Leidos(LDOS) - 2025 Q1 - Quarterly Report

Financial Performance - Leidos reported revenues of $4,245 million for the three months ended April 4, 2025, representing a 6.8$3,975 million for the same period in 2024[93]. - Operating income increased by 27.7% to $530 million for the three months ended April 4, 2025, compared to$415 million for the same period in 2024[93]. - Net income attributable to Leidos common stockholders was $363 million, a 27.8$284 million in the prior year[93]. - The Health & Civil segment saw a revenue increase of 7.7% to $1,291 million, with operating income rising by 34.7$299 million[96]. - The Defense Systems segment reported revenues of $508 million, a 7.2$34 million[98]. - Revenues for the three months ended April 4, 2025, were $2,698 million, with an operating income of$235 million and a net income attributable to common stockholders of $32 million[126]. Government Contracts - The company generated approximately 87$2.1 billion, down from $3.8 billion in the same period in 2024[106]. - Total backlog as of April 4, 2025, was$46,296 million, which includes $7,329 million in funded backlog[106]. Cash Flow and Liquidity - During the three months ended April 4, 2025, net cash provided by operating activities was$58 million, a decrease of $55 million compared to$113 million in the prior year quarter[117]. - Net cash used in investing activities increased by $10 million to$22 million for the three months ended April 4, 2025, primarily due to higher capital expenditures of $5 million[118]. - Net cash used in financing activities decreased by$118 million to $110 million for the three months ended April 4, 2025, mainly due to a net increase of$465 million in cash inflows from debt issuance[119]. - The company anticipates meeting liquidity needs for the next 12 months through cash generated from operations and available cash balances[116]. Debt and Liabilities - As of April 4, 2025, Leidos had $842 million in cash and cash equivalents and outstanding debt of$5.1 billion[108][109]. - Long-term debt, net of current portion, increased to $5,014 million as of April 4, 2025, compared to$4,052 million on January 3, 2025[125]. - Total liabilities increased to $11,416 million as of April 4, 2025, from$10,868 million on January 3, 2025[125]. Tax and Market Risk - The effective tax rate for the three months ended April 4, 2025, was 23.6%, an increase from 23.1% in the prior year[103]. - There were no material changes in market risk exposure compared to the previous annual report[131]. Stock Repurchase - The company made open market repurchases of common stock totaling $150 million during the three months ended March 29, 2024[115].