Financial Data and Key Metrics Changes - In Q1 2025, organic revenue increased by 7% year over year, reaching $4.25 billion [24] - Adjusted EBITDA was $601 million, up 23% year over year, with adjusted EBITDA margin increasing by 190 basis points to 14.2% [24] - Non-GAAP diluted earnings per share rose by 30% to $2.97, reflecting a significant increase in profitability [5][24] Business Line Data and Key Metrics Changes - National Security and Digital revenues increased by 5% year over year, with a non-GAAP operating income margin of 10.1% [25] - Health and Civil revenues grew by 8% year over year, with a non-GAAP operating income margin of 23.6% [25] - Commercial International revenues saw a 12% increase year over year, driven by strong performance in commercial energy and UK operations [26] - Defense Systems revenues increased by 7%, supported by activity in space sensing and hypersonic programs, with non-GAAP operating margins expanding by 110 basis points to 9.1% [27] Market Data and Key Metrics Changes - The company reported a total backlog of $46.3 billion, up approximately $3 billion from the previous quarter [34] - The first quarter generated $2.1 billion in net bookings, maintaining a solid 1.3 book-to-bill ratio on a trailing twelve-month basis [34] Company Strategy and Development Direction - The company is focused on its North Star 02/1930 strategy, which includes five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, customized critical mission software, and managed health services [7][10] - The strategy aligns with the new administration's priorities, emphasizing smarter and more efficient government outcomes [11][12] - The company has accelerated its share buyback program, executing a $500 million accelerated share repurchase agreement [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning to address customer challenges and capitalize on new opportunities presented by the administration [6][21] - The company reaffirmed its full-year 2025 guidance, expecting revenue between $16.9 billion and $17.3 billion, with adjusted EBITDA in the mid to high 12% range [32] - Management noted that the current macro environment has had a negligible impact on revenue, estimating less than a 1% effect [40] Other Important Information - The company has made significant investments in R&D, particularly in cybersecurity, with over $75 million spent in the last five years [15] - The company is actively pursuing an acquisition to enhance its cyber capabilities, which is a key component of its growth strategy [14][16] Q&A Session Summary Question: How are larger contracts like NGEN performing under the current contracting environment? - Management indicated that while there has been some impact from macro actions, it is negligible, and they are seeing traction in the DoD for additional acquisitions and modernizations [40][41] Question: Can you provide insights on the Health and Civil segment's decline? - Management explained that the segment did not benefit from large single award IDIQs and highlighted upcoming opportunities, including the follow-on to MHS Genesis [42][43] Question: What is the company's outlook on the GSA request for proposals? - Management expressed excitement about engaging with the GSA and emphasized their focus on mission-critical work rather than consulting [48][50] Question: How does the company view the VA's EHR modernization work? - Management is optimistic about growth in the health business, anticipating increased volumes and opportunities to expand services for veterans [55][56] Question: What are the implications of the supplemental defense bill? - Management sees significant upside from the bill, particularly in FAA modernization and border security, aligning with their growth pillars [62][64] Question: How does the company plan to navigate potential funding limitations? - Management believes they are well-positioned with existing programs and franchises that can continue to generate revenue without needing new starts [69][70] Question: What is the company's stance on the FAA air traffic control modernization? - Management highlighted their active engagement with the FAA and the administration, positioning themselves as key technology providers for air traffic control solutions [75][76] Question: What are the drivers behind the commercial and international segment's growth? - Management attributed the growth to recovery in the UK operations, strong performance in security solutions, and opportunities in ports and border security [82][86]

Financial Data and Key Metrics Changes - In Q1 2025, organic revenue increased by 7% year over year, reaching $4.25 billion [25] - Adjusted EBITDA was $601 million, up 23% year over year, with an adjusted EBITDA margin of 14.2%, an increase of 190 basis points [26] - Non-GAAP diluted earnings per share rose by 30% to $2.97, with non-GAAP net income at $391 million [26] Business Line Data and Key Metrics Changes - National Security and Digital revenues increased by 5% year over year, with a non-GAAP operating income margin of 10.1% [26] - Health and Civil revenues grew by 8% year over year, with a non-GAAP operating income margin of 23.6% [27] - Commercial International revenues rose by 12% year over year, with non-GAAP operating margins at 8.5% [27] - Defense Systems revenues increased by 7% year over year, with non-GAAP operating margins expanding by 110 basis points to 9.1% [28] Market Data and Key Metrics Changes - The company reported a total backlog of $46.3 billion, up approximately $3 billion from the previous quarter [35] - Net bookings for the quarter were $2.1 billion, resulting in a trailing twelve-month book-to-bill ratio of 1.3 [35] Company Strategy and Development Direction - The company is implementing its North Star 02/1930 strategy, focusing on five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, customized critical mission software, and managed health services [10][12] - The strategy aligns with the new administration's priorities, emphasizing smarter and more efficient government outcomes [13][14] - The company has accelerated its share buyback program with a $500 million agreement and announced a definitive agreement to acquire a cyber leader to enhance its capabilities [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current geopolitical environment and the administration's focus on modernization and efficiency, which aligns with the company's capabilities [8][19] - The company reaffirmed its full-year 2025 guidance, expecting revenue between $16.9 billion and $17.3 billion, adjusted EBITDA in the mid to high 12% range, and non-GAAP diluted EPS between $10.35 and $10.75 [34] Other Important Information - The company generated $58 million in cash flows from operating activities and $36 million in free cash flow during the quarter [29] - The company ended the quarter with $5.1 billion in debt and $842 million in cash and cash equivalents [33] Q&A Session Summary Question: How are larger contracts like NGEN performing under the current contracting environment? - Management noted a negligible impact on revenue from macro actions, with a low 1% range effect, while also seeing opportunities in the DoD for additional acquisitions and modernizations [40][41] Question: Can you provide insights on the GSA request regarding potential contract offerings? - Management confirmed active engagement with the GSA, focusing on how to make government operations smarter and more efficient, emphasizing their mission-critical work [48][50] Question: What are the opportunities in the VA's EHR modernization work? - Management expressed optimism about growth in managed health services, anticipating increased volumes and opportunities to expand offerings in the future [54][56] Question: What are the implications of the supplemental defense bill? - Management highlighted significant opportunities in FAA modernization and border security, aligning with the company's growth pillars [62] Question: How does the company view the potential for revenue decline in the next three years? - Management does not envision a revenue decline, citing strong alignment of growth pillars with customer needs and administration priorities [110][112]

Financial Performance - Leidos' Q1 FY25 revenues increased by 6.8% year-over-year, reaching $4.245 billion compared to $3.975 billion in Q1 FY24 [22] - The adjusted EBITDA margin for Q1 FY25 was 14.2%, a 190 basis points increase from 12.3% in Q1 FY24 [22] - Non-GAAP diluted EPS for Q1 FY25 rose by 29.7% year-over-year, from $2.29 to $2.97 [22] - Operating cash flow was $58 million and non-GAAP free cash flow was $36 million [25] Segment Results - National Security & Digital segment revenue increased by 4.7%, from $1.793 billion to $1.878 billion [24] - Health & Civil segment revenue increased by 7.7%, from $1.199 billion to $1.291 billion [24] - Commercial & International segment revenue increased by 11.6%, from $509 million to $568 million [24] - Defense Systems segment revenue increased by 7.2%, from $474 million to $508 million [24] Capital Allocation and Guidance - Leidos executed a $500 million accelerated share repurchase [17, 25] - Leidos reaffirmed its FY25 revenue guidance of $16.90 - $17.30 billion [27] - The company reaffirmed its FY25 adjusted EBITDA margin guidance in the mid-high 12% range [27]

RESTON, Va., May 6, 2025 /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS) today reported financial results for the first quarter of fiscal year 2025, highlighted by robust earnings and revenue growth. "Our robust first quarter results build on the momentum from 2024, demonstrating the team's ability to execute in a dynamic environment that demands agility and innovation," said Leidos Chief Executive Officer Tom Bell. "The five growth pillars defined by our NorthStar 2030 Strategy are well aligned to the p ...

SUMMARY OPERATING RESULTS | | | | Three Months Ended | | | --- | --- | --- | --- | --- | | (in millions, except margin and per share data) | | April 4, 2025 | | March 29, 2024 | | Revenues | $ | 4,245 | $ | 3,975 | | Net income | $ | 365 | $ | 283 | | Net income margin | | 8.6 % | | 7.1 % | | Diluted earnings per share (EPS) | $ | 2.77 | $ | 2.07 | | Non-GAAP Measures*: | | | | | | Adjusted EBITDA | $ | 601 | $ | 490 | | Adjusted EBITDA margin | | 14.2 % | | 12.3 % | | Non-GAAP diluted EPS | $ | 2.97 | $ | ...

RESTON, Va., May 5, 2025 /PRNewswire/ -- Leidos (NYSE:LDOS) will modernize and operate information technology systems for the Defense Threat Reduction Agency (DTRA) enterprise that will help the agency deter, prevent and prevail against emerging threats around the world.  As part of this IT transformation, Leidos will support DTRA's advance toward a Zero Trust cybersecurity posture.Through a recently awarded $205 million contract, Leidos will use artificial intelligence technologies to accelerate DTRA's pro ...

RESTON, Va., April 18, 2025 /PRNewswire/ -- Leidos (NYSE: LDOS) is committing $10 million to accelerate the use of artificial intelligence for detecting and managing diseases, in collaboration with the University of Pittsburgh's Computational Pathology and AI Center of Excellence (CPACE).The initial focus of the five-year collaboration will be developing AI-powered tools for quicker detection of diseases, such as heart disease and cancer, reducing diagnostic turnaround times, and enabling earlier, more effe ...

Core Insights - Leidos Holdings, Inc. operates in the defense, IT security, data analytics, and healthcare sectors, having undergone a realignment to report four segments: National Security & Digital, Health & Civil, Commercial & International, and Defense Systems [1] Company Overview - Leidos has a significant presence in multiple industries, focusing on defense and technology solutions [1] - The company is publicly traded on the NYSE under the ticker symbol LDOS [1]

Core Viewpoint - Leidos (LDOS) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations in previous quarters [1]. Group 1: Earnings Performance - Leidos has a solid track record of surpassing earnings estimates, with an average surprise of 29.10% over the last two quarters [2]. - In the last reported quarter, Leidos achieved earnings of $2.37 per share, exceeding the Zacks Consensus Estimate of $2.18 per share by 8.72% [3]. - In the previous quarter, the company reported earnings of $2.93 per share against an expectation of $1.96 per share, resulting in a surprise of 49.49% [3]. Group 2: Earnings Estimates and Predictions - Recent favorable changes in earnings estimates for Leidos indicate a positive Earnings ESP (Expected Surprise Prediction), which is a strong indicator of a potential earnings beat [6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks like Leidos have a nearly 70% chance of producing a positive surprise [7]. - Leidos currently has an Earnings ESP of +1.15%, reflecting a bullish sentiment among analysts regarding the company's earnings prospects [9].

Core Insights - Leidos and Moveworks are collaborating to enhance the efficiency of government workers in the U.S., U.K., and Australia through the implementation of agentic AI technology [1][2][3] Company Overview - Leidos is a leading information technology partner for governments, reporting annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025, and employs around 48,000 globally [5] - Moveworks is recognized as the leading agentic AI assistant, with over 350 large enterprises and more than 5 million employees relying on its solutions, including 10% of the Fortune 500 [6] Partnership Details - The partnership aims to allow government agencies to adopt agentic AI technology securely and compliantly, enhancing administrative task efficiency for government employees [1][2][3] - Moveworks has achieved U.S. government security certification readiness, ensuring its solutions meet the necessary security and compliance standards for federal agencies [3] Technology Impact - Agentic AI is designed to assist government employees in managing administrative tasks, thereby allowing them to focus more on their core missions [2] - The collaboration is expected to bring rapid, intelligent solutions that will significantly benefit government operations [2]