ldos-20250404

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 4, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-33072


			Leidos Holdings, Inc.
			(Exact name of registrant as specified in its charter)

Delaware

20-3562868

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1750 Presidents Street,

Reston,

Virginia

20190

(Address of principal executive offices)

(Zip Code)

(571) 526-6000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, par value $.0001 per share

LDOS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares issued and outstanding of each of the issuer’s classes of common stock as of April 29, 2025, was 128,718,872 shares of common stock ($.0001 par value per share).

LEIDOS HOLDINGS, INC. FORM 10-Q

Table of Contents


Part I		Page


Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	7
	Note 1–Basis of Presentation and Summary of Significant Accounting Policies	7
	Note 2–Revenues	9
	Note 3–Acquisitions, Goodwill and Intangible Assets	11
	Note 4–Fair Value Measurements	13
	Note 5–Derivative Instruments	13
	Note 6–Debt	14
	Note 7–Accumulated Other Comprehensive Income (Loss)	16
	Note 8–Earnings Per Share	16
	Note 9–Income Taxes	16
	Note 10–Business Segments	17
	Note 11–Commitments and Contingencies	18
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
	Overview	20
	Business Environment and Trends	20
	Results of Operations	21
	Bookings and Backlog	23
	Liquidity and Capital Resources	23
	Off-Balance Sheet Arrangements	24
	Guarantor and Issuer of Guaranteed Securities	25
	Contractual Obligations and Commitments	26
	C ritical Account ing Policies and E stimates	26
	R ecently Adop ted and I ssued Accounting Standards	26
Item 3.	Q uantitative and Qualita tive Disclosures A bout Market Risk	27
Item 4.	C ontrols and Procedures	27

Part II


Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	29

Signatures		30

Table of Contents

Part I—Financial Information

Item 1. Financial Statements

LEIDOS HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


(unaudited; in millions, except share and per share data)	April 4, 2025		January 3, 2025
Assets:
Cash and cash equivalents	$	842	$	849
Receivables, net	2,906		2,645
Inventory, net	347		315
Other current assets	454		525
Total current assets	4,549		4,334
Property, plant and equipment, net	977		991
Intangible assets, net	489		517
Goodwill	6,098		6,084
Operating lease right-of-use assets, net	541		560
Other long-term assets	543		524
Total assets	$	13,197	$	13,010
Liabilities:
Accounts payable and accrued liabilities	$	2,178	$	2,131
Accrued payroll and employee benefits	664		811
Current portion of long-term debt	119		618
Total current liabilities	2,961		3,560
Long-term debt, net of current portion	5,014		4,052
Operating lease liabilities	603		621
Other long-term liabilities	317		317
Total liabilities	8,895		8,550
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized, 128,715,893 and 131,163,899 shares issued and outstanding at April 4, 2025, and January 3, 2025, respectively	—		—
Additional paid-in capital	619		1,112
Retained earnings	3,721		3,410
Accumulated other comprehensive loss	(83)		(110)
Total Leidos stockholders’ equity	4,257		4,412
Non-controlling interest	45		48
Total stockholders' equity	4,302		4,460
Total liabilities and stockholders' equity	$	13,197	$	13,010

See accompanying notes to condensed consolidated financial statements.


Leidos Holdings, Inc.			1

Table of Contents

PART I—FINANCIAL INFORMATION

LEIDOS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


	Three Months Ended
(unaudited; in millions, except per share data)	April 4, 2025		March 29, 2024
Revenues	$	4,245	$	3,975
Cost of revenues	3,488		3,337
Selling, general and administrative expenses	230		226
Acquisition, integration and restructuring costs	4		4
Equity earnings of non-consolidated subsidiaries	(7)		(7)
Operating income	530		415
Non-operating income (expense):
Interest expense, net	(49)		(49)
Other (expense) income, net	(3)		2
Income before income taxes	478		368
Income tax expense	(113)		(85)
Net income	365		283
Less: net income (loss) attributable to non-controlling interest