Core Insights - Leidos Holdings, Inc. reported strong financial results for Q2 FY2025, with significant growth in earnings and revenue, driven by a differentiated portfolio and alignment with government priorities [2][4][8] Financial Performance - Revenues for Q2 FY2025 reached $4.25 billion, a 3% increase from $4.13 billion in Q2 FY2024, attributed to heightened demand across all customer segments, particularly in Defense Systems [4][8] - Net income for the quarter was $393 million, or $3.01 per diluted share, reflecting year-over-year increases of 21% and 27%, respectively [4][8] - Adjusted EBITDA was $647 million, up 16% year-over-year, with an adjusted EBITDA margin of 15.2%, compared to 13.5% in the prior year [5][8] Cash Flow and Capital Management - The company generated $486 million in net cash from operating activities, with free cash flow of $457 million for the quarter [6][8] - Leidos made a strategic acquisition of Kudu Dynamics for $291 million, enhancing its capabilities in artificial intelligence-enabled cyber solutions [6][8] Business Awards and Backlog - Net bookings totaled $3.9 billion, resulting in a backlog of $46.2 billion, with $7.1 billion funded [8][9] - Significant contract awards included a $1.3 billion contract from the Intelligence Community and a $350 million subcontract for the U.S. Air Force [9][10] Forward Guidance - The company raised its fiscal year 2025 guidance, projecting revenues between $17.00 billion and $17.25 billion, and non-GAAP diluted EPS between $11.15 and $11.45 [11][8]