Tue, May 6, 3:56 PM (13 days ago)
**Leidos Holdings, Inc. (LDOS) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** $4,245 million, up 6.8% from $3,975 million in Q1 2024. - **Operating Income:** $530 million, a 27.7% increase from $415 million. - **Net Income:** $365 million, up 29.0% from $283 million. - **Earnings per Share (EPS):** $2.79 basic, $2.77 diluted, compared to $2.09 basic and $2.07 diluted in Q1 2024. - **Operating Margin:** 12.5%, up from 10.4%. - **Cash Flow from Operations:** $58 million, down from $113 million due to timing of payroll and employee benefit payments. **Segment Performance:** - **National Security:** Revenues up 4.7%, operating income up 5.7%. - **Health & Civil:** Revenues up 7.7%, operating income up 34.7%. - **Commercial & International:** Revenues up 11.6%, operating income up 8.8%. - **Defense Systems:** Revenues up 7.2%, operating income up 61.9%. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $842 million. - **Debt:** $5.1 billion, with $500 million in new senior notes issued. - **Stock Repurchases:** $500 million in accelerated share repurchase, 3 million shares retired. **Future Operations and Uncertainties:** - **Backlog:** $46.3 billion, with $2.1 billion in net bookings. - **Debt Covenants:** Compliance with all financial covenants. - **Government Contracts:** 87% of revenue from U.S. government, affected by budget priorities and continuing resolutions. - **International Exposure:** 8% of revenue, subject to regulatory and geopolitical risks. - **Legal and Regulatory:** Ongoing investigations and reviews, potential impact on financials. **Trends and Outlook:** - **Growth Drivers:** Increased volumes, program wins, and operational efficiency. - **Challenges:** Government budget uncertainties, international trade policies, and regulatory compliance. - **Strategic Initiatives:** Alignment with government efficiency efforts, focus on digital and mission innovations. **Conclusion:** Leidos Holdings, Inc. demonstrated strong financial performance in Q1 2025, with significant revenue and earnings growth across most segments. The company's strategic initiatives and operational efficiency are driving growth, despite challenges from government budget uncertainties and international risks. The outlook remains positive, with a strong backlog and liquidity position to support future operations.