DRS Leonardo DRS, Inc.

Overview and Growth

Fiscal 2025 results for Leonardo DRS, Inc. combined $3.65B of revenue with net income of $278.00M and an operating cash inflow of $366.00M. At $3.65B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 12.8% above fiscal 2024 revenue of $3.23B, marking a year-over-year increase. On a per-share basis, diluted EPS was $1.03, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 28.7% from $0.80 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.81x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $869.00M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 23.8% of revenue, showing how much of the top line remained after direct costs. Operating income was $348.00M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 9.5%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $278.00M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 7.6% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $336.00M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 9.2%, relating income before taxes directly to revenue. The company recognized $58.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 17.3% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

Total assets were $4.49B, supported by $1.76B of liabilities and $2.73B of shareholder equity. At period end, current assets of $2.33B compared with current liabilities of $1.23B, defining the company’s short-term resource position. The current ratio was 1.89x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $647.00M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 52.6%, excluding receivables and other current assets. The company carried $374.00M of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.14x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 8.3%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 39.1%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 14.4% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $366.00M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.32x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $139.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 38.0% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $227.00M of positive free cash flow for the period. The free-cash-flow margin was 6.2%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 5.1%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.