Leidos Records 5% Revenue Growth in Q1 FY 2022; Roger Krone Quoted

Leidos (NYSE: LDOS) saw its first-quarter revenue for the fiscal year 2022 climb 5 percent to $3.5 billion and posted $177 million in net income and diluted earnings per share of $1.25 during the quarter.

The Reston, Virginia-based technology services contractor said Tuesday the sales growth from the prior-year period across reportable segments was driven by the startup of its Next Generation Enterprise Network Recompete service management, integration and transport contract with the U.S. Navy and increased volumes related to the Defense Healthcare Management System Modernization program.

Leidos recorded $5.4 billion in Q1 FY 2022 net bookings with a book-to-bill ratio of 1.6 and ended the quarter with a total backlog of approximately $36.3 billion, with $7.1 billion of that funded.

Major bookings for the quarter include a potential 10-year, $2.5 billion Advanced Enterprise Global Information Technology Solutions contract with NASA and a potential 10-year, $1.7 billion National Airspace System integration support contract with the Federal Aviation Administration.

Leidos’ defense solutions business saw its Q1 FY 2022 revenue rise 5 percent to $2 billion. The company’s civil revenues jumped 4 percent to $795 million, while sales from the health business segment increased 10 percent to $650 million during the quarter.

“Our first quarter marked a strong start to 2022, with record levels of revenues and backlog stemming from our leadership position in the government technology market. We continued to build our reputation and track record of performance in digital technology, cyber, and innovative systems across our diversified, resilient business portfolio,” said Roger Krone, chairman and CEO of Leidos and a 2022 Wash100 Award winner.

“Our strong first quarter results and the improving federal budget picture increase our confidence in delivering on our full-year financial commitments,” added Krone.

Leidos recorded $358 million in adjusted earnings before interest, taxes, depreciation and amortization, $93 million in cash flows from operations and $1.58 in non-GAAP diluted EPS during the quarter.

During an earnings call Tuesday, Krone discussed the company’s growth plans, including its search for “technology add-ons.”

“We’re well-positioned to grow and will continue to look for technology add-ons and strategic initiatives, that bring us differentiated capabilities for customer access. We’ll pursue large M&A only for a company that truly accelerates our strategy,” he told analysts.