Leidos net worth has become a hot topic in 2024 as the company continues to excel in the defense and IT sectors.
As a leader, their market cap and financial performance are under scrutiny. Let’s dive into the financial details of Leidos, revealing how its key segments contribute to growth and profitability.
Stay tuned with Ando Money for insights into one of the most influential players in the market.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Leidos Holdings, Inc. |
| Full Name | Leidos Holdings, Inc. |
| Website | www.leidos.com |
| Industry | Defense, Aviation, IT, Biomedical Research |
| Traded as | NYSE: LDOS |
| ISIN | US5253271028 |
| Founded | 1969 |
| Founders | J. Robert Beyster |
| Country/Territory | United States |
| Headquarters | Reston, Virginia |
| Chief Executive Officer | Thomas Bell |
| Number of Employees | 48,000 |
| Market Cap | $22.44 billion (October 2024) |
| Total Assets | $12.91 billion (June 28, 2024) |
| Total Equity | $4.51 billion (June 28, 2024) |
| Revenue | $4.13 billion (Q2 2024) |
| Net Income | $324 million (Q2 2024) |
What is the Net Worth/Market Cap Of Leidos in 2024?
As of October 2024, Leidos holds a market cap of $22.44 billion, positioning it among notable players in the defense and IT sectors.
When compared to other influential companies, Leidos shows steady growth, reflecting its strategic focus on government contracts and technology solutions.
While its net worth signifies stability, it’s worth comparing their standing with other significant names in the field. Here are some notable competitors and partners:
- Northrop Grumman
- Raytheon Technologies
- Lockheed Martin
- General Dynamics
- Booz Allen Hamilton
- SAIC (Science Applications International Corporation)
- IBM
- L3Harris Technologies
- Accenture
- Palantir Technologies
For those interested in understanding how Leidos compares among the wealthiest corporations, you can explore this topic further at this link.
Leidos Financial Performance Overview
How They Generate Revenue Across Key Segments
Leidos‘ revenue streams are diversified across multiple segments, allowing for balanced growth. The National Security and Digital Solutions segment generated approximately $1.81 billion in Q2 2024.
This division’s steady performance is driven by long-term defense contracts, especially those with the U.S. Department of Defense.
Another significant contributor is the Health & Civil Services, adding $1.26 billion during the same period, reflecting a 22% increase year-over-year.
The Commercial & International Markets segment has also shown positive trends, achieving $561 million in Q2 2024, driven by security product deliveries and IT services.
The Defense Systems segment contributed $495 million, supported by strong demand in the aerospace and hypersonics domains.
These diverse revenue streams ensure Leidos’ resilience in fluctuating market conditions.
Financial Health Indicators
Leidos’ financial health remains strong, with an impressive $4.13 billion in revenue for Q2 2024, representing an 8% growth from the previous year.
Their net income of $324 million further highlights a solid performance, translating to a 7.8% net income margin.
This growth is reflected in their operating metrics, such as the Adjusted EBITDA of $559 million and a 13.5% margin.
The company’s cash flow from operations stands at $374 million, indicating healthy liquidity.
Key Contracts and Their Role in Revenue
Leidos has secured several high-value contracts, playing a critical role in its revenue generation.
Notably, the company received a $823 million task order for the Defense Enclave Services (DES), expanding its reach within the Department of Defense Network (DoDNet).
Another key contract includes the Air Force National Capital Region IT Services, valued at $738 million.
These contracts provide substantial revenue inflows and solidify their presence in the defense sector.
Operational Efficiency and Profitability
Operational efficiency has been a significant focus for Leidos, with strategies aimed at cost control and enhancing profitability.
The company’s Adjusted EBITDA margin improvement to 13.5% in Q2 2024 is a testament to these efforts.
Additionally, by leveraging technology and optimizing processes, they have reduced operational expenses, further strengthening their bottom line.
This focus on efficiency has been pivotal in maintaining a steady growth trajectory.
Contributions of Different Business Units to Overall Performance
Leidos’ performance is driven by various business units, each contributing to overall growth.
The National Security and Digital unit holds a major share, while the Health & Civil Services division has shown significant year-over-year growth.
The Defense Systems and Commercial & International units, though smaller, contribute to a balanced revenue mix.
This segmentation ensures that Leidos can weather fluctuations in individual markets while capitalizing on emerging opportunities.
Investment and Capital Expenditure Impact
Investments in new technologies and infrastructure have been a priority for Leidos.
During Q2 2024, the company allocated $23 million towards property, equipment, and software, which has contributed to maintaining competitive capabilities.
These investments are not only vital for current operations but also lay the groundwork for future growth, especially in high-potential areas like AI and cybersecurity.
Strategic Acquisitions and Mergers
Leidos’ acquisitions strategy has played a pivotal role in expanding its market reach.
The company’s focus on strategic mergers has allowed it to integrate new capabilities and enter emerging markets.
These acquisitions have not only bolstered its revenue growth but also improved its ability to deliver innovative solutions, particularly in the defense and health sectors.
Shareholder Returns and Financial Policies
Leidos has remained committed to delivering value to its shareholders. With a regular dividend payment of $0.38 per share in Q3 2024, the company has shown dedication to maintaining investor confidence.
Additionally, strategic share buybacks, such as the $114 million repurchase in Q2, have helped improve shareholder value.
These policies reflect a balanced approach to capital management.
Future Financial Projections and Outlook
Looking ahead, Leidos has set a revenue forecast of $16.1 – $16.4 billion for the fiscal year 2024, showing confidence in sustained demand across its key segments.
As market conditions evolve, particularly in defense and technology sectors, Leidos aims to leverage its diversified portfolio and technological advancements to maintain steady growth.
FAQs About Leidos
What drives their revenue growth?
Their revenue growth is driven by diversified business segments such as National Security and Digital, Health & Civil Services, and Defense Systems.
How do their government contracts impact performance?
Government contracts, especially from the U.S. Department of Defense, play a significant role in their earnings, providing stable, long-term revenue.
What strategies help improve profitability?
Cost control, operational efficiency, and investment in technology have been critical in improving their profitability and margins.
How does the company manage its debt?
It manages its debt through strategic repayment plans, maintaining $4.1 billion in long-term debt as of mid-2024.
What is their outlook for future growth?
The outlook remains positive, with a revenue projection of $16.1 – $16.4 billion for 2024, supported by strong demand in core segments.
Conclusion
Leidos remains a significant player in the defense and IT sectors with robust financials and strategic growth plans.
For more insights into their financial journey and other leading companies, visit Ando Money. Your thoughts and feedback are welcome—feel free to leave a comment or share the content!
