Leonardo DRS, Inc. reported significant financial growth in its third quarter and year-to-date results for 2024, driven primarily by increased demand from the U.S. Department of Defense (DoD). For the three months ended September 30, 2024, revenues reached $812 million, a 15.5% increase from $703 million in the same period of 2023. Year-to-date revenues for the nine months totaled $2,253 million, up 18.6% from $1,900 million in 2023.
Gross profit for the third quarter was $179 million, reflecting a 10.5% increase from $162 million in 2023, while gross profit for the nine months rose to $501 million from $438 million, a 14.4% increase. Operating earnings also improved, with $75 million reported for the third quarter, up 27.1% from $59 million, and $173 million for the nine months, an increase of 37.3% from $126 million in the prior year. Earnings before taxes for the third quarter were $69 million, compared to $48 million in 2023, and for the nine months, they increased to $153 million from $97 million.
Net earnings for the third quarter were $57 million, up from $47 million, while year-to-date net earnings reached $124 million, compared to $94 million in 2023. Basic earnings per share (EPS) for the third quarter increased to $0.22 from $0.18, and for the nine months, it rose to $0.47 from $0.36.
The company’s total backlog as of September 30, 2024, was $8,264 million, a substantial increase of 75.1% from $4,719 million a year earlier, largely due to a multi-boat contract for the Columbia Class submarine program with the U.S. Navy. Bookings for the nine months ended September 30, 2024, were $2,807 million, up from $2,502 million in 2023.
Despite the positive revenue and earnings growth, cash and cash equivalents decreased significantly to $198 million from $467 million at the end of 2023. The company reported net cash used in operating activities of $(172) million, an improvement from $(310) million in the same period last year.
Leonardo DRS continues to focus on its core business of defense electronics, with approximately 81% of its revenues derived from DoD contracts. The company operates through two segments: Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS), both of which have shown growth in revenue and adjusted EBITDA. The ASC segment reported revenues of $533 million for the third quarter, a 23.7% increase from the previous year, while IMS revenues were $285 million, up 2.9%.
Overall, Leonardo DRS's financial performance reflects strong demand in the defense sector, bolstered by strategic contracts and a growing backlog, despite challenges in cash flow management.
About Leonardo DRS, Inc.
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