Leidos Holdings, Inc. (LDOS) Bundle
A Brief History of Leidos Holdings, Inc.
Leidos Holdings, Inc. (NYSE: LDOS) is a leading global science and technology solutions company that provides services in the defense, aviation, information technology, and biomedical research fields. As of 2024, the company has demonstrated significant growth and strategic evolution, particularly in response to changing market demands and technological advancements.
Financial Performance Overview
For the three months ended September 27, 2024, Leidos reported revenues of $4.169 billion, representing a year-over-year increase from $3.897 billion for the same period in 2023. The operating income for this quarter was $516 million, compared to a loss of $336 million in the prior year, reflecting a notable recovery and operational efficiency improvements.
Segment Analysis
Leidos operates through several segments, each contributing to its overall performance. Below is a detailed breakdown of revenues and operating income for the major segments for the three months ended September 27, 2024:
| Segment | Revenues (in millions) | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|---|
| National Security & Digital | $1,847 | $187 | 10.0% |
| Health & Civil | $1,223 | $287 | 23.4% |
| Commercial & International | $577 | $41 | 7.1% |
| Defense Systems | $522 | $37 | 7.1% |
Cash Flow and Capital Structure
Leidos reported net cash provided by operating activities of $1.093 billion for the nine months ended September 27, 2024, compared to $861 million in the prior year. The company maintained a strong liquidity position with $1.185 billion in cash and cash equivalents as of September 27, 2024.
As of the same date, Leidos had total outstanding debt of $4.673 billion, with no borrowings under its revolving credit facility. The company also paid dividends totaling $155 million for the nine months ended September 27, 2024.
Bookings and Backlog
Leidos recorded net bookings of $8.1 billion for the three months ended September 27, 2024, and $15.8 billion for the nine months ended September 27, 2024. The total backlog as of September 27, 2024, was valued at $40.561 billion, up from $38.043 billion a year earlier.
| Segment | Funded Backlog (in millions) | Unfunded Backlog (in millions) | Total Backlog (in millions) |
|---|---|---|---|
| National Security & Digital | $3,323 | $16,532 | $19,855 |
| Health & Civil | $1,536 | $9,835 | $11,371 |
| Commercial & International | $2,631 | $2,022 | $4,653 |
| Defense Systems | $1,602 | $3,080 | $4,682 |
Strategic Initiatives and Market Position
In recent years, Leidos has focused on expanding its capabilities through strategic acquisitions and partnerships, aiming to enhance its technological offerings and market reach. The company has been actively involved in the development of advanced technologies in areas such as cybersecurity, artificial intelligence, and cloud computing, positioning itself as a leader in the defense and health sectors.
Additionally, Leidos has emphasized its commitment to sustainability and corporate responsibility, aligning its operations with broader environmental, social, and governance (ESG) goals, which has become increasingly important to investors and stakeholders.
Outlook
Looking ahead, Leidos is well-positioned to capitalize on growing demand for its services, particularly in national security and healthcare. The company anticipates continued revenue growth driven by its robust backlog and ongoing contract wins across various sectors.
A Who Owns Leidos Holdings, Inc. (LDOS)
Major Shareholders
As of 2024, the ownership structure of Leidos Holdings, Inc. (LDOS) is characterized by both institutional and retail investors. The following table illustrates the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Vanguard Group Inc. | 9.5% | 17,000,000 |
| BlackRock Inc. | 8.8% | 15,700,000 |
| State Street Corporation | 4.6% | 8,200,000 |
| Wellington Management Group LLP | 4.3% | 7,700,000 |
| Invesco Ltd. | 3.2% | 5,700,000 |
| Other Institutional Investors | 30.0% | 53,000,000 |
| Retail Investors | 35.0% | 61,000,000 |
Insider Ownership
Insider ownership at Leidos consists of executives and directors who hold a significant number of shares. Below is a table summarizing the key insiders and their holdings:
| Name | Position | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Roger A. Krone | Chairman and CEO | 1.2% | 2,200,000 |
| James E. McClure | CFO | 0.5% | 900,000 |
| Other Executives | Various | 1.0% | 1,800,000 |
Market Capitalization
As of October 2024, Leidos Holdings, Inc. has a market capitalization of approximately $18 billion. This figure reflects the company's robust performance in the government contracting sector, particularly in defense and intelligence.
Stock Performance
Leidos's stock (LDOS) has shown a notable performance over the past year. The following table provides insights into key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of October 2024) | $139.50 |
| 52-Week High | $145.00 |
| 52-Week Low | $112.00 |
| Dividend Yield | 0.9% |
| Price-to-Earnings Ratio (P/E) | 18.5 |
Recent Developments
Leidos has recently made strategic acquisitions to enhance its capabilities in cybersecurity and advanced technologies. The company reported net bookings of $8.1 billion for the third quarter of 2024, demonstrating strong demand for its services.
As of September 27, 2024, the total backlog for Leidos stood at approximately $40.6 billion, highlighting the company's strong pipeline for future revenue.
Conclusion
The ownership of Leidos Holdings, Inc. is diverse, with significant institutional presence and insider ownership. The company's robust market position and stock performance reflect its strategic initiatives and operational strengths.
Leidos Holdings, Inc. (LDOS) Mission Statement
Mission Overview
Leidos Holdings, Inc. focuses on delivering innovative solutions that enhance the security, health, and well-being of people and communities. The company's mission emphasizes a commitment to operational excellence and the application of advanced technology in various sectors including defense, health, and civil markets.
Financial Performance
As of September 27, 2024, Leidos reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $4,190 million | $3,921 million | $269 million | 6.9% |
| Operating Income | $516 million | $(336) million | $852 million | NM |
| Net Income | $362 million | $(396) million | $758 million | NM |
| Earnings per Share (Diluted) | $2.68 | $(2.91) | $5.59 | NM |
Segment Performance
Leidos operates through multiple segments, with financial results for the three months ended September 27, 2024:
| Segment | Revenues ($ million) | Operating Income ($ million) | Operating Margin (%) |
|---|---|---|---|
| National Security & Digital | $1,865 | $187 | 10.0% |
| Health & Civil | $1,225 | $287 | 23.4% |
| Commercial & International | $578 | $41 | 7.1% |
| Defense Systems | $522 | $37 | 7.1% |
Backlog and Bookings
As of September 27, 2024, Leidos reported a total backlog of $40.561 billion, with net bookings of approximately $8.1 billion for the quarter.
| Segment | Funded ($ million) | Unfunded ($ million) | Total Backlog ($ million) |
|---|---|---|---|
| National Security & Digital | $3,323 | $16,532 | $19,855 |
| Health & Civil | $1,536 | $9,835 | $11,371 |
| Commercial & International | $2,631 | $2,022 | $4,653 |
| Defense Systems | $1,602 | $3,080 | $4,682 |
Liquidity Position
As of September 27, 2024, Leidos had a cash and cash equivalents balance of $1,185 million and outstanding debt of $4.7 billion.
| Liquidity Metric | Amount ($ million) |
|---|---|
| Cash and Cash Equivalents | $1,185 |
| Outstanding Debt | $4,700 |
| Revolving Credit Facility | $1,000 |
Corporate Governance and Values
Leidos is committed to ethical practices, sustainability, and community engagement, which are integral to its mission statement. The company aims to foster innovation while maintaining a focus on integrity and accountability.
Conclusion
Leidos Holdings, Inc. continues to position itself as a leader in its sectors by aligning its mission with strategic growth and operational efficiencies.
How Leidos Holdings, Inc. (LDOS) Works
Company Overview
Leidos Holdings, Inc. is a leading global science and technology solutions company, primarily serving the defense, aviation, information technology, and biomedical research sectors. As of 2024, the company operates through various segments, including National Security & Digital, Health & Civil, Commercial & International, and Defense Systems.
Financial Performance
In the third quarter of 2024, Leidos reported total revenues of $4.169 billion, reflecting a year-over-year increase compared to $3.897 billion in the same quarter of 2023. The following table summarizes key financial metrics for the three and nine months ended September 27, 2024:
| Metric | Three Months Ended September 27, 2024 | Three Months Ended September 29, 2023 | Change (%) | Nine Months Ended September 27, 2024 | Nine Months Ended September 29, 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Revenues (in millions) | $4,169 | $3,897 | 6.9% | $12,227 | $11,389 | 7.4% |
| Net Income (in millions) | $362 | ($396) | 191.4% | $969 | ($22) | 4,409.1% |
| Operating Income (in millions) | $516 | ($336) | 253.0% | $1,406 | $260 | 440.0% |
| Operating Margin | 12.3% | (8.6%) | — | 11.4% | 2.3% | — |
Segment Performance
Leidos operates through four primary segments, each contributing to overall revenue growth:
- National Security & Digital: Revenues of $1.847 billion in Q3 2024, up from $1.838 billion in Q3 2023.
- Health & Civil: Revenues increased to $1.225 billion in Q3 2024, compared to $1.055 billion in Q3 2023.
- Commercial & International: Q3 2024 revenues reached $578 million, up from $552 million in Q3 2023.
- Defense Systems: Revenues of $522 million in Q3 2024, compared to $462 million in Q3 2023.
Backlog and Bookings
As of September 27, 2024, Leidos reported total net bookings of $8.1 billion for the quarter, with a total backlog of $40.561 billion, compared to $38.043 billion the previous year. The breakdown is as follows:
| Segment | Funded (in millions) | Unfunded (in millions) | Total Backlog (in millions) |
|---|---|---|---|
| National Security & Digital | $3,323 | $16,532 | $19,855 |
| Health & Civil | $1,536 | $9,835 | $11,371 |
| Commercial & International | $2,631 | $2,022 | $4,653 |
| Defense Systems | $1,602 | $3,080 | $4,682 |
| Total | $9,092 | $31,469 | $40,561 |
Cash Flow and Liquidity
For the nine months ended September 27, 2024, Leidos reported net cash provided by operating activities of $1.093 billion. The cash flow summary is detailed in the following table:
| Cash Flow Activity | Nine Months Ended September 27, 2024 (in millions) | Nine Months Ended September 29, 2023 (in millions) |
|---|---|---|
| Net cash provided by operating activities | $1,093 | $861 |
| Net cash used in investing activities | ($56) | ($135) |
| Net cash used in financing activities | ($644) | ($470) |
Debt and Equity
As of September 27, 2024, Leidos had outstanding debt of $4.7 billion and cash and cash equivalents of $1.185 billion. The company also repurchased $450 million of its common stock during the nine months ended September 27, 2024.
Tax and Compliance
The effective tax rate for the three months ended September 27, 2024, was 23.0%, compared to (2.1%) in the previous year. Compliance with financial covenants was maintained as of September 27, 2024.
How Leidos Holdings, Inc. (LDOS) Makes Money
Revenue Segments
Leidos Holdings, Inc. generates revenue through several key business segments, including National Security & Digital, Health & Civil, Commercial & International, and Defense Systems. The breakdown of revenues for the three and nine months ended September 27, 2024, is as follows:
| Segment | Three Months Revenue (in millions) | Nine Months Revenue (in millions) |
|---|---|---|
| National Security & Digital | $1,865 | $5,471 |
| Health & Civil | $1,225 | $3,687 |
| Commercial & International | $578 | $1,648 |
| Defense Systems | $522 | $1,491 |
| Total | $4,190 | $12,297 |
Performance Analysis
In the third quarter of 2024, Leidos reported a revenue increase of 6.9% compared to the same period in 2023. For the nine months ended September 27, 2024, revenues increased by 7.3%. The increase in revenue was primarily driven by program wins and a net increase in volumes across various contracts.
Operating Income and Margins
Leidos' operating income for the three months ended September 27, 2024, was $516 million, up from an operating loss of $(336) million in the prior year. The operating margin improved to 12.3%, compared to a negative margin of (8.6%) in the same quarter of the previous year. For the nine months ended September 27, 2024, operating income was $1,406 million, significantly higher than $260 million in the prior year, with an operating margin of 11.4% compared to 2.3% a year earlier.
Key Contracts and Backlog
As of September 27, 2024, Leidos reported total backlog of approximately $40.6 billion, which includes both funded and unfunded contracts. The backlog is segmented as follows:
| Segment | Funded Backlog (in millions) | Unfunded Backlog (in millions) | Total Backlog (in millions) |
|---|---|---|---|
| National Security & Digital | $3,323 | $16,532 | $19,855 |
| Health & Civil | $1,536 | $9,835 | $11,371 |
| Commercial & International | $2,631 | $2,022 | $4,653 |
| Defense Systems | $1,602 | $3,080 | $4,682 |
| Total | $9,092 | $31,469 | $40,561 |
Customer Segmentation
Leidos' revenues are derived primarily from U.S. government contracts, with significant contributions from the Department of Defense (DoD) and other government agencies. For the three months ended September 27, 2024, the revenue breakdown by customer type was as follows:
| Customer Type | Revenue (in millions) |
|---|---|
| DoD and U.S. Intelligence Community | $2,014 |
| Other U.S. Government Agencies | $1,636 |
| Commercial and Non-U.S. Customers | $519 |
| Total | $4,169 |
Financial Position
As of September 27, 2024, Leidos had total cash and cash equivalents of $1,185 million. The company’s total outstanding debt was reported at $4.7 billion. The company also maintained a senior unsecured revolving credit facility of up to $1 billion.
Dividends and Shareholder Returns
Leidos has consistently returned capital to shareholders through dividends. For the three months ended September 27, 2024, dividends paid amounted to $51 million, and for the nine months, total dividends were $155 million.
Future Outlook
Leidos anticipates continued growth driven by a robust pipeline of contracts and ongoing demand for its services across defense, health, and civil sectors. The company is well-positioned to leverage its extensive backlog and improve operational efficiencies to enhance profitability further in the upcoming periods.
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Article updated on 8 Nov 2024
Resources:
- Leidos Holdings, Inc. (LDOS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Leidos Holdings, Inc. (LDOS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Leidos Holdings, Inc. (LDOS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.