Leidos Holdings Inc

Solid Q1 Financial Performance: Leidos reported Q1 2025 revenues of $4.25 billion, representing a 7% organic year-over-year growth. Adjusted EBITDA increased by 23% to $601 million, and non-GAAP diluted EPS rose 30% to $2.97. The adjusted EBITDA margin improved to 14.2%, indicating robust operational efficiency.

Reaffirmation of 2025 Guidance: The company reaffirmed its full-year revenue guidance between $16.9 billion and $17.3 billion, with estimated adjusted EBITDA margins in the mid to high 12% range, and non-GAAP diluted EPS projected between $10.35 and $10.75. This outlook indicates confidence in sustaining performance despite potential market challenges.

Strategic Growth Pillars and Acquisitions: Leidos is advancing its NorthStar 2030 strategy, focusing on five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, highly customized critical mission software, and managed health services. They announced an accelerated share buyback program of $500 million and a definitive agreement to acquire a cybersecurity firm, enhancing their capabilities in a high-demand area.