Loading...
•
Jul 04
Leidos Q2 2025 Earnings Report
Leidos reported strong financial results for the second quarter of fiscal year 2025, with robust earnings and revenue growth, leading to an increase in full-year guidance.
Key Takeaways
Leidos delivered a strong second quarter in fiscal year 2025, with revenues increasing by 3% year-over-year to $4.25 billion. The company achieved a net income of $393 million and a diluted EPS of $3.01. Non-GAAP diluted EPS reached a record $3.21, up 22% year-over-year, and Adjusted EBITDA was a record $647 million with a margin of 15.2%. The strong performance was driven by increased demand across all customer segments, prudent cost management, and improved program execution, leading to raised full-year guidance.
Revenues for the second quarter of 2025 reached $4.25 billion, marking a 3% organic increase year-over-year, driven by increased demand across all customer segments, particularly in Defense Systems.
Net income for the quarter was $393 million, or $3.01 per diluted share, representing a 21% and 27% year-over-year increase, respectively, with net income margin improving to 9.2% from 7.8%.
Adjusted EBITDA hit a record $647 million, up 16% year-over-year, with the Adjusted EBITDA margin expanding to 15.2% from 13.5% in the prior year quarter.
Non-GAAP diluted EPS was a record $3.21, reflecting a 22% increase year-over-year, primarily due to prudent cost management, improved program execution, and an insurance reimbursement.
Leidos
Leidos
Leidos Revenue by Segment
Leidos Revenue by Geographic Location
Revenue by Segment
National Security & Digital Revenue
CapyFin.comHealth & Civil Revenue
CapyFin.comCommercial & International Revenue
CapyFin.comDefense Systems Revenue
CapyFin.comRevenue by Geographic Location
United Kingdom Revenue
CapyFin.com Forward Guidance
Leidos is raising its fiscal year 2025 guidance across key financial metrics, reflecting strong performance in the first two quarters and enhanced clarity on the macro environment.
Positive Outlook
- Revenues guidance for FY25 is narrowed to $17.00 billion - $17.25 billion, with the lower end of the range increasing from prior guidance.
- Adjusted EBITDA Margin guidance is raised to Mid 13%, up from Mid-High 12%.
- Non-GAAP Diluted EPS guidance is significantly increased to $11.15 - $11.45, up from $10.35 - $10.75.
- Cash Flows Provided by Operating Activities guidance is raised to approximately $1.65 billion, up from approximately $1.45 billion.
- The improved guidance reflects confidence in continued robust earnings and revenue growth.
Challenges Ahead
- Leidos does not provide a reconciliation of forward-looking non-GAAP measures to GAAP due to inherent difficulties in forecasting certain amounts.
- Deductions for non-GAAP exclusions used to calculate projected net income margin or diluted EPS may vary significantly based on actual events.
- The amounts of these deductions could be material, potentially resulting in projected GAAP net income margin and diluted EPS being materially less than implied by non-GAAP guidance.
- Forward-looking statements are subject to various risks and uncertainties, including developments in government budgets and economic conditions.
- The company disclaims any duty to update guidance or forward-looking statements to reflect subsequent events or changes in expectations.