How’s Leonardo Drs

26 February 20242 months ago babelfish

On February 27, Leonardo DRS, the US subsidiary of the group led by Roberto Cingolani, will publish the results for the fourth quarter and full year 2023. Here are the previews

Positive balance sheet for 2023 for Leonardo Drs.

On February 27, the American subsidiary of the Leonardo group (of which it holds 72.3% through Leonardo US Holding) will publish the accounts for the fourth quarter and the entire 2023 financial year. “Revenues and ebitda expected to increase slightly” reports MF .

Last November 15, the Italian aerospace and defense group announced a secondary offering to the public in the United States, through Leonardo US Holding, of a minority stake equal to 18 million ordinary shares of Leonardo DRS, 6.9%. The move came a year after the merger of the Israeli company Rada with Leonardo Drs , which found itself automatically listed on the New York and Tel Aviv stock exchanges. At the time Leonardo placed 20% of the subsidiary on the US stock exchange.

In this way, the group headed by Roberto Cingolani grossed 319.5 million dollars, 294 million euros. Without forgetting that last spring Leonardo reorganized its American subsidiaries, bringing them together under a single company , Leonardo Us Holding. With this move, the company led by Roberto Cingolani recovered 1.3 billion euros.

All the details on the previews on the 2023 accounts and the estimates on the Leonardo Drs title.

LEONARDO DRS' 2023 ACCOUNTS

According to what MF reports, “Leonardo Drs should close the 2023 financial year with revenues close to 2.8 billion dollars from 2.7 in 2022, and an adjusted ebitda between 319 and 325 million dollars which compares with the 318 million of the previous financial year. The tax rate, which initial estimates gave at 19%, should have fallen to 13%".

Looking at the 2022 accounts , Leonardo DRS recorded revenues of $2.7 billion, recording a decline of 6%. Profit rose 3% to $318 million. The company also reported an order backlog of $4.2 billion at the end of 2022, up nearly 49% year over year.

Regarding Leonardo DRS's outlook for 2023, the company expected revenues between 2.7 and 2.8 billion dollars with a growth of 4% compared to 2022, and an adjusted ebitda between 315 and 330 million dollars . Therefore, according to the previews of the financial statements reported by MF, the US subsidiary would have achieved the 2023 guidance.

THE US NAVY MAXI CONTRACT

Furthermore, in 2023 the US Navy awarded the American subsidiary of the former Finmeccanica group contracts worth more than 3 billion dollars, for the supply of integrated products of electric propulsion systems for Columbia class submarines.

“This contract consolidates DRS's position through the set of 12 ships for the Columbia-class program” indicates a note from the Arlington-based company. Specifically, General Dynamics Electric Boat and the U.S. Navy selected Leonardo DRS to design and manufacture the permanent magnet electric main propulsion motor, propulsion motor drives, switchgear, and propulsion controls – the heart of the Columbia Electric Propulsion System.

The Columbia-class submarine is a new class of ballistic missile submarine, designed to replace the Ohio-class submarine fleet.

THE 2024 FORECASTS

“For the current year,” continues MF , “the consensus estimates total revenues at around 3 billion dollars, predicting year-on-year growth of 7.7%. As regards earnings per share, the estimates are in line with management's indications of an EPS of 0.72 dollars, pushing to 0.84 dollars for the current financial year and the round figure of one dollar by the end of 2025 Profit growth, over a period of 3 to 5 years, is expected at 8.53%”.

THE RISE OF THE TITLE

Finally, the Leonardo Drs stock reached historic highs on the market with an increase of 62% from the beginning of 2023.

“Buy and overweight recommendations for Leonardo Drs” reports MF , noting that “the company's share is trading around $21 on the Nasdaq, with a target price of up to $24. What is highlighted by scrolling through the analysts' reports is that the stock continues to show signs of growth (+5.6% since the beginning of the year), even after the triumphant march of the last 12 months, which saw it gain over 60%. %”.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-va-leonardo-drs/ on Mon, 26 Feb 2024 06:32:48 +0000.