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Leidos (LDOS) investor relations material
Leidos Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record Q3 2025 revenues of $4.47 billion, up 7% year-over-year, with 6% organic growth and strong performance across all segments.
Adjusted EBITDA margin reached 13.8%, with adjusted EBITDA of $616 million and operating cash flow of $711 million.
Net income attributable to common stockholders was $369 million ($2.82 per diluted share), up 2% year-over-year; non-GAAP diluted EPS was $3.05, up 4%.
Raised 2025 guidance for the second time, reflecting confidence in continued growth and portfolio alignment with customer priorities.
Strategic focus on innovation, AI deployment, and outcome-based contracting is driving business momentum.
Financial highlights
Q3 revenues were $4.47 billion, up 7% year-over-year and 6% organically; net income was $369 million.
Adjusted EBITDA for Q3 was $616 million, margin 13.8%; non-GAAP diluted EPS grew 4% to $3.05.
Free cash flow for Q3 was $680 million, with a conversion ratio of 171%; operating cash flow was $711 million.
Ended the quarter with $4.7 billion in debt and $974 million in cash.
Book-to-bill ratio was 1.3x for the quarter; backlog reached $47.7 billion, up 5% year-over-year.
Outlook and guidance
Fiscal year 2025 revenue guidance maintained at $17.00–$17.25 billion.
Adjusted EBITDA margin guidance raised to high 13% range; non-GAAP EPS guidance increased to $11.45–$11.75.
Operating cash flow guidance reaffirmed at approximately $1.65 billion.
Guidance ranges widened to hedge against government environment unpredictability.
Effective tax rate expected between 23.5%–24.0%; anticipates lower tax payments in fiscal 2025 due to new legislation.
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