Defense contractor Leonardo DRS reports FY 2025 revenue of $3.6 billion, driven by U.S. military contracts and improved net margins.
Leonardo DRS reported FY 2025 revenue of $3.6 billion, a 12.8% increase from the prior year, as demand for its advanced sensing and naval power systems grew. The company’s net income reached $278.0 million, with net margins expanding to 7.6%, reflecting improved operational efficiency.
The U.S. government remains Leonardo DRS’s dominant customer, accounting for nearly 80.0% of total sales. The company’s focus on mission-critical defense technologies, including infrared sensors and electric propulsion, has secured long-term contracts with the U.S. Navy and Army.
Despite its growth, Leonardo DRS faces risks tied to its heavy reliance on a single customer, which could impact future revenue stability. The company’s performance contrasts with newer entrants like Firefly Aerospace, which targets the space launch market with higher volatility.