Leidos (NYSE: LDOS) reported fiscal year 2022 fourth-quarter sales of $3.7 billion, up 6 percent from the prior-year period, and saw its full-year revenue climb 5 percent to $14.4 billion.
The defense and information technology services contractor said Tuesday non-GAAP diluted earnings per share rose 17 percent for the October-December period to $1.83 and net cash provided by operating activities was $105 million for the quarter and $1 billion for the year.
“The fourth quarter marked a strong finish to a banner year for Leidos, with record revenue and non-GAAP diluted EPS driving us to the top end of our revenue guidance range and beyond our EPS guidance range for the year,” said Roger Krone, chairman and CEO of Leidos and a 10-time Wash100 winner, said in an earnings statement.
For fiscal year 2023, the company expects to record $14.5 billion to $15.1 billion in revenues and between $6.40 and $6.80 in non-GAAP diluted EPS.
“Our performance validated that our diversified and resilient portfolio and our investments in technology and innovation are positioning us for growth in key customer missions, including digital modernization, cyber, hypersonics, and force protection,” Krone added.
The Reston, Virginia-based company recorded $3.7 billion in Q4 FY 2022 net bookings with a book-to-bill ratio of 1.0 and a total backlog of $35.8 billion at the end of the fiscal year, with a record $8.4 billion of that funded.
Notable awards during the quarter include a potential $334 million contract with the Air Force Research Laboratory to design and build Mayhem, a large-class air-breathing hypersonic system and $1.5 billion in systems and infrastructure support task orders awarded by the Social Security Administration through the IT Support Services Contract II.
During an earnings call Tuesday, Krone said Leidos invested $116 million in independent research and development in 2022 and hired more than 2,400 employees in the fourth quarter and over 11,000 during the year.
He noted that the company’s technical upskilling initiatives are aligned with its technology strategy and broad participation in such programs enables the company to advance its culture of innovation and improve its competitive presence.
“Employees in our technical upskilling programs have significantly higher retention, and we more than doubled participation in 2022 compared to 2021,” he added.
Krone also responded to an analyst’s question about the Navy’s unmanned platforms.
“I believe that the Navy is committed to having a significant percentage of their fleet both unmanned and optionally manned. And our autonomy software and the things that we have demonstrated really set us up well to capitalize on that and to bring them the capability that they need,” he said.
