Leidos(US:LDOS)2025-11-04 00:10Financial Performance - Revenues for Q3 2025 were $4.47 billion, a 7% increase year-over-year, driven by increased customer demand for national security and defense solutions[6] - Net income for the quarter was $369 million, or $2.82 per diluted share, representing a 2% increase in net income and a 5% increase in diluted EPS year-over-year[6] - Adjusted EBITDA was $616 million, up 3% year-over-year, with an adjusted EBITDA margin of 13.8%, down from 14.2% in Q3 2024[7] - Revenues for the third quarter of 2025 were $4.469 billion, an increase of 6.7% compared to $4.190 billion in the same quarter of 2024[25] - Operating income for the third quarter of 2025 was $535 million, up from $516 million in the prior year, reflecting a margin of 12.0%[28] - Net income attributable to Leidos common stockholders for the third quarter of 2025 was $367 million, compared to $364 million in the same quarter of 2024[25] - The organic revenues for the three months ended October 3, 2025, increased by 6.0% year-over-year, totaling $4,443 million compared to $4,190 million in the prior year[45] - The total operating income for the three months ended October 3, 2025, was reported at $575 million, after accounting for acquisition and restructuring costs[46] - For the nine months ended October 3, 2025, Leidos reported an operating income of $1,636 million, which adjusted for acquisition, integration, and restructuring costs, resulted in a non-GAAP operating income of $1,745 million[50] Segment Performance - National Security & Digital segment revenues increased by 8% to $2.015 billion, driven by contract awards and increased volumes[29] - Health & Civil segment revenues rose by 6% to $1.301 billion, with an operating income margin of 25.2%, up from 23.4% in the prior year[30] - Defense Systems segment revenues increased by 11% to $582 million, with an operating income margin of 6.4%, down from 7.1% in the prior year[32] - The National Security & Digital segment reported revenues of $2,015 million for the three months ended October 3, 2025, reflecting an 8.0% increase from $1,865 million in the same period last year[45] - The Health & Civil segment's revenues increased by 6.2% to $1,301 million for the three months ended October 3, 2025, compared to $1,225 million in the prior year[45] - The Defense Systems segment reported a significant revenue increase of 11.5%, reaching $582 million for the three months ended October 3, 2025[45] Cash Flow and Dividends - Cash flows from operations were $711 million, with non-GAAP free cash flow of $680 million for the quarter[9] - The company declared a cash dividend of $0.43 per share, a 7.5% increase over the prior quarter's dividend[11] - The company declared cash dividends of $0.40 per share for the third quarter of 2025, up from $0.38 in the same quarter of 2024[25] - Cash and cash equivalents at the end of the third quarter of 2025 were $974 million, a decrease from $1.097 billion at the end of the prior quarter[27] Backlog and Contracts - Net bookings totaled $5.9 billion in the quarter, resulting in a backlog of $47.7 billion, a 5% increase year-over-year[13] - As of October 3, 2025, the total backlog for Leidos Holdings, Inc. is estimated at $47,656 million, comprising $9,064 million funded and $38,592 million unfunded[36] - The funded backlog for contracts with the U.S. government is valued at $3,203 million, while the unfunded backlog is $23,246 million[36] - Notable new contracts included a $2.2 billion award for classified mission support and a $760 million subcontract with NASA[13] Assets and Liabilities - Total assets as of October 3, 2025, were $13.542 billion, compared to $13.010 billion as of January 3, 2025[26] - Total liabilities as of October 3, 2025, were $8.588 billion, slightly up from $8.550 billion as of January 3, 2025[26] Non-GAAP Measures - The net income attributable to Leidos common stockholders for the same period was $1,121 million, increasing to $1,203 million after adjustments[50] - Diluted EPS attributable to Leidos common stockholders rose from $8.62 to $9.25 after accounting for non-GAAP adjustments[50] - Adjusted EBITDA for the nine months ended October 3, 2025, was $1,850 million, with an adjusted EBITDA margin of 14.3%[50] - The National Security & Digital segment reported a non-GAAP operating income of $201 million for the three months ended October 3, 2025, with a margin of 10.0%[52] - The Health & Civil segment achieved a non-GAAP operating income of $334 million for the same period, with a margin of 25.7%[52] - Total non-GAAP operating income for the nine months ended September 27, 2024, was $1,542 million, with an operating margin of 12.5%[53]