Leidos Logs 4% Q2 Revenue Growth, Maintains 2022 Guidance; Roger Krone Cites Business Development Momentum

Leidos (NYSE: LDOS) recorded fiscal 2022 second quarter revenue of $3.60 billion, up 4 percent from the same period a year ago.

The Reston, Virginia-based company said net income for the quarter rose to $172 million or $1.24 per share and total backlog as of June 30 was $34.7 billion with $7.5 billion funded.

All of Leidos’ businesses reported higher revenues for the quarter, partly thanks to strengthened contracts and programs. The defense solutions segment contributed the largest revenue at $2.05 billion, partly driven by preliminary work on the Next Generation Enterprise Network Recompete contract.

Both the civil and health segments registered a 7 percent increase year-over-year for the quarter to $857 million and $688 million, respectively.

“As I look at the quarter, four messages stand out,” Leidos Chairman and CEO Roger Krone told investors Wednesday in an earnings call.

“First, our strong financial results demonstrate that our strategy is working. Second, our business development momentum is setting the stage for future growth. Third, we are effectively deploying capital to broaden our offerings in attractive markets. And fourth, we are building an engaged and effective workforce,” Krone said.

He also noted the company has seen early returns from its acquisition of 1901 Group as that business provides key support to Department of the Navy networks under the $7.7 billion NGEN-R program.

The nine-time Wash100 Award winner added that Gibbs & Cox, which Leidos acquired last year, will merge with the company’s maritime systems division and operate under the Dynetics group as part of synergy initiatives.

Leidos retained its full year revenue expectations at the $13.9 billion-to-$14.3 billion range and earnings at $6.10-to-$6.50 per share.

Shares in the Restoncompany opened at $102 on Tuesday, down from a previous close of $105.15.

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