Leidos and CargoSeer collaborate to optimize customs checkpoint inspections

Rhea-AI Summary

Leidos (NYSE:LDOS) announced a collaboration with CargoSeer to integrate CargoSeer's AI trade-analysis algorithms into Leidos' Mezzo Enterprise Software Platform to enhance non-intrusive inspection (NII) and border security solutions.

The integration aims to give customs and border protection agencies instant, actionable intelligence at field and command centers to support faster decisions on security risks and trade compliance while preserving the flow of goods. Both organizations expect further collaboration after completing the initial integration effort.

Market Reality Check

$186.82 Last Close

Volume Volume 841,577 is slightly above the 20-day average of 752,250, indicating modestly elevated trading interest pre-announcement. normal

Technical Shares closed at $186.82, trading above the 200-day moving average of $164.47, indicating a pre-news uptrend despite the recent -2.91% pullback.

Peers on Argus

While LDOS was down 2.91% pre-news, closely related IT services peers like GIB, CDW, BR, WIT, and CTSH all showed positive moves between 0.68% and 1.2%, suggesting the weakness was stock-specific rather than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Security certification	Positive	-0.7%	EU G1 standard certification for B220-HT explosive trace detection system.
Nov 25	Technology partnership	Positive	+2.5%	Partnership with Quadridox to enhance CT baggage screening accuracy and efficiency.
Nov 04	Earnings beat/guidance	Positive	+3.4%	Record Q3 2025 results with <b>$4.47B</b> revenue and raised EPS/EBITDA guidance.
Oct 31	Dividend increase	Positive	+1.4%	Quarterly dividend raised to <b>$0.43</b> per share, payable Dec 31, 2025.
Oct 30	Asset divestiture	Positive	+1.5%	Agreement to sell Varec in line with NorthStar 2030 portfolio optimization strategy.

Pattern Detected

Recent history shows generally positive reactions to earnings, dividends, and portfolio moves, with one divergence where security certification news coincided with a small price decline.

Recent Company History

Over the last few months, Leidos has reported strong operating momentum and strategic portfolio actions. Q3 FY25 results featured record revenue of $4.47 billion, net income of $369 million, and guidance raised for non-GAAP EPS and EBITDA margins, which coincided with a 3.37% gain. The company also increased its quarterly dividend to $0.43 per share and announced the planned sale of Varec as part of its NorthStar 2030 strategy, both followed by positive price reactions. Security and screening technology partnerships and certifications have produced mixed short-term moves.

Market Pulse Summary

This announcement details a collaboration integrating CargoSeer’s AI trade-analysis technology into Leidos’ Mezzo platform to improve non-intrusive inspection and customs risk assessment. It fits alongside recent security and screening initiatives, as well as strong Q3 results of $4.47 billion in revenue and higher EPS guidance. Investors may watch for concrete deployment milestones at ports of entry, follow-on contracts with border agencies, and how this capability complements Leidos’ broader NorthStar 2030 strategy and portfolio focus.

Key Terms

non-intrusive inspection technical

"have joined forces to enhance non-intrusive inspection (NII) and security solutions"

Non-intrusive inspection is a way to examine goods, equipment, structures, or shipments without opening, dismantling, or altering them, using tools like imaging, sensors, remote monitoring or surface scans—think of using an X-ray or a drone camera instead of breaking something apart. For investors, it matters because it can reduce downtime, cut inspection costs, speed regulatory approvals and lower liability, all of which affect operational efficiency, capital spending and risk profiles.

artificial intelligence technical

"CargoSeer, an artificial intelligence (AI) software company, have joined forces"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

algorithms technical

"CargoSeer's advanced trade-analysis algorithms will be integrated into Leidos' Mezzo"

Algorithms are step-by-step computer instructions that turn data inputs — such as prices, volumes, news, or test results — into actions or recommendations, like a recipe that mixes information and rules to generate buy/sell signals, risk limits, or classifications. They matter to investors because they automate decisions at speed and scale, shaping trade execution, portfolio performance, and regulatory outcomes; small changes in the “recipe” can materially change returns, risks, and how results are reported.

AI-generated analysis. Not financial advice.

RESTON, Va., Dec. 8, 2025 /PRNewswire/ -- Leidos (NYSE:LDOS) and CargoSeer, an artificial intelligence (AI) software company, have joined forces to enhance non-intrusive inspection (NII) and security solutions that help customs and border protection agencies better assess and manage transported goods crossing international borders. This collaboration is another example of Leidos' commitment to advancing border security solutions.

Under the agreement, CargoSeer's advanced trade-analysis algorithms will be integrated into Leidos' Mezzo™ Enterprise Software Platform, which integrates and consolidates various inspection data sources into a unified system. The combined capability will enable agencies to access instant, actionable intelligence in the field or at command centers—supporting smarter and faster decisions on security risks and trade compliance.

"Customs agencies must continuously balance protecting our borders and enabling the flow of commerce," said Nik Karnik, vice president and Global Security Products division manager at Leidos. "Through this collaboration, we're delivering proven AI solutions that help bridge the data gap between security screening and the efficient movement of transported goods."

By integrating CargoSeer's technology into Mezzo, the joint solution will provide enhanced security and operational efficiency across ports of entry, without slowing the flow of goods through border checkpoints.  

"By combining our capabilities, we aim to provide customs operators with a complete risk picture and a truly decisive advantage in protecting the global supply chain," said David Smason, co-founder and CEO of CargoSeer. "We look forward to relentlessly executing our joint vision of leveraging AI to help safeguard the flow of regulated trade and meet evolving global security needs."

Both organizations anticipate further collaboration following the successful completion of this initial integration effort.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 47,000 global employees, Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025. For more information, visit www.leidos.com.

About CargoSeer

CargoSeer is an artificial intelligence (AI) software company and a leader in unified AI decision support technology for customs and border operations. Deployed worldwide, our solutions leverage extensive real-world data and advanced algorithms to help governments and enterprises move high volumes of cargo quickly and securely. For more information, visit www.cargoseer.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 3, 2025, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Contact:

Victor Melara
Senior Media Relations Manager
703.431.4612
victor.a.melara@leidos.com 

 

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SOURCE Leidos

FAQ

What did Leidos (LDOS) announce on December 8, 2025 regarding CargoSeer?

Leidos announced a collaboration to integrate CargoSeer's AI trade-analysis algorithms into its Mezzo Enterprise Software Platform to enhance NII and border security capabilities.

How will the Leidos and CargoSeer integration affect customs inspections for LDOS customers?

The integration is designed to provide customs agencies with instant, actionable intelligence to support faster security-risk and trade-compliance decisions without slowing cargo flow.

What is Mezzo in the Leidos (LDOS) and CargoSeer announcement?

Mezzo is Leidos' Enterprise Software Platform that consolidates inspection data sources; CargoSeer's algorithms will be integrated into this platform.

Does the Leidos and CargoSeer partnership include commercial terms or financial figures?

No commercial terms or financial figures were disclosed in the announcement.

Will Leidos (LDOS) and CargoSeer continue working together after the initial integration?

Both organizations anticipate further collaboration following successful completion of the initial integration effort.