Leonardo DRS Files 10-Q for Q2 2024

TL;DR

DRS 10-Q filed: Q2 financials out, check for performance updates.

AI Summary

Leonardo DRS, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter and the first half of the year, detailing revenues and other financial metrics. The filing provides an update on the company's operational and financial performance.

Why It Matters

This filing provides investors with crucial financial data for Leonardo DRS, Inc., enabling them to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024)
• 2024-06-30 — As of Date (End of the reporting period)

Key Players & Entities

• Leonardo DRS, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240730 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value DRS Nasdaq Stock Market LLC

Filing Documents

• drs-20240630.htm (10-Q) — 1129KB
• signed_ex311x2024q2xceocer.htm (EX-31.1) — 10KB
• signed_ex312x2024q2xcfocer.htm (EX-31.2) — 11KB
• signed_ex321x2024q2xceocer.htm (EX-32.1) — 6KB
• signed_ex322x2024q2xcfocer.htm (EX-32.2) — 6KB
• 0001628280-24-033473.txt ( ) — 6087KB
• drs-20240630.xsd (EX-101.SCH) — 38KB
• drs-20240630_cal.xml (EX-101.CAL) — 80KB
• drs-20240630_def.xml (EX-101.DEF) — 140KB
• drs-20240630_lab.xml (EX-101.LAB) — 496KB
• drs-20240630_pre.xml (EX-101.PRE) — 341KB
• drs-20240630_htm.xml (XML) — 919KB

Financial Information

PART I. Financial Information 1

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) 1 Consolidated Statements of Earnings 1 Consolidated Statements of Comprehensive Income 2 Consolidated Balance Sheets 3 Consolidated Statements of Cash Flows 4 Consolidated Statements of Shareholders' Equity 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

ITEM 4. Controls and Procedures 37

Other Information

PART II. Other Information 39

Legal Proceedings

ITEM 1. Legal Proceedings 39

Risk Factors

ITEM 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 39

Other Information

ITEM 5. Other Information 39

Exhibits

ITEM 6. Exhibits 40

Signatures

Signatures 41 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION In this quarterly report on Form 10-Q (the "Quarterly Report"), when using the terms the "Company," "DRS," "we," "us" and "our," unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This Quarterly Report contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "shall," "should," "would," "could," "seeks," "aims," "strives," "targets," "projects," "intends," "plans," "estimates," "anticipates" or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this Quarterly Report and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations, and the impact of prevailing economic conditions. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report. In addition, even if future performance and outcomes are consistent with the forward-looking statements contained in this Quarterly Report, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possi

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) LEONARDO DRS, INC. Consolidated Statements of Earnings (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Revenues: Products $ 731 $ 590 $ 1,354 $ 1,110 Services 22 38 87 87 Total revenues 753 628 1,441 1,197 Cost of revenues: Products ( 572 ) ( 458 ) ( 1,060 ) ( 861 ) Services ( 12 ) ( 25 ) ( 59 ) ( 60 ) Total cost of revenues ( 584 ) ( 483 ) ( 1,119 ) ( 921 ) Gross profit 169 145 322 276 General and administrative expenses ( 107 ) ( 90 ) ( 208 ) ( 190 ) Amortization of intangibles ( 6 ) ( 5 ) ( 11 ) ( 11 ) Other operating expenses, net ( 1 ) ( 8 ) ( 5 ) ( 8 ) Operating earnings 55 42 98 67 Interest expense ( 7 ) ( 9 ) ( 12 ) ( 17 ) Other, net ( 1 ) — ( 2 ) ( 1 ) Earnings before taxes 47 33 84 49 Income tax provision (benefit) 9 ( 2 ) 17 2 Net earnings $ 38 $ 35 $ 67 $ 47 Net earnings per share from common stock: Basic earnings per share $ 0.14 $ 0.14 $ 0.25 $ 0.18 Diluted earnings per share $ 0.14 $ 0.13 $ 0.25 $ 0.18 See accompanying Notes to Consolidated Financial Statements. 1 LEONARDO DRS, INC. Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2024 2023 2024 2023 Net earnings $ 38 $ 35 $ 67 $ 47 Other comprehensive income (loss): Foreign currency translation (loss) gain, net of income taxes ( 1 ) 1 ( 1 ) 1 Pension and other postretirement benefit plan adjustments, net of income taxes 1 1 1 1 Other comprehensive income (loss), net of income taxes — 2 — 2 Total comprehensive income $ 38 $ 37 $ 67 $ 49 See accompanying Notes to Consolidated Financial Statements. 2 LEONARDO DRS, INC. Consolidated Balance Sheets (Unaudited) (Dollars in millions, except per share amounts) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 149 $ 467 Accounts receivable, net 188 151 Cont

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View this 10-Q filing on SEC EDGAR