Leonardo (DRS) Sees 42% Profit Jump as Defense Demand Grows

Leonardo DRS, Inc. (NASDAQ:DRS) is one of the best military tech stocks to buy now. Leonardo DRS, Inc. (NASDAQ:DRS) posted strong second-quarter results on July 30, reflecting solid demand for its defense technologies and a sharp rise in profitability. Revenue came in at $829 million, up 10% year-over-year, while net earnings surged 42% to $54 million. The company’s adjusted EBITDA rose 17% to $96 million, and diluted EPS increased 43% to $0.20.

Leonardo (DRS) Sees 42% Profit Jump as Defense Demand Grows

A dynamic group of air force personnel surrounded by the latest defense products in action.

Bookings totaled $853 million, in line with revenue and maintaining a book-to-bill ratio of 1.0x. The company’s backlog grew to $8.6 billion, up 9% from a year ago, signaling continued visibility into future revenue.  The company raised its 2025 guidance across all key financial metrics, citing strong operational momentum and growing global demand for its technologies. CEO Bill Lynn credited the performance to disciplined execution and increasing interest in the company’s advanced systems as nations respond to rising geopolitical tensions.

“Customer demand remains robust as global threats evolve,” Lynn said. “Our focus is on delivering high-performance, differentiated solutions where they matter most.” Leonardo DRS continues to benefit from long-cycle defense spending and strategic programs tied to modernization and readiness initiatives.

Leonardo DRS develops advanced sensors, electronic warfare systems, and power solutions for U.S. and allied military forces.

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