RESTON, Va. – Leidos (NYSE:LDOS), a recognized Fortune 500 innovation company, has been awarded an 11-month base period contract with the U.S. Army, potentially worth up to $267 million, to provide a suite of technology services. This Responsive Strategic Sourcing for Services (RS3) task order includes hardware sustainment, modernization, training, and logistics support, with the possibility of extension through four one-year options.
The company will utilize its expertise in Command, Control, Communication, Computers, Cyber, Intelligence, Surveillance, & Reconnaissance (C5ISR) to evaluate and enhance Army hardware systems. Leidos is tasked with configuring and upgrading hardware, as well as managing equipment warehousing, shipping, and warranty repairs.
The contract was issued by the Army Contracting Command-Aberdeen Proving Ground and will benefit the Communications Electronics Command, Integrated Logistics Support Center, Field Support Directorate, and Force Modernization Division.
Leidos has a significant history with the Army's C5ISR systems, having deployed nearly 9,000 systems since February 2011 and providing extensive training to soldiers. "These are critical capabilities and training our customer needs to deliver and modernize tactical network environments for the warfighter at the point of need," stated Jason McCarthy, Leidos Senior Vice President of Engineering, Integration & Operations.
Headquartered in Reston, Virginia, Leidos is a major player in addressing challenges in national security and health sectors with a workforce of 47,000. The company reported annual revenues of about $15.4 billion for the fiscal year ending December 29, 2023.
This announcement is based on a press release statement from Leidos Holdings (NYSE:LDOS), Inc.
InvestingPro Insights
Leidos (NYSE:LDOS), amidst securing a substantial contract with the U.S. Army, presents a mixed financial canvas as per the latest metrics from InvestingPro. The company boasts a market capitalization of $16.98 billion, underscoring its considerable presence in the Professional Services industry. Despite a high Price/Earnings (P/E) ratio of 86.33, reflecting a premium valuation in the market, the adjusted P/E ratio for the last twelve months as of Q4 2023 stands at a more moderate 24.41. This adjustment suggests a potentially more attractive valuation when considering the company's earnings over the past year.
Revenue growth remains a strong suit for Leidos, with a 7.24% increase over the last twelve months as of Q4 2023, indicating the company's capacity to expand its financial top line. However, investors should note the company's Gross Profit Margin during the same period was 14.54%, which may raise concerns about profitability relative to revenue.
One of the InvestingPro Tips highlights that Leidos has raised its dividend for 5 consecutive years, showcasing a commitment to returning value to shareholders. Furthermore, the company has maintained dividend payments for 13 consecutive years, reinforcing its reputation for financial stability and shareholder-friendly policies. For readers interested in a deeper dive into Leidos' financial health and future prospects, there are 14 additional InvestingPro Tips available at InvestingPro. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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