Leidos Holdings, Inc. reported third‑quarter 2025 results, posting revenue of $4.47 billion, up 7% year‑over‑year, and net income of $369 million, up 2% from $362 million in Q3 2024.
Diluted earnings per share were $2.82, beating analyst estimates of $2.56–$2.62. Adjusted EBITDA reached $616 million, a margin of 13.8%, slightly lower than the 14.2% margin reported in Q3 2024, reflecting increased legal reserves and higher restructuring costs.
Leidos raised its full‑year 2025 guidance to revenue of $17.00 billion to $17.25 billion, adjusted EBITDA margin of 13%, and non‑GAAP diluted EPS of $11.45 to $11.75. Cash‑flow guidance remained at approximately $1.65 billion.
The company highlighted robust demand across its National Security & Digital, Defense Systems, and Health & Civil segments, with revenue growth of 8%, 11%, and 6% respectively. New business awards totaled $5.9 billion, including a $2.2 billion classified mission‑support contract and a $760 million NASA Human Health and Performance contract, driving a book‑to‑bill ratio of 1.3 and a backlog of $47.7 billion.
Management reiterated confidence in its NorthStar 2030 strategy, which focuses on space and maritime, energy infrastructure, digital modernization, critical‑mission software, and managed health services. The company also completed the sale of its fuel‑management subsidiary Varec to sharpen focus on strategic growth pillars.
Leidos maintained strong liquidity, reporting operating cash flow of $711 million and free cash flow of $680 million. The company paid $450 million of term‑loan principal and returned $153 million to shareholders through repurchases and dividends.
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