A replay of the conference call will be available on the Leonardo DRS website approximately 2 hours after the conclusion of the conference call. About Leonardo DRS Headquartered in Arlington, VA, Leonardo DRS, Inc. is an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world. We specialize in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other leading mission-critical technologies. Our innovative people are leading the way in developing disruptive technologies for autonomous, dynamic, interconnected, and multi-domain capabilities to defend against new and emerging threats. For more information and to learn more about our full range of capabilities, visit Forward-Looking Statements In this press release, when using the terms the 'company', 'DRS', 'we', 'us' and 'our,' unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This press release contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as 'believes,' 'expects,' 'may,' 'will,' 'shall,' 'should,' 'would,' 'could,' 'seeks,' 'aims,' 'strives,' 'targets,' 'projects,' 'guidance,' 'intends,' 'plans,' 'estimates,' 'anticipates' or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this press release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations, and the impact of prevailing economic conditions. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if future performance and outcomes are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: disruptions or deteriorations in our relationship with the relevant agencies of the U.S. government, as well as any failure to pass routine audits or otherwise comply with governmental requirements including those related to security clearance or procurement rules, including the False Claims Act; significant delays or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly; any failure to comply with the proxy agreement with the U.S. Department of Defense; our relationships with other industry participants, including any contractual disputes or the inability of our key suppliers to timely deliver our components, parts or services; failure to properly contain a global pandemic in a timely manner could materially affect how we and our business partners operate; the effect of inflation on our supply chain and/or our labor costs; our mix of fixed-price, cost-plus and time-and-material type contracts and any resulting impact on our cash flows due to cost overruns; failure to properly comply with various covenants of the agreements governing our debt could negatively impact our business; our dependence on U.S. government contracts, which often are only partially funded and are subject to immediate termination, some of which are classified, and the concentration of our customer base in the U.S. defense industry; our use of estimates in pricing and accounting for many of our programs that are inherently uncertain and which may not prove to be accurate; our ability to realize the full value of our backlog; our ability to predict future capital needs or to obtain additional financing if we need it; uncertainties associated with any future stock repurchases or declarations of cash dividends, which may be discontinued, accelerated, suspended, or delayed at any time due to various factors; our ability to respond to the rapid technological changes in the markets in which we compete; the effect of global and regional economic downturns and rising interest rates; our ability to meet the requirements of being a public company; our ability to maintain an effective system of internal control over financial reporting; our inability to appropriately manage our inventory; our inability to fully realize the value of our total estimated contract value or bookings; our ability to compete efficiently, including due to U.S. government organizational conflict of interest rules which may limit new contract opportunities or require us to wind down existing contracts; our relationships with other industry participants, including any contractual disputes or the inability of our key suppliers to timely deliver our components, parts or services; preferences for set-asides for minority-owned, small and small disadvantaged businesses could impact our ability to be a prime contractor; any failure to meet our contractual obligations including due to potential impacts to our business from supply chain risks, such as longer lead times and shortages of electronics and other components; any security breach, including any cyber-attack, cyber intrusion, insider threat, or other significant disruption of our IT networks and related systems, or those of our customers, suppliers, vendors, subcontractors, partners, or other third parties, as well as any act of terrorism or other threat to our physical security and personnel; our ability to fully exploit or obtain patents or other intellectual property protections necessary to secure our proprietary technology, including our ability to avoid infringing upon the intellectual property of third parties or prevent third parties from infringing upon our own intellectual property; the conduct of our employees, agents, affiliates, subcontractors, suppliers, business partners or joint ventures in which we participate which may impact our reputation and ability to do business; our compliance with environmental laws and regulations, and any environmental liabilities that may affect our reputation or financial position; the outcome of litigation, arbitration, investigations, claims, disputes, enforcement actions and other legal proceedings in which we are involved; various geopolitical and economic factors, laws and regulations including the Foreign Corrupt Practices Act, the Export Control Act, the International Traffic in Arms Regulations, the Export Administration Regulations, and those that we are exposed to as a result of our international business, including their impact on our ability to access certain raw materials; geopolitical conflicts, including the war in Israel have the potential to evolve quickly creating uncertainty in the world and broader Middle East region specifically, along with the potential for disruptions to our Israeli operations including but not limited to workforce calls for duty, transportation and other logistical impacts and reduced customer confidence; our ability to obtain export licenses necessary to conduct certain operations abroad, including any attempts by Congress to prevent proposed sales to certain foreign governments; our ability to attract and retain technical and other key personnel; the occurrence of prolonged work stoppages; the unavailability or inadequacy of our insurance coverage, customer indemnifications or other liability protections to cover all of our significant risks or to pay for material losses we incur; future changes in U.S. tax laws and regulations or interpretations thereof; certain limitations on our ability to use our net operating losses to offset future taxable income; termination of our leases or our inability to renew our leases on acceptable terms; changes in estimates used in accounting for our pension plans, including in respect of the funding status thereof; changes in future business or other market conditions that could cause business investments and/or recorded goodwill or other long-term assets to become impaired; adverse consequences from any acquisitions such as operating difficulties, dilution and other harmful consequences or any modification, delay or prevention of any future acquisition or investment activity by the Committee on Foreign Investment in the United States; natural disasters or other significant disruptions; or any conflict of interest that may arise because Leonardo US Holding, LLC, our majority stockholder, or Leonardo S.p.A., our ultimate majority stockholder, may have interests that are different from, or conflict with, those of our other stockholders, including as a result of any ongoing business relationships Leonardo S.p.A. may have with us, and their significant ownership in us may discourage change of control transactions (our amended and restated certificate of incorporation provides that we waive any interest or expectancy in corporate opportunities presented to Leonardo S.p.A); or our obligations to provide certain services to Leonardo S.p.A., which may divert human and financial resources from our business. You should read this press release completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this filing, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise. Other risks, uncertainties and factors, including those discussed in our latest SEC filings under 'Risk Factors' of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the investor relations section of our website could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read the discussion of these factors carefully to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements. Consolidated Statements of Earnings (Unaudited) (Dollars in millions, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Revenues 981 926 3,234 2,826 Cost of revenues (746 ) (716 ) (2,498 ) (2,178 ) Gross profit 235 210 736 648 General and administrative expenses (108 ) (98 ) (414 ) (384 ) Amortization of intangibles (5 ) (6 ) (22 ) (22 ) Other operating expenses, net (2 ) (1 ) (7 ) (11 ) Operating earnings 120 105 293 231 Interest expense (4 ) (9 ) (21 ) (36 ) Other, net (5 ) (1 ) (8 ) (3 ) Earnings before taxes 111 95 264 192 Income tax provision 22 21 51 24 Net earnings $ 89 $ 74 $ 213 $ 168 Net earnings per share from common stock: Basic earnings per share $ 0.34 $ 0.28 $ 0.81 $ 0.64 Diluted earnings per share $ 0.33 $ 0.28 $ 0.80 $ 0.64 Consolidated Balance Sheets (Unaudited) (Dollars in millions, except per share amounts) December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 598 $ 467 Accounts receivable, net 253 151 Contract assets 872 908 Inventories 358 329 Prepaid expenses 27 21 Other current assets 55 42 Total current assets 2,163 1,918 Noncurrent assets: Property, plant and equipment, net 440 402 Intangible assets, net 132 151 Goodwill 1,238 1,238 Deferred tax assets 120 123 Other noncurrent assets 91 89 Total noncurrent assets 2,021 2,003 Total assets $ 4,184 $ 3,921 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 25 $ 57 Accounts payable 426 398 Contract liabilities 399 335 Other current liabilities 266 288 Total current liabilities 1,116 1,078 Noncurrent liabilities: Long-term debt 340 349 Pension and other postretirement benefit plan liabilities 34 36 Deferred tax liabilities 7 4 Other noncurrent liabilities 130 129 Total noncurrent liabilities $ 511 $ 518 Shareholders' equity: Preferred stock, $0.01 par value: 10,000,000 shares authorized; none issued $ — $ — Common stock, $0.01 par value: 350,000,000 shares authorized; 265,064,755 and 262,525,390 shares issued and outstanding as of December 31, 2024 and 2023, respectively 3 3 Additional paid-in capital 5,194 5,175 Accumulated deficit (2,593 ) (2,806 ) Accumulated other comprehensive loss (47 ) (47 ) Total shareholders' equity 2,557 2,325 Total liabilities and shareholders' equity $ 4,184 $ 3,921 Consolidated Statements of Cash Flows (Unaudited) (Dollars in millions) Year Ended December 31, 2024 2023 Operating activities Net earnings $ 213 $ 168 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 91 85 Deferred income taxes 23 (52 ) Share-based compensation expense 22 17 Other 1 1 Changes in assets and liabilities: Accounts receivable (102 ) 15 Contract assets 36 (36 ) Inventories (29 ) (10 ) Prepaid expenses (6 ) (1 ) Other current assets (13 ) (18 ) Other noncurrent assets 17 19 Defined benefit obligations (2 ) (8 ) Accounts payable 15 (59 ) Contract liabilities 64 102 Other current liabilities (39 ) (26 ) Other noncurrent liabilities (20 ) 8 Net cash provided by operating activities 271 205 Investing activities Capital expenditures (85 ) (60 ) Proceeds from sales of assets 1 1 Net cash used in investing activities (84 ) (59 ) Financing activities Net (decrease) increase in third party borrowings (maturities of 90 days or less) (32 ) 20 Repayment of third party debt (291 ) (727 ) Borrowings of third party debt 280 715 Proceeds from stock issuance 16 12 Cash outlay to reacquire equity instruments (19 ) (1 ) Other (10 ) (4 ) Net cash (used in) provided by financing activities (56 ) 15 Effect of exchange rate changes on cash and cash equivalents — — Net increase in cash and cash equivalents 131 161 Cash and cash equivalents at beginning of year 467 306 Cash and cash equivalents at end of year $ 598 $ 467 Non-GAAP Financial Measures (Unaudited) In addition to the results reported in accordance with U.S. GAAP included throughout this document, the company has provided information regarding 'Adjusted EBITDA,' 'Adjusted EBITDA Margin,' 'Adjusted Net Earnings,' 'Adjusted Diluted Earnings Per Share' and 'Free Cash Flow' (each, a non-GAAP financial measure). We believe the non-GAAP financial measures presented in this document will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure. We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business. We define these non-GAAP financial measures as: Adjusted EBITDA and Adjusted EBITDA Margin are defined as net earnings before income taxes, interest expense, amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals and foreign exchange impacts), then in the case of adjusted EBITDA margin dividing adjusted EBITDA by revenues. (Dollars in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Net earnings $ 89 $ 74 $ 213 $ 168 Income tax provision 22 21 51 24 Interest expense 4 9 21 36 Amortization of intangibles 5 6 22 22 Depreciation 18 16 69 63 Deal-related transaction costs 2 3 7 7 Restructuring costs 3 1 8 11 Other one-time non-operational events 5 1 9 (7 ) Adjusted EBITDA $ 148 $ 131 $ 400 $ 324 Adjusted EBITDA Margin 15.1 % 14.1 % 12.4 % 11.5 % Adjusted Net Earnings and Adjusted Diluted EPS are defined as net earnings excluding amortization of acquired intangible assets, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals and foreign exchange impacts), and the related tax impacts, then in the case of adjusted diluted EPS dividing adjusted net earnings by the diluted weighted average number of shares outstanding (WASO). Free Cash Flow is defined as the sum of the cash flows provided by (used in) operating activities, transaction-related expenditures (net of tax), capital expenditures and proceeds from sale of assets. View source version on CONTACT: Leonardo DRS ContactsInvestors Steve Vather SVP, Investor Relations & Corporate Finance +1 703 409 2906 [email protected] Michael Mount VP, Communications & Public Affairs +1 571 447 4624 [email protected] KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA INDUSTRY KEYWORD: SOFTWARE NETWORKS OTHER DEFENSE DRONES TECHNOLOGY DEFENSE SECURITY GOVERNMENT TECHNOLOGY ENGINEERING AEROSPACE MANUFACTURING MILITARY SOURCE: Leonardo DRS, Inc. Copyright Business Wire 2025.
