Northern Virginia–based Leidos, a major Department of Energy contractor, ended a handsome 2004 with strong fourth quarter financial results and increased revenue across its operating segments.
Net income rose 23 percent to $282 million, $2.12 earnings per share (EPS), in the quarter from $230 million ($1.66 EPS) a year ago. Excluding certain non-operating costs, adjusted earnings of $2.37 per share in the quarter beat consensus estimates by 10 cents. Adjusted operating margin increased 20 basis points to 11.6 percent.
Sales in the quarter increased 10 percent to $4.4 billion from $4 billion a year ago, driven by managed health services, security detection products, commercial energy, Australian IT, airborne solutions and surveillance, digital modernization, and C5ISR work.
For the year, net income climbed five-fold to $1.3 billion ($9. 22 EPS) from 2023 in large part due to a hefty goodwill impairment charge in 2023 related to the security detection business. Adjusted per share earnings were $10.21 in 2024, and adjusted margin jumped 2.1 percent to 12.9 percent. Sales in 2024 increased 8 percent to $16.7 billion.
Leidos tallied a robust $23.4 billion in orders in 2024, representing a book-to-bill ratio of 1.4 times sales, helping to drive backlog to $43.6 billion, up 18 percent from a year ago. Free cash flow for the year was $1.2 billion.
For 2025, Leidos is forecasting growth of up to 4 percent to between $16.9 billion and $17.3 billion, and adjusting earnings of between $10.35 and $10.75 EPS. The company expects adjust operating margin this year to be in the mid- to high 12 percent range, and free cash flow of about $1.2 billion.
Leidos is senior partner in a joint venture that serves as the landlord contractor for the DOE’s Hanford Site in Washington state.
A version of this article first appeared in Exchange Monitor sister publication Defense Daily.
