Leonardo DRS [DRS], reporting for the first time as a public company, on Tuesday posted higher earnings in its fourth quarter on improved program performance.
Net income increased 12 percent to $65 million, 28 cents earnings per share (EPS), from $58 million (28 cents EPS) a year ago. Sales were flat at $820 million.
The bottom-line results benefited from program efficiencies at the Advanced Sensing and Computing segment and a favorable tax rate. Sales were flat at $820 million, with increases for sensing capabilities offset by lower revenue at the Integrated Mission Systems segment. Leonardo DRS also said sales benefit from a “stabilization in the timing of electronic component availability.”
Adjusted earnings, which exclude taxes, interest, acquisition costs and gains on divestitures, were 35 cents EPS in the quarter, up a nickel from a year ago.
Overall, in 2022 sales fell 6 percent to $2.7 billion from $2.9 billion a year ago while net income soared more than 160 percent to $405 million ($1.88 EPS) from $154 million (73 cents EPS) in 2021.
Sales were down due to a divestiture and supply chain disruptions. The divestiture of two businesses drove the large increase in earnings.
Adjusted earnings for the year were 83 cents EPS, level with year ago.
Orders in the quarter were $852 million and for the year, $3.2 billion. Backlog at the end of 2022 stood at $4.3 billion, up 49 percent from $2.9 billion at the end of 2021. Free cash flow in 2022 was $74 million and was dampened by supply chain disruptions.
In 2023, Leonardo DRS expects sales between $2.7 billion and $2.8 billion and adjusted earnings between 64 and 69 cents EPS.