Naval propulsion manufacturer Leonardo DRS reports strong Q2 and 1H 2025 financials

US defence contractor Leonardo DRS has reported a strong second quarter for 2025, with double-digit growth in both revenue and profit. Increased volume and higher profitability on electric power and propulsion programs, namely the Columbia-class submarine project, drove healthy adjusted EBITDA growth and margin expansion. This performance led the company to revise its full-year guidance upwards across all metrics.

For the three months ending June 30, the company posted revenues of $829 million, a ten per cent increase from the $753 million recorded in the same quarter of 2024.

This top-line growth translated into a 42 per cent rise in net earnings, which reached $54 million, up from $38 million in the prior-year period. The company noted that its outgoings were well-managed, contributing to the healthy profit margin.

The positive trend was consistent across the first half of the year. For the six months ending June 30, revenues grew by 13 per cent to $1.63 billion from $1.44 billion in the first half of 2024. This resulted in a net profit of $104 million, a 55 per cent increase from the $67 million earned in the corresponding period last year.

The company's management expressed confidence in its continued performance. "Leonardo DRS delivered another set of strong financial results marked by healthy bookings, solid organic revenue growth and continued profit and margin expansion in the second quarter," said Bill Lynn, Chairman and CEO.

He added that the need to, "deter and contest heightened global threats," continues to bolster customer demand for the company's technologies. The company's order backlog stood at a robust $8.6 billion at the end of the quarter, up nine per cent year-over-year.