Investing.com -- Leonardo (BIT:LDOF) reported strong results for the fourth quarter and full year of 2024, exceeding expectations and driving a rise in its stock price by more than 2% on Friday.
The aerospace, defense, and security company saw revenue climb to $981 million in the fourth quarter, a 6% increase from the same period last year, while full-year revenue surged by 14% to $3.2 billion.
Net earnings for the fourth quarter reached $89 million, marking a 20% year-over-year increase, while full-year net earnings rose 27% to $213 million.
Adjusted EBITDA, a key profitability metric in the defense industry, climbed to $148 million in Q4, up 13%, and totaled $400 million for the year, a 23% improvement from 2023. The adjusted EBITDA margin also expanded, reaching 15.1% in the fourth quarter.
“The year-over-year growth in Q4 was primarily driven by programs related to tactical radars, naval network computing, advanced infrared sensing and electric power and propulsion,” the company said in a statement.
Leonardo DRS also benefited from strong operational execution and favorable program transitions, particularly as projects moved from development into production, such as the Columbia Class submarine program.
Bookings stood out as a key highlight, with the company securing $1.3 billion in new contracts in Q4 and $4.1 billion for the full year.
This resulted in a book-to-bill ratio of 1.3, signaling sustained demand for its defense and security solutions. The order backlog grew 10% year-over-year, reaching $8.5 billion, reflecting the company’s pipeline of future revenue.
Leonardo DRS also announced shareholder-focused moves, including a quarterly dividend of $0.09 per share and a new stock repurchase program of up to $75 million, set to begin in March 2025.
These initiatives, along with a solid balance sheet holding $598 million in cash against $203 million in borrowings, reinforce the company’s financial flexibility.
Leonardo expects 2025 revenue between $3.425 billion and $3.525 billion, with adjusted EBITDA of $435 million to $455 million and adjusted earnings per share between $1.02 and $1.08.