Earnings rose at Leidos, Reston, Va., in the second quarter, which the national security and technology company attributed to controlling expenses in a time of “uncertainty” and some new contract awards.
For this year’s second quarter, Leidos reported a net margin of 9.2% and net income of $393 million on sales of $4.25 billion, up from a net margin of 7.8% and net income of $324 million on sales of $4.1 billion in the second quarter of last year.
Leidos’ book-to-bill ratio increased from a lackluster .5 in the first quarter of this year to .9 the second quarter. Book-to-bill is a sign of demand for company products, and a ratio of more than one signals strong demand. After the Donald Trump administration assumed office in January, the Department of Government Efficiency (DOGE) task force began scrutinizing government contracts, Pentagon contract awards appeared to slow, and Defense Secretary Pete Hegseth said in May that DoD had become “very much over reliant on management consultants and contractors.” Leidos’s Reston office cut staffing levels around this time as well.
Leidos, which has several DOE contracts and leads a partnership providing landlord services at the Hanford Site in Washington state, began in September 2013 as a spin-off from Science Applications International Corp. In August 2016, it bought Lockheed Martin’s Information Systems & Global Solutions business.
Leidos is also a junior partner on Consolidated Nuclear Security, the prime contractor for the National Nuclear Security Administration’s Y-12 National Security Complex in Tennessee.
Exchange Monitor affiliate Defense Daily published a version of this article.
