Leidos completes $2.4 billion acquisition of ENTRUST

Rhea-AI Summary

Leidos (NYSE:LDOS) completed its approximately $2.4 billion acquisition of ENTRUST Solutions Group on March 30, 2026, creating a scaled end-to-end energy infrastructure organization focused on grid modernization.

The deal doubles Leidos' presence in the energy infrastructure market, adds more than 3,100 professionals, expands engineering capabilities across power delivery, and broadens its utility customer base as part of the company's NorthStar 2030 strategy.

Positive

• $2.4 billion acquisition of ENTRUST completed
• Transaction doubles Leidos presence in energy infrastructure
• Adds 3,100+ experienced professionals in grid and gas engineering
• Expands engineering capabilities across the power delivery spectrum
• Broadens Leidos' utility customer base nationwide

Negative

• None.

Key Figures

ENTRUST acquisition value: $2.4 billion ENTRUST professionals added: 3,100+ professionals Energy infra unit size: $600 million +5 more

8 metrics

ENTRUST acquisition value $2.4 billion Cash consideration for ENTRUST Solutions Group

ENTRUST professionals added 3,100+ professionals Energy infrastructure and utility-focused staff gained in acquisition

Energy infra unit size $600 million Pre-deal Leidos energy infrastructure unit revenue base

Combined energy workforce 5,500+ professionals Energy-focused workforce after ENTRUST acquisition (Jan 26 announcement)

2025 revenue $17.2 billion Full-year 2025 revenue from DEF 14A

Revenue growth 3% 2025 year-over-year revenue increase

Net income margin 8.5% 2025 net income margin reported in proxy

Operating cash flow $1.75 billion (up 22%) 2025 operating cash flow and growth from DEF 14A

Market Reality Check

Price: $155.53 Vol: Volume 675,045 is below t...

low vol

$155.53 Last Close

Volume Volume 675,045 is below the 20-day average of 1,253,828, showing muted trading ahead of the acquisition close. low

Technical Shares at 155.53 are trading below the 200-day MA of 179.35, reflecting a weaker medium-term trend into this deal close.

Peers on Argus

LDOS was down 1.3% while key IT services peers like GIB (-1.63%), CTSH (-1.57%),...

LDOS was down 1.3% while key IT services peers like GIB (-1.63%), CTSH (-1.57%), CDW (-1.21%) and BR (-1.19%) also declined, but no peers appeared in the momentum scanner, indicating a stock-specific setup rather than a confirmed sector momentum event.

Previous Acquisition Reports

1 past event · Latest: Jan 26 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Jan 26	Acquisition announcement	Positive	-0.9%	Announced $2.4B ENTRUST deal, doubling $600M energy infrastructure unit.

Pattern Detected

Prior ENTRUST acquisition news framed as accretive drew a modest -0.9% move, hinting that the market has reacted cautiously to this transaction type.

Recent Company History

This announcement completes the ENTRUST acquisition first detailed on Jan 26, 2026, when Leidos agreed to buy the company for approximately $2.4 billion. That earlier deal news highlighted doubling a $600 million energy infrastructure unit, creating a combined workforce of 5,500+ energy professionals and expectations of accretion to revenue growth, adjusted EBITDA margin, and non‑GAAP EPS. Shares then moved -0.9%, suggesting investors initially reacted cautiously to the strategic expansion now being finalized.

Historical Comparison

-0.9% avg move · Over the last 6 months, LDOS had 1 acquisition‑tagged ENTRUST headline with an average move of -0.9%...

acquisition

-0.9%

Average Historical Move acquisition

Over the last 6 months, LDOS had 1 acquisition‑tagged ENTRUST headline with an average move of -0.9%. Today’s completion update tracks the same transaction, extending that prior deal narrative.

The ENTRUST story progressed from the Jan 26, 2026 acquisition announcement to today’s closing, moving from a planned purchase expected to double a $600M unit and be accretive, to a completed integration step within Leidos’ broader energy infrastructure and NorthStar 2030 strategy.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-02-19

Leidos has an effective Form S-3ASR shelf filed on Feb 19, 2026, covering common stock, preferred stock, debt securities, guarantees, warrants, purchase contracts and units. The prospectus states proceeds may be used for general corporate purposes, including working capital, acquisitions and debt retirement, and has already seen 2 related 424B2 usages.

Market Pulse Summary

This announcement finalizes Leidos’ approximately $2.4 billion acquisition of ENTRUST, doubling its ...

Analysis

This announcement finalizes Leidos’ approximately $2.4 billion acquisition of ENTRUST, doubling its energy infrastructure presence and adding 3,100+ specialists in grid and gas engineering. It advances the energy growth pillar within the NorthStar 2030 strategy. Context from prior disclosures shows a $600M energy unit and solid 2025 metrics, including $17.2B revenue and $1.75B operating cash flow. Investors may watch integration milestones and how the combined platform contributes to growth and margins.

Key Terms

grid modernization

1 terms

grid modernization technical

"focused on grid modernization and helping utilities nationwide improve reliability"

Grid modernization involves upgrading the electrical system to make it more reliable, efficient, and capable of handling new technologies. It often includes integrating advanced digital tools, better communication systems, and renewable energy sources. For investors, these improvements can lead to more stable energy supplies and open opportunities in emerging energy markets and technologies.

AI-generated analysis. Not financial advice.

RESTON, Va., March 30, 2026 /PRNewswire/ -- Leidos (NYSE:LDOS) has completed its previously announced approximately $2.4 billion acquisition of ENTRUST Solutions Group from Kohlberg, creating a scaled, end-to-end energy infrastructure organization focused on grid modernization and helping utilities nationwide improve reliability and meet rising power demand.

The addition of ENTRUST effectively doubles Leidos' presence in the energy infrastructure market, bringing more than 3,100 experienced professionals with expertise in electric grid engineering and natural gas infrastructure. The acquisition also expands Leidos' engineering capabilities across the power delivery spectrum and broadens its base of utility customers.

"As we welcome our new teammates, we continue to strengthen our position as a leading provider of power engineering and design services," said Roy Stevens, Homeland Sector president at Leidos. "As utilities address accelerating load growth and resilience requirements, integrating ENTRUST's capabilities enables us to deliver comprehensive infrastructure solutions that help strengthen and secure the grid."

The acquisition supports Leidos' long-term investment in energy infrastructure and reinforces the importance of the energy growth pillar as part of the company's NorthStar 2030 strategy.

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 $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.

About ENTRUST Solutions Group

ENTRUST Solutions Group's 3,100+ professionals across 40+ locations in North America provide comprehensive and dependable engineering, consulting, design, asset integrity, data solutions and automation services to utilities, operators and industrial customers with excellence from start to finish. For more information, visit www.entrustsol.com.

Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Actual performance and results may differ materially from those results anticipated by our guidance and other forward-looking statements made in this release depending on a variety of factors, including, but not limited to: our ability to complete and integrate this transaction; our ability to complete the intended permanent financing; developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, future delays in the U.S. government budget process, or the U.S. government's failure to raise the debt ceiling, which increases the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession; uncertainties in tax due to new tax legislation or other regulatory developments; deterioration of economic conditions or weakening in credit or capital markets; uncertainty in the consequences of current and future geopolitical events; inflationary pressures and fluctuations in interest rates; delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. government and other customers; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our reliance on information technology spending by hospitals/healthcare organizations; our reliance on infrastructure investments by industrial and natural resources organizations; energy efficiency and alternative energy sourcing investments; investments by U.S. government and commercial organizations in environmental impact and remediation projects; the effects of an epidemic, pandemic or similar outbreak may have on our business, financial position, results of operations and/or cash flows; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees; our ability to accurately estimate costs, including cost increases due to inflation, associated with our firm-fixed-price contracts and other contracts; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; cybersecurity, data security or other security threats, system failures or other disruptions of our business; our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer, disposal and other processing, technology protection and personal information; the damage and disruption to our business resulting from natural disasters and the effects of climate change; our ability to effectively acquire businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the failure of our inspection or detection systems to detect threats; the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims, including cybersecurity attacks; our ability to manage risks associated with our international business; our ability to comply with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-corruption and anti-bribery laws and regulations; our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to declare or increase future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements; our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects; our ability to successfully integrate acquired businesses; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks described in our Securities and Exchange Commission filings.

Media Contact:

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

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-completes-2-4-billion-acquisition-of-entrust-302727588.html

SOURCE Leidos

FAQ

What did Leidos (LDOS) announce about ENTRUST on March 30, 2026?

Leidos completed an approximately $2.4 billion acquisition of ENTRUST Solutions Group, creating a scaled energy infrastructure business. According to the company, the deal doubles its presence in energy infrastructure and adds more than 3,100 professionals with grid engineering expertise.

How does the ENTRUST acquisition affect Leidos' workforce and capabilities for LDOS?

The acquisition brings over 3,100 professionals to Leidos, enhancing workforce scale and technical depth. According to the company, this expands engineering capabilities across the power delivery spectrum and boosts capacity for grid modernization projects nationwide.

What strategic goal does the ENTRUST deal support for Leidos (LDOS)?

The acquisition supports Leidos' long-term investment in energy infrastructure and its NorthStar 2030 strategy. According to the company, integrating ENTRUST reinforces the energy growth pillar and strengthens its position in power engineering and design services.

Will the ENTRUST acquisition change Leidos' customer base for LDOS?

Yes. The transaction broadens Leidos' utility customer base nationwide by adding ENTRUST's existing utility relationships. According to the company, the combined organization can now offer more end-to-end infrastructure solutions to utilities facing load growth and resilience needs.

How does the acquisition impact Leidos' role in grid modernization for LDOS shareholders?

The deal positions Leidos as a larger provider of grid modernization and power delivery engineering services. According to the company, combining resources enables delivery of comprehensive infrastructure solutions to help improve grid reliability and meet rising power demand.

Did Leidos describe the immediate operational changes after acquiring ENTRUST (LDOS)?

Leidos said it is integrating ENTRUST to strengthen power engineering and design services while welcoming new teammates. According to the company, the integration aims to deliver comprehensive infrastructure solutions for utilities addressing load growth and resilience requirements.