RESTON, Va. - Science and technology leader Leidos has been awarded a $631 million contract to support the U.S. Army's Development, Integration, Acquisitions, Bridging to Logistics & Operations (DIABLO) program. The contract, which spans a ten-year period, establishes Leidos as a key mission equipment supplier for the Army.
The company's Senior Vice President for Airborne Systems, Tim Freeman, expressed enthusiasm for the opportunity to contribute to the DIABLO program. He highlighted Leidos' commitment to advancing the Army's future capabilities, building on their experience with sensors and airborne intelligence, surveillance, and reconnaissance (ISR).
Leidos' role under the DIABLO contract involves the development, acquisition, fielding, and lifecycle support of aerial ISR sensors and integrated systems. This support is crucial for the Project Director Sensors-Aerial Intelligence (PD SAI) to achieve the Army's modernization goals. The company's approach emphasizes platform-agnostic solutions, aiming to enhance interoperability and adaptability for tactical battlespace awareness.
As a Fortune 500® company, Leidos specializes in addressing complex challenges in national security and health sectors. With a global workforce of 47,000, the Virginia-based company reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023.
The announcement of the contract includes forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and are subject to change. Leidos has cautioned readers not to place undue reliance on these forward-looking statements, which reflect management's views only as of the date of the announcement.
This contract award is based on a press release statement from Leidos and does not constitute an endorsement of the company's claims. The information presented is intended to provide a factual report on the recent contract acquisition by Leidos.
InvestingPro Insights
Leidos (NYSE:LDOS), a prominent player in the Professional Services industry, has recently secured a significant contract with the U.S. Army. This aligns with the company's history of maintaining dividend payments for an impressive 13 consecutive years, showcasing its financial stability.
Notably, the company has raised its dividend for 5 consecutive years, which is a testament to its commitment to shareholder returns. The InvestingPro Tips also highlight that Leidos' net income is expected to grow this year, which could be indicative of the company's ability to secure and successfully execute large contracts such as the DIABLO program.
Looking at real-time metrics from InvestingPro, Leidos boasts a market capitalization of $19.28 billion, reflecting its substantial presence in the market. The company's Price / Book ratio, standing at 4.53 as of the last twelve months leading up to Q1 2024, suggests a robust valuation compared to its book value.
Furthermore, the revenue growth of 7.62% during the same period indicates a healthy expansion of the company's operations. These metrics are particularly relevant as they underline the company's financial health following the announcement of the DIABLO contract.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which could further inform their investment decisions. For example, Leidos is currently trading near its 52-week high, and analysts have revised their earnings upwards for the upcoming period, indicating positive market sentiment.
For more insights and to gain an investment edge, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With 17 additional tips listed on InvestingPro, investors have ample information to gauge the potential trajectory of Leidos in the wake of its latest contract win.
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