Leonardo DRS, the US subsidiary of Leonardo, has raised the lower end of its fiscal 2025 (FY25) revenue outlook, after registering an 18% revenue growth in the third quarter (Q3) to $960m.
The company now expects FY25 revenue to be between $3.55bn and $3.60bn, up from prior guidance of $3.52bn to $3.60bn.
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Revenue growth in Q3 FY25 was driven primarily by counter uncrewed aerial systems (UAS), electric power and propulsion, naval network computing, and advanced infrared sensing programmes.
During the quarter, which ended 30 September 2025, net earnings of Leonardo DRS rose 26% to $72m from $57m in Q3 FY24.
Its diluted earnings per share (EPS) were $0.26, up 24% from $0.21 in the prior-year quarter, and adjusted diluted earnings per share were $0.29, up 21% year‑on‑year.
Gross profit of the defence technology firm totalled $222m in Q3 FY25, compared with $179m in Q3 FY24.
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By GlobalDataOver the reported quarter, Leonardo DRS secured $1.3bn in new funded bookings. Total backlog rose to $8.9bn, an increase of 8% compared with the same period last year.
Leonardo DRS chairman and CEO Bill Lynn said: “Broad-based customer demand was evident in our exceptional bookings and organic revenue growth in the third quarter. Our year-to-date performance puts us on a solid path to deliver double-digit revenue growth and to execute against our financial commitments for 2025.
“We are making steady progress on strengthening germanium supply and remain focused on disciplined program execution throughout the business.”
Leonardo DRS reiterated its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) guidance for 2025 at $437m to $453m.
The company revised its expected tax rate for 2025 down to 18% from 19% in prior guidance and maintained diluted weighted average shares outstanding at $269m.
Adjusted diluted EPS guidance for 2025 moved to $1.07–$1.12 from a prior range of $1.06–$1.11.
In a separate announcement, Leonardo DRS announced that Bill Lynn will retire as chairman and CEO, with the change effective 1 January 2026.
John Baylouny, the current chief operating officer, has been appointed to assume the role of president and CEO. He has worked with the company for more than 35 years.
Baylouny’s prior positions at the company include chief technology officer and general manager of the land systems and advanced ISR businesses.
“It has been a profound honour to lead this company and work alongside such a talented and committed team, united in our mission to support the men and women of our armed forces. I am confident that this exceptional company will continue to play a vital role in shaping the future of our national defence,” Bill Lynn said.
In February 2025, Leonardo DRS secured a contract to equip the Royal Thailand Army’s new Stryker combat vehicles with command, control, communications, computers, and intelligence (C4I) systems.
