Leidos Exhibits Strong Fiscal Performance for Fourth Quarter and Annual Results in 2024

Leidos Reports Strong Performance in Fiscal Year 2024

Leidos Holdings, Inc., a prominent player in the government and commercial sectors, has released its financial results for the fourth quarter and the fiscal year ended January 3, 2025, highlighting a year filled with substantial growth and impressive earnings figures.

Financial Overview

In the fourth quarter, Leidos reported revenues of $4.36 billion, marking a 10% increase compared to the same period last year. For the entire fiscal year, the company achieved total revenues of $16.66 billion, reflecting an 8% growth year-over-year. Notably, the diluted earnings per share for the fourth quarter rose to $2.12, a remarkable increase of 28% from the prior year, while the annual EPS surged by 540% to reach $9.22. This significant leap is attributed to various strategic initiatives and an influx in demand across multiple sectors, particularly in managed health services.

Leidos’ Chief Executive Officer, Tom Bell, emphasized the company’s robust performance, which surpassed previously established targets during the 2021 Investor Day. He acknowledged the strong revenue growth and successful business development pursuits that contributed to these results. The company's focus on addressing mission-critical needs of its customers underpins its sustained success.

Revenue Drivers and Market Segments

The growth in revenue across both the quarter and the year can be attributed to elevated demand from all customer segments, with pronounced contributions from managed health services. In the fourth quarter, revenues related to this segment alone experienced significant growth, directly impacting the company’s overall performance.

The overall net income for the quarter reached $282 million, reflecting a net income margin of 6.5%, up from 5.8% in the previous year. Additionally, the adjusted EBITDA for the quarter stood at $508 million with an 11.6% margin, enhancing the profitability profile.

Cash Flow and Shareholder Returns

In terms of cash flow, Leidos generated approximately $299 million from operating activities during the fourth quarter. The company's cash management strategy was deemed effective, as evidenced by a strong working capital position. The total free cash flow for the year was reported at $1.24 billion, further demonstrating Leidos’ financial robustness.

In terms of shareholder value, Leidos has consistently prioritized returning capital to shareholders. The company announced a cash dividend of $0.40 per share to be paid on March 28, 2025, reinforcing its commitment to shareholder returns.

Future Guidance

Looking ahead, Leidos has established guidance for fiscal year 2025, projecting revenue growth between $16.9 billion and $17.3 billion, alongside an anticipated adjusted EBITDA margin hovering in the mid-high 12% range. Additionally, the non-GAAP diluted EPS is forecasted between $10.35 and $10.75, reflecting Leidos’ confidence in its strategic direction and market positioning.

Conclusion

Leidos is poised for continued growth in 2025, supported by a well-defined strategic framework and an empowered team ready to face future challenges. As the company continues to navigate its path in a dynamic environment, stakeholders remain optimistic about Leidos’ capabilities in fulfilling its mission and exceeding growth expectations. With strong financial results and a positive outlook, Leidos is a company to watch in the coming year.

For further updates, stay tuned for Leidos' upcoming quarterly earnings call where management will discuss operational results and future strategies in greater detail.