Segment Information (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Revenues, Expenses, and Operating Earnings by Segment and Reconciliation to Earnings before Taxes

Revenues, expenses, and operating earnings by segment and the reconciliation to earnings before taxes for the periods ended June 30, 2025 and 2024 consists of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Revenues
ASC	$	542	$	492	$	1,053	$	925
IMS	290		266		581		527
Corporate & Eliminations	(3)		(5)		(6)		(11)
Total revenues	$	829	$	753	$	1,628	$	1,441

Cost of revenues
ASC	$	408	$	371	$	800	$	700
IMS	227		218		456		430
Corporate & Eliminations	(3)		(5)		(6)		(11)
Total cost of revenues	$	632	$	584	$	1,250	$	1,119

General and administrative
ASC	$	67	$	61	$	133	$	121
IMS	24		22		47		42
Corporate & Eliminations	—		3		—		4
Total general and administrative	$	91	$	86	$	180	$	167

Company-funded research and development
ASC	$	24	$	16	$	47	$	32
IMS	6		5		11		9
Corporate & Eliminations	—		—		—		—
Total company-funded research and development	$	30	$	21	$	58	$	41



Amortization of intangibles
ASC	$	6	$	6	$	11	$	11
IMS	—		—		—		—
Corporate & Eliminations	—		—		—		—
Total amortization of intangibles	$	6	$	6	$	11	$	11

Other segment items
ASC	$	—	$	1	$	—	$	5
IMS	—		—		—		—
Corporate & Eliminations	—		—		—		—
Total other segment items(1)	$	—	$	1	$	—	$	5


Operating earnings
ASC	$	37	$	37	$	62	$	56
IMS	33		21		67		46
Corporate & Eliminations	—		(3)		—		(4)
Total operating earnings	$	70	$	55	$	129	$	98
Interest expense, net	(2)		(7)		(3)		(12)
Other, net	(1)		(1)		(1)		(2)
Earnings before taxes	$	67	$	47	$	125	$	84

________________

(1)Includes ASC restructuring costs for the three and six months ended June 30, 2024.

Total intersegment revenues by segment for the periods ended June 30, 2025 and 2024 consists of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
ASC	$	3	$	5	$	6	$	11
IMS	—		—		—		—
Total intersegment revenues	$	3	$	5	$	6	$	11

Schedule of Depreciation, Assets by Segment

Depreciation by segment for the periods ended June 30, 2025 and 2024 consists of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
ASC	$	12	$	12	$	24	$	24
IMS	5		5		11		10
Total depreciation	$	17	$	17	$	35	$	34

Total assets by segment as of June 30, 2025 and December 31, 2024, consists of the following:


(Dollars in millions)	June 30, 2025		December 31, 2024
ASC	$	2,473	$	2,249
IMS	1,226		1,225
Corporate & Eliminations	380		710
Total assets	$	4,079	$	4,184

Leonardo DRS, Inc. 10-Q