Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q3 2024 Earnings Presentation
13 slides from Leidos's earnings presentation, Oct 29, 2024
Slide 1: Leidos Q3 FY24 Earnings Conference Call
Leidos Q3 FY24 Earnings Conference Call OCTOBER 29, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this release contain or are based on "forward- our compliance with various U.S. government and other government intellectual property and other proprietary rights by third parties of looking" information within the meaning of the Private Securities pr
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: CEO Key Messages
CEO KEY MESSAGES Impressive Q3 performance — raising guidance for third time this year – Solid organic revenue growth – $200M of share repurchase in the quarter – Record Q3 adjusted EBITDA margin of 14.2%; – Increasing dividend 5.3% 12.9% for trailing-twelve-months – Strong balance sheet deployed pr
Slide 5: Q3 FY24 Results: Income Statement
Q3 FY24 RESULTS: INCOME STATEMENT Revenues Adjusted EBITDA Margin Non-GAAP Diluted EPS $4,190M 14.2% $2.93 $3,921M 11.5% $2.03 Q3 FY23 +6.9% Q3 FY24 Q3 FY23 +270 bps Q3 FY24 Q3 FY23 +44.3% Q3 FY24 LEIDOS Leidos Q3 2024 Earnings Conference Call 5
Slide 6: Q3 FY24 Results: Reportable Segments
Q3 FY24 RESULTS: REPORTABLE SEGMENTS National Security & Digital Health & Civil Commercial & International Defense Systems $1,852M $1,865M Revenues $1,225M $1,055M $552M $578M $522M $462M Q3 FY23 +0.7% Q3 FY24 Q3 FY23 +16.1% Q3 FY24 Q3 FY23 +4.7% Q3 FY24 Q3 FY23 +13.0% Q3 FY24 24.2% Non-GAAP OI Marg
Slide 7: Q3 FY24 Results: Cash Flow / Balance Sheet
Q3 FY24 RESULTS: CASH FLOW / BALANCE SHEET - Operating cash flow $656M Q3 cash flow driven by robust Cash Flow Generation EBITDA and collections - Non-GAAP free cash flow $633M - DSO of 59 in-line w/ prior year and quarter - Total return to shareholders $254M Maintain flexibility to both strategical
Slide 8: 2024 Guidance
2024 GUIDANCE Third Straight Quarter Raising Guidance MEASURE CURRENT PRIOR – Revenues: Increased $150M at midpoint; Revenues (billions) $16.35 - $16.45 $16.10 - $16.40 tightened range by $200M – Adjusted EBITDA Margin: Significant Adjusted EBITDA Margin High-12% Approximately 12% increase from prio
Slide 9: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations LEIDOS Leidos Q3 2024 Earnings Conference Call 9
Slide 10: Organic Growth
ORGANIC GROWTH (in millions, except growth rates) Q3 FY24 Q3 FY23 % Change National Security & Digital Revenues, as reported $ 1,865 $ 1,852 1% Health & Civil Revenues, as reported $ 1,225 $ 1,055 16% Commercial & International Revenues, as reported $ 578 $ 552 5% Defense Systems Revenues, as report
Slide 11: Non-GAAP Income Metrics
NON-GAAP INCOME METRICS Three Months Ended September 27, 2024 Three Months Ended September 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
Slide 12: Segment Non-GAAP Operating Income
SEGMENT NON-GAAP OPERATING INCOME Three Months Ended September 27, 2024 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 13: Non-GAAP Free Cash Flow
NON-GAAP FREE CASH FLOW Three Months Ended September 27, September 29, (in millions, except conversion ratio) 2024 2023 Net cash provided by operating activities $ 656 $ 795 Payments for property, equipment and software (23) (50) Non-GAAP free cash flow $ 633 $ 745 Net income (loss) attributable to