Document

EX-99.1 2 ldos092724q3pressreleaseex.htm EX-99.1 Document

附錄99.1

Leidos報告2024年第三季度業績強勁，並提高全年指引

•42億美元的收入，同比增長7%

•淨利潤爲 36200萬美元或2.68美元每股攤薄收益

•調整後的EBITDA（非通用會計準則）爲59600萬美元（14.2%利潤率）

•非通用會計每股攤薄收益爲2.93美元，同比增長44%

•經營活動現金流爲65600萬美元；自由現金流（非GAAP）爲63300萬美元

•淨預訂額爲$81億（季度訂單比率爲1.9，過去12個月訂單比率爲1.1）

2024年10月29日，弗吉尼亞州雷斯頓市 - 洛克希德·馬丁公司（紐約證券交易所：LDOS）今日公佈了2024財年第三季度的財務業績。

"所有板塊的運營績效持續改善，推動了良好的營業收入增長，淨利潤和調整後的EBITDA實現了創紀錄的利潤率，收益大幅增長，現金流強勁，訂單增長迅猛，"leidos首席執行官湯姆·貝爾說。 "這些成果清楚地表明，我們協作和創新的團隊致力於爲客戶和股東保持一貫的執行力。憑藉健康的資產負債表，業務發展績效的提升以及新興的'North Star'策略，leidos定位良好，未來能夠提供強勁和可持續的回報。"

摘要運營結果


	三個月之內結束
（單位：百萬美元，除了利潤率和每股數據）	2024年9月27日			2023年9月29日
收入	$	4,190		$	3,921


	$	362		$	(396)
淨利潤（損失）率	8.6		%	(10.1)		%
稀釋每股收益 (EPS)	$	2.68		$	(2.91)

*非通用會計措施：
調整後的EBITDA	$	596		$	451
調整後的EBITDA率	14.2		%	11.5		%
攤薄後每股收益（非按美國通用會計原則GAAP）	$	2.93		$	2.03

* 非通用會計財務指標應被視爲對依照通用會計原則提供的信息的補充，而非替代。管理層認爲這些非通用會計指標提供了另一種評估Leidos運營業績和財務狀況的方法，包括其遵守財務條款的能力。有關更多信息以及我們選定報告結果與這些非通用會計措施的調節，請參見本新聞稿末尾的非通用會計財務指標。

本季度收入爲41.9億美元，比2023年第三季度增長7%。收入同比增長，主要是由於所有客戶細分領域的需求增加，尤其是託管健康服務。

淨利潤率爲8.6%，第三季度淨利潤爲36200萬美元，每股稀釋後爲2.68美元。與去年同期相比，由於2023年第三季度安防-半導體業務解決方案（SES）報告單位錄得的69900萬美元稅前、非現金減值和重組費用的影響，對比意義不大。

第三季度調整後的EBITDA爲59600萬美元，同比增長32%。創紀錄的調整後EBITDA利潤率爲14.2%，較2023年第三季度的11.5%增加。非GAAP淨利潤爲39600萬美元，同比增長40%，當季非GAAP攤薄後每股收益爲2.93美元，同比增長44%。盈利能力增加的主要驅動因素是託管健康服務項目的增加規模，以及跨公司的改善項目執行和成本控制。

現金流摘要

在第三季度，leidos通過經營活動產生了65600萬美元的淨現金流，分別用於投資和籌資活動的2300萬美元和25700萬美元。經營活動產生的淨現金流是由強勁的EBITDA和收款表現驅動的。本季度的應收賬款週轉天數（DSO）爲59。

投資活動主要包括2300萬美元的固定資產、設備和軟件支付，導致季度自由現金流達到63300萬美元。leidos第三季度向股東返還25400萬美元，其中包括20300萬美元的股份回購和5100萬美元作爲其常規季度現金股利計劃的一部分。截至2024年9月27日，leidos擁有118500萬美元的現金及現金等價物和47億美元的債務。

2024年10月25日，Leidos董事會宣佈每股派現0.40美元，較上個季度的股利金額增長了5.3%。股息將於2024年12月31日支付，股東記錄日期爲2024年12月16日收盤。

上藥控股有限公司

季度淨訂單總額爲81億美元，表現爲1.9的訂單比率。因此，季末積壓訂單爲406億美元，其中91億美元已獲得資金支持。季度訂單中包括一些值得注意的獎項：

•退伍軍人福利管理局（VBA）醫療殘疾鑑定（MDE）1-4區域的可選年。 VBA MDE辦公室授予了leidos現有無限交付，無限數量（IDIQ），固定價合同的下一個選擇年，這些合同最初是在2018年11月獲得的。leidos QTC健康服務將繼續提供MDE，以滿足退伍軍人事務部（VA）和國防部（DOD）對分離和退役服務成員的要求。

•陸軍全球一體化網絡（AGUN）。美國陸軍指揮、控制和通信-戰術全球企業網絡現代化項目管理辦公室（PEO C3萬億 GENm-O）授予leidos一份價值33100萬美元的爲期五年的合同，以使美國陸軍網絡與陸軍的網絡現代化策略和陸軍統一網絡計劃保持一致。leidos將部署AGUN到各個陸軍基地，提供一個標準化、協調一體化的現代網絡架構，支持過渡到零信任架構，並旨在使應用程序、數據和企業服務在全球範圍內可訪問、可信且可互操作。

•愛文思控股戰略管理系統-數字基礎設施 (ABMS-DI) 網絡。空軍部隊(DAF)指揮、控制、通信和戰鬥管理(PEO C3BM)項目執行官向leidos公司授予了一項爲期五年，30300萬美元的合同，以監督DAF ABMS-DI網絡的計劃、分析和運作。這份合同延伸了leidos與DAF合作的角色，設計、開發和部署現代化的聯合全領域指揮和控制(CJADC2)能力，用於空軍和太空軍。

•自動化安裝入口（AIE）下一代支持。陸軍情報、電子戰和傳感器項目執行辦公室（PEO IEW&S）向Leidos授予了AIE下一代合同，以增強全球92個陸軍和部分聯合服務安裝的安全性。在爲期六年的24900萬美元合同中，Leidos將繼續將陸軍的企業物理訪問控制系統轉變爲一個具有先進生物識別模式的全面可擴展的基於雲的解決方案。

前瞻性指導

leidos正在更新其2024財年指引，具體如下：


	2024財年指導
量規	當前	先前的
營業收入（十億美元）	$16.35 - $16.45	$16.10 - $16.40
調整後的EBITDA利潤率	高-12%	大約12%
非GAAP攤薄後每股收益	$9.80 - $10.00	$8.60 - $9.00
經營活動提供的現金流量（十億美元）	約爲1.35美元	約爲1.30美元

有關調整後的EBITDA利潤率和非GAAP攤薄後每股收益的信息，請參閱本公告其他地方包含的相關解釋和與GAAP指標的調和。

Leidos由於難以預測和量化某些必要金額，不提供前瞻性調整後的EBITDA利潤率或非GAAP攤薄後每股收益與淨利潤的對比。由於用於計算預測淨利潤的非GAAP排除項的某些扣除額可能會根據實際事件而異，因此Leidos目前無法以合理確定性在GAAP基礎上預測所有需要提供GAAP計算的淨利潤所需的扣除額。這些扣除額的金額可能是重大的，因此可能導致預測淨利潤和攤薄後每股收益明顯低於預測的調整後的EBITDA利潤率和非GAAP攤薄後每股收益所暗示的水平。

電話會議信息

leidos管理層將在2024年10月29日美國東部時間早上8點舉行一次業績會，討論運營和財務業績。會議的現場音頻廣播以及補充演示將通過Leidos投資者關係網站上的鏈接對公衆開放。http://ir.leidos.com). 網絡轉播的存檔版本將一直保存在Leidos投資者關係網站上，直到2025年10月29日。 2025年10月29日之前，用戶可以在Leidos投資者關係網站上找到網絡轉播的存檔版本。

關於leidos

leidos是一家財富500強企業® 創新公司正在快速解決全球最棘手的國家安全和健康挑戰。該公司全球48,000名員工合作，爲受嚴格監管行業的客戶創造更智能的科技解決方案。總部位於弗吉尼亞州雷斯頓，截至2023年12月29日財政年度，Leidos報告的年度收入約爲$154億。欲了解更多信息，請訪問 www.leidos.com.

前瞻性聲明

本發佈中的某些聲明包含或基於《1995年私人證券訴訟改革法案》意義內的"前瞻性"信息。在某些情況下，您可以通過諸如"預計"、"意圖"、"計劃"、"預測"、"相信"、"估計"、"指導"等字詞或短語來識別前瞻性聲明。本發佈中的前瞻性聲明包括但不限於，我們未來增長、策略、財務和運營表現的估計，包括未來營收、調整後的EBITDA利潤率、攤薄後每股收益（包括非GAAP基礎）和經營活動提供的現金流量，以及關於我們業務應急計劃、政府預算和持續的持續決議，由於新的稅法或其他監管發展而導致稅收不確定性，策略、計劃的投資、可持續性目標以及我們未來的分紅派息、股份回購、資本支出、債務償還、收購、處置和現金流轉換的聲明。這些聲明反映了我們對未來事件的信念和假設，可能不會被證實準確。

實際表現和結果可能會與我們在本報告中提供的指引和其他前瞻性聲明預期的結果有很大差異，這取決於多種因素，包括但不限於：美國政府國防和非國防預算的發展，包括預算削減、預算限制的實施或預算重心的變化，美國政府預算過程延遲或政府關門，或美國政府未能提高債務上限，從而增加美國政府違約其債務義務的可能性，相關信用評級下調，或經濟衰退；由於新的稅收立法或其他監管事項而產生的稅收不確定性。

發展動向; 通貨膨脹壓力和利率波動; 美國政府合同採購流程的延遲或合同頒發以及因競爭對手抗議而導致的合同延遲或喪失; 美國政府採購規則、法規和實踐的變化; 我們遵守各種美國政府和其他政府採購規則和法規; 我們公司在政府的審查、審計和調查; 我們有效競爭並贏得美國政府和其他客戶的合同的能力; 我們迅速應對人工智能等新技術趨勢的能力; 我們對醫院/醫療組織的信息技術支出的依賴; 我們對工業和自然資源組織的基礎設施投資的依賴; 節能和可替代能源採購投資; 美國政府和商業組織在環境影響和補救項目上的投資; 健康流行病、大流行病和類似爆發可能對我們業務、財務狀況、經營成果和/或現金流的影響; 我們吸引、培訓和保留熟練員工，包括管理團隊，併爲員工獲得安全許可的能力; 我們準確估計成本的能力，包括由於通貨膨脹而導致的負擔固定價格合同和其他合同相關的費用增加; 與客戶和其他方解決法律和其他爭端或法律或監管合規問題; 網絡安全、數據安全或其他安全威脅、系統故障或其他業務中斷的遵從; 我們在隱私、數據安全、保護、存儲、保留、轉移和處理、技術保護及個人信息方面遵守國際、聯邦、州和地方法律和法規; 自然災害帶來的損害和業務中斷以及氣候變化的影響; 我們有效收購企業和進行投資的能力; 我們與總承包商、分包商和合資夥伴維持關係的能力; 我們管理與客戶合同相關的績效和其他風險的能力; 我們的檢測或監測系統無法檢測威脅的失敗; 我們保險計劃、客戶賠償或其他旨在保護我們免受重大產品或其他責任索賠，包括網絡安全攻擊的責任保護的充分性; 我們管理與國際業務相關的風險的能力; 我們遵守美國《海外腐敗行爲法》、2010年英國《賄賂法》和類似全球反腐敗和反賄賂法律和法規的能力; 我們保護知識產權和其他專有權利免受第三方的侵權、盜用或其他違反行爲的能力和我們通過第三方提出的違反、侵權或其他違反我們知識產權的訴訟中獲勝的能力; 根據我們的盈利、財務狀況、資本需求等因素宣佈或增加未來股息的能力，包括遵守適用法律和我們的協議; 我們發展我們的商業保健和基礎設施業務的能力，這可能會受到醫院和能源、基礎設施項目開發商面臨的預算限制的負面影響; 我們成功整合收購的企業的能力; 和我們執行我們的業務計劃和長期管理舉措的能力，克服我們面臨的這些和其他已知和未知風險。

這些只是可能影響本報告中包含的前瞻性聲明的一些因素。有關與我們業務相關的風險和不確定性的更多信息，請參閱我們不時向美國證券交易委員會（"SEC"）提交的備案，包括我們最新年度報告的"風險因素"、"財務狀況和經營結果的管理討論與分析"以及"法律訴訟"部分以及我們的季度報告的表格10-Q，所有這些都可以通過我們網站的投資者關係部分www.leidos.com查看或獲取。

所有板塊中發佈的所有信息截至2024年10月29日。leidos明確聲明不承擔更新指引或本發佈中提供的任何其他前瞻性聲明的責任，以反映隨後發生的事件、實際結果或leidos期望的變化。leidos還聲明不承擔就可能包含在投資分析師或其他人發佈的報告中的信息進行評論或更正的責任。


聯繫方式：

投資者關係:						媒體關係：
Stuart Davis						Alyssa Pettus
571.526.6124						571.526.6743
ir@leidos.com						alyssa.t.pettus@leidos.com

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)


	Three Months Ended				Nine Months Ended
	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Revenues	$	4,190	$	3,921	$	12,297	$	11,458
Cost of revenues	3,428		3,334		10,192		9,809
Selling, general and administrative expenses	247		239		704		709

Acquisition, integration and restructuring costs	3		5		14		14
Goodwill impairment charges	—		599		—		599
Asset impairment charges	6		88		6		88
Equity earnings of non-consolidated subsidiaries	(10)		(8)		(25)		(21)
Operating income (loss)	516		(336)		1,406		260
Non-operating income (expense):
Interest expense, net	(46)		(53)		(146)		(163)
Other income (expense), net	—		1		4		(4)
Income (loss) before income taxes	470		(388)		1,264		93
Income tax expense	(108)		(8)		(295)		(115)
Net income (loss)	362		(396)		969		(22)
Less: net (loss) income attributable to non-controlling interest	(2)		3		(1)		8
Net income (loss) attributable to Leidos common stockholders	$	364	$	(399)	$	970	$	(30)

Earnings per share:
Basic	$	2.72	$	(2.91)	$	7.19	$	(0.22)
Diluted	2.68		(2.91)		7.13		(0.22)

Weighted average number of common shares outstanding:
Basic	134		137		135		137
Diluted	136		137		136		137

Cash dividends declared per share	$	0.38	$	0.36	$	1.14	$	1.08

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)


	September 27, 2024		December 29, 2023
Assets:
Cash and cash equivalents	$	1,185	$	777
Receivables, net	2,706		2,429
Inventory, net	323		310
Other current assets	451		489
Total current assets	4,665		4,005
Property, plant and equipment, net	992		961
Intangible assets, net	558		667
Goodwill	6,123		6,112
Operating lease right-of-use assets, net	459		512
Other long-term assets	541		438
Total assets	$	13,338	$	12,695

Liabilities:
Accounts payable and accrued liabilities	$	2,287	$	2,277
Accrued payroll and employee benefits	903		695
Current portion of long-term debt	592		18
Total current liabilities	3,782		2,990
Long-term debt, net of current portion	4,081		4,664
Operating lease liabilities	467		516
Other long-term liabilities	341		267
Total liabilities	8,671		8,437

Stockholders’ equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized, 133,337,275 and 135,766,419 shares issued and outstanding at September 27, 2024, and December 29, 2023, respectively	—		—
Additional paid-in capital	1,469		1,885
Retained earnings	3,179		2,364
Accumulated other comprehensive loss	(34)		(48)
Total Leidos stockholders’ equity	4,614		4,201
Non-controlling interest	53		57
Total stockholders' equity	4,667		4,258
Total liabilities and stockholders' equity	$	13,338	$	12,695

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	Three Months Ended				Nine Months Ended
	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Cash flows from operations:
Net income (loss)	$	362	$	(396)	$	969	$	(22)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	71		82		211		248
Stock-based compensation	19		20		59		57
Deferred income taxes	(29)		(104)		(96)		(192)
Goodwill impairment charges	—		599		—		599
Asset impairment charges	6		88		6		88
Other	3		19		5		25
Change in assets and liabilities, net of effects of acquisitions:
Receivables	(75)		14		(260)		(109)
Other current assets and other long-term assets	95		92		102		141
Accounts payable and accrued liabilities and other long-term liabilities	25		220		(149)		22
Accrued payroll and employee benefits	198		137		208		105
Income taxes receivable/payable	(19)		24		38		(101)
Net cash provided by operating activities	656		795		1,093		861
Cash flows from investing activities:
Acquisition of a business, net of cash acquired	—		(2)		—		(6)
Payments for property, equipment and software	(23)		(50)		(63)		(129)
Net proceeds from sale of assets	—		—		2		—
Other	—		—		5		—
Net cash used in investing activities	(23)		(52)		(56)		(135)
Cash flows from financing activities:
Proceeds from debt issuance	—		—		—		1,743
Net proceeds from commercial paper	—		(200)		—		—
Repayments of borrowings	(5)		(5)		(14)		(2,041)
Payments for debt issuance costs	—		—		—		(7)
Dividend payments	(51)		(50)		(155)		(150)
Repurchases of stock and other	(203)		(1)		(500)		(44)
Proceeds from issuances of stock	2		12		28		37
Net capital distributions to non-controlling interests	—		(5)		(3)		(8)
Net cash used in financing activities	(257)		(249)		(644)		(470)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	9		(3)		5		—
Net increase in cash, cash equivalents and restricted cash	385		491		398		256
Cash, cash equivalents and restricted cash at beginning of period	941		448		928		683
Cash, cash equivalents and restricted cash at end of period	1,326		939		1,326		939
Less: restricted cash at end of period	141		189		141		189
Cash and cash equivalents at end of period	$	1,185	$	750	$	1,185	$	750

LEIDOS HOLDINGS, INC.

UNAUDITED SEGMENT OPERATING RESULTS

(in millions)


	Three Months Ended						Nine Months Ended
	September 27, 2024			September 29, 2023			September 27, 2024			September 29, 2023
Revenues:
National Security & Digital	$	1,865		$	1,852		$	5,471		$	5,400
Health & Civil	1,225			1,055			3,687			3,097
Commercial & International	578			552			1,648			1,588
Defense Systems	522			462			1,491			1,373
Total	$	4,190		$	3,921		$	12,297		$	11,458

Operating income (loss):
National Security & Digital	$	187		$	170		$	545		$	487
Health & Civil	287			165			816			412
Commercial & International	41			(646)			64			(599)
Defense Systems	37			3			92			47
Corporate	(36)			(28)			(111)			(87)
Total	$	516		$	(336)		$	1,406		$	260

Operating income (loss) margin:
National Security & Digital	10.0		%	9.2		%	10.0		%	9.0		%
Health & Civil	23.4		%	15.6		%	22.1		%	13.3		%
Commercial & International	7.1		%	(117.0)		%	3.9		%	(37.7)		%
Defense Systems	7.1		%	0.6		%	6.2		%	3.4		%
Total	12.3		%	(8.6)		%	11.4		%	2.3		%

National Security & Digital

National Security & Digital revenues of $1.87 billion increased by 1% compared to the prior year quarter. Revenue grew across several enterprise Information Technology (IT) programs, which offset reductions on certain Intelligence Community contracts. For the quarter, operating income margin increased to 10.0% from 9.2% in the prior year quarter, and non-GAAP operating income margin increased to 10.5% from 9.8% in the prior year quarter. The increase in segment profitability was primarily attributable to volume and efficiencies on certain fixed price programs.

Health & Civil

Health & Civil revenues of $1.23 billion increased by 16% compared to the prior year quarter. Health & Civil operating income margin for the quarter was 23.4%, compared to 15.6% in the prior year quarter, and non-GAAP operating income margin was 24.2%, compared to 16.5% in the prior year quarter. The increase in revenues and segment profitability was driven by increased volumes and case complexity within the managed health services business as well as net write-ups on certain programs.

Commercial & International

Commercial & International revenues of $578 million increased by 5% compared to the prior year quarter driven by increased deliveries of security products and commercial energy engineering services. Operating income margin for the quarter was 7.1%, compared to (117.0)% in the prior year quarter, which included non-cash impairment and restructuring charges of $679 million related to the SES reporting unit. Non-GAAP operating margin was 8.8%, compared to 9.2% in the prior year quarter.

LEIDOS HOLDINGS, INC.

UNAUDITED SEGMENT OPERATING RESULTS

(in millions)

Defense Systems

Defense Systems revenues of $522 million increased by 13% compared to the prior year quarter. Defense Systems operating income margin for the quarter was 7.1%, compared to 0.6% in the prior year quarter, and non-GAAP operating margin was 10.2%, compared to 7.4% in the prior year quarter. The increase in revenues and segment profitability was primarily driven by increased scope and improved program execution on fixed price development programs.

LEIDOS HOLDINGS, INC.

UNAUDITED BACKLOG BY REPORTABLE SEGMENT

(in millions)

Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts. Backlog value is based on management’s estimates about volume of services, availability of customer funding and other factors, and excludes contracts that are under protest. Estimated backlog comprises both funded and negotiated unfunded backlog. Backlog estimates are subject to change and may be affected by several factors, including modifications of contracts, non-exercise of options and foreign currency movements.

Funded backlog for contracts with the U.S. government represents the value on contracts for which funding is appropriated less revenues previously recognized on these contracts. Funded backlog for contracts with non-U.S. government entities and commercial customers represents the estimated value on contracts, which may cover multiple future years, under which Leidos is obligated to perform, less revenue previously recognized on the contracts.

Negotiated unfunded backlog represents estimated amounts of revenue to be earned in the future from contracts for which funding has not been appropriated and unexercised priced contract options. Negotiated unfunded backlog does not include unexercised option periods and future potential task orders expected to be awarded under IDIQ, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded or separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

The estimated value of backlog as of the dates presented was as follows:


	September 27, 2024						September 29, 2023
Segment	Funded		Unfunded		Total		Funded		Unfunded		Total
National Security & Digital	$	3,323	$	16,532	$	19,855	$	3,146	$	14,802	$	17,948
Health & Civil	1,536		9,835		11,371		2,022		10,141		12,163
Commercial & International	2,631		2,022		4,653		2,586		1,012		3,598
Defense Systems	1,602		3,080		4,682		1,293		3,041		4,334
Total	$	9,092	$	31,469	$	40,561	$	9,047	$	28,996	$	38,043

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

Leidos uses and refers to organic revenue, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP diluted EPS, non-GAAP free cash flow and non-GAAP free cash flow conversion, which are not measures of financial performance under generally accepted accounting principles in the U.S. and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with Leidos's consolidated financial statements prepared in accordance with GAAP.

Management believes that these non-GAAP measures provide another representation of the results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Organic revenues capture the revenue that is inherent in the underlying business excluding the impact of acquisitions and divestitures made within the prior year; it is computed as current revenues excluding revenues from acquisitions within the last 12 months and divestitures within the current and year-ago periods.

Non-GAAP operating income is computed by excluding the following discrete items from operating income:

•Acquisition, integration and restructuring costs – Represents acquisition, integration, lease termination, severance and retention costs and asset markdowns related to acquisitions and restructuring activities.

•Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets.

•Gain on sale of intangible assets – Represents the gain on sale of intellectual property not used in operations.

•Asset impairment charges – Represents impairments of long-lived intangible assets, right-of-use assets, and other assets related to our facility rationalization effort.

•Goodwill impairment charges – Represents impairments of goodwill due to changes in actual performance against performance projected when the goodwill was acquired.

Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenues.

Adjusted EBITDA is computed by excluding the following items from income before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; (iv) depreciation expense; and (v) amortization of internally developed intangible assets.

Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenues.

Non-GAAP net income is computed by excluding the discrete items listed under non-GAAP operating income and their related tax impacts.

Non-GAAP diluted EPS is computed by dividing net income attributable to Leidos common stockholders, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding.

Non-GAAP free cash flow is computed by deducting expenditures for property, equipment and software from net cash provided by (used in) operating activities.

Non-GAAP free cash flow conversion is computed by dividing non-GAAP free cash flow by non-GAAP net income attributable to Leidos common stockholders; operating cash flow conversion is computed by dividing net cash provided by (used in) operating activities by net income attributable to Leidos shareholders.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except growth percentages)

The following table presents the reconciliation of revenues to organic revenues by reportable segment and total operations:


	Three Months Ended
	September 27, 2024		September 29, 2023		Percent Change
National Security & Digital
Revenues, as reported	$	1,865	$	1,852	1	%

Health & Civil
Revenues, as reported	$	1,225	$	1,055	16	%

Commercial & International
Revenues, as reported	$	578	$	552	5	%



Defense Systems
Revenues, as reported	$	522	$	462	13	%
Acquisition and divestiture revenues(1)	—		3
Organic revenues	$	522	$	459	14	%

Total Operations
Revenues, as reported	$	4,190	$	3,921	7	%
Acquisition and divestiture revenues(1)	—		3
Organic revenues	$	4,190	$	3,918	7	%

(1) Year ago acquisition and divestiture revenues reflect revenues from assets subsequently divested. For the three months ended September 29, 2023, Defense Systems segment acquisition and divestiture revenues include the divestiture of an immaterial asset that was completed on October 20, 2023.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended September 27, 2024:


	Three Months Ended September 27, 2024
	As reported		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP results
Operating income	$	516	$	3	$	37	$	6	$	562
Non-operating expense, net	(46)		—		—		—		(46)
Income before income taxes	470		3		37		6		516
Income tax expense(1)	(108)		(1)		(9)		(2)		(120)
Net income	362		2		28		4		396
Less: net loss attributable to non-controlling interest	(2)		—		—		—		(2)
Net income attributable to Leidos common stockholders	$	364	$	2	$	28	$	4	$	398

Diluted EPS attributable to Leidos common stockholders(2)	$	2.68	$	0.01	$	0.21	$	0.03	$	2.93
Diluted shares	136		136		136		136		136


	Three Months Ended September 27, 2024
	As reported			Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP results
Net income	$	362		$	2	$	28	$	4	$	396
Income tax expense(1)	108			1		9		2		120
Income before income taxes	470			3		37		6		516
Depreciation expense	34			—		—		—		34
Amortization of intangibles	37			—		(37)		—		—
Interest expense, net	46			—		—		—		46
Adjusted EBITDA	$	587		$	3	$	—	$	6	$	596
Adjusted EBITDA margin	14.0		%							14.2		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)


	Three Months Ended September 29, 2023
	As reported		Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Operating (loss) income	$	(336)	$	17	$	50	$	88	$	599	$	418
Non-operating expense, net	(52)		—		—		—		—		(52)
(Loss) income before income taxes	(388)		17		50		88		599		366
Income tax expense(1)(4)	(8)		(4)		(12)		(31)		(28)		(83)
Net (loss) income	(396)		13		38		57		571		283
Less: net income attributable to non-controlling interest	3		—		—		—		—		3
Net (loss) income attributable to Leidos common stockholders	$	(399)	$	13	$	38	$	57	$	571	$	280

Diluted EPS attributable to Leidos common stockholders(2)	$	(2.91)	$	0.09	$	0.28	$	0.41	$	4.14	$	2.03
Diluted shares	137		138		138		138		138		138


	Three Months Ended September 29, 2023
	As reported			Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Net (loss) income	$	(396)		$	13	$	38	$	57	$	571	$	283
Income tax expense(1)(4)	8			4		12		31		28		83
(Loss) income before income taxes	(388)			17		50		88		599		366
Depreciation expense	32			—		—		—		—		32
Amortization of intangibles	50			—		(50)		—		—		—
Interest expense, net	53			—		—		—		—		53
Adjusted EBITDA	$	(253)		$	17	$	—	$	88	$	599	$	451
Adjusted EBITDA margin	(6.5)		%									11.5		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(4) Non-GAAP tax rates were revised from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)


	Nine Months Ended September 27, 2024
	As reported		Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Gain on sale of intangible assets		Non-GAAP results
Operating income	$	1,406	$	20	$	110	$	6	$	—	$	1,542
Non-operating expense, net	(142)		—		—		—		(2)		(144)
Income before income taxes	1,264		20		110		6		(2)		1,398
Income tax expense(1)	(295)		(4)		(28)		(2)		—		(329)
Net income	969		16		82		4		(2)		1,069
Less: net loss attributable to non-controlling interest	(1)		—		—		—		—		(1)
Net income attributable to Leidos common stockholders	$	970	$	16	$	82	$	4	$	(2)	$	1,070

Diluted EPS attributable to Leidos common stockholders(2)	$	7.13	$	0.12	$	0.60	$	0.03	$	(0.01)	$	7.87
Diluted shares	136		136		136		136		136		136


	Nine Months Ended September 27, 2024
	As reported			Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Gain on sale of intangible assets		Non-GAAP results
Net income	$	969		$	16	$	82	$	4	$	(2)	$	1,069
Income tax expense(1)	295			4		28		2		—		329
Income before income taxes	1,264			20		110		6		(2)		1,398
Depreciation expense	101			—		—		—		—		101
Amortization of intangibles	110			—		(110)		—		—		—
Interest expense, net	146			—		—		—		—		146
Adjusted EBITDA	$	1,621		$	20	$	—	$	6	$	(2)	$	1,645
Adjusted EBITDA margin	13.2		%									13.4		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)


	Nine Months Ended September 29, 2023
	As reported		Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Operating income	$	260	$	26	$	153	$	88	$	599	$	1,126
Non-operating expense, net	(167)		—		—		—		—		(167)
Income before income taxes	93		26		153		88		599		959
Income tax expense(1)(4)	(115)		(6)		(39)		(31)		(28)		(219)
Net (loss) income	(22)		20		114		57		571		740
Less: net income attributable to non-controlling interest	8		—		—		—		—		8
Net (loss) income attributable to Leidos common stockholders	$	(30)	$	20	$	114	$	57	$	571	$	732

Diluted EPS attributable to Leidos common stockholders(2)	$	(0.22)	$	0.14	$	0.83	$	0.41	$	4.14	$	5.30
Diluted shares	137		138		138		138		138		138


	Nine Months Ended September 29, 2023
	As reported			Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Net (loss) income	$	(22)		$	20	$	114	$	57	$	571	$	740
Income tax expense(1)(4)	115			6		39		31		28		219
Income before income taxes	93			26		153		88		599		959
Depreciation expense	95			—		—		—		—		95
Amortization of intangibles	153			—		(153)		—		—		—
Interest expense, net	163			—		—		—		—		163
Adjusted EBITDA	$	504		$	26	$	—	$	88	$	599	$	1,217
Adjusted EBITDA margin	4.4		%									10.6		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(4) Non-GAAP tax rates were revised from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except margin percentages)

The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income:


	Three Months Ended September 27, 2024
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	187	$	—	$	6	$	2	$	195	10.5	%
Health & Civil	287		—		8		2		297		24.2	%
Commercial & International	41		1		7		2		51		8.8	%
Defense Systems	37		—		16		—		53		10.2	%
Corporate	(36)		2		—		—		(34)		NM
Total	$	516	$	3	$	37	$	6	$	562	13.4	%


	Three Months Ended September 29, 2023
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Goodwill impairment charges		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	170	$	—	$	12	$	—	$	—	$	182	9.8	%
Health & Civil	165		—		9		—		—		174		16.5	%
Commercial & International	(646)		9		9		599		80		51		9.2	%
Defense Systems	3		3		20		—		8		34		7.4	%
Corporate	(28)		5		—		—		—		(23)		NM
Total	$	(336)	$	17	$	50	$	599	$	88	$	418	10.7	%


	Nine Months Ended September 27, 2024
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	545	$	—	$	17	$	2	$	564	10.3	%
Health & Civil	816		—		21		2		839		22.8	%
Commercial & International	64		9		22		2		97		5.9	%
Defense Systems	92		—		50		—		142		9.5	%
Corporate	(111)		11		—		—		(100)		NM
Total	$	1,406	$	20	$	110	$	6	$	1,542	12.5	%


	Nine Months Ended September 29, 2023
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Goodwill impairment charges		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	487	$	—	$	35	$	—	$	—	$	522	9.7	%
Health & Civil	412		—		30		—		—		442		14.3	%
Commercial & International	(599)		10		29		599		80		119		7.5	%
Defense Systems	47		3		59		—		8		117		8.5	%
Corporate	(87)		13		—		—		—		(74)		NM
Total	$	260	$	26	$	153	$	599	$	88	$	1,126	9.8	%

NM - Not Meaningful

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except percentages)

The following table presents the reconciliation of non-GAAP free cash flow to net cash provided by operating activities as well as the calculation of operating cash flow and non-GAAP free cash flow conversion ratios:


	Three Months Ended
	September 27, 2024			September 29, 2023
Net cash provided by operating activities	$	656		$	795
Payments for property, equipment and software	(23)			(50)
Non-GAAP free cash flow	$	633		$	745

Net income (loss) attributable to Leidos common stockholders	$	364		$	(399)
Acquisition, integration and restructuring costs(1)(2)(3)	2			13
Amortization of acquired intangibles(1)(3)	28			38

Goodwill impairment charges(2)(3)	—			571
Asset impairment charges(2)(3)	4			57


Non-GAAP net income attributable to Leidos common stockholders	$	398		$	280

Operating cash flow conversion ratio	180		%	(199)		%
Non-GAAP free cash flow conversion ratio	159		%	266		%

(1) After-tax expenses excluded from non-GAAP net income.

(2) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(3) Non-GAAP tax rates were revised for the three months ended September 29, 2023, from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.