LDOS
Leidos Holdings, INC
NYSE
DEF: Leidos Holdings Achieves Record Revenue and Sets Ambitious Growth Strategy for 2030
Sentiment:
Proxy Statement
17 March 2025 5:01 PM
Leidos Holdings reports strong fiscal year 2024 performance, exceeding financial goals and unveiling its NorthStar 2030 growth strategy.
Better than expected
The company achieved record revenues and exceeded its three-year financial goals.
Adjusted EBITDA margin increased significantly.
The company's backlog grew substantially.
Summary
- Leidos Holdings, Inc. achieved record revenues of $16.7 billion in fiscal year 2024, a 7.9% increase.
- The company exceeded its three-year financial goals set in 2021 and experienced its best growth year since 2020.
- Leidos reported a book-to-bill ratio of 1.4 and backlog growth of 18% to $43.6 billion.
- The company is implementing its new NorthStar 2030 growth strategy, focusing on specific growth pillars.
- In fiscal 2024, Leidos increased adjusted EBITDA margin by 210 basis points to a record 12.9%, enabling a 19% increase in operating cash flow.
- The Board of Directors approved an amendment to the certificate of incorporation to limit liability of officers as permitted by law.
- The company returned a total of $906 million to stockholders through increased quarterly dividends and share repurchases.
Sentiment
Score: 9
Explanation: The document expresses a highly positive outlook due to strong financial results, strategic initiatives, and confidence in future growth.
Positives
- Strong financial performance in fiscal year 2024 with record revenue and increased profitability.
- Successful implementation of strategic initiatives leading to backlog growth.
- Commitment to returning value to stockholders through dividends and share repurchases.
- Proactive engagement with stockholders and stakeholders on key issues.
- Focus on employee growth and development through enhanced benefits and upskilling initiatives.
- Introduction of NorthStar 2030 strategy to drive future growth and efficiency.
Future Outlook
Leidos expects 2025 to be another exciting year as it implements its new NorthStar 2030 growth strategy.
Management Comments
- Leidos exists to make our customer outcomes smarter and more efficient.
- The new U.S. administration's emphasis on driving efficiency across government operations only increases our confidence in our new strategy.
- With our NorthStar 2030 strategy to guide us, I am confident that our past success is just prologue to an awesome future ahead.
Industry Context
Leidos is positioned as a leading government technology services provider, leveraging innovation to meet national security challenges and drive government efficiencies.
Comparison to Industry Standards
- The document benchmarks Leidos' executive compensation against a peer group of companies including AECOM, Booz Allen Hamilton, CACI International, CGI, Cognizant Technology Solutions, Fluor Corporation, Huntington Ingalls Industries, Jacobs Solutions, KBR, Kyndryl, L3Harris Technologies, Northrop Grumman Corporation, SAIC, and Textron.
- The company targets total direct compensation for its NEOs at approximately the median among companies with which it competes for executive talent.
- Leidos' performance share program measures relative total shareholder return (TSR) against this peer group.
Stakeholder Impact
- Stockholders benefit from increased dividends and share repurchases.
- Employees benefit from enhanced benefits and upskilling initiatives.
- Customers benefit from smarter and more efficient solutions.
- The company is committed to maintaining strong relationships with supplier partners.
Next Steps
- Stockholders are invited to review the Proxy Statement and vote in line with the Board's recommendations.
- The company will share developments with stockholders at its Investor Day.
- The Board will continue proactive engagement with stockholders.
Related Party Transactions
- Matthew Fasano, brother of Gerard A. Fasano, is a program manager at Leidos and received compensation of approximately $250,000 in 2024.
- Paul Schmanske, brother-in-law of M. Victoria Schmanske, is an infrastructure lead at Leidos and received compensation of approximately $210,000 in 2024.
Key Dates
- 2025-03-05: Record date for annual meeting eligibility.
- 2025-03-17: Proxy statement first sent or made available to stockholders.
- 2025-05-02: Date of the Annual Meeting of Stockholders.
- 2026-01-02: Fiscal year ending date for which Deloitte & Touche LLP is appointed as the independent registered public accounting firm.
Keywords
LDOS
Leidos Holdings, INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
6 May 2025 11:55 AM
Quarterly Report
- Revenue increased by 6.8% year-over-year.
- Operating income increased by 27.7% year-over-year.
- Diluted EPS increased from $2.07 to $2.77.
Better than expected
5 May 2025 10:44 PM
Earnings Release
- The company's revenue, net income, and adjusted EBITDA all exceeded expectations, demonstrating strong growth and profitability.
- The company's non-GAAP diluted EPS grew by 30% to $2.97, exceeding expectations.
- The company reaffirmed its full-year revenue guidance of $16.90 $17.30 billion, exceeding expectations.
Better than expected
17 March 2025 5:01 PM
Proxy Statement
- The company achieved record revenues and exceeded its three-year financial goals.
- Adjusted EBITDA margin increased significantly.
- The company's backlog grew substantially.
Capital raise
25 February 2025 4:23 PM
Debt Management Announcement
- Leidos issued $500 million aggregate principal amount of 5.400% senior notes due 2032.
- Leidos issued $500 million aggregate principal amount of 5.500% senior notes due 2035.
- The proceeds from these issuances were used to fund the repurchase and discharge of the 2025 Notes.
Capital raise
20 February 2025 4:15 PM
Debt Issuance
- Leidos, Inc. issued $500 million aggregate principal amount of 5.400% senior notes due 2032 and $500 million aggregate principal amount of 5.500% senior notes due 2035.
- The Notes Offering was made pursuant to the Issuers automatic shelf registration statement on Form S-3 (File No. 333-269820).
- The Issuer intends to use the net proceeds from the Notes Offering for general corporate purposes, including to: (i) repurchase for cash (the Tender Offer ) any and all of its outstanding 3.625% notes due 2025 (the 2025 Notes ) tendered in the Tender Offer; (ii) repay any 2025 Notes, in accordance with the satisfaction and discharge terms of an indenture, dated as of May 12, 2020, among the Issuer, Leidos, as guarantor, and the Trustee (the May 2020 Indenture ), that remain outstanding following the Tender Offer; (iii) repay a portion of the outstanding balance on its senior unsecured term loan facility; (iv) repurchase outstanding shares of its common stock; (v) fund potential acquisitions; and (vi) pay related fees and expenses.
Capital raise
13 February 2025 8:50 AM
Tender Offer Announcement
- Leidos intends to fund the tender offer and the repayment of any remaining notes through an offering of new senior notes.
- The completion of the tender offer is contingent upon the successful completion of this new offering.
Delay expected
11 February 2025 1:19 PM
Annual Results
- The Commercial & International segment experienced write-downs on certain programs within our UK operations for which cost and schedule were rebaselined.
Better than expected
11 February 2025 1:19 PM
Annual Results
- The company's operating income significantly increased due to lower impairment charges and a net increase in volumes on certain programs.
- Net income attributable to Leidos common stockholders was substantially higher compared to the previous fiscal year.
Better than expected
10 February 2025 8:29 PM
Earnings Release
- The company's revenue, EPS, and backlog all exceeded expectations, indicating strong performance across key financial metrics.
Better than expected
29 October 2024 10:42 AM
Quarterly Report
- The company's net income and revenue significantly improved compared to the same period last year, indicating better than expected results.
- The Health & Civil segment's performance was particularly strong, exceeding expectations.
Delay expected
29 October 2024 10:42 AM
Quarterly Report
- The document mentions delays in airline travel infrastructure projects impacting the Security Enterprise Solutions (SES) reporting unit.
Better than expected
28 October 2024 7:23 PM
Quarterly Report
- The company's net income and adjusted EBITDA significantly exceeded expectations, driven by improved operating performance and increased demand.
- The company raised its full-year guidance for revenue, adjusted EBITDA margin, and non-GAAP diluted EPS, indicating a positive outlook.
- The company's non-GAAP diluted EPS of $2.93 was a 44% increase year-over-year, significantly exceeding expectations.
Delay expected
30 July 2024 11:45 AM
Quarterly Report
- The company experienced write-downs on programs within its UK operations due to cost increases and schedule delays.
Better than expected
30 July 2024 11:45 AM
Quarterly Report
- The company's revenue, operating income, and net income all significantly exceeded the prior year's results, indicating better than expected performance.
- The Health & Civil segment's exceptional growth and profitability drove the overall positive results, surpassing expectations.
- The company's diluted EPS of $2.37 for the quarter and $4.42 for the six months were substantially higher than the prior year, indicating better than expected profitability.
Better than expected
29 July 2024 5:55 PM
Quarterly Report
- The company's revenue, net income, adjusted EBITDA, and non-GAAP diluted EPS all exceeded prior year results and expectations.
- The company increased its full-year guidance for adjusted EBITDA margin and non-GAAP diluted EPS.
Better than expected
30 April 2024 11:02 AM
Quarterly Report
- The company's net income, revenue, and operating income all significantly exceeded the prior year's results.
- The Health & Civil segment's performance was particularly strong, driving overall growth.
- The company's earnings per share also showed a substantial increase.
Better than expected
30 April 2024 6:05 AM
Quarterly Report
- Leidos exceeded expectations with a 7% increase in revenue, a 73% increase in net income, and a 42% increase in adjusted EBITDA.
- The company raised its full-year guidance for revenue, adjusted EBITDA margin, non-GAAP diluted EPS, and operating cash flow, indicating better-than-expected performance and outlook.
Better than expected
13 February 2024 6:08 AM
Quarterly Report
- Leidos exceeded its own financial guidance for the fourth quarter and fiscal year 2023, indicating better than expected results.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.