Leidos Holdings Inc (NYSE:LDOS) stock slid on Tuesday after the company reported its fourth-quarter results and guidance.
Details
The company reported a 4% year-over-year (Y/Y) decline in quarterly revenue to $4.21 billion, missing the analyst consensus estimate of $4.31 billion.
Revenues declined due to an extra work week in the fourth-quarter of fiscal year 2024 and the six-week government shutdown in the fourth-quarter of 2025.
The company’s adjusted EPS was $2.76, up 16% Y/Y, beating the analyst consensus estimate of $2.61.
Adjusted EBITDA was $556 million, up 9% Y/Y; however, the margin of 13.2% climbed from 11.6% a year ago.
Net bookings totaled $5.6 billion for the quarter, representing a book-to-bill ratio of 1.3.
As a result, the backlog at the end of fiscal year 2025 was $49.0 billion, of which $9.7 billion was funded.
Leidos held $1.1 billion in cash and equivalents as of January 2, 2026.
In the fourth quarter, Leidos generated $495 million of net cash provided by operating activities, the highest fourth-quarter performance in the company’s history, driven by strong EBITDA performance, collections, and working capital management.
Dividend
On Feb. 13, 2026, the Leidos Board of Directors declared that Leidos will pay a cash dividend of $0.43 per share on March 31, 2026, to stockholders of record on March 16, 2026.
M&A
After the close of the quarter, Leidos inked a stock purchase deal to acquire power design firm Entrust for $2.4 billion.
The transaction will likely close in the first half of fiscal 2026, subject to the satisfaction or waiver of customary closing conditions.
Leidos CEO Tom Bell said the company is moving quickly to support customers’ most urgent national security needs while reshaping its portfolio around key Growth Pillars, including space and maritime, energy infrastructure, digital modernization, cyber, mission software, and managed health services.
He also said Leidos is using its NorthStar 2030 strategy to drive smarter, more efficient outcomes for the nation and build long-term shareholder value.
Outlook
Leidos expects fiscal revenue of $17.50 billion-$17.90 billion compared to an analyst consensus estimate of $17.89 billion.
It expects an adjusted EPS of $12.05-$12.45 versus the analyst consensus estimate of $12.29.
LDOS Price Action: Leidos Holdings shares were down 6.16% at $165.44 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo: JHVEPhoto via Shutterstock
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