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Apr 04, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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