Financial Data and Key Metrics Changes - Leidos reported Q4 2024 revenue of nearly $4.37 billion, reflecting a robust organic growth rate of 9.7% [43] - Total revenue for the year grew 7.9% to $16.66 billion, exceeding prior guidance by $212 million [44] - Adjusted EBITDA for Q4 was $508 million, with an adjusted EBITDA margin of 11.6%, up 20 basis points year-over-year [44] - For the full year, adjusted EBITDA was $2.15 billion, with a margin increase of 210 basis points to 12.9% [45] - Non-GAAP diluted EPS for the year was $10.21, up 40% from 2023 [46] Business Line Data and Key Metrics Changes - National Security and Digital revenue growth accelerated to 5.5%, with a segment operating income margin of 9.7% [48] - Health and Civil revenues increased by 16.4% year-over-year, with a non-GAAP operating margin of 21.6% [50] - Commercial and International revenues rose by 12.3%, with a non-GAAP operating margin of 7.9% [51] - Defense Systems revenues increased by 6.7%, with a non-GAAP operating margin of 3.5% [52] Market Data and Key Metrics Changes - In Q4 2024, Leidos achieved net bookings of $7.6 billion, resulting in a book-to-bill ratio of 1.7%, the highest for a December quarter [33] - The overall book-to-bill ratio for 2024 was 1.4%, with an 18% year-over-year backlog growth [33] Company Strategy and Development Direction - Leidos introduced a new growth strategy called North Star 2030, focusing on growth pillars aligned with customer needs and market profitability [11][12] - The strategy is designed to leverage macro trends and enhance government efficiency, aligning with the new administration's priorities [17][18] - The company aims to expand its capabilities in IT modernization, war-fighting capabilities, and public-private partnerships [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro uncertainties and highlighted a robust pipeline with $25.6 billion in bids awaiting adjudication [57] - The company anticipates revenue growth of up to 4% in 2025, with adjusted EBITDA margins in the mid- to high 12% range [59] - Management emphasized the importance of maintaining a strong balance sheet and cash flow generation to support growth initiatives [55][61] Other Important Information - Leidos repurchased $406 million worth of shares in Q4, exceeding its annual commitment of $500 million [54] - The company has a leverage ratio of 2.2x gross debt-to-adjusted EBITDA, with plans to refinance a $500 million bond maturing in May [55] Q&A Session Summary Question: Disruption from the new administration - Management noted minimal disruption, with customers adapting to the environment and proceeding with contracting [64][66] Question: Opportunities in border security and IRON DOME - Management highlighted alignment with capabilities in border security and IRON DOME, expressing optimism about growth opportunities [70][72] Question: VBA recompete and its impact - Management expressed confidence in executing the VBA program profitably despite new competition, emphasizing the strength of their growth pillars [78][82] Question: Bookings and growth reacceleration - Management indicated strong bookings in Q4 and expressed optimism for growth in 2025 and beyond, despite potential challenges from a continuing resolution [86][90] Question: Transition of the VBA contract - Management confirmed expectations for continued EBITDA and free cash flow growth during the transition of the VBA contract [114] Question: Guidance on EPS growth - Management acknowledged the impact of certain charges on EPS guidance but emphasized the potential for increased expectations as the year unfolds [120] Question: Increased privatization and competition - Management stated readiness to engage in increased privatization opportunities while maintaining service quality to veterans [126] Question: Growth pillars and competition - Management emphasized focus on differentiated capabilities in growth pillars, welcoming new entrants while maintaining a competitive edge [130][132] Question: Low-margin work pivot - Management clarified a strategic shift away from low-margin work, focusing on areas with better growth potential [135][138]

Defense IT specialist Leidos Holdings (LDOS -5.59%) beat quarterly expectations, but investors apparently were hoping for more. Leidos shares fell 7% at market open Tuesday and were down 5% as of 11 a.m. ET.Margin softness in an otherwise strong quarterLeidos is the largest of the so-called "Beltway Bandits" -- defense companies that provide IT and other services to military, intelligence, and civilian agencies. The company earned $2.37 per share in the fourth quarter on revenue of $4.4 billion, surpassing ...

Leidos Holdings, Inc.’s (LDOS) fourth-quarter 2024 adjusted earnings of $2.37 per share beat the Zacks Consensus Estimate of $2.18 by 8.7%. The bottom line also increased 19.1% from $1.99 registered in the prior-year quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.LDOS reported GAAP earnings of $2.12 per share, implying an improvement from the prior-year level of $1.66.The year-over-year upside in the bottom line can be attributed to increased volumes from managed health se ...

Leidos (LDOS) came out with quarterly earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.18 per share. This compares to earnings of $1.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.72%. A quarter ago, it was expected that this security and engineering company would post earnings of $1.96 per share when it actually produced earnings of $2.93, delivering a surprise of 49.49%.Over the last four quarter ...

Revenues: $4.4 billion for fourth quarter (up 10% year-over-year); $16.7 billion for the year (up 8% year-over-year) Diluted Earnings per Share: $2.12 for fourth quarter (up 28% year-over-year); $9.22 for the year (up 540% year-over-year) Non-GAAP Diluted Earnings per Share: $2.37 for fourth quarter (up 19% year-over-year); $10.21 for the year (up 40% year‍-‍over-year) Cash Flows from Operations: $299 million for fourth quarter; $1.4 billion for the year Backlog: $43.6 billion, up 18% year-over-year based ...

Financial Performance - Revenues for Q4 2024 were $4.37 billion, up 10% year-over-year, and total revenues for the fiscal year were $16.66 billion, up 8% compared to 2023[8]. - Net income for Q4 2024 was $282 million, or $2.12 per diluted share, representing increases of 23% and 28% year-over-year, respectively[9]. - Non-GAAP diluted EPS for Q4 2024 was $2.37, up 19% year-over-year, while for the fiscal year, it was $10.21, up 40% compared to 2023[10]. - Adjusted EBITDA for Q4 2024 was $508 million with an 11.6% margin, and for the fiscal year, it was $2.15 billion with a 12.9% margin, reflecting a 29% increase year-over-year[10]. - The net income margin for the fiscal year increased to 7.5%, up from 1.3% in 2023, due to improved program execution and cost control[10]. - For the three months ended January 3, 2025, Leidos reported an operating income of $421 million, with non-GAAP results showing an adjusted operating income of $465 million[52]. - The net income attributable to Leidos common stockholders for the same period was $284 million, resulting in a diluted EPS of $2.12, which adjusted to $2.37[52]. - The EBITDA for the three months ended January 3, 2025, was reported at $501 million, with an EBITDA margin of 11.5%[52]. - For the year ended January 3, 2025, the operating income was $1,827 million, with non-GAAP results showing an adjusted operating income of $2,007 million[55]. - The net income attributable to Leidos common stockholders for the year was $1,254 million, leading to a diluted EPS of $9.22, adjusted to $10.21[55]. - The EBITDA for the year ended January 3, 2025, was $2,122 million, with an EBITDA margin of 12.7%[55]. Cash Flow and Shareholder Returns - Cash flows from operations for Q4 2024 were $299 million, and for the fiscal year, they totaled $1.39 billion[12]. - The company returned $459 million to shareholders in Q4 2024, including $406 million in share repurchases[13]. - Free cash flow for the year ended January 3, 2025, was $1,243 million, with a free cash flow conversion ratio of 90%[60]. - The company reported a net cash provided by operating activities of $1,392 million for the year ended January 3, 2025[60]. Backlog and Future Prospects - The company reported a backlog of $43.6 billion at the end of fiscal year 2024, up 18% year-over-year, with a book-to-bill ratio of 1.4[16]. - Notable new business awards included a $4.1 billion contract for the U.S. Army and a $2.6 billion contract with the TSA, contributing to strong future revenue prospects[16]. - Leidos has initiated guidance for FY 2025, forecasting revenues between $16.9 billion and $17.3 billion and non-GAAP diluted EPS between $10.35 and $10.75[18]. - Total backlog as of January 3, 2025, was $43.55 billion, with funded backlog at $8.41 billion and unfunded backlog at $35.15 billion[43]. - The estimated backlog for National Security & Digital was $21.97 billion, with $2.88 billion funded and $19.09 billion unfunded[43]. Segment Performance - National Security & Digital revenues were $1.89 billion for the quarter, up 5% year-over-year, and $7.37 billion for the year, up 2%[33]. - Health & Civil revenues increased to $1.33 billion for the quarter, a 16% rise, and $5.02 billion for the year, an 18% increase[35]. - Commercial & International revenues reached $604 million for the quarter, up 12%, and $2.25 billion for the year, up 6%[36]. - Defense Systems revenues were $539 million for the quarter, a 7% increase, and $2.03 billion for the year, an 8% rise[38]. - Health & Civil operating income margin improved to 21.0% for the quarter, compared to 14.2% in the prior year[35]. - National Security & Digital operating income margin for the quarter was 9.2%, down from 10.3% in the prior year[34]. - Commercial & International operating income margin for the year was 4.6%, a significant recovery from (26.3)% in the prior year[37]. - The National Security & Digital segment generated an operating income of $720 million, while the Health & Civil segment reported $1,095 million for the year ended January 3, 2025[58]. Assets and Liabilities - Total assets as of January 3, 2025, were $13,104 million, an increase from $12,695 million as of December 29, 2023[30]. - Total liabilities as of January 3, 2025, were $8,644 million, compared to $8,437 million as of December 29, 2023[30]. - The company’s long-term debt, net of current portion, decreased to $4,052 million as of January 3, 2025, from $4,664 million as of December 29, 2023[30]. - The company’s retained earnings increased to $3,410 million as of January 3, 2025, compared to $2,364 million as of December 29, 2023[30]. Impairments and Costs - The company reported a goodwill impairment charge of $596 million for the year ended December 29, 2023[29]. - The company incurred acquisition, integration, and restructuring costs amounting to $10 million for the three months ended December 29, 2023[54]. - Leidos incurred acquisition, integration, and restructuring costs of $36 million for the year ended December 29, 2023[59]. - The company reported a significant goodwill impairment charge of $570 million for the year ended December 29, 2023[60].

In its upcoming report, Leidos (LDOS) is predicted by Wall Street analysts to post quarterly earnings of $2.18 per share, reflecting an increase of 9.6% compared to the same period last year. Revenues are forecasted to be $4.12 billion, representing a year-over-year increase of 3.6%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company annou ...

RESTON, Va., Feb. 7, 2025 /PRNewswire/ -- Leidos Holdings, Inc. (NYSE:LDOS) announced today that its board of directors has declared a quarterly cash dividend of $0.40 per outstanding share of the company's common stock. The cash dividend is payable on March 28, 2025, to stockholders of record as of the close of business on March 14, 2025. About LeidosLeidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquar ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Leidos (LDOS) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 11, 2025, might help the stock move higher if these key numbers are better than expe ...

The market has been ripping to new highs over the last few months on the back of a Trump rally, driven by optimism around economic policies and expectations of lower taxes, deregulation, and strong economicI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over ...