Leidos Reports 7% Revenue Growth in Q3 FY 2021, $34.7B in Total Backlog; Roger Krone Quoted

Leidos (NYSE: LDOS) recorded $3.5 billion in revenue during the third quarter of fiscal year 2021 and $403 million in adjusted earnings before interest, taxes, depreciation and amortization, up 16 percent from the same period last year.

The Reston, Virginia-based technology services contractor said Tuesday the 7 percent revenue growth from the prior-year period was driven by the increase in disability examinations among veterans and the startup of its Next Generation Enterprise Network Recompete contract with the U.S. Navy.

Leidos reported $4.7 billion in Q3 FY 2021 net bookings with a book-to-bill ratio of 1.4 and ended the quarter with a total backlog of approximately $34.7 billion, with $7.3 billion of that funded.

The company posted a diluted earnings per share of $1.43 and $1.80 in non-GAAP diluted EPS, up from $1.47 from the prior-year period.

Leidos’ defense solutions business saw its Q3 FY 2021 revenue climb 3 percent to $2 billion. The company’s civil revenues rose 3 percent to $792 million, while sales from the health business segment increased 31 percent to $682 million during the quarter.

“The third quarter marked another strong quarter for Leidos, with record levels of revenues, adjusted EBITDA, non-GAAP diluted EPS, and backlog. Our success is the direct result of building a business portfolio focused on vital missions and a workforce that is motivated to enhance those missions through technology, engineering, and science,” said Roger Krone, chairman and CEO of Leidos and an eight-time Wash100 winner.

Krone also talked about the company’s two recent acquisitions during an earnings call Tuesday. Leidos closed its purchase of 1901 Group, a provider of managed information technology and cloud platforms in public and private sectors, in January and wrapped up its $380 million acquisition of maritime services provider Gibbs & Cox in May.

“The 1901 has been just real a energizer for our digital transformation work. We have used the talent and 1901 really to derisk our engine ramping and staffing. They have an as a service platform, and have a culture that just attracts people,” Krone told analysts.

“And then Gibbs & Cox on a stand-alone basis continue to have strong support from the Navy on the new frigate contract and the new destroyer contract. … They bring a level of systems engineering and platforms that we have wanted to have for a long time,” he added.