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Leidos Holdings Q1 Earnings Top Estimates, Revenues Rise Y/Y
LDOSLeidos(LDOS) ZACKS·2025-05-06 16:50

Core Viewpoint - Leidos Holdings, Inc. reported strong financial performance in Q1 2025, with adjusted earnings per share significantly exceeding expectations and showing substantial year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share for Q1 2025 were 2.97,surpassingtheZacksConsensusEstimateof2.97, surpassing the Zacks Consensus Estimate of 2.47 by 20.2% and increasing 29.7% from 2.29intheprior−yearquarter[1]−GAAPearningswere2.29 in the prior-year quarter [1] - GAAP earnings were 2.77 per share, up from 2.07inthesamequarterlastyear[1]−Totalrevenuesreached2.07 in the same quarter last year [1] - Total revenues reached 4.25 billion, exceeding the Zacks Consensus Estimate of 4.08billionby44.08 billion by 4% and reflecting a 6.8% year-over-year increase [3] Operational Statistics - Cost of revenues increased by 4.5% year over year to 3.49 billion [5] - Adjusted operating income rose to 565millionfrom565 million from 456 million in the previous year [5] - Adjusted operating margin improved to 13.3% compared to 11.5% in the prior-year period [5] Backlog and Segment Performance - Total backlog increased to 46.30billionfrom46.30 billion from 43.56 billion at the end of Q4 2024, with 7.33billionfunded[4]−NationalSecurityandDigitalsegmentrevenuesgrew4.77.33 billion funded [4] - National Security and Digital segment revenues grew 4.7% year over year to 1.88 billion, while adjusted operating income slightly declined to 190 million [6] - Health & Civil segment revenues rose 7.7% to 1.29 billion, with adjusted operating income increasing to 305 million [7] - Commercial & International segment revenues reached 568 million, up 11.6% year over year, with adjusted operating income at 48million[8]−DefenseSystemssegmentrevenueswere48 million [8] - Defense Systems segment revenues were 508 million, up 7.2%, with adjusted operating income increasing to 46million[10]FinancialPosition−Cashandcashequivalentstotaled46 million [10] Financial Position - Cash and cash equivalents totaled 842 million, a slight decrease from 849millionatthebeginningoftheyear[11]−Long−termdebtincreasedto849 million at the beginning of the year [11] - Long-term debt increased to 5.01 billion from 4.05billion[11]−Netcashflowfromoperatingactivitieswas4.05 billion [11] - Net cash flow from operating activities was 58 million, down from 113millionayearago[11]2025Guidance−Leidosreaffirmedits2025guidance,expectingadjustedearningsintherangeof113 million a year ago [11] 2025 Guidance - Leidos reaffirmed its 2025 guidance, expecting adjusted earnings in the range of 10.35-10.75pershare,withtheZacksConsensusEstimateat10.75 per share, with the Zacks Consensus Estimate at 10.51 [12] - The company anticipates revenues between 16.90−16.90-17.30 billion, with the Zacks Consensus Estimate at 17.09billion[12]−Expectedcashflowfromoperatingactivitiesfor2025isapproximately17.09 billion [12] - Expected cash flow from operating activities for 2025 is approximately 1.45 billion [13]