Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q4 2024 Earnings Presentation
17 slides from Leidos's earnings presentation, Feb 11, 2025
Slide 1: Leidos Q4 FY24 Earnings Conference Call
Leidos Q4 FY24 Earnings Conference Call February 11, 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward- increased preference by the U.S. government for minority-owned, our ability to manage risks associated with our international business; looking" information within the meaning of the Private Securities sm
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation includes certain non-GAAP financial measures, Leidos does not provide a reconciliation of forward-looking such as organic growth, non-GAAP operating income, non-GAAP adjusted EBITDA margins or non-GAAP diluted EPS to GAAP net operating margin, non-GAAP e
Slide 4: Outperformed FY22-24 Financial Targets
OUTPERFORMED FY22-24 FINANCIAL TARGETS Organic Revenue CAGR (5-6% Target) Terminal Adjusted EBITDA Margin (10.5%+ Target) 6.6% CAGR 12.9% 10.8% $16,662M 10.4% $2,153M $15,438M $14,396M $13,737M $1,669M $1,493M FY21 FY22 FY23 FY24 FY22 FY23 FY24 Cumulative Operating Cash Flow ($3.5B Target) Free Cash
Slide 5: CEO Key Messages
CEO KEY MESSAGES • NorthStar 2030 – Robust strategy grounded in specific growth pillars with growing customer needs, robust profitability, differentiated Leidos capabilities • Leidos Exists to Make Our Customers' Outcomes Smarter and More Efficient • Our Mission and Strategy Align Perfectly with Our
Slide 6: FY24 and Q4 Results: Income Statement
FY24 AND Q4 RESULTS: INCOME STATEMENT Revenues Adjusted EBITDA Margin Non-GAAP Diluted EPS $16,662M 12.9% $10.21 $15,438M 10.8% Fiscal Year $7.30 +7.9% +210 bps +39.9% FY23 FY24 FY23 FY24 FY23 FY24 $4,365M $2.37 $3,980M 11.4% 11.6% $1.99 +9.7% +20 bps +19.1% Q4 LEIDOS Leidos Q4 2024 Earnings Confere
Slide 7: Q4 Segment Results
Q4 SEGMENT RESULTS National Security & Digital Health & Civil Commercial & International Defense Systems $1,894M $1,796M Revenue $1,328M $1,141M +5.5% +16.4% +12.3% +6.7% $538M $604M $539M $505M Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 21.6% Non-GAAP OI % 15.1% -130 bps +650 b
Slide 8: FY24 Segment Results
FY24 SEGMENT RESULTS National Security & Digital Health & Civil Commercial & International Defense Systems $7,196M $7,365M Revenue $5,015M $4,238M +2.3% +18.3% +5.9% +8.1% $2,126M $2,252M $2,030M $1,878M FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 22.5% Non-GAAP OI % 14.5% +20 bps +800 bps -140 bps -40
Slide 9: FY24 and Q4 Results: Cash Flow / Balance Sheet
FY24 AND Q4 RESULTS: CASH FLOW / BALANCE SHEET Q4 FY24 - Operating cash flow $299M $1,392M Strong EBITDA, collections, Cash Flow Generation and working capital - Non-GAAP free cash flow $213M $1,243M management - DSO of 59 days, in-line with the third quarter Q4 FY24 Exceeded open market - Total ret
Slide 10: 2025 Guidance
2025 GUIDANCE Measure FY25 Guidance Revenues (B) $16.9 - $17.3 Adjusted EBITDA Margin Mid-High 12% Non-GAAP Diluted EPS $10.35 - $10.75 Cash Flows Provided by Operating Activities (B) Approximately $1.45 Key Assumptions – Accounts for the ongoing continuing resolution and a pivot away from low-margi
Slide 11: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations LEIDOS Leidos Q4 2024 Earnings Conference Call 11
Slide 12: Organic Growth
ORGANIC GROWTH (in millions, except growth rates) Q4 FY24 Q4 FY23 % Change FY24 FY23 % Change National Security & Digital Revenues, as reported $ 1,894 $ 1,796 5% $ 7,365 $ 7,196 2% Health & Civil Revenues, as reported $ 1,328 $ 1,141 16% $ 5,015 $ 4,238 18% Commercial & International Revenues, as r
Slide 13: Q4 Non-GAAP Income Metrics
Q4 NON-GAAP INCOME METRICS Three Months Ended January 3, 2025 Three Months Ended December 29, 2023 Acquisition, Acquisition, integration integration and Amortization Asset Non- and Amortization Asset Goodwill Non- As restructuring of acquired impairment GAAP As restructuring of acquired impairment i
Slide 14: Full Year Non-GAAP Income Metrics
FULL YEAR NON-GAAP INCOME METRICS Year Ended January 3, 2025 Year Ended December 29, 2023 Acquisition, Acquisition, integration Gain on integration and Amortization Asset sale of Non- and Amortization Asset Goodwill Non- As restructuring of acquired impairment intangible GAAP As restructuring of acq
Slide 15: Q4 Segment Non-GAAP Operating Income
Q4 SEGMENT NON-GAAP OPERATING INCOME Three Months Ended January 3, 2025 Acquisition, integration and Amortization of Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment operating operating (in millions) income (loss) costs intangibles charges income (loss) margin(1) National Security
Slide 16: Full Year Segment Non-GAAP Operating Income
FULL YEAR SEGMENT NON-GAAP OPERATING INCOME Year Ended January 3, 2025 Acquisition, integration and Amortization of Asset Non-GAAP Non-GAAP Operating restructuring acquired impairment operating operating (in millions) income (loss) costs intangibles charges income (loss) margin(1) National Security
Slide 17: Non-GAAP Free Cash Flow
NON-GAAP FREE CASH FLOW Three Months Ended Year Ended (in millions, except conversion ratio) January 3, December 29, January 3, December 29, 2025 2023 2025 2023 Net cash provided by operating activities(1) $ 299 $ 304 $ 1,392 $ 1,165 Payments for property, equipment and software (86) (78) (149) (207