Filing Flows › Leonardo DRS (DRS) › Q3 2025
Leonardo DRS (DRS) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 29, 2025
Leonardo DRS (DRS) reported revenue of $960M for the third quarter 2025 (Q3 2025), +18% from a year earlier and +16% from the quarter before. Operating margin was 9.7%, net earnings $72.0M (7.5% of revenue).
Leonardo DRS, Q3 2025: revenue $960M (+18% year over year), operating margin 9.7%, net earnings $72.0M, operating cash flow $107M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $960M | +16% | +18% |
| Gross profit | $222M | +13% | +24% |
| Operating profit | $93.0M | +33% | +24% |
| Net earnings | $72.0M | +33% | +26% |
| Operating cash flow | $107M | — | +81% |
| Free cash flow | $77.0M | — | +60% |
What changed
Revenue was $960.0M in Q3 2025, up 18% year over year and up 16% from the previous quarter.
Gross margin was 23.1%, up 1.1 points from a year earlier. Operating profit was $93.0M, a 9.7% margin (up 0.5 points year over year). Of the extra revenue versus a year earlier, 12% reached operating profit, above the 9% margin then. Operating expenses grew 24% against revenue growth of 18%. Net earnings were $72.0M, up 26% year over year. The effective tax rate was 17.2%.
Operating cash flow was $107.0M (up 81% year over year), 149% of net earnings. Non-cash charges added back $23.0M of depreciation and amortization and $5.0M of share-based compensation. Working capital and other items added $7.0M. After capital expenditures ($30.0M), free cash flow as the company reports it was $77.0M.
Questions
What was Leonardo DRS' revenue in the third quarter 2025?
Leonardo DRS (DRS) reported revenue of $960M for the third quarter 2025 (Q3 2025), +18% from a year earlier and +16% from the quarter before.
Was Leonardo DRS profitable in the third quarter 2025?
Operating profit was $93.0M (9.7% of revenue) and net earnings $72.0M.
Source: Leonardo DRS 10-Q on SEC EDGAR.