Leonardo DRS, Inc. (DRS) saw its stock price soar 5.17% in Friday's pre-market trading session following the release of its impressive first-quarter 2025 earnings report. The defense technology company reported strong growth across key financial metrics, surpassing market expectations and setting a new record for its backlog.

The Q1 results revealed a 16% year-over-year increase in revenue, driven by favorable timing of material receipts and robust organic growth. Leonardo DRS reported 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 company's profitability also showed significant improvement, with net earnings surging 72% year-over-year to $50 million and adjusted diluted earnings per share rising 43% to $0.20.

Despite the strong quarterly performance, Leonardo DRS maintained its full-year 2025 guidance, projecting revenue between $3.45 billion and $3.525 billion, implying 6% to 9% growth. The company's CEO, William Lynn, emphasized their focus on improving linearity and operational performance throughout the year. Analysts remain optimistic about Leonardo DRS's prospects, with Truist Securities raising its price target from $40 to $45 following the earnings release.