How did Leidos Holdings' revenue and expenses trend in Q4 2024?

Leidos Holdings Inc. (LDOS) experienced a notable increase in revenue and a rise in expenses in Q4 2024, reflecting robust business performance and strategic initiatives.

1. Revenue Trend: Leidos' revenue for Q4 2024 was $4.19 billion, up by 7% year-over-year. This growth was driven by strong performances across all segments, including the health and civil segment, which saw a 16.1% revenue increase year-over-year, and the defense systems segment, which grew by 13%.
2. Expense Trend: The company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $596 million in Q4 2024, up by 32% year-over-year. This indicates substantial earnings growth and free cash flow generation, with an adjusted EBITDA margin of 14.2%, which is a new high watermark for Leidos. The cost of revenues increased by 2.8% year-over-year to $3,428 million, reflecting higher operational costs.

In summary, Leidos Holdings Inc. saw significant revenue growth and a corresponding increase in expenses in Q4 2024, driven by strong business performance and strategic initiatives. The company's adjusted EBITDA margin improved to 14.2%, indicating efficient management of expenses relative to revenue.