Leonardo Drs, Inc. · NASDAQ:DRS
Leonardo Drs — Q1 2025 Earnings Presentation
19 slides from Leonardo Drs's earnings presentation, May 1, 2025
Slide 1: Investor Presentation May 2025
INVESTOR PRESENTATION May 2025
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements In this presentation, 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 presentation contains forward-looking statements and cautionary stat
Slide 3: Leonardo DRS at a Glance
Leonardo DRS at a Glance Agile, Innovative and Trusted Systems Integrator and Critical Defense Technology Provider Founded in: Headquarters: Employees: 2025 Revenue (1): 2025 Adj. EBITDA (1)(2): Ticker: DRS 1969 Arlington, VA ~7,000 $3,475 million $445 million Key Technology Advanced Network Force E
Slide 4: Key Investment Highlights
Key Investment Highlights Well Positioned for Long-Term Growth and Value Creation Multi-decade reputation as an Platform agnostic model results in Entrenched and leading agile, innovative and trusted differentiated and balanced market positions aligned to systems integrator and critical portfolio of
Slide 5: Market Drivers and Leonardo DRS Tailwinds
Market Drivers and Leonardo DRS Tailwinds U.S. federal government remains world’s largest buyer of products and services with FY25 DoD budget of $832 billion Bipartisan support for defense spending growth focused on deterring and countering near-peer threats Global threat environment remains elevate
Slide 6: Experienced Management Team
Experienced Management Team Bill Lynn Mike Dippold John Baylouny Chairman & EVP & EVP & Chief Executive Officer Chief Financial Officer Chief Operating Officer Bill Lynn is Chairman and Chief Executive Officer for Leonardo Mike Dippold is Executive Vice President and Chief Financial John Baylouny is
Slide 7: Strategic Priorities
Strategic Priorities Focus on national security priorities and expanding our market leadership positions Leverage our strong technology differentiation, innovation and agility to drive organic growth Increase organic investment in research and development and capex to position for incremental long-t
Slide 8: Focused on National Security Customers and Missions
Focused on National Security Customers and Missions Reputation for Excellence Established Through 50+ Years of Agility, Innovation and Trust Prime 37% Strategic Subcontractor 63% Note: Prime and sub percentages for 2024 revenue 8
Slide 9: Mission Applications
Growing Demand for Our Capabilities and Technologies Advanced Network Force Electric Power Key Technology Sensing Computing Protection & Propulsion Areas (1) 30% 19% 19% 22% SIGINT & Multi- Integrated Platform Mission Applications Intelligence Mission Counter-UAS Propulsion Computing Systems EO/IR S
Slide 10: Leonardo DRS Operating Segments
Leonardo DRS Operating Segments Revenue Adj. EBITDA (1) Book-to-Bill Total Backlog Business Cycle Employees Locations Advanced Sensing & Computing (ASC) $2.1B $262M 1.2x $3.0B Medium 4,400 22 Other 9% Advanced Sensing Force 46% Protection 15% Prime Sole Source Fixed Price Network 44% ~50% 84% 36% 24
Slide 11: Representative Platforms with DRS Content
Representative Platforms with DRS Content Naval Columbia Virginia Arleigh Burke Ticonderoga LCS CVN LPD LHA Ground Bradley AMPV Abrams Stryker Dismounted Patriot XM-30 MPF Airborne & Space Weather Apache Seahawk Reaper Sea Stallion Tanker F-35 Satellites F-18 Hornet 11
Slide 12: Illustrative DRS Content Across Platforms
Illustrative DRS Content Across Platforms • Targeting and Pilotage • Missile Warning • 2nd and 3rd Generation HTI • In-Situ Testing Infrared Sights • IR Countermeasures Sensors • Rugged Computing • Degraded Visual • Joint Tactical Terminal • Drivers View Enhancement • Active Protection Environment S
Slide 13: DRS is Well Positioned to Address Evolving Customer Requirements
DRS is Well Positioned to Address Evolving Customer Requirements Customer Requirements Enhanced Effectiveness (Distance, Speed, Power, Precision, Advanced Information, Stealth & Lethality) Sensing Integrated Systems and Platforms Network Computing DRS capabilities and Platform and Personnel Resilien
Slide 14: Evolving Mission Requirements Driving Leonardo DRS Capability Demand
Evolving Mission Requirements Driving Leonardo DRS Capability Demand DRS Differentiation and Opportunity Mission DRS Capability Requirements • Demonstrated electric power propulsion capability on Columbia Class • Increased acoustic performance, power efficiency, endurance and surge power requirement
Slide 15: Solid Financial Track Record and Growth Opportunity
Solid Financial Track Record and Growth Opportunity Revenue Adjusted EBITDA and Margin (1) (Dollars in millions) (Dollars in millions) Diverse program portfolio with Total CAGR: 5% (Organic: 6%) CAGR: 11% no single program comprising over $3,475 $3,234 $445 10% of revenue $400 $2,778 $2,879 $2,826 $
Slide 16: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Revenue Bookings $799 million $1 billion 16% 1.2x Book-to-Bill Adjusted EBITDA (1) Backlog $82 million $8.6 billion 10.3% Margin 10% Adjusted Diluted EPS (1) Free Cash Flow (1) $0.20 $(170) million 43% (1) See slide 19 “Non-GAAP Financial Measures” for definitions
Slide 17: Confirms Strong 2025 Guidance
Confirms Strong 2025 Guidance Focused on Driving Continued Healthy Organic Growth and Adjusted EBITDA Margin Expansion (In millions, except per share amounts) • High visibility and backlog coverage for 2025 • Variability in revenue output subject to the pace of material Revenue receipts and progress
Slide 18: For More Information
For More Information: A picture containing text, clipart Description automatically generated A picture containing text, clipart Shape Facebook logo_blue on white The new Glassdoor logo has an ingenious design secret | Creative Bloq Free icon "RSS icon" Steve Vather Description automatically generate
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures (Dollars in millions) Twelve Months Ended Three Months Ended December 31, March 31, Definitions and Reconciliations Net earnings 2020 $85 2021 $154 2022 $405 2023 $168 2024 $213 2024 $29 2025 $50 Income tax provision 27 46 120 24 51 8 8 Interest expense 64 35 34 36 21 5 1