Q3 2024 Leidos Holdings Inc Earnings Call Transcript
Key Points
- Leidos Holdings Inc (LDOS) reported its sixth consecutive quarter of strong financial performance, leading to an increase in forward guidance for 2024 across all metrics.
- The company achieved a record adjusted EBITDA margin of 14.2% and a trailing 12-month EBITDA of 12.9%, reflecting substantial earnings growth and free cash flow.
- Leidos Holdings Inc (LDOS) accelerated its share repurchase program, buying $200 million worth of shares, and increased its quarterly dividend by 5.3%.
- The company reported strong performance in its health and civil segment, with significant contributions from managed health services and disability evaluations.
- Leidos Holdings Inc (LDOS) achieved a book-to-bill ratio of over 1.9 times, with net bookings of $8.1 billion and a total backlog of $40.6 billion, indicating strong future growth potential.
- The company faces challenges in its national security and digital segment due to shifting budgets and priorities among intelligence community customers.
- There is a potential risk of disruption due to the election year and extended continuing resolutions, which could impact funding and operations.
- Leidos Holdings Inc (LDOS) anticipates a lower single-digit revenue growth in 2025, marking a pivot year with a focus on strategic growth initiatives.
- The company is managing GAAP impairment charges from exiting and consolidating underutilized lease spaces, with expected additional charges over the next five quarters.
- Despite strong performance, the company acknowledges the potential for increased competition in its managed health services segment, which could impact future profitability.
Greetings. Welcome to Leidos' Third Quarter 2024 earnings call.
(Operator Instructions)
At this time, I'll turn the call over to Stuart Davis from Investor Relations. Stuart, you may begin.
Thank you and good morning, everyone. I'd like to welcome you to our Third Quarter Fiscal Year 2024 earnings conference call. Joining me today are Tom Bell, our CEO, and Chris Cage, our Chief Financial Officer. Today's call is being webcast on the Investor Relations portion of our website, where you'll also find the earnings release and supplemental financial presentation slides that will use during today's call.
Turning to Slide 2 of the presentation. Today's discussion contains forward-looking statements based on the environment as we currently see yet, and as such, includes risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially. Finally, as shown on slide 3, during the call will
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