Leonardo DRS, Inc. key statistics and ratios

In fiscal 2025, Leonardo DRS, Inc. had return on equity of 10.5%, an operating margin of 9.5%, debt equal to 12.9% of equity and a current ratio of 1.89. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Leonardo DRS, Inc.: financial ratios, annual
Fiscal year	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMSept 2026
Gross margin	16.9%	17.8%	19.0%	21.4%	22.9%	22.8%	23.8%	25.3%
Operating margin	6.0%	6.5%	8.2%	20.8%	8.2%	9.1%	9.5%	10.8%
Net margin	2.8%	3.1%	5.3%	15.0%	5.9%	6.6%	7.6%	9.4%
Free-cash-flow margin	3.8%	2.5%	4.1%	−1.2%	5.1%	5.8%	6.2%	8.9%
Return on equity	7.4%	7.0%	10.2%	21.8%	7.5%	8.7%	10.5%	13.0%
Return on assets	—	2.9%	5.1%	12.0%	4.4%	5.3%	6.4%	8.2%
Asset turnover	—	0.94	0.96	0.80	0.74	0.80	0.84	0.88
Current ratio	—	1.30	1.40	1.64	1.78	1.94	1.89	1.88
Debt to equity	0.0%	29.9%	25.6%	19.1%	19.0%	14.5%	12.9%	6.1%
Interest cover (operating income ÷ interest)	2.5x	2.8x	6.7x	16.5x	6.4x	14.0x	—	—
Effective tax rate	21.1%	24.1%	23.0%	22.9%	12.5%	19.3%	17.3%	12.5%
R&D as % of revenue	1.1%	1.5%	1.7%	2.2%	2.9%	2.8%	3.5%	3.6%
Capital spending as % of revenue	2.0%	2.0%	2.1%	2.4%	2.1%	2.6%	3.8%	3.8%
Free cash flow ÷ net income	136.0%	81.2%	76.6%	−7.9%	86.3%	87.3%	81.7%	94.2%
Dividends ÷ net income	—	0.0%	0.0%	97.8%	0.0%	0.0%	—	—
Dividends and buybacks ÷ free cash flow	—	0.0%	0.0%	—	0.0%	0.0%	15.4%	11.3%

US$ thousands unless shown otherwise. Fiscal quarters.

Leonardo DRS, Inc.: financial ratios, quarterly
Quarter	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026	2026 Q3Sept 2026
Gross margin	24.0%	22.7%	23.8%	23.1%	25.4%	25.1%	26.0%	24.7%
Operating margin	12.2%	7.4%	8.4%	9.7%	11.9%	9.1%	11.2%	10.9%
Net margin	9.1%	6.3%	6.5%	7.5%	9.6%	7.3%	9.4%	10.8%
Free-cash-flow margin	42.2%	−21.3%	−6.8%	8.0%	35.5%	−11.3%	0.7%	5.4%
Current ratio	1.94	2.02	2.11	2.00	1.89	1.86	1.92	1.88
Debt to equity	15.3%	14.1%	13.6%	13.2%	13.7%	5.5%	5.3%	6.1%
R&D as % of revenue	2.9%	3.5%	3.6%	3.8%	3.3%	3.7%	3.9%	3.5%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

6 of 6 checks passed · September 30, 2026

What it owns · $4.4bn

Short-term assets $2.2bnLonger-term assets $2.2bn

What it owes, and who funded it · $4.0bn

Short-term liabilities $1.2bnShareholders' equity $2.9bn

Short-term assets cover short-term liabilities $2.2bn of assets due within a year against $1.2bn of liabilities due within a year.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt $294m of cash against $175m of debt.
Debt below 40% of shareholders' equity Debt is 6% of equity.
Debt burden no higher than five years ago Debt to equity moved from 22% to 6% over five years.
A year's operating cash flow covers at least 20% of debt $490m of operating cash flow against $175m of debt.
Operating profit covers interest at least five times over No material interest expense reported.

From Leonardo DRS, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

48 /100

Moderate moat

How hard Leonardo DRS's competitive advantage looks for rivals to wear away, judged from 6 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 7 / 20

Net income has been a median 5.7% of total assets over 6 years.
Pricing power 9 / 20

Gross margin has been a median 22.6%, moving by 2.0 percentage points (standard deviation) across 6 years.
Durability 12 / 20

Operating margin has been a median 9.2%; its worst year was 7.8%.
Cash conversion 10 / 20

Free cash flow was positive in 4 of 6 years, at a median 6.9% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Leonardo DRS, Inc.'s SEC filings (10-K and 10-Q), retrieved October 30, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Leonardo DRS, Inc.