Leidos Holdings announced a new three‑year, $127 million contract to continue administering Hawai‘i Energy’s Energy Program and Electric Vehicle Charging Station Rebate Program. The award extends a partnership that began in 2009 and underscores Leidos’ role in the state’s energy‑efficiency and grid‑modernization efforts.
The contract adds a predictable revenue stream that aligns with Leidos’ NorthStar 2030 focus on high‑margin, technology‑enabled government work. With government contracts already accounting for roughly 87 % of Leidos’ revenue, the Hawai‘i award strengthens the company’s core business and supports its strategy of shifting toward fixed‑price, high‑margin projects while divesting lower‑margin legacy assets.
Leidos’ management highlighted the strategic importance of the Hawai‘i program. Senior Vice President of Energy, Infrastructure and Automation Bill Johnson said the contract “strengthens Hawai‘i’s energy independence and long‑term security by lowering demand and improving efficiency.” The award also supports the state’s goal of delivering over $7 billion in statewide energy savings and distributing more than 18,000 rebates totaling about $20 million in the most recent program year.
Financially, the contract represents a significant addition to Leidos’ recurring government contracts. While the company’s Q3 2025 results already showed revenue of $4.5 billion and EPS of $3.05—both beating estimates—this new award is expected to further reinforce revenue stability and margin expansion. Leidos has raised its full‑year 2025 guidance multiple times, citing strong execution and the continued growth of its high‑margin technology‑enabled segments.
The Hawai‘i award also signals Leidos’ competitive advantage in the clean‑energy space. By leveraging its Skywire AI platform for grid modernization and its expertise in renewable integration, Leidos is positioned to capture additional opportunities in state‑level energy programs, reinforcing its leadership in the energy infrastructure pillar of NorthStar 2030.
Management’s comments and the company’s track record of securing long‑term, mission‑essential contracts suggest confidence in sustained demand for its energy‑efficiency and grid‑modernization services. The award is expected to contribute to Leidos’ ongoing margin expansion and support its broader strategy of focusing on high‑margin, technology‑enabled government work.
The contract’s value and duration provide a stable, predictable cash flow that will help Leidos maintain its high revenue concentration in government contracts while pursuing growth in clean‑energy solutions. This aligns with the company’s broader goal of expanding its portfolio in high‑growth, high‑margin sectors.
Leidos’ continued success in securing state‑level energy contracts demonstrates its ability to deliver on complex, long‑term projects and reinforces its position as a preferred partner for government agencies seeking technology‑enabled solutions for energy transition.
The Hawai‘i award is a key milestone in Leidos’ NorthStar 2030 strategy, reinforcing its focus on energy infrastructure, grid modernization, and resilience while providing a stable revenue base that supports the company’s long‑term growth objectives.
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