Leidos CEO sees continued growth from strategy tightly aligned to customer priorities

Record 2024 financial results showed Leidos not only beat goals set in 2021, but allowed the company to forecast continued growth with a strategy that better positions it to deliver efficiency and cost savings to customers across its portfolio.   

“2024 was a great year,” CEO Tom Bell said during a Feb. 11 call with financial analysts. “But all that success is just prologue for our exciting future.”  

In 2024:

• Revenue rose 7.9% to $16.7 billion
• Earnings margin reached 12.9%
• Operating cash flow hit $1.39 billion

For 2025, Leidos sees:

• Revenues between $16.9 billion and $17.3 billion
• Earnings margin in the mid-to-high 12% range
• Operating cash flow of $1.45 billion

“I’m super excited about our proven track record of performance…our strong foundation for executing a successful 2025 and beyond, our bold vision…in our NorthStar 2030 strategy, and our outstanding outlook,” Bell said.

Developing NorthStar 2030 during 2024 positioned Leidos well for a new U.S. government that’s noticeably amping up the pursuit of efficiency.  

The CEO cited IT modernization, transformational warfighting capability, and increased privatization as three government priorities that are “right in our wheelhouse.”  He noted three examples of Leidos exceeding customers’ expectations.

• Social Security Administration: “The Disability Case Processing System we built for the Social Security Administration has improved processing time for disability claims by over 90 percent, reduced backlogs by over 50 percent, and increased the accuracy of benefit calculation by 20 percent,” Bell said.  
• U.S. Navy: For the Navy, “We recently developed an unmanned undersea multi-mission vessel in less than 18 months…and we designed and deployed a small, unmanned surface vessel…with a modular mission bay designed for anything…in less than nine months.”
• Department of Veterans Affairs: Regarding privatization, “We partnered with the VA to transform delivery of healthcare to our nation’s deserving veterans,” Bell said. Creating “the largest, most flexible network of first-class medical and mobile clinics” allowed Leidos to increase veteran throughput “by more than 300 percent and halve the average exam timeline…while consistently exceeding targets for both timeliness and, critically, quality of care.”

Looking ahead, Bell said Leidos is confident about its future because 48,000 employees understand that, “Leidos exists to make our customers’ outcomes smarter and more efficient. Everything we do, for every one of our customers, is linked to that.”

Learn more about how Leidos delivers smarter outcomes

FORWARD-LOOKING STATEMENTS

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended  January 3, 2025, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.