• Revenues of $4.2 billion, up 7% year-over-year
• Internet source of revenue of $362 million or $2.68 per diluted proportion
• Adjusted EBITDA (non-GAAP) of $596 million (14.2% margin)
• Non-GAAP Diluted Income according to Percentage of $2.93, up 44% year-over-year
• Money Flows from Operations of $656 million; Independent Money Stream (non-GAAP) of $633 million
• Internet Bookings of $8.1 billion (book-to-bill ratio of one.9 for the quarter and 1.1 for trailing three hundred and sixty five days)

RESTON, Va., Oct. 29, 2024 /PRNewswire/ — Leidos Holdings, Inc. (NYSE: LDOS) lately reported monetary effects for the 3rd quarter of fiscal yr 2024.

“Continued improvement in operating performance across all segments drove excellent revenue growth, record margins for net income and adjusted EBITDA, substantial earnings growth, strong cash flow, and robust bookings,” stated Leidos Prominent Govt Officer Tom Bell. “These results demonstrate clearly how our collaborative and innovative workforce is focused on consistent execution for our customers and shareholders. With a healthy balance sheet, improving business development performance, and emerging ‘North Star’ strategy, Leidos is well positioned to deliver robust and sustainable returns as we move forward.”

Abstract Running Effects

Revenues for the quarter have been $4.19 billion, up 7% in comparison to the 3rd quarter of 2023. Revenues grew year-over-year because of larger call for throughout all buyer departments, particularly for controlled condition services and products.

With a internet source of revenue margin of 8.6%, internet source of revenue for the 3rd quarter was once $362 million, or $2.68 according to diluted proportion.  Comparisons to the yr in the past length aren’t significant as the results of the $699 million pre-tax, non-cash impairment and restructuring rate essentially related to the Safety Endeavor Answers (SES) reporting unit recorded within the 3rd quarter of 2023.

Adjusted EBITDA was once $596 million for the 3rd quarter, up 32% year-over-year. Report adjusted EBITDA margin of 14.2% larger from 11.5% within the 3rd quarter of 2023. Non-GAAP internet source of revenue was once $396 million for the 3rd quarter, up 40% year-over-year, and non-GAAP diluted EPS for the quarter was once $2.93, up 44% year-over-year. The principle drivers of larger profitability have been larger volumes on controlled condition services and products techniques and stepped forward program execution and value regulate around the corporate.

Money Stream Abstract

Within the 3rd quarter, Leidos generated $656 million of internet coins supplied through working actions and worn $23 million and $257 million in making an investment and financing actions, respectively. Internet coins supplied through working actions was once pushed through robust EBITDA and collections efficiency. Days Gross sales Exceptional (DSO) for the quarter was once 59.

Making an investment actions consisted essentially of $23 million in quality, apparatus and tool bills, which led to quarterly distant coins tide of $633 million. Leidos returned $254 million to shareholders within the 3rd quarter, together with $203 million in proportion repurchases and $51 million as a part of its ordinary quarterly coins dividend program. As of September 27, 2024, Leidos had $1,185 million in coins and coins equivalents and $4.7 billion of debt.

On October 25, 2024, the Leidos Board of Administrators declared a coins dividend of $0.40 according to proportion, which represents an build up of five.3% over the prior quarter’s dividend quantity. The dividend can be payable on December 31, 2024, to stockholders of document on the near of industrial on December 16, 2024.

Industry Construction

Internet bookings totaled $8.1 billion within the quarter, representing a book-to-bill ratio of one.9. Because of this, backlog on the finish of the quarter was once $40.6 billion, of which $9.1 billion was once funded. Incorporated within the quarterly bookings have been a number of noteceable awards:

• Veterans Advantages Management (VBA) Scientific Incapacity Examinations (MDE) Areas 1-4 Choice While. The VBA MDE Place of business awarded Leidos the later choice yr at the present indefinite supply, indefinite accumulation (IDIQ), firm-fixed fee guarantees that have been in the beginning awarded in November 2018. Leidos QTC Condition Products and services will proceed to serve MDE to satisfy Section of Veterans Affairs (VA) and Section of Protection (DOD) necessities for keeping apart and retired provider contributors.
• Military World Unified Community (AGUN). The Military Program Govt Place of business for Command, Keep an eye on, and Communications-Tactical World Endeavor Community Modernization (PEO C3T GENM-O) awarded Leidos a five-year, $331 million pledge to modernize the united statesArmy’s community in alignment with the Military’s Community Modernization Technique and Military Unified Community Plan. Leidos will deploy AGUN to particular person Military websites in order a standardized, orchestrated trendy community structure that helps the transition to a 0 Agree with Structure and targets to put together programs, knowledge, and undertaking services and products are available, depended on and interoperable around the globe.
• Complex Combat Control Gadget-Virtual Infrastructure (ABMS-DI) Community. The Section of the Wind Power’s (DAF) Program Govt Officer Command, Keep an eye on, Communications and Combat Control (PEO C3BM) awarded Leidos a five-year, $303 million pledge to supervise the making plans, research, and operations for the DAF ABMS-DI community. This pledge extends Leidos’ collaborative function with the DAF to design, build, and deploy trendy Blended Joint-All Area Command and Keep an eye on (CJADC2) features for the Wind Power and Territory Power.
• Computerized Set up Access (AIE) Then Week Assistance. The Military Program Govt Place of business for Logic, Digital War & Sensors (PEO IEW&S) awarded Leidos the AIE Then Week pledge to make stronger safety at 92 spare Military and make a choice joint-service set up get entry to regulate issues situated world wide. Below the six-year, $249 million pledge, Leidos will proceed to turn out to be the Military’s undertaking bodily get entry to regulate gadget to a completely extensible, cloud-based answer with complicated biometrics modalities.

Ahead Steerage

Leidos is updating its fiscal yr 2024 steering as follows:

For info relating to adjusted EBITDA margin and non-GAAP diluted EPS, see the indistinguishable explanations and reconciliations to GAAP measures integrated somewhere else on this leave.

Leidos does now not serve a reconciliation of forward-looking adjusted EBITDA margins or non-GAAP diluted EPS to internet source of revenue because of the inherent problem in forecasting and quantifying sure quantities which can be vital for such reconciliation. As a result of sure deductions for non-GAAP exclusions worn to calculate projected internet source of revenue would possibly range considerably in response to original occasions, Leidos isn’t in a position to forecast on a GAAP foundation with affordable simple task all deductions wanted to deliver to serve a GAAP calculation of projected internet source of revenue at this occasion. The quantities of those deductions is also subject matter and, due to this fact, may just lead to projected internet source of revenue and diluted EPS being materially lower than what is also implied through projected adjusted EBITDA margins and non-GAAP diluted EPS.

Convention Name Knowledge

Leidos control will talk about operations and fiscal ends up in an income convention name starting at 8 A.M. japanese occasion on October 29, 2024. A reside audio broadcast of the convention name together with a supplemental presentation can be to be had to the nation via hyperlinks at the Leidos Investor Members of the family web page (http://ir.leidos.com). An archived model of the webcast can be to be had at the Leidos Investor Members of the family web page till October 29, 2025.

About Leidos

Leidos is a Fortune 500^® innovation corporate all of a sudden addressing the sector’s maximum vexing demanding situations in nationwide safety and condition. The corporate’s international personnel of 48,000 collaborates to assemble smarter era answers for patrons in closely regulated industries. Headquartered in Reston, Virginia, Leidos reported annual revenues of roughly $15.4 billion for the fiscal yr ended December 29, 2023. For more info, talk over with www.leidos.com.

Ahead-Having a look Statements

Positive statements on this leave include or are in response to “forward-looking” knowledge inside the that means of the Non-public Securities Litigation Reform Function of 1995. In some instances, you’ll be able to establish forward-looking statements through phrases akin to “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance” and matching phrases or words. Ahead-looking statements on this leave come with, amongst others, estimates of our date enlargement, technique and fiscal and working efficiency, together with date revenues, adjusted EBITDA margins, diluted EPS (together with on a non-GAAP foundation) and coins flows supplied through working actions, in addition to statements about our trade contingency plans, executive budgets and the continuing Proceeding Answer, uncertainties in tax because of unutilized tax law or alternative regulatory tendencies, technique, deliberate investments, sustainability objectives and our date dividends, proportion repurchases, capital expenditures, debt repayments, acquisitions, tendencies and coins tide conversion. Those statements mirror our trust and guesses as to date occasions that won’t turn out to be correct.

Unedited efficiency and effects would possibly fluctuate materially from the ones effects expected through our steering and alternative forward-looking statements made on this leave relying on a number of elements, together with, however now not restricted to: tendencies within the U.S. executive protection and non-defense budgets, together with funds discounts, sequestration, implementation of spending limits or adjustments in budgetary priorities, delays within the U.S. executive funds procedure or a central authority shutdown, or the U.S. executive’s failure to lift the debt ceiling, which will increase the potential of a default through the U.S. executive on its debt duties, indistinguishable credit-rating downgrades, or an financial recession; uncertainties in tax because of unutilized tax law or alternative regulatory tendencies; inflationary pressures and fluctuations in rates of interest; delays within the U.S. executive pledge procurement procedure or the award of guarantees and delays or lack of guarantees because of competitor protests; adjustments in U.S. executive procurement regulations, rules and practices; our compliance with diverse U.S. executive and alternative executive procurement regulations and rules; governmental opinions, audits and investigations of our corporate; our skill to successfully compete and win guarantees with the U.S. executive and alternative shoppers; our skill to reply all of a sudden to rising era developments, together with the virtue of man-made knowledge; our reliance on knowledge era spending through hospitals/healthcare organizations; our reliance on infrastructure investments through commercial and herbal assets organizations; power potency and backup power sourcing investments; investments through U.S. executive and business organizations in environmental affect and remediation tasks; the consequences of condition epidemics, pandemics and matching outbreaks could have on our trade, monetary place, result of operations and/or coins flows; our skill to draw, educate and conserve professional workers, together with our control group, and to procure safety clearances for our workers; our skill to correctly estimate prices, together with value will increase because of inflation, related to our firm-fixed-price guarantees and alternative guarantees; answer of prison and alternative disputes with our shoppers and others or prison or regulatory compliance problems; cybersecurity, knowledge safety or alternative safety ultimatum, gadget disasters or alternative disruptions of our trade; our compliance with global, federal, situation and native regulations and rules relating to privateness, knowledge safety, coverage, reserve, retention, switch and disposal, era coverage and private knowledge; the wear and tear and disruption to our trade attributable to herbal screw ups and the consequences of atmosphere trade; our skill to successfully achieve companies and put together investments; our skill to uphold relationships with top contractors, subcontractors and three way partnership companions; our skill to govern efficiency and alternative dangers indistinguishable to buyer guarantees; the failure of our inspection or detection methods to come across ultimatum; the adequacy of our insurance coverage techniques, buyer indemnifications or alternative legal responsibility protections designed to give protection to us from important product or alternative legal responsibility claims, together with cybersecurity assaults; our skill to govern dangers related to our global trade; our skill to conform to the U.S. International Corrupt Practices Function, the U.Okay. Bribery Function of 2010 and matching international anti-corruption and anti-bribery regulations and rules; our skill to give protection to our highbrow quality and alternative proprietary rights through 3rd events of infringement, misappropriation or alternative violations through us in their highbrow quality rights; our skill to succeed in litigation introduced through 3rd events of infringement, misappropriation or alternative violations through us in their highbrow quality rights; our skill to claim or build up date dividends in response to our income, monetary status, capital necessities and alternative elements, together with compliance with appropriate legislation and our pledges; our skill to develop our business condition and infrastructure companies, which may well be negatively suffering from budgetary constraints confronted through hospitals and through builders of power and infrastructure tasks; our skill to effectively combine got companies; and our skill to explode our marketing strategy and long-term control tasks successfully and to triumph over those and alternative recognized and unknown dangers that we are facing.

Those are handiest one of the elements that can impact the forward-looking statements contained on this leave. For additional knowledge regarding dangers and uncertainties related to our trade, please the following the filings we put together from occasion to occasion with the U.S. Securities and Trade Fee (“SEC”), together with the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” categories of our actual Annual Record on Mode 10-Okay and Quarterly Stories on Mode 10-Q, all of that could be considered or received throughout the Investor Members of the family category of our web page at www.leidos.com.

All knowledge on this leave is as of October 29, 2024. Leidos expressly disclaims any responsibility to replace the steering or any alternative forward-looking remark supplied on this leave to mirror next occasions, original effects or adjustments in Leidos’ expectancies. Leidos additionally disclaims any responsibility to remark upon or proper knowledge that can be contained in reviews revealed through funding analysts or others.

Nationwide Safety & Virtual

Nationwide Safety & Virtual revenues of $1.87 billion larger through 1% in comparison to the prior yr quarter. Earnings grew throughout a number of undertaking Knowledge Era (IT) techniques, which offset discounts on sure Logic Nation guarantees. For the quarter, working source of revenue margin larger to ten.0% from 9.2% within the prior yr quarter, and non-GAAP working source of revenue margin larger to ten.5% from 9.8% within the prior yr quarter. The rise in branch profitability was once essentially as a result of quantity and efficiencies on sure constant fee techniques.

Condition & Civil

Condition & Civil revenues of $1.23 billion larger through 16% in comparison to the prior yr quarter. Condition & Civil working source of revenue margin for the quarter was once 23.4%, in comparison to 15.6% within the prior yr quarter, and non-GAAP working source of revenue margin was once 24.2%, in comparison to 16.5% within the prior yr quarter. The rise in revenues and branch profitability was once pushed through larger volumes and case complexity inside the controlled condition services and products trade in addition to internet write-ups on sure techniques.

Industrial & Global

Industrial & Global revenues of $578 million larger through 5% in comparison to the prior yr quarter pushed through larger deliveries of safety merchandise and business power engineering services and products. Running source of revenue margin for the quarter was once 7.1%, in comparison to (117.0)% within the prior yr quarter, which integrated non-cash impairment and restructuring fees of $679 million indistinguishable to the SES reporting unit. Non-GAAP working margin was once 8.8%, in comparison to 9.2% within the prior yr quarter.

Protection Methods

Protection Methods revenues of $522 million larger through 13% in comparison to the prior yr quarter. Protection Methods working source of revenue margin for the quarter was once 7.1%, in comparison to 0.6% within the prior yr quarter, and non-GAAP working margin was once 10.2%, in comparison to 7.4% within the prior yr quarter. The rise in revenues and branch profitability was once essentially pushed through larger scope and stepped forward program execution on constant fee building techniques.

LEIDOS HOLDINGS, INC.
UNAUDITED BACKLOG BY REPORTABLE SEGMENT
(in tens of millions)

Backlog represents the estimated quantity of date revenues to be known below negotiated guarantees. Backlog worth is in response to control’s estimates about quantity of services and products, availability of purchaser investment and alternative elements, and excludes guarantees which can be below protest. Estimated backlog incorporates each funded and negotiated unfunded backlog. Backlog estimates are topic to switch and is also suffering from a number of elements, together with changes of guarantees, non-exercise of choices and foreign exchange actions.

Funded backlog for guarantees with the U.S. executive represents the price on guarantees for which investment is appropriated much less revenues in the past known on those guarantees. Funded backlog for guarantees with non-U.S. executive entities and business shoppers represents the estimated worth on guarantees, which would possibly safe more than one date years, below which Leidos is obligated to accomplish, much less income in the past known at the guarantees.

Negotiated unfunded backlog represents estimated quantities of income to be earned going forward from guarantees for which investment has now not been appropriated and unexercised priced pledge choices. Negotiated unfunded backlog does now not come with unexercised choice sessions and date possible process orders anticipated to be awarded below IDIQ, Basic Products and services Management Time table or alternative grasp promise pledge cars, except sure IDIQ guarantees the place process orders aren’t competitively awarded or one by one priced however in lieu are worn as a investment mechanism, and the place there’s a foundation for estimating date revenues and investment on date expected process orders.

The estimated worth of backlog as of the dates offered was once as follows:

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES

Leidos makes use of and refers to natural income, non-GAAP working source of revenue, non-GAAP working margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP diluted EPS, non-GAAP distant coins tide and non-GAAP distant coins tide conversion, which aren’t measures of monetary efficiency below normally accredited accounting ideas within the U.S. and, accordingly, those measures must now not be thought to be in isolation or as an alternative choice to the similar GAAP measures and must be learn together with Leidos’s consolidated monetary statements ready based on GAAP.

Control believes that those non-GAAP measures serve every other illustration of the result of operations and fiscal status, together with its skill to conform to monetary covenants. Those non-GAAP measures are often worn through monetary analysts masking Leidos and its friends. The computation of non-GAAP measures will not be similar to in a similar way titled measures reported through alternative corporations, thus restricting their virtue for comparison.

Natural revenues seize the income this is inherent within the underlying trade aside from the affect of acquisitions and divestitures made inside the prior yr; it’s computed as wave revenues aside from revenues from acquisitions inside the utmost three hundred and sixty five days and divestitures inside the wave and year-ago sessions.

Non-GAAP working source of revenue is computed through aside from refer to discrete pieces from working source of revenue:

• Acquisition, integration and restructuring prices – Represents acquisition, integration, rent termination, severance and retention prices and asset markdowns indistinguishable to acquisitions and restructuring actions.
• Amortization of got intangible property – Represents the amortization of the truthful worth of the got intangible property.
• Acquire on sale of intangible property – Represents the acquire on sale of highbrow quality now not worn in operations.
• Asset impairment fees – Represents impairments of long-lived intangible property, right-of-use property, and alternative property indistinguishable to our facility explanation try.
• Commendation impairment fees – Represents impairments of commendation because of adjustments in original efficiency in opposition to efficiency projected when the commendation was once got.

Non-GAAP working margin is computed through dividing non-GAAP working source of revenue through revenues.

Adjusted EBITDA is computed through aside from refer to pieces from source of revenue ahead of source of revenue taxes: (i) discrete pieces as known above; (ii) pastime expense; (iii) pastime source of revenue; (iv) depreciation expense; and (v) amortization of internally evolved intangible property.

Adjusted EBITDA margin is computed through dividing adjusted EBITDA through revenues.

Non-GAAP internet source of revenue is computed through aside from the discrete pieces indexed below non-GAAP working source of revenue and their indistinguishable tax affects.

Non-GAAP diluted EPS is computed through dividing internet source of revenue as a result of Leidos familiar stockholders, adjusted for the discrete pieces as known above and the indistinguishable tax affects, through the diluted weighted moderate choice of familiar stocks remarkable.

Non-GAAP distant coins tide is computed through deducting expenditures for quality, apparatus and tool from internet coins supplied through (worn in) working actions.

Non-GAAP distant coins tide conversion is computed through dividing non-GAAP distant coins tide through non-GAAP internet source of revenue as a result of Leidos familiar stockholders; working coins tide conversion is computed through dividing internet coins supplied through (worn in) working actions through internet source of revenue as a result of Leidos shareholders.

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from enlargement percentages)

Please see desk gifts the reconciliation of revenues to natural revenues through reportable branch and general operations:

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from according to proportion knowledge and margin percentages)

Please see tables provide the reconciliation of non-GAAP working source of revenue, internet source of revenue, diluted EPS, adjusted EBITDA, and altered EBITDA margin to probably the most without delay similar GAAP measures for the 3 months ended September 27, 2024: 

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from according to proportion knowledge and margin percentages)

Please see tables provide the reconciliation of non-GAAP working source of revenue, internet source of revenue, diluted EPS, adjusted EBITDA, and altered EBITDA margin to probably the most without delay similar GAAP measures for the 3 months ended September 29, 2023: 

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from according to proportion knowledge and margin percentages)

Please see tables provide the reconciliation of non-GAAP working source of revenue, internet source of revenue, diluted EPS, adjusted EBITDA, and altered EBITDA margin to probably the most without delay similar GAAP measures for the 9 months ended September 27, 2024:

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from according to proportion knowledge and margin percentages)

Please see tables provide the reconciliation of non-GAAP working source of revenue, internet source of revenue, diluted EPS, adjusted EBITDA, and altered EBITDA margin to probably the most without delay similar GAAP measures for the 9 months ended September 29, 2023:

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from margin percentages)

Please see tables provide the reconciliation of non-GAAP working source of revenue through reportable branch and Company to working source of revenue:

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]
(in tens of millions, aside from percentages)

Please see desk gifts the reconciliation of non-GAAP distant coins tide to internet coins supplied through working actions in addition to the calculation of working coins tide and non-GAAP distant coins tide conversion ratios:

SOURCE Leidos