Leidos(US:LDOS) Prnewswireยท2025-11-04 11:00Core Insights - Leidos Holdings, Inc. reported strong financial results for Q3 2025, with revenue growth of 7% year-over-year, reaching $4.47 billion, driven by increased customer demand in national security and defense sectors [3][9][24] - The company raised its fiscal year 2025 earnings and margin guidance, reflecting confidence in future performance despite challenges such as the government shutdown [2][10] - Net income for the quarter was $369 million, or $2.82 per diluted share, marking increases of 2% and 5% year-over-year, respectively [4][9] Financial Performance - Revenues for Q3 2025 were $4.47 billion, up from $4.19 billion in Q3 2024, with a year-over-year growth attributed to innovative products and solutions [3][9] - Net income was $369 million, with a net income margin of 8.3%, slightly down from 8.6% in the previous year [4][9] - Adjusted EBITDA was $616 million, reflecting a 3% increase year-over-year, with an adjusted EBITDA margin of 13.8%, down from 14.2% [5][9] Cash Flow and Dividends - Leidos generated $711 million in net cash from operating activities, with free cash flow of $680 million for the quarter [6][9] - The company declared a cash dividend of $0.43 per share, a 7.5% increase from the previous quarter [8] New Business Awards and Backlog - Net bookings totaled $5.9 billion in the quarter, resulting in a backlog of $47.7 billion, with a funded backlog increase of 27% sequentially [10][32] - Significant contract awards included a $2.2 billion contract in the intelligence community and a $760 million subcontract with NASA [15][10] Segment Performance - National Security & Digital revenues increased by 8% to $2.02 billion, driven by contract awards and increased volumes [24] - Health & Civil revenues rose by 6% to $1.30 billion, with an operating income margin improvement to 25.2% [25] - Defense Systems revenues grew by 11% to $582 million, although operating income margin decreased to 6.4% due to a higher mix of materials [27]