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Jan 03
Leidos Q4 2024 Earnings Report
Key Takeaways
Leidos reported strong Q4 FY24 results, with revenue increasing 10% year-over-year to $4.37 billion and net income rising 23% to $282 million. Adjusted EPS reached $2.37, a 19% increase from Q4 FY23, driven by growth in managed health services and improved program execution. Operating income stood at $421 million, and free cash flow was $213 million.
Leidos
Leidos
Leidos Revenue by Segment
Forward Guidance
Leidos expects continued revenue and earnings growth in FY25, driven by strong demand in key segments and operational efficiencies.
Positive Outlook
- Revenue projected between $16.9B - $17.3B.
- Non-GAAP diluted EPS expected between $10.35 - $10.75.
- Adjusted EBITDA margin forecasted in mid-to-high 12%.
- Strong backlog of $43.6B supports future revenue visibility.
- Expected cash flows from operations around $1.45B.
Challenges Ahead
- Potential headwinds from macroeconomic uncertainties.
- Continued cost pressures in fixed-price programs.
- Challenges in the security products business mix.
- Expected impact from contract rebaselining in UK operations.
- Increased investments in growth affecting near-term margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income