Leonardo DRS, Inc. Financials
Leonardo DRS, Inc. (DRS) reported $3.6B in revenue for fiscal year 2025, up 12.8% from the prior fiscal year. This page shows its 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).
Revenue growth is increasingly converting into cash, supporting reinvestment while steadily strengthening liquidity and reducing reliance on debt.
By FY2025, operating cash flow of$366M exceeded net income of$278M , indicating earnings were broadly cash-backed. That conversion coincided with long-term debt falling8.0% from FY2023 while capital expenditures more than doubled, so internal cash funded both balance-sheet repair and heavier reinvestment.
Gross profit grew faster than revenue in FY2025, lifting gross margin to
Liquidity strengthened, with the current ratio at 1.9x; that gives near-term obligations more coverage while the company continued investing. Accounts receivable grew
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Leonardo DRS, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Leonardo DRS, Inc. has an operating margin of 9.5%, meaning the company retains $10 of operating profit per $100 of revenue. This strong profitability earns a score of 75/100, reflecting efficient cost management and pricing power. This is up from 9.1% the prior year.
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 72/100.
Leonardo DRS, Inc. carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 95/100, indicating a strong balance sheet with room for future borrowing.
Leonardo DRS, Inc.'s current ratio of 1.89 indicates adequate short-term liquidity, earning a score of 54/100. The company can meet its near-term obligations, though with limited headroom.
Leonardo DRS, Inc. has a free cash flow margin of 6.2%, earning a moderate score of 52/100. The company generates positive cash flow after capital investments, but with room for improvement.
Leonardo DRS, Inc. earns a strong 10.2% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 66/100. This is up from 8.3% the prior year.
Leonardo DRS, Inc. scores 4.52, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($11.4B) relative to total liabilities ($1.8B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
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.
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
Earnings & Revenue
Leonardo DRS, Inc. generated $3.6B in revenue in fiscal year 2025. This represents an increase of 12.8% from the prior year.
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.
Leonardo DRS, Inc. reported $278.0M in net income in fiscal year 2025. This represents an increase of 30.5% from the prior year.
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
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.
Leonardo DRS, Inc. held $647.0M in cash against $321.0M in long-term debt as of fiscal year 2025.
Leonardo DRS, Inc. paid $0.36 per share in dividends in fiscal year 2025.
Margins & Returns
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.
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.
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.
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
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.
Leonardo DRS, Inc. spent $35.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
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
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.8B | $3.6B+12.8% | $3.2B+14.4% | $2.8B+4.9% | $2.7B-6.5% | $2.9B+3.6% | $2.8B+2.4% | $2.7B |
| Cost of Revenue | $2.8B | $2.8B+11.2% | $2.5B+14.7% | $2.2B+2.8% | $2.1B-9.2% | $2.3B+2.1% | $2.3B+1.3% | $2.3B |
| Gross Profit | $940.0M | $869.0M+18.1% | $736.0M+13.6% | $648.0M+12.7% | $575.0M+5.1% | $547.0M+10.7% | $494.0M+7.6% | $459.0M |
| R&D Expenses | $138.0M | $129.0M+40.2% | $92.0M+12.2% | $82.0M+41.4% | $58.0M+20.8% | $48.0M+17.1% | $41.0M+32.3% | $31.0M |
| SG&A Expenses | $518.0M | $497.0M+20.0% | $414.0M+7.8% | $384.0M+7.6% | $357.0M+21.8% | $293.0M+3.5% | $283.0M+2.2% | $277.0M |
| Operating Income | $398.0M | $348.0M+18.8% | $293.0M+26.8% | $231.0M-58.8% | $561.0M+137.7% | $236.0M+30.4% | $181.0M+11.0% | $163.0M |
| Interest Expense | N/A | N/A | $21.0M-41.7% | $36.0M+5.9% | $34.0M-2.9% | $35.0M-45.3% | $64.0M-1.5% | $65.0M |
| Income Tax | $66.0M | $58.0M+13.7% | $51.0M+112.5% | $24.0M-80.0% | $120.0M+160.9% | $46.0M+70.4% | $27.0M+35.0% | $20.0M |
| Net Income | $322.0M | $278.0M+30.5% | $213.0M+26.8% | $168.0M-58.5% | $405.0M+163.0% | $154.0M+81.2% | $85.0M+13.3% | $75.0M |
| EPS (Diluted) | — | $1.03+28.7% | $0.80+25.0% | $0.64-66.0% | $1.88+157.5% | $0.73+82.5% | $0.40+11.1% | $0.36 |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
DRS Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Total Assets | $4.5B+7.2% | $4.2B+6.7% | $3.9B+6.6% | $3.7B+19.8% | $3.1B+3.8% | $3.0B | N/A |
| Current Assets | $2.3B+7.5% | $2.2B+12.8% | $1.9B+12.4% | $1.7B+22.9% | $1.4B+10.0% | $1.3B | N/A |
| Cash & Equivalents | $647.0M+8.2% | $598.0M+28.1% | $467.0M+52.6% | $306.0M+27.5% | $240.0M+293.4% | $61.0M-28.2% | $85.0M |
| Inventory | $352.0M-1.7% | $358.0M+8.8% | $329.0M+3.1% | $319.0M+55.6% | $205.0M-17.0% | $247.0M | N/A |
| Accounts Receivable | $334.0M+32.0% | $253.0M+67.5% | $151.0M-9.0% | $166.0M+6.4% | $156.0M+52.9% | $102.0M | N/A |
| Goodwill | $1.2B0.0% | $1.2B0.0% | $1.2B+0.2% | $1.2B+15.4% | $1.1B+1.3% | $1.1B0.0% | $1.1B |
| Total Liabilities | $1.8B+7.9% | $1.6B+1.9% | $1.6B+3.0% | $1.6B+5.0% | $1.5B-3.5% | $1.5B | N/A |
| Current Liabilities | $1.2B+10.3% | $1.1B+3.5% | $1.1B+3.5% | $1.0B+5.4% | $989.0M+1.4% | $975.0M | N/A |
| Long-Term Debt | $321.0M-5.6% | $340.0M-2.6% | $349.0M-4.4% | $365.0M+3.7% | $352.0M-5.9% | $374.0M | N/A |
| Total Equity | $2.7B+6.8% | $2.6B+10.0% | $2.3B+9.3% | $2.1B+33.5% | $1.6B+11.6% | $1.4B+40.0% | $1.0B |
| Retained Earnings | -$2.3B+10.7% | -$2.6B+7.6% | -$2.8B+5.6% | -$3.0B+0.3% | -$3.0B+4.9% | -$3.1B | N/A |
DRS Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $501.0M | $366.0M+35.1% | $271.0M+32.2% | $205.0M+521.2% | $33.0M-81.5% | $178.0M+42.4% | $125.0M-20.4% | $157.0M |
| Capital Expenditures | $138.0M | $139.0M+63.5% | $85.0M+41.7% | $60.0M-7.7% | $65.0M+8.3% | $60.0M+7.1% | $56.0M+1.8% | $55.0M |
| Free Cash Flow | $363.0M | $227.0M+22.0% | $186.0M+28.3% | $145.0M+553.1% | -$32.0M-127.1% | $118.0M+71.0% | $69.0M-32.4% | $102.0M |
| Investing Cash Flow | -$152.0M | -$154.0M-83.3% | -$84.0M-42.4% | -$59.0M-113.5% | $436.0M+1017.9% | $39.0M+155.7% | -$70.0M+53.6% | -$151.0M |
| Financing Cash Flow | -$357.0M | -$163.0M-191.1% | -$56.0M-473.3% | $15.0M+103.7% | -$403.0M-960.5% | -$38.0M+52.5% | -$80.0M-7900.0% | -$1.0M |
| Dividends Paid | N/A | N/A | $0 | $0-100.0% | $396.0M | $0 | $0 | N/A |
| Share Buybacks | $37.0M | $35.0M | $0 | $0 | $0 | $0 | N/A | N/A |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
DRS Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 23.8%+1.1pp | 22.8%-0.2pp | 22.9%+1.6pp | 21.3%+2.3pp | 19.0%+1.2pp | 17.8%+0.9pp | 16.9% |
| Operating Margin | 9.5%+0.5pp | 9.1%+0.9pp | 8.2%-12.7pp | 20.8%+12.6pp | 8.2%+1.7pp | 6.5%+0.5pp | 6.0% |
| Net Margin | 7.6%+1.0pp | 6.6%+0.6pp | 5.9%-9.1pp | 15.0%+9.7pp | 5.3%+2.3pp | 3.1%+0.3pp | 2.8% |
| Return on Equity | 10.2%+1.9pp | 8.3%+1.1pp | 7.2%-11.8pp | 19.0%+9.4pp | 9.7%+3.7pp | 6.0%-1.4pp | 7.4% |
| Return on Assets | 6.2%+1.1pp | 5.1%+0.8pp | 4.3%-6.7pp | 11.0%+6.0pp | 5.0%+2.1pp | 2.9% | N/A |
| Current Ratio | 1.890.0x | 1.94+0.2x | 1.78+0.1x | 1.64+0.2x | 1.40+0.1x | 1.30 | N/A |
| Debt-to-Equity | 0.120.0x | 0.130.0x | 0.150.0x | 0.170.0x | 0.220.0x | 0.26 | N/A |
| FCF Margin | 6.2%+0.5pp | 5.8%+0.6pp | 5.1%+6.3pp | -1.2%-5.3pp | 4.1%+1.6pp | 2.5%-1.3pp | 3.8% |
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Where Leonardo DRS, Inc. Ranks
Frequently Asked Questions
What is Leonardo DRS, Inc.'s annual revenue?
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.
How fast is Leonardo DRS, Inc.'s revenue growing?
Leonardo DRS, Inc. (DRS) revenue grew by 12.8% year-over-year, from $3.2B to $3.6B in fiscal year 2025.
Is Leonardo DRS, Inc. profitable?
Yes, Leonardo DRS, Inc. (DRS) reported a net income of $278.0M in fiscal year 2025, with a net profit margin of 7.6%.
What is Leonardo DRS, Inc.'s EBITDA?
Leonardo DRS, Inc. (DRS) had EBITDA of $441.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Leonardo DRS, Inc. have?
As of fiscal year 2025, Leonardo DRS, Inc. (DRS) had $647.0M in cash and equivalents against $321.0M in long-term debt.
What is Leonardo DRS, Inc.'s gross margin?
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.
What is Leonardo DRS, Inc.'s operating margin?
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.
What is Leonardo DRS, Inc.'s net profit margin?
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.
Does Leonardo DRS, Inc. pay dividends?
Yes, Leonardo DRS, Inc. (DRS) paid $0.36 per share in dividends during fiscal year 2025.
What is Leonardo DRS, Inc.'s return on equity (ROE)?
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.
What is Leonardo DRS, Inc.'s free cash flow?
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.
What is Leonardo DRS, Inc.'s operating cash flow?
Leonardo DRS, Inc. (DRS) generated $366.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Leonardo DRS, Inc.'s total assets?
Leonardo DRS, Inc. (DRS) had $4.5B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Leonardo DRS, Inc.'s capital expenditures?
Leonardo DRS, Inc. (DRS) invested $139.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Leonardo DRS, Inc. spend on research and development?
Leonardo DRS, Inc. (DRS) invested $129.0M in research and development during fiscal year 2025.
What is Leonardo DRS, Inc.'s current ratio?
Leonardo DRS, Inc. (DRS) had a current ratio of 1.89 as of fiscal year 2025, which is generally considered healthy.
What is Leonardo DRS, Inc.'s debt-to-equity ratio?
Leonardo DRS, Inc. (DRS) had a debt-to-equity ratio of 0.12 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Leonardo DRS, Inc.'s return on assets (ROA)?
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.
What is Leonardo DRS, Inc.'s Altman Z-Score?
Leonardo DRS, Inc. (DRS) has an Altman Z-Score of 4.52, 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.
What is Leonardo DRS, Inc.'s Piotroski F-Score?
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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Leonardo DRS, Inc.'s earnings high quality?
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.
How financially healthy is Leonardo DRS, Inc.?
Leonardo DRS, Inc. (DRS) scores 69 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.