Leidos to continue as program administrator for Hawai'i Energy

Rhea-AI Summary

Leidos (NYSE: LDOS) will continue administering Hawai'i Energy under a new three-year, $127 million contract announced Dec. 4, 2025. The scope includes management of the state's Electric Vehicle Charging Station Rebate program, market solutions, education, and training.

Leidos has run Hawai'i Energy since 2009; the program has delivered more than $7 billion in statewide energy savings to date. In the most recent program year, Hawai'i Energy distributed over 18,000 rebates totaling about $20 million. The renewal aligns with Leidos' NorthStar 2030 focus on energy infrastructure, grid modernization, and resilience.

Positive

• $127 million three-year contract awarded
• Program administered by Leidos since 2009
• Hawai'i Energy delivered over $7 billion in savings
• 18,000 rebates distributed in the most recent year (~$20M)

Negative

• Contract duration limited to three years, limiting long-term visibility
• Revenue exposure concentrated in a single state program renewal

Key Figures

Contract value $127 million New three-year Hawai'i Energy administration contract

Contract term 3 years Duration of new Hawai'i Energy and EV rebate contract

Energy savings $7 billion Statewide energy savings delivered since 2009

Rebates distributed Over 18,000 rebates Most recent program year activity

Rebate total Approximately $20 million Value of rebates in the most recent program year

Market Reality Check

$188.44 Last Close

Volume Volume 585,010 is below the 20-day average of 756,014, indicating subdued trading interest. low

Technical Price 188.44 is trading above the 200-day MA at 163.88, reflecting a pre-existing uptrend.

Peers on Argus

Key peers like GIB, CDW, BR, WIT, and CTSH show modest gains between 0.48% and 1.94%, suggesting a generally positive IT services backdrop but no momentum scanner-confirmed sector move tied to this headline.

Common Catalyst Multiple peers reported operational and technology-focused news, indicating a day of company-specific updates across IT services rather than a single shared catalyst.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Security certification	Positive	-0.7%	B220-HT explosive trace detection system achieved ECAC G1 certification.
Nov 25	Technology partnership	Positive	+2.5%	Partnership with Quadridox to enhance baggage screening using CT and XRDI.
Nov 04	Earnings and guidance	Positive	+3.4%	Record Q3 2025 results and raised non-GAAP EPS and margin guidance.
Oct 31	Dividend increase	Positive	+1.4%	Quarterly dividend increased to <b>$0.43</b> per share, payable Dec 31, 2025.
Oct 30	Business divestiture	Positive	+1.5%	Agreement to sell Varec to support NorthStar 2030 portfolio optimization.

Pattern Detected

Recent company news and capital return events have more often been followed by positive price reactions, with only one divergence on operational certification news.

Recent Company History

Over the past few months, Leidos has reported several notable developments. On Oct 30, it agreed to sell Varec as part of its NorthStar 2030 portfolio strategy, followed by a Oct 31 dividend increase to $0.43 per share. Strong Q3 results on Nov 4 featured $4.47 billion in revenue and raised guidance. Subsequent security technology partnerships and certifications in November and early December support its safety and infrastructure capabilities. Today’s Hawai'i Energy contract extension fits this pattern of reinforcing core long-term programs.

Regulatory & Risk Context

Short Interest

2.6%

0% 15% 30%+

low

Short interest at 2.6% of float with 5.36 days to cover suggests limited short-driven volatility around this contract news.

Market Pulse Summary

This announcement highlights a new three-year, $127 million contract for Leidos to continue administering the Hawai'i Energy and EV Charging Station Rebate programs, extending a collaboration that has produced over $7 billion in statewide energy savings. It reinforces the company’s focus on energy efficiency, resilience, and its NorthStar 2030 energy infrastructure strategy. Investors may watch how this contract contributes to future backlog, revenue mix, and alignment with broader grid modernization initiatives.

Key Terms

Public Utilities Commission regulatory

"partner with Hawai'i's Public Utilities Commission to help residents and businesses"

A public utilities commission is a government agency that oversees and regulates essential services such as electricity, water, and natural gas to ensure they are provided safely, reliably, and at fair prices. For investors, it matters because these agencies influence the profitability and stability of utility companies, which are often seen as steady, reliable investments due to their regulated nature.

Electric Vehicle (EV) Charging Station Rebate program financial

"administer the Hawai'i Energy program and the state's Electric Vehicle (EV) Charging Station Rebate program"

An electric vehicle (EV) charging station rebate program offers financial incentives to individuals or businesses who install EV charging units. These programs reduce the upfront costs of setting up charging stations, encouraging more widespread access to electric vehicle infrastructure. For investors, such programs can signal increased adoption of electric vehicles and related infrastructure, potentially boosting demand and growth opportunities in this sector.

energy resiliency technical

"improve the state's energy resiliency toward a sustainable future"

Energy resiliency is the ability of an energy system to quickly recover and continue providing power after disruptions or outages. It ensures that essential services and operations remain uninterrupted, much like a backup generator that kicks in during a blackout. For investors, strong energy resiliency can indicate a more reliable and secure energy supply, reducing risks and supporting long-term stability.

grid modernization technical

"commitment to advancing energy efficiency, grid modernization, and resilience"

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.

NorthStar 2030 technical

"aligns with Leidos' NorthStar 2030 strategic focus on energy infrastructure"

Northstar 2030 is a long-term strategic goal or vision that guides a company's growth and development over the next decade. It acts like a roadmap, helping investors understand the company's future direction and priorities. By setting clear targets for 2030, it provides a way to measure progress and assess how well the company is positioned for sustained success.

AI-generated analysis. Not financial advice.

RESTON, Va., Dec. 4, 2025 /PRNewswire/ -- Leidos (NYSE: LDOS) is continuing to partner with Hawai'i's Public Utilities Commission to help residents and businesses lower energy costs, cut carbon emissions, and improve the state's energy resiliency toward a sustainable future.

Under a new three-year, $127 million contract, Leidos will continue to administer the Hawai'i Energy program and the state's Electric Vehicle (EV) Charging Station Rebate program, while also overseeing market solutions, educational initiatives, and training efforts.  

"Hawai'i continues to be a leader in encouraging its residents and businesses to make practical energy-saving decisions and reduce energy use," said Bill Johnson, senior vice president, Energy, Infrastructure and Automation at Leidos. "With each main island generating its own power, efficiency and resiliency are critical. By lowering energy demand and improving efficiency, Leidos helps strengthen the state's energy independence and long-term energy security. We're proud to continue supporting Hawai'i's energy transformation."

Leidos has administered the Hawai'i Energy program since 2009. Since then, Hawai'i Energy has delivered more than $7 billion in energy savings statewide. In the most recent program year alone, it distributed over 18,000 rebates totaling approximately $20 million.

The continued partnership reflects Leidos' broader commitment to advancing energy efficiency, grid modernization, and resilience through collaboration with utilities nationwide. It also aligns with Leidos' NorthStar 2030 strategic focus on energy infrastructure.

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.

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 

View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-to-continue-as-program-administrator-for-hawaii-energy-302633503.html

SOURCE Leidos

FAQ

What did Leidos announce about the Hawai'i Energy contract on Dec. 4, 2025 (LDOS)?

Leidos announced a three-year, $127 million contract to continue administering Hawai'i Energy and the EV charging rebate program.

How long has Leidos administered Hawai'i Energy (LDOS)?

Leidos has administered Hawai'i Energy since 2009.

How much energy savings has Hawai'i Energy delivered under Leidos (LDOS)?

Hawai'i Energy has delivered more than $7 billion in statewide energy savings to date.

What were Hawai'i Energy rebate metrics in the most recent year under Leidos (LDOS)?

In the most recent program year, Hawai'i Energy distributed over 18,000 rebates totaling approximately $20 million.

What parts of the program will Leidos manage under the new LDOS contract?

Leidos will administer the Hawai'i Energy program, the state's EV Charging Station Rebate program, plus market solutions, education, and training.

What investor implications does the Leidos (LDOS) contract renewal have?

The award adds near-term contracted revenue ($127M) but is limited to a three-year term, so renewal risk remains beyond the term.