Leidos Holdings, Inc. (LDOS): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the company behind some of the most cutting-edge solutions in defense, aviation, and health? Leidos Holdings, Inc. (LDOS), a Fortune 500® company, stands as a major player in these sectors, reporting $16.7 billion in revenue for 2024. But how exactly did this global science and technology leader, with a backlog of $43.6 billion, achieve such a prominent position, and what's the story behind its innovative work?

From its origins as Science Applications International Corporation (SAIC) to its current structure with four central divisions—Civil, Health, Advanced Solutions, and Defense & Intelligence—Leidos has evolved significantly. With key milestones like the successful completion of the MHS GENESIS deployment and Enduring Shield intercept in 2024, how does Leidos operate, who owns it, and where is it headed next?

Leidos Holdings, Inc. (LDOS) History

Leidos Holdings, Inc. Founding Timeline

Year established

The company was effectively established in 1969, although under a different name.

Original location

The company was originally founded in San Diego, California.

Founding team members

The company was founded by Dr. J. Robert Beyster.

Initial capital/funding

The company was started with an initial $500 investment by Dr. Beyster.

Leidos Holdings, Inc. Evolution Milestones

Leidos Holdings, Inc. Transformative Moments

Several transformative moments have shaped the trajectory of the company:

• The Split from SAIC (2013): The decision to separate SAIC into two entities, SAIC and the company, allowed each to pursue distinct strategic directions. This move enabled the company to concentrate on high-growth sectors such as national security, health, and infrastructure engineering.
• Merger with Lockheed Martin IS&GS (2016): This merger was a game-changer, significantly increasing the company's size, capabilities, and market share. It brought in a wealth of talent, contracts, and technological expertise, positioning the company as a leading player in the government IT services market. The deal was valued at $5 billion.
• Strategic Acquisitions: Throughout its history, the company has made several strategic acquisitions to enhance its capabilities and expand its market presence. These acquisitions have allowed the company to enter new markets, acquire new technologies, and strengthen its competitive position.

These moments reflect a series of calculated decisions aimed at expanding capabilities, market reach, and strategic focus, ultimately shaping the company into the major entity it is today. You might also be interested in: Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors

Leidos Holdings, Inc. (LDOS) Ownership Structure

Leidos Holdings, Inc. operates as a publicly traded company, with its ownership distributed among a mix of institutional investors, individual shareholders, and company insiders. This structure ensures that decisions are influenced by a diverse set of stakeholders.

Leidos Holdings, Inc.'s Current Status

Leidos Holdings, Inc. is a public company, meaning its shares are traded on a stock exchange and available for purchase by the general public. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol LDOS. This allows the company to raise capital through the issuance of stock and provides liquidity for its shareholders.

Leidos Holdings, Inc.'s Ownership Breakdown

The ownership of Leidos is distributed among various shareholders, including institutional investors, individual shareholders, and company insiders. Here's an approximate breakdown:

Leidos Holdings, Inc.'s Leadership

The leadership team at Leidos is responsible for setting the strategic direction of the company and overseeing its operations. Key figures include:

• Thomas Bell: Chief Executive Officer
• Christopher Cage: Chief Financial Officer

These individuals, along with other executive leaders, guide Leidos in its mission to deliver technology and engineering solutions to government, defense, and intelligence sectors. More insights about the company's mission can be found at: Mission Statement, Vision, & Core Values of Leidos Holdings, Inc. (LDOS).

Leidos Holdings, Inc. (LDOS) Mission and Values

Leidos' mission is to make the world safer, healthier, and more efficient through technology, while their values emphasize integrity, inclusion, innovation, agility, collaboration, and commitment.

Leidos' Core Purpose

Official mission statement

Leidos' mission statement is: 'To make the world safer, healthier, and more efficient through technology.' This reflects their commitment to applying advanced technology solutions to address critical challenges in national security, health, and infrastructure.

• Safer: Enhancing security and protection through advanced technologies.
• Healthier: Improving health outcomes and access to care with innovative solutions.
• More Efficient: Optimizing processes and resource utilization across various sectors.

Vision statement

While Leidos doesn't have a single, publicly declared vision statement, their actions and strategic goals suggest a vision to be a global leader in technology solutions, recognized for:

• Innovation: Continuously developing cutting-edge technologies.
• Impact: Making a significant positive impact on society.
• Growth: Expanding their capabilities and market presence.

Company slogan/tagline

Leidos' current tagline is 'Science and Technology Powering a Safer, Healthier, More Efficient World.' This tagline encapsulates the essence of their mission and vision, highlighting the role of science and technology in driving progress.

• Science and Technology: Emphasizing their foundation in research and development.
• Powering: Indicating their role as an enabler of solutions.
• A Safer, Healthier, More Efficient World: Reinforcing their commitment to global well-being and progress.

To gain more insights into Leidos's investor profile, check out: Exploring Leidos Holdings, Inc. (LDOS) Investor Profile: Who’s Buying and Why?

Leidos Holdings, Inc. (LDOS) How It Works

Leidos operates as a science and technology solutions and services company, providing a broad range of capabilities in the defense, intelligence, civil, and health markets. They primarily focus on applying technology to solve complex problems for their customers.

Leidos Holdings, Inc.'s Product/Service Portfolio

Leidos Holdings, Inc.'s Operational Framework

Leidos' operational framework is built around delivering customized solutions to meet the specific needs of its diverse customer base. Key aspects of their operations include:

• Project Management: Leidos employs rigorous project management methodologies to ensure timely and on-budget delivery of its services.
• Research and Development: A significant investment in R&D allows Leidos to stay at the forefront of technological advancements and offer innovative solutions.
• Strategic Partnerships: Leidos collaborates with other technology companies, academic institutions, and government agencies to expand its capabilities and market reach.
• Customer Engagement: They maintain close relationships with their clients to understand their evolving needs and provide tailored support.

Leidos Holdings, Inc.'s Strategic Advantages

Leidos possesses several strategic advantages that contribute to its success in the market:

• Technical Expertise: Leidos has a highly skilled workforce with deep expertise in various scientific and technical disciplines.
• Strong Customer Relationships: Decades of experience working with government and commercial clients have fostered strong, long-term relationships.
• Diversified Portfolio: A broad range of products and services across multiple sectors reduces the company's reliance on any single market.
• Innovation Culture: Leidos promotes a culture of innovation, encouraging employees to develop new ideas and technologies.
• Agile and Adaptive: Leidos is capable of quickly adapting to changing market conditions and customer requirements.

To gain more insights into Leidos' core values and strategic objectives, explore: Mission Statement, Vision, & Core Values of Leidos Holdings, Inc. (LDOS).

Leidos Holdings, Inc. (LDOS) How It Makes Money

Leidos Holdings, Inc. primarily makes money by providing a range of services and solutions in the areas of defense, intelligence, civil, and health markets.

Leidos Holdings, Inc. Revenue Breakdown

Leidos' revenue is divided into three main segments:

Leidos Holdings, Inc. Business Economics

Leidos' business economics are shaped by several key factors:

• Pricing Strategy: Leidos often uses a cost-plus pricing model for its government contracts, ensuring profitability by covering costs and adding a predetermined profit margin.
• Contract Types: The company utilizes various contract types, including cost-reimbursement, fixed-price, and time-and-materials contracts. Each type carries different levels of risk and potential reward.
• Economic Moat: Leidos benefits from a strong economic moat due to its specialized expertise, long-standing relationships with government clients, and high barriers to entry in the government contracting market.
• Government Spending: Leidos' financial performance is heavily influenced by government spending on defense, infrastructure, and healthcare. Budgetary changes and political priorities can significantly impact its revenue streams.

Leidos Holdings, Inc. Financial Performance

Leidos' financial performance can be assessed through the following metrics:

• Revenue Growth: In fiscal year 2024, Leidos reported revenue of $16.0 billion, reflecting growth compared to previous years.
• Profitability: The company maintains a healthy profit margin, driven by its efficient operations and strategic focus on high-value services. For example, the operating margin for fiscal year 2024 was approximately 9.8%.
• Backlog: Leidos' backlog, which represents the total value of contracts yet to be completed, stood at $36.9 billion as of the end of fiscal year 2024, providing visibility into future revenue.
• Cash Flow: Leidos generates strong cash flow from operations, which supports its investments in research and development, acquisitions, and shareholder returns. The free cash flow for fiscal year 2024 was $1.2 billion.
• Debt Management: Leidos manages its debt effectively, maintaining a balanced capital structure to fund growth initiatives and manage financial risk.

To gain more insights into Leidos Holdings, Inc.'s financial health, you can explore this comprehensive analysis: Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors

Leidos Holdings, Inc. (LDOS) Market Position & Future Outlook

Leidos is a prominent player in the technology, engineering, and science sectors, providing services and solutions to government, defense, aviation, and commercial customers. The company's future outlook appears stable, driven by continued demand for its specialized expertise and innovative solutions.

Competitive Landscape

Opportunities & Challenges

Industry Position

Leidos holds a strong position in the government services and IT sectors, characterized by:

• A reputation for delivering complex, mission-critical solutions.
• Long-term relationships with key government clients.
• Expertise in areas like cybersecurity, data analytics, and systems integration.

To delve deeper into the financial aspects of Leidos, check out this analysis: Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors