Leidos Surpasses Q2 Earnings Estimates, Increases Outlook

Leidos reported Q2 earnings of $3.21 per share, a 22% increase, and $3.9 billion in net bookings, bringing the total backlog to $46.2 billion. The defense and aerospace technology company's strong performance lifted its outlook, with the stock flirting with a breakout.

Leidos Holdings, Inc. (LDOS) reported robust second-quarter (Q2) 2025 earnings, with adjusted earnings per share (EPS) of $3.21, up 22% year-over-year (YoY), and net bookings of $3.9 billion. This performance lifted the company's outlook, with its stock flirting with a breakout.

The defense and aerospace technology company's Q2 results were driven by strong sales volumes from contracts won in prior quarters, particularly in the National Security and Digital segment. The segment's revenues grew by 2.4% YoY to $1.86 billion [1]. The acquisition of Kudu Dynamics, a cyber company, also contributed to this growth, with positive synergy boosting revenues [1].

The Health & Civil segment saw a 1.5% YoY increase in revenues to $1.28 billion, driven by higher sales volumes in the managed health services business [1]. The Commercial & International unit's revenues grew by 4.1% YoY to $584.3 million, supported by robust deliveries in the SES business and solid performance in commercial energy [1]. Defense Systems' revenues increased by 3.9% YoY to $514.1 million, fueled by heightened geopolitical tensions and increased activity in space sensing and hypersonic programs [1].

Leidos' overall top-line revenue grew by 3% YoY to $4.25 billion, in line with the Zacks Consensus Estimate of $4.23 billion. The company's adjusted EBITDA margin increased to 15.2% from 13.5% in the prior year, driven by prudent cost management and improved program execution [4].

The company's strong performance led to an increase in its backlog to $46.2 billion, up 11.3% YoY. Leidos' Zacks Rank of #2 and positive Earnings ESP of +1.46% indicate a high likelihood of an earnings beat [1].

Leidos' stock price reacted positively to the strong earnings report, flirting with a breakout. The company's guidance outlook for 2025 was also improved due to two quarters of exceptional performance and enhanced clarity on the macro environment [4].

References:
[1] https://www.nasdaq.com/articles/leidos-holdings-report-q2-earnings-whats-cards
[2] https://www.investors.com/news/leidos-earnings-q2-2025-ldos-stock-breakout-defense-tech/
[3] https://seekingalpha.com/news/4477816-leidos-q2-2025-earnings-preview
[4] https://investors.leidos.com/news-releases/news-release-details/leidos-posts-strong-second-quarter-results-and-raises-full-year