Shares of Leonardo DRS, Inc. (DRS) are soaring 5.17% in Friday's pre-market trading session following the release of impressive first-quarter 2025 financial results. The defense technology company reported substantial growth in revenue, earnings, and backlog, surpassing market expectations and boosting investor confidence.

Leonardo DRS delivered a stellar performance in Q1 2025, with revenue increasing 16% year-over-year, driven by favorable timing of material receipts and robust organic growth. The company reported adjusted earnings per share of $0.20, marking a 43% increase from the previous year. Notably, Leonardo DRS achieved nearly $1 billion in bookings, resulting in a book-to-bill ratio of 1.2 and pushing its backlog to a record $8.6 billion. The strong financial results were accompanied by improved free cash flow and a 10 basis point expansion in adjusted EBITDA margin to 10.3%.

Despite the strong Q1 results, Leonardo DRS maintained its full-year 2025 guidance, projecting revenue between $3.45 billion to $3.525 billion and adjusted diluted EPS of $1.02 to $1.08 per share. The company's robust performance and positive outlook have attracted analyst attention, with Truist Securities raising its price target for Leonardo DRS from $40 to $45 while maintaining a Buy rating. As the defense technology sector continues to benefit from increased global defense spending, Leonardo DRS appears well-positioned to capitalize on growing opportunities in areas such as shipbuilding and counter-UAS technologies.