STOCK TITAN

Leonardo DRS, Inc. Financials

DRS
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Leonardo DRS, Inc. (DRS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 51 / 100
Financial Profile 51/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
43

Leonardo DRS, Inc. has an operating margin of 9.5%, meaning the company retains $10 of operating profit per $100 of revenue. This results in a moderate score of 43/100, indicating healthy but not exceptional operating efficiency. This is up from 9.1% the prior year.

Growth
55

Leonardo DRS, Inc.'s revenue grew 12.8% year-over-year to $3.6B, a solid pace of expansion. This earns a growth score of 55/100.

Leverage
99

Leonardo DRS, Inc. carries a low D/E ratio of 0.13, meaning only $0.13 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 99/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
34

Leonardo DRS, Inc.'s current ratio of 1.89 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
41

Leonardo DRS, Inc. has a free cash flow margin of 6.2%, earning a moderate score of 41/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
34

Leonardo DRS, Inc.'s ROE of 10.2% shows moderate profitability relative to equity, earning a score of 34/100. This is up from 8.3% the prior year.

Altman Z-Score Safe
4.81

Leonardo DRS, Inc. scores 4.81, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($12.2B) relative to total liabilities ($1.8B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Strong
7/9

Leonardo DRS, Inc. passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Cash-Backed
1.32x

For every $1 of reported earnings, Leonardo DRS, Inc. generates $1.32 in operating cash flow ($366.0M OCF vs $278.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue
$3.6B
YoY+12.8%
5Y CAGR+5.6%

Leonardo DRS, Inc. generated $3.6B in revenue in fiscal year 2025. This represents an increase of 12.8% from the prior year.

EBITDA
$441.0M
YoY+14.8%
5Y CAGR+13.5%

Leonardo DRS, Inc.'s EBITDA was $441.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 14.8% from the prior year.

Net Income
$278.0M
YoY+30.5%
5Y CAGR+26.7%

Leonardo DRS, Inc. reported $278.0M in net income in fiscal year 2025. This represents an increase of 30.5% from the prior year.

EPS (Diluted)
$1.03
YoY+28.7%
5Y CAGR+20.8%

Leonardo DRS, Inc. earned $1.03 per diluted share (EPS) in fiscal year 2025. This represents an increase of 28.7% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$227.0M
YoY+22.0%
5Y CAGR+26.9%

Leonardo DRS, Inc. generated $227.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 22.0% from the prior year.

Cash & Debt
$647.0M
YoY+8.2%
5Y CAGR+60.4%

Leonardo DRS, Inc. held $647.0M in cash against $348.0M in long-term debt as of fiscal year 2025.

Dividends Per Share
$0.36

Leonardo DRS, Inc. paid $0.36 per share in dividends in fiscal year 2025.

Shares Outstanding
266M
YoY+0.3%
5Y CAGR+4.8%

Leonardo DRS, Inc. had 266M shares outstanding in fiscal year 2025. This represents an increase of 0.3% from the prior year.

Margins & Returns

Gross Margin
23.8%
YoY+1.1pp
5Y CAGR+6.0pp

Leonardo DRS, Inc.'s gross margin was 23.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.1 percentage points from the prior year.

Operating Margin
9.5%
YoY+0.5pp
5Y CAGR+3.0pp

Leonardo DRS, Inc.'s operating margin was 9.5% in fiscal year 2025, reflecting core business profitability. This is up 0.5 percentage points from the prior year.

Net Margin
7.6%
YoY+1.0pp
5Y CAGR+4.6pp

Leonardo DRS, Inc.'s net profit margin was 7.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.0 percentage points from the prior year.

Return on Equity
10.2%
YoY+1.9pp
5Y CAGR+4.2pp

Leonardo DRS, Inc.'s ROE was 10.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 1.9 percentage points from the prior year.

Capital Allocation

R&D Spending
$129.0M
YoY+40.2%
5Y CAGR+25.8%

Leonardo DRS, Inc. invested $129.0M in research and development in fiscal year 2025. This represents an increase of 40.2% from the prior year.

Share Buybacks
$35.0M

Leonardo DRS, Inc. spent $35.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Capital Expenditures
$139.0M
YoY+63.5%
5Y CAGR+19.9%

Leonardo DRS, Inc. invested $139.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 63.5% from the prior year.

DRS Income Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue $1.1B+10.4% $960.0M+15.8% $829.0M+3.8% $799.0M-18.6% $981.0M+20.8% $812.0M+7.8% $753.0M+9.4% $688.0M
Cost of Revenue $791.0M+7.2% $738.0M+16.8% $632.0M+2.3% $618.0M-17.2% $746.0M+17.9% $633.0M+8.4% $584.0M+9.2% $535.0M
Gross Profit $269.0M+21.2% $222.0M+12.7% $197.0M+8.8% $181.0M-23.0% $235.0M+31.3% $179.0M+5.9% $169.0M+10.5% $153.0M
R&D Expenses $35.0M-2.8% $36.0M+20.0% $30.0M+7.1% $28.0M0.0% $28.0M+21.7% $23.0M+9.5% $21.0M+5.0% $20.0M
SG&A Expenses $136.0M+10.6% $123.0M+1.7% $121.0M+3.4% $117.0M+8.3% $108.0M+10.2% $98.0M-8.4% $107.0M+5.9% $101.0M
Operating Income $126.0M+35.5% $93.0M+32.9% $70.0M+18.6% $59.0M-50.8% $120.0M+60.0% $75.0M+36.4% $55.0M+27.9% $43.0M
Interest Expense N/A N/A N/A $1.0M-75.0% $4.0M-20.0% $5.0M-28.6% $7.0M+40.0% $5.0M
Income Tax $22.0M+46.7% $15.0M+15.4% $13.0M+62.5% $8.0M-63.6% $22.0M+83.3% $12.0M+33.3% $9.0M+12.5% $8.0M
Net Income $102.0M+41.7% $72.0M+33.3% $54.0M+8.0% $50.0M-43.8% $89.0M+56.1% $57.0M+50.0% $38.0M+31.0% $29.0M
EPS (Diluted) N/A $0.26+30.0% $0.20+5.3% $0.19 N/A $0.21+50.0% $0.14+27.3% $0.11

DRS Balance Sheet

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $4.5B+5.7% $4.2B+4.1% $4.1B-0.4% $4.1B-2.1% $4.2B+8.4% $3.9B+1.1% $3.8B+1.0% $3.8B
Current Assets $2.3B+7.4% $2.2B+7.0% $2.0B-2.2% $2.1B-4.3% $2.2B+16.3% $1.9B+3.0% $1.8B+1.9% $1.8B
Cash & Equivalents $647.0M+109.4% $309.0M+11.2% $278.0M-26.8% $380.0M-36.5% $598.0M+202.0% $198.0M+32.9% $149.0M-6.9% $160.0M
Inventory $352.0M-12.9% $404.0M+1.0% $400.0M+3.9% $385.0M+7.5% $358.0M-1.4% $363.0M-1.1% $367.0M+7.3% $342.0M
Accounts Receivable $334.0M+2.1% $327.0M+23.4% $265.0M+4.3% $254.0M+0.4% $253.0M+6.8% $237.0M+26.1% $188.0M-3.1% $194.0M
Goodwill $1.2B0.0% $1.2B0.0% $1.2B0.0% $1.2B0.0% $1.2B0.0% $1.2B0.0% $1.2B0.0% $1.2B
Total Liabilities $1.8B+10.0% $1.6B+8.0% $1.5B-3.0% $1.5B-6.3% $1.6B+17.3% $1.4B-1.8% $1.4B-0.9% $1.4B
Current Liabilities $1.2B+13.8% $1.1B+12.9% $958.0M-6.7% $1.0B-8.0% $1.1B+26.8% $880.0M-1.8% $896.0M-0.7% $902.0M
Long-Term Debt $348.0M+6.7% $326.0M-1.5% $331.0M-1.2% $335.0M-8.5% $366.0M+6.1% $345.0M-1.7% $351.0M-1.4% $356.0M
Total Equity $2.7B+3.1% $2.6B+1.8% $2.6B+1.1% $2.6B+0.5% $2.6B+3.4% $2.5B+2.8% $2.4B+2.2% $2.4B
Retained Earnings -$2.3B+4.2% -$2.4B+2.9% -$2.5B+2.1% -$2.5B+1.9% -$2.6B+3.3% -$2.7B+2.1% -$2.7B+1.4% -$2.8B

DRS Cash Flow Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $425.0M+297.2% $107.0M+482.1% -$28.0M+79.7% -$138.0M-131.2% $443.0M+650.8% $59.0M+73.5% $34.0M+112.8% -$265.0M
Capital Expenditures $49.0M+63.3% $30.0M+7.1% $28.0M-12.5% $32.0M+10.3% $29.0M+141.7% $12.0M-64.7% $34.0M+240.0% $10.0M
Free Cash Flow $376.0M+388.3% $77.0M+237.5% -$56.0M+67.1% -$170.0M-141.1% $414.0M+780.9% $47.0M $0+100.0% -$275.0M
Investing Cash Flow -$49.0M-8.9% -$45.0M-60.7% -$28.0M+12.5% -$32.0M-10.3% -$29.0M-163.6% -$11.0M+67.6% -$34.0M-240.0% -$10.0M
Financing Cash Flow -$38.0M-22.6% -$31.0M+32.6% -$46.0M+4.2% -$48.0M-242.9% -$14.0M-1500.0% $1.0M+109.1% -$11.0M+65.6% -$32.0M
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks $11.0M+10.0% $10.0M-9.1% $11.0M+266.7% $3.0M $0 $0 $0 $0

DRS Financial Ratios

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin 25.4%+2.3pp 23.1%-0.6pp 23.8%+1.1pp 22.7%-1.3pp 24.0%+1.9pp 22.0%-0.4pp 22.4%+0.2pp 22.2%
Operating Margin 11.9%+2.2pp 9.7%+1.2pp 8.4%+1.1pp 7.4%-4.9pp 12.2%+3.0pp 9.2%+1.9pp 7.3%+1.0pp 6.3%
Net Margin 9.6%+2.1pp 7.5%+1.0pp 6.5%+0.3pp 6.3%-2.8pp 9.1%+2.1pp 7.0%+2.0pp 5.1%+0.8pp 4.2%
Return on Equity 3.7%+1.0pp 2.7%+0.6pp 2.1%+0.1pp 1.9%-1.5pp 3.5%+1.2pp 2.3%+0.7pp 1.6%+0.4pp 1.2%
Return on Assets 2.3%+0.6pp 1.7%+0.4pp 1.3%+0.1pp 1.2%-0.9pp 2.1%+0.6pp 1.5%+0.5pp 1.0%+0.2pp 0.8%
Current Ratio 1.89-0.1 2.00-0.1 2.11+0.1 2.02+0.1 1.94-0.2 2.11+0.1 2.01+0.1 1.96
Debt-to-Equity 0.130.0 0.120.0 0.130.0 0.13-0.0 0.140.0 0.140.0 0.150.0 0.15
FCF Margin 35.5%+27.5pp 8.0%+14.8pp -6.8%+14.5pp -21.3%-63.5pp 42.2%+36.4pp 5.8%+5.8pp 0.0%+40.0pp -40.0%

Similar Companies

Frequently Asked Questions

Leonardo DRS, Inc. (DRS) reported $3.6B in total revenue for fiscal year 2025. This represents a 12.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Leonardo DRS, Inc. (DRS) revenue grew by 12.8% year-over-year, from $3.2B to $3.6B in fiscal year 2025.

Yes, Leonardo DRS, Inc. (DRS) reported a net income of $278.0M in fiscal year 2025, with a net profit margin of 7.6%.

Leonardo DRS, Inc. (DRS) reported diluted earnings per share of $1.03 for fiscal year 2025. This represents a 28.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Leonardo DRS, Inc. (DRS) had EBITDA of $441.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Leonardo DRS, Inc. (DRS) had $647.0M in cash and equivalents against $348.0M in long-term debt.

Leonardo DRS, Inc. (DRS) had a gross margin of 23.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Leonardo DRS, Inc. (DRS) had an operating margin of 9.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Leonardo DRS, Inc. (DRS) had a net profit margin of 7.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Leonardo DRS, Inc. (DRS) paid $0.36 per share in dividends during fiscal year 2025.

Leonardo DRS, Inc. (DRS) has a return on equity of 10.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Leonardo DRS, Inc. (DRS) generated $227.0M in free cash flow during fiscal year 2025. This represents a 22.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Leonardo DRS, Inc. (DRS) generated $366.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Leonardo DRS, Inc. (DRS) had $4.5B in total assets as of fiscal year 2025, including both current and long-term assets.

Leonardo DRS, Inc. (DRS) invested $139.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Leonardo DRS, Inc. (DRS) invested $129.0M in research and development during fiscal year 2025.

Yes, Leonardo DRS, Inc. (DRS) spent $35.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Leonardo DRS, Inc. (DRS) had 266M shares outstanding as of fiscal year 2025.

Leonardo DRS, Inc. (DRS) had a current ratio of 1.89 as of fiscal year 2025, which is generally considered healthy.

Leonardo DRS, Inc. (DRS) had a debt-to-equity ratio of 0.13 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Leonardo DRS, Inc. (DRS) had a return on assets of 6.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Leonardo DRS, Inc. (DRS) has an Altman Z-Score of 4.81, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Leonardo DRS, Inc. (DRS) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Leonardo DRS, Inc. (DRS) has an earnings quality ratio of 1.32x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Leonardo DRS, Inc. (DRS) scores 51 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

Back to top