Leonardo DRS, Inc. recently hosted its first investor day since returning to the public markets in November 2022. During the event, the company reaffirmed its 2024 guidance and initiated a strong three-year framework (2024 * 2026) for revenue, adjusted EBITDA, and free cash flow.
The company's three-year framework includes: 4% to 7% organic revenue growth A target of approximately 14% adjusted EBITDA margin by 2026 A target of 80% to 90% conversion of adjusted net earnings to free cash flow Targeted capital deployment of 75% to 100% of free cash flow towards value-enhancing M&A, with an optimal net leverage of approximately 2x adjusted EBITDA
Leonardo DRS, Inc. specializes in the design, development, and manufacture of advanced sensing, network computing, force protection, electric power and propulsion, and other mission-critical technologies for U.S. national security customers and allies globally.
The company did not provide a reconciliation of forward-looking adjusted EBITDA, adjusted EBITDA margin, adjusted net earnings, and free cash flow due to the inherent difficulty in forecasting and quantifying the necessary adjustments for such non-GAAP measures without unreasonable effort.
Following the conclusion of the event, a replay of the investor day and supplemental information will be available on the company’s investor relations website. Today the company's shares have moved -5.3% to a price of $21.79. Check out the company's full 8-K submission here.
