Stock Track | Leonardo DRS Soars 5% Pre-Market on Strong Q1 Earnings Beat and Robust Outlook

Stock Track
01 May

Shares of Leonardo DRS, Inc. (DRS) are soaring 5.05% in pre-market trading on Thursday following the release of the company's impressive first-quarter 2025 financial results, which exceeded analyst expectations across key metrics.

The defense technology provider reported Q1 revenue of $799 million, significantly surpassing the consensus estimate of $736.7 million. The company's adjusted earnings per share came in at $0.20, beating the analyst forecast of $0.17. Additionally, Leonardo DRS posted adjusted EBITDA of $82 million, outperforming the expected $77.6 million.

Bill Lynn, Chairman and CEO of Leonardo DRS, commented on the results, stating, "Our first quarter 2025 financial results exceeded our expectations and reflect a solid start to the year. Our differentiated portfolio continues to exhibit strong customer demand, which is also translating into healthy organic revenue growth." The company also highlighted improved profitability and reduced free cash flow usage compared to the previous year.

Further bolstering investor confidence, Leonardo DRS confirmed its strong 2025 guidance across all metrics. The company projects full-year revenue between $3.425 billion and $3.525 billion, with adjusted EPS in the range of $1.02 to $1.08. This positive outlook, combined with the strong Q1 performance, appears to be driving the stock's pre-market rally as investors react to the encouraging news.

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