Leidos (LDOS) Goldman Sachs Industrials and Materials Conference summary

Strategic positioning and scenario planning

• Ongoing government efficiency initiatives are being closely monitored, with proactive scenario planning and portfolio analysis to ensure resilience and alignment with customer needs.

• The business is actively identifying and implementing ideas to help government clients improve efficiency, leveraging existing capabilities and seeking new opportunities.

• The company’s strategy and portfolio are considered well-insulated against potential government-driven changes, with a focus on maintaining control and supporting customer efficiency.

• Outsourcing trends in federal agencies, such as the VA, present opportunities, while pure privatization is seen as unlikely but will be monitored.

Long-term planning and growth strategy

• A comprehensive, future-back strategic planning process was conducted, projecting customer and market needs out to 2030–2035 and working backward to define current priorities.

• Sector teams identified intersecting and unique opportunities, shaping enterprise-level strategy and highlighting about six key growth engines for focused investment.

• 2025 is viewed as a pivotal year, launching a new phase of growth with targeted resource allocation and expected strong returns over the planning horizon.

• An investor day in March will provide further details on strategic and financial aspirations.

Leadership and operational execution

• The new CEO, Tom Bell, has instilled a disciplined, empowering culture focused on delivering consistent results and driving strategic change.

• Leadership adjustments have enabled faster decision-making and improved capital allocation, including share repurchases and organic growth initiatives.

• The partnership between CFO and CEO is strong, with daily communication and shared strategic vision.