Leidos Reports Strong Third Quarter 2024 Results and Raises Full-Year Guidance

Leidos Holdings, Inc. (NYSE: LDOS) has reported robust financial results for the third quarter of fiscal year 2024, demonstrating its strong performance across all segments. The company's revenue grew by 7% year-over-year, reaching $4.2 billion, while net income soared to $362 million or $2.68 per diluted share. Adjusted EBITDA (non-GAAP) stood at $596 million, representing a 14.2% margin. Non-GAAP diluted earnings per share (EPS) increased by 44% year-over-year to $2.93. Cash flows from operations amounted to $656 million, with free cash flow (non-GAAP) totaling $633 million.

Leidos' chief executive officer, Tom Bell, attributed the company's success to the continued improvement in operating performance across all segments, driving excellent revenue growth, record margins, substantial earnings growth, strong cash flow, and robust bookings. The company's balance sheet remains healthy, with a book-to-bill ratio of 1.9 for the quarter and 1.1 for the trailing twelve months. Backlog at the end of the quarter stood at $40.6 billion, of which $9.1 billion was funded.

Leidos' strong performance can be attributed to increased demand for managed health services, improved program execution and cost control, and a strategic focus on emerging technologies and innovative solutions. The company's diverse revenue streams and capital-light business model enable it to deliver high cash conversion and return healthy quarterly dividends to shareholders.

In conclusion, Leidos' third quarter 2024 results demonstrate the company's strong financial performance and growth prospects. With a healthy balance sheet, improving business development performance, and a clear 'North Star' strategy, Leidos is well-positioned to deliver robust and sustainable returns in the future.