Leidos Holdings Stock Price, News & Analysis

RESTON, VA / ACCESSWIRE / March 1, 2023 / Leidos (NYSE:LDOS) announced the appointment of Thomas Bell as Chief Executive Officer, effective May 3, 2023. Bell, currently President of Defense at Rolls-Royce, will succeed Roger Krone, who has led the company since 2014 and will retire at the 2023 annual meeting. The board will also appoint Robert S. Shapard as independent chair post-meeting. Bell's selection followed a thorough process, and his extensive background in defense and aerospace is expected to provide continuity and leadership. Leidos reported approximately $14.4 billion in annual revenues for 2022.

Leidos (NYSE: LDOS) has secured a prime contract and three subcontracts from the Centers for Medicare and Medicaid Services (CMS) valued at approximately $102 million. The prime contract, which totals about $79 million, spans five years and will focus on IT operations and user services. Leidos aims to enhance CMS's mission-critical programs ensuring they remain agile and secure. Services include application migration, modernization, and support for hybrid cloud environments. This win aligns with Leidos’ strategy in IT modernization and could strengthen its market position.

Leidos (NYSE: LDOS) has announced the appointment of Thomas Bell as its new CEO, effective May 3, 2023. He will succeed Roger Krone, who will retire during the 2023 annual meeting of stockholders. Bell previously served as President at Rolls-Royce North America and has extensive experience in the aerospace sector, including roles at Boeing and Lockheed Martin. The company plans to appoint Robert S. Shapard as independent chair after the meeting. Leidos reported annual revenues of approximately $14.4 billion for the fiscal year ending December 30, 2022, emphasizing its strong position in defense, intelligence, civil, and health markets.

Leidos Holdings, Inc. (NYSE: LDOS) announced the expiration of its wholly-owned subsidiary's cash Tender Offer for any and all outstanding 2.950% Senior Notes due 2023. As of February 23, 2023, $391,572,000, or 78.31%, of the $500 million aggregate principal amount was validly tendered. Valid tendering holders will receive $995.77 for each $1,000 principal amount, plus accrued interest, on the Settlement Date, February 28, 2023. BofA Securities, Inc. and Citigroup Global Markets Inc. acted as dealer managers, while Global Bondholder Services Corporation served as the depositary agent. This offer is not a solicitation to sell any 2023 Notes.

Leidos Holdings, Inc. (NYSE: LDOS) announced the terms for a cash tender offer for its outstanding 2.950% Senior Notes due 2023. The offer is set to expire at 5:00 p.m. on February 23, 2023. Each $1,000 of the 2023 Notes validly tendered will receive cash consideration of $995.77, along with accrued interest since the last payment date of November 15, 2022. The Tender Offer is $500 million in size and is contingent on the successful completion of a new senior notes offering to cover repurchases. The company emphasized the need for note holders to review the Offer Documents carefully.

Leidos (NYSE:LDOS) has been awarded a contract for technology upgrades at London Luton Airport, one of the UK's busiest airports, which served over 13 million passengers in 2022. This project involves managing subcontractors and installing security systems, including 12 ClearScan™ cabin baggage scanners and ProPassage™ automated tray return systems, enhancing security while improving passenger experience. The work has commenced, with the first checkpoints expected to open to the public in Q4 2023. This initiative is part of Leidos' strategy to provide integrated security solutions that adapt to future operational needs.

Leidos (NYSE:LDOS) has secured a contract with the Transportation Security Administration (TSA) to enhance its Pro:Vision® Advanced Imaging Technology (AIT) systems across over 1,000 airport checkpoints with new AI algorithms. This upgrade aims to bolster threat detection capabilities while significantly reducing false alarms that complicate the passenger screening process. The software improvement reflects ongoing collaboration with TSA, facilitating enhanced security measures against evolving threats. The upgrade process is expected to extend over several months, enhancing both traveler experience and security efficiency.

Leidos Holdings, Inc. (NYSE:LDOS), a FORTUNE 500 company, has initiated a cash tender offer to purchase any outstanding 2.950% Senior Notes due 2023, totaling $500 million. The offer, which is set to expire on February 23, 2023, will allow holders to receive a purchase price determined by a fixed spread plus the yield of a U.S. Treasury Reference Security. Holders can also obtain accrued and unpaid interest. The completion of the tender offer is contingent upon successful financing via a new senior notes offering. BofA Securities and Citigroup are the dealer managers for this offer.

Leidos Holdings, Inc. (NYSE: LDOS) reported strong financial results for Q4 2022 and the full fiscal year, with revenues of $3.7 billion for the quarter (up 6% YoY) and $14.4 billion for the year (up 5% YoY). Diluted EPS was $1.28 for Q4 (up 4% YoY), but down 6% for the full year at $4.96. The company achieved an adjusted EBITDA of $397 million in Q4, marking an 11% increase YoY. Leidos anticipates FY23 revenue growth with a guidance range of $14.7 to $15.1 billion. Key contracts awarded included a $334 million hypersonic project and an IT support services contract valued at $1.5 billion.