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Apr 04
Leidos Q1 2025 Earnings Report
Leidos posted strong Q1 results with increased revenue, net income, and operating margin, reaffirming its full-year guidance.
Key Takeaways
Leidos delivered a solid start to FY25, reporting higher revenue and profitability driven by strong performance across all major segments and improved execution.
Revenue rose to $4.25 billion, driven by growth across all customer segments.
Net income increased to $365 million, with EPS of $2.77.
Adjusted EBITDA margin improved to 14.2%, reflecting better program execution.
Leidos repurchased $500 million in shares and reaffirmed FY25 guidance.
Leidos
Leidos
Leidos Revenue by Segment
Revenue by Segment
National Security & Digital Revenue
CapyFin.comHealth & Civil Revenue
CapyFin.comCommercial & International Revenue
CapyFin.comDefense Systems Revenue
CapyFin.com Forward Guidance
Leidos reaffirmed FY25 guidance with expectations for steady revenue growth, strong EPS, and continued operational discipline.
Positive Outlook
- FY25 revenue guidance maintained at $16.90–$17.30 billion.
- Non-GAAP diluted EPS expected between $10.35–$10.75.
- Adjusted EBITDA margin forecasted in the mid-high 12% range.
- Operating cash flow projected around $1.45 billion.
- Pending $300 million cyber acquisition to enhance tech portfolio.
Challenges Ahead
- Free cash flow in Q1 was modest at $36 million.
- Book-to-bill ratio declined under new backlog policy.
- Cash flow conversion ratios decreased vs prior year.
- Continued pressure from cost management and payroll liabilities.
- Debt levels increased following $1B in new note issuances.
Revenue & Expenses
Visualization of income flow from segment revenue to net income