Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Q2 2024 Earnings Presentation
13 slides from Leidos's earnings presentation, Jul 30, 2024
Slide 1: Leidos Q2 FY24 Earnings Conference Call
Leidos Q2 FY24 Earnings Conference Call JULY 30, 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 Q2 and H1 performance — raising guidance for second time this year – Strong organic revenue growth – Industry-leading profitable growth – Record Q2 adjusted EBITDA margin of 13.5% – YTD Non-GAAP diluted EPS up 50% YoY – Converting earnings into cash – Half-way through $50
Slide 5: Q2 FY24 Results: Income Statement
Q2 FY24 RESULTS: INCOME STATEMENT Revenues Adjusted EBITDA Margin Non-GAAP Diluted EPS $4,132M 13.5% $2.63 $3,838M 10.9% $1.80 Q2 FY23 +7.7% Q2 FY24 Q2 FY23 +260 bps Q2 FY24 Q2 FY23 +46.1% Q2 FY24 LEIDOS Leidos Q2 2024 Earnings Conference Call 5
Slide 6: Q2 FY24 Results: Reportable Segments
Q2 FY24 RESULTS: REPORTABLE SEGMENTS National Security and Digital Health & Civil Commercial & International Defense Systems $1,791M $1,813M $1,263M Revenues $1,034M $547M $561M $466M $495M Q2 FY23 +1.2% Q2 FY24 Q2 FY23 +22.1% Q2 FY24 Q2 FY23 +2.6% Q2 FY24 Q2 FY23 +6.2% Q2 FY24 24.9% Non-GAAP OI Mar
Slide 7: Q2 FY24 Results: Cash Flow / Balance Sheet
Q2 FY24 RESULTS: CASH FLOW / BALANCE SHEET - Operating cash flow $374M Q2 cash flow driven by strong Cash Flow Generation EBITDA and record collections - Non-GAAP free cash flow $351M - DSO of 58—1-day (YoY) and 4-day (sequential) improvement - Total return to shareholders $165M Flexibility to inves
Slide 8: 2024 Guidance
2024 GUIDANCE MEASURE CURRENT PRIOR Second Straight Quarter Raising Guidance – Revenues: Raising prior floor $100M Revenues (billions) $16.1 - $16.4 $16.0 - $16.4 – Adjusted EBITDA Margin: Exceeding high Adjusted EBITDA Margin Approximately 12% Mid-to-High 11% end of prior range Non-GAAP Diluted EPS
Slide 9: Appendix: Non-GAAP Reconciliations
APPENDIX Non-GAAP Reconciliations LEIDOS Leidos Q2 2024 Earnings Conference Call 9
Slide 10: Organic Growth
ORGANIC GROWTH (in millions, except growth rates) Q2 FY24 Q2 FY23 % Change National Security and Digital Revenues, as reported $ 1,813 $ 1,791 1% Health & Civil Revenues, as reported $ 1,263 $ 1,034 22% Commercial & International Revenues, as reported $ 561 $ 547 3% Defense Systems Revenues, as repo
Slide 11: Non-GAAP Income Metrics
NON-GAAP INCOME METRICS Three Months Ended June 28, 2024 Three Months Ended June 30, 2023 Acquisition, Acquisition, integration integration and Amortization Gain on sale Non- and Amortization Non- As restructuring of acquired of intangible GAAP As restructuring of acquired GAAP (in millions, except
Slide 12: Segment Non-GAAP Operating Income
SEGMENT NON-GAAP OPERATING INCOME Three Months Ended June 28, 2024 Acquisition, integration and Amortization of Non-GAAP Non-GAAP Operating restructuring acquired operating operating (in millions) income (loss) costs intangibles income (loss) margin(1) National Security and Digital $ 183 $ — $ 5 $ 1
Slide 13: Non-GAAP Free Cash Flow
NON-GAAP FREE CASH FLOW Three Months Ended (in millions, except conversion ratio) June 28, 2024 June 30, 2023 Net cash provided by operating activities $ 374 $ 164 Payments for property, equipment and software (23) (40) Non-GAAP free cash flow $ 351 $ 124 Net income attributable to Leidos common sto