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EX-99.1 2 ldos092724q3pressreleaseex.htm EX-99.1 Document

附录99.1

Leidos报告2024年第三季度业绩强劲，并提高全年指引

•42亿美元的收入，同比增长7%

•净利润为 36200万美元或2.68美元每股摊薄收益

•调整后的EBITDA（非通用会计准则）为59600万美元（14.2%利润率）

•非通用会计每股摊薄收益为2.93美元，同比增长44%

•经营活动现金流为65600万美元；自由现金流（非GAAP）为63300万美元

•净预订额为$81亿（季度订单比率为1.9，过去12个月订单比率为1.1）

2024年10月29日，弗吉尼亚州雷斯顿市 - 洛克希德·马丁公司（纽约证券交易所：LDOS）今日公布了2024财年第三季度的财务业绩。

"所有板块的运营绩效持续改善，推动了良好的营业收入增长，净利润和调整后的EBITDA实现了创纪录的利润率，收益大幅增长，现金流强劲，订单增长迅猛，"leidos首席执行官汤姆·贝尔说。 "这些成果清楚地表明，我们协作和创新的团队致力于为客户和股东保持一贯的执行力。凭借健康的资产负债表，业务发展绩效的提升以及新兴的'North Star'策略，leidos定位良好，未来能够提供强劲和可持续的回报。"

摘要运营结果


	三个月之内结束
（单位：百万美元，除了利润率和每股数据）	2024年9月27日			2023年9月29日
收入	$	4,190		$	3,921


	$	362		$	(396)
净利润（损失）率	8.6		%	(10.1)		%
稀释每股收益 (EPS)	$	2.68		$	(2.91)

*非通用会计措施：
调整后的EBITDA	$	596		$	451
调整后的EBITDA率	14.2		%	11.5		%
摊薄后每股收益（非按美国通用会计原则GAAP）	$	2.93		$	2.03

* 非通用会计财务指标应被视为对依照通用会计原则提供的信息的补充，而非替代。管理层认为这些非通用会计指标提供了另一种评估Leidos运营业绩和财务状况的方法，包括其遵守财务条款的能力。有关更多信息以及我们选定报告结果与这些非通用会计措施的调节，请参见本新闻稿末尾的非通用会计财务指标。

本季度收入为41.9亿美元，比2023年第三季度增长7%。收入同比增长，主要是由于所有客户细分领域的需求增加，尤其是托管健康服务。

净利润率为8.6%，第三季度净利润为36200万美元，每股稀释后为2.68美元。与去年同期相比，由于2023年第三季度安防-半导体业务解决方案（SES）报告单位录得的69900万美元税前、非现金减值和重组费用的影响，对比意义不大。

第三季度调整后的EBITDA为59600万美元，同比增长32%。创纪录的调整后EBITDA利润率为14.2%，较2023年第三季度的11.5%增加。非GAAP净利润为39600万美元，同比增长40%，当季非GAAP摊薄后每股收益为2.93美元，同比增长44%。盈利能力增加的主要驱动因素是托管健康服务项目的增加规模，以及跨公司的改善项目执行和成本控制。

现金流摘要

在第三季度，leidos通过经营活动产生了65600万美元的净现金流，分别用于投资和筹资活动的2300万美元和25700万美元。经营活动产生的净现金流是由强劲的EBITDA和收款表现驱动的。本季度的应收账款周转天数（DSO）为59。

投资活动主要包括2300万美元的固定资产、设备和软件支付，导致季度自由现金流达到63300万美元。leidos第三季度向股东返还25400万美元，其中包括20300万美元的股份回购和5100万美元作为其常规季度现金股利计划的一部分。截至2024年9月27日，leidos拥有118500万美元的现金及现金等价物和47亿美元的债务。

2024年10月25日，Leidos董事会宣布每股派现0.40美元，较上个季度的股利金额增长了5.3%。股息将于2024年12月31日支付，股东记录日期为2024年12月16日收盘。

上药控股有限公司

季度净订单总额为81亿美元，表现为1.9的订单比率。因此，季末积压订单为406亿美元，其中91亿美元已获得资金支持。季度订单中包括一些值得注意的奖项：

•退伍军人福利管理局（VBA）医疗残疾鉴定（MDE）1-4区域的可选年。 VBA MDE办公室授予了leidos现有无限交付，无限数量（IDIQ），固定价合同的下一个选择年，这些合同最初是在2018年11月获得的。leidos QTC健康服务将继续提供MDE，以满足退伍军人事务部（VA）和国防部（DOD）对分离和退役服务成员的要求。

•陆军全球一体化网络（AGUN）。美国陆军指挥、控制和通信-战术全球企业网络现代化项目管理办公室（PEO C3万亿 GENm-O）授予leidos一份价值33100万美元的为期五年的合同，以使美国陆军网络与陆军的网络现代化策略和陆军统一网络计划保持一致。leidos将部署AGUN到各个陆军基地，提供一个标准化、协调一体化的现代网络架构，支持过渡到零信任架构，并旨在使应用程序、数据和企业服务在全球范围内可访问、可信且可互操作。

•爱文思控股战略管理系统-数字基础设施 (ABMS-DI) 网络。空军部队(DAF)指挥、控制、通信和战斗管理(PEO C3BM)项目执行官向leidos公司授予了一项为期五年，30300万美元的合同，以监督DAF ABMS-DI网络的计划、分析和运作。这份合同延伸了leidos与DAF合作的角色，设计、开发和部署现代化的联合全领域指挥和控制(CJADC2)能力，用于空军和太空军。

•自动化安装入口（AIE）下一代支持。陆军情报、电子战和传感器项目执行办公室（PEO IEW&S）向Leidos授予了AIE下一代合同，以增强全球92个陆军和部分联合服务安装的安全性。在为期六年的24900万美元合同中，Leidos将继续将陆军的企业物理访问控制系统转变为一个具有先进生物识别模式的全面可扩展的基于云的解决方案。

前瞻性指导

leidos正在更新其2024财年指引，具体如下：


	2024财年指导
量规	当前	先前的
营业收入（十亿美元）	$16.35 - $16.45	$16.10 - $16.40
调整后的EBITDA利润率	高-12%	大约12%
非GAAP摊薄后每股收益	$9.80 - $10.00	$8.60 - $9.00
经营活动提供的现金流量（十亿美元）	约为1.35美元	约为1.30美元

有关调整后的EBITDA利润率和非GAAP摊薄后每股收益的信息，请参阅本公告其他地方包含的相关解释和与GAAP指标的调和。

Leidos由于难以预测和量化某些必要金额，不提供前瞻性调整后的EBITDA利润率或非GAAP摊薄后每股收益与净利润的对比。由于用于计算预测净利润的非GAAP排除项的某些扣除额可能会根据实际事件而异，因此Leidos目前无法以合理确定性在GAAP基础上预测所有需要提供GAAP计算的净利润所需的扣除额。这些扣除额的金额可能是重大的，因此可能导致预测净利润和摊薄后每股收益明显低于预测的调整后的EBITDA利润率和非GAAP摊薄后每股收益所暗示的水平。

电话会议信息

leidos管理层将在2024年10月29日美国东部时间早上8点举行一次业绩会，讨论运营和财务业绩。会议的现场音频广播以及补充演示将通过Leidos投资者关系网站上的链接对公众开放。http://ir.leidos.com). 网络转播的存档版本将一直保存在Leidos投资者关系网站上，直到2025年10月29日。 2025年10月29日之前，用户可以在Leidos投资者关系网站上找到网络转播的存档版本。

关于leidos

leidos是一家财富500强企业® 创新公司正在快速解决全球最棘手的国家安全和健康挑战。该公司全球48,000名员工合作，为受严格监管行业的客户创造更智能的科技解决方案。总部位于弗吉尼亚州雷斯顿，截至2023年12月29日财政年度，Leidos报告的年度收入约为$154亿。欲了解更多信息，请访问 www.leidos.com.

前瞻性声明

本发布中的某些声明包含或基于《1995年私人证券诉讼改革法案》意义内的"前瞻性"信息。在某些情况下，您可以通过诸如"预计"、"意图"、"计划"、"预测"、"相信"、"估计"、"指导"等字词或短语来识别前瞻性声明。本发布中的前瞻性声明包括但不限于，我们未来增长、策略、财务和运营表现的估计，包括未来营收、调整后的EBITDA利润率、摊薄后每股收益（包括非GAAP基础）和经营活动提供的现金流量，以及关于我们业务应急计划、政府预算和持续的持续决议，由于新的税法或其他监管发展而导致税收不确定性，策略、计划的投资、可持续性目标以及我们未来的分红派息、股份回购、资本支出、债务偿还、收购、处置和现金流转换的声明。这些声明反映了我们对未来事件的信念和假设，可能不会被证实准确。

实际表现和结果可能会与我们在本报告中提供的指引和其他前瞻性声明预期的结果有很大差异，这取决于多种因素，包括但不限于：美国政府国防和非国防预算的发展，包括预算削减、预算限制的实施或预算重心的变化，美国政府预算过程延迟或政府关门，或美国政府未能提高债务上限，从而增加美国政府违约其债务义务的可能性，相关信用评级下调，或经济衰退；由于新的税收立法或其他监管事项而产生的税收不确定性。

发展动向; 通货膨胀压力和利率波动; 美国政府合同采购流程的延迟或合同颁发以及因竞争对手抗议而导致的合同延迟或丧失; 美国政府采购规则、法规和实践的变化; 我们遵守各种美国政府和其他政府采购规则和法规; 我们公司在政府的审查、审计和调查; 我们有效竞争并赢得美国政府和其他客户的合同的能力; 我们迅速应对人工智能等新技术趋势的能力; 我们对医院/医疗组织的信息技术支出的依赖; 我们对工业和自然资源组织的基础设施投资的依赖; 节能和可替代能源采购投资; 美国政府和商业组织在环境影响和补救项目上的投资; 健康流行病、大流行病和类似爆发可能对我们业务、财务状况、经营成果和/或现金流的影响; 我们吸引、培训和保留熟练员工，包括管理团队，并为员工获得安全许可的能力; 我们准确估计成本的能力，包括由于通货膨胀而导致的负担固定价格合同和其他合同相关的费用增加; 与客户和其他方解决法律和其他争端或法律或监管合规问题; 网络安全、数据安全或其他安全威胁、系统故障或其他业务中断的遵从; 我们在隐私、数据安全、保护、存储、保留、转移和处理、技术保护及个人信息方面遵守国际、联邦、州和地方法律和法规; 自然灾害带来的损害和业务中断以及气候变化的影响; 我们有效收购企业和进行投资的能力; 我们与总承包商、分包商和合资伙伴维持关系的能力; 我们管理与客户合同相关的绩效和其他风险的能力; 我们的检测或监测系统无法检测威胁的失败; 我们保险计划、客户赔偿或其他旨在保护我们免受重大产品或其他责任索赔，包括网络安全攻击的责任保护的充分性; 我们管理与国际业务相关的风险的能力; 我们遵守美国《海外腐败行为法》、2010年英国《贿赂法》和类似全球反腐败和反贿赂法律和法规的能力; 我们保护知识产权和其他专有权利免受第三方的侵权、盗用或其他违反行为的能力和我们通过第三方提出的违反、侵权或其他违反我们知识产权的诉讼中获胜的能力; 根据我们的盈利、财务状况、资本需求等因素宣布或增加未来股息的能力，包括遵守适用法律和我们的协议; 我们发展我们的商业保健和基础设施业务的能力，这可能会受到医院和能源、基础设施项目开发商面临的预算限制的负面影响; 我们成功整合收购的企业的能力; 和我们执行我们的业务计划和长期管理举措的能力，克服我们面临的这些和其他已知和未知风险。

这些只是可能影响本报告中包含的前瞻性声明的一些因素。有关与我们业务相关的风险和不确定性的更多信息，请参阅我们不时向美国证券交易委员会（"SEC"）提交的备案，包括我们最新年度报告的"风险因素"、"财务状况和经营结果的管理讨论与分析"以及"法律诉讼"部分以及我们的季度报告的表格10-Q，所有这些都可以通过我们网站的投资者关系部分www.leidos.com查看或获取。

所有板块中发布的所有信息截至2024年10月29日。leidos明确声明不承担更新指引或本发布中提供的任何其他前瞻性声明的责任，以反映随后发生的事件、实际结果或leidos期望的变化。leidos还声明不承担就可能包含在投资分析师或其他人发布的报告中的信息进行评论或更正的责任。


联系方式：

投资者关系:						媒体关系：
Stuart Davis						Alyssa Pettus
571.526.6124						571.526.6743
ir@leidos.com						alyssa.t.pettus@leidos.com

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)


	Three Months Ended				Nine Months Ended
	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Revenues	$	4,190	$	3,921	$	12,297	$	11,458
Cost of revenues	3,428		3,334		10,192		9,809
Selling, general and administrative expenses	247		239		704		709

Acquisition, integration and restructuring costs	3		5		14		14
Goodwill impairment charges	—		599		—		599
Asset impairment charges	6		88		6		88
Equity earnings of non-consolidated subsidiaries	(10)		(8)		(25)		(21)
Operating income (loss)	516		(336)		1,406		260
Non-operating income (expense):
Interest expense, net	(46)		(53)		(146)		(163)
Other income (expense), net	—		1		4		(4)
Income (loss) before income taxes	470		(388)		1,264		93
Income tax expense	(108)		(8)		(295)		(115)
Net income (loss)	362		(396)		969		(22)
Less: net (loss) income attributable to non-controlling interest	(2)		3		(1)		8
Net income (loss) attributable to Leidos common stockholders	$	364	$	(399)	$	970	$	(30)

Earnings per share:
Basic	$	2.72	$	(2.91)	$	7.19	$	(0.22)
Diluted	2.68		(2.91)		7.13		(0.22)

Weighted average number of common shares outstanding:
Basic	134		137		135		137
Diluted	136		137		136		137

Cash dividends declared per share	$	0.38	$	0.36	$	1.14	$	1.08

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)


	September 27, 2024		December 29, 2023
Assets:
Cash and cash equivalents	$	1,185	$	777
Receivables, net	2,706		2,429
Inventory, net	323		310
Other current assets	451		489
Total current assets	4,665		4,005
Property, plant and equipment, net	992		961
Intangible assets, net	558		667
Goodwill	6,123		6,112
Operating lease right-of-use assets, net	459		512
Other long-term assets	541		438
Total assets	$	13,338	$	12,695

Liabilities:
Accounts payable and accrued liabilities	$	2,287	$	2,277
Accrued payroll and employee benefits	903		695
Current portion of long-term debt	592		18
Total current liabilities	3,782		2,990
Long-term debt, net of current portion	4,081		4,664
Operating lease liabilities	467		516
Other long-term liabilities	341		267
Total liabilities	8,671		8,437

Stockholders’ equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized, 133,337,275 and 135,766,419 shares issued and outstanding at September 27, 2024, and December 29, 2023, respectively	—		—
Additional paid-in capital	1,469		1,885
Retained earnings	3,179		2,364
Accumulated other comprehensive loss	(34)		(48)
Total Leidos stockholders’ equity	4,614		4,201
Non-controlling interest	53		57
Total stockholders' equity	4,667		4,258
Total liabilities and stockholders' equity	$	13,338	$	12,695

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	Three Months Ended				Nine Months Ended
	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Cash flows from operations:
Net income (loss)	$	362	$	(396)	$	969	$	(22)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	71		82		211		248
Stock-based compensation	19		20		59		57
Deferred income taxes	(29)		(104)		(96)		(192)
Goodwill impairment charges	—		599		—		599
Asset impairment charges	6		88		6		88
Other	3		19		5		25
Change in assets and liabilities, net of effects of acquisitions:
Receivables	(75)		14		(260)		(109)
Other current assets and other long-term assets	95		92		102		141
Accounts payable and accrued liabilities and other long-term liabilities	25		220		(149)		22
Accrued payroll and employee benefits	198		137		208		105
Income taxes receivable/payable	(19)		24		38		(101)
Net cash provided by operating activities	656		795		1,093		861
Cash flows from investing activities:
Acquisition of a business, net of cash acquired	—		(2)		—		(6)
Payments for property, equipment and software	(23)		(50)		(63)		(129)
Net proceeds from sale of assets	—		—		2		—
Other	—		—		5		—
Net cash used in investing activities	(23)		(52)		(56)		(135)
Cash flows from financing activities:
Proceeds from debt issuance	—		—		—		1,743
Net proceeds from commercial paper	—		(200)		—		—
Repayments of borrowings	(5)		(5)		(14)		(2,041)
Payments for debt issuance costs	—		—		—		(7)
Dividend payments	(51)		(50)		(155)		(150)
Repurchases of stock and other	(203)		(1)		(500)		(44)
Proceeds from issuances of stock	2		12		28		37
Net capital distributions to non-controlling interests	—		(5)		(3)		(8)
Net cash used in financing activities	(257)		(249)		(644)		(470)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	9		(3)		5		—
Net increase in cash, cash equivalents and restricted cash	385		491		398		256
Cash, cash equivalents and restricted cash at beginning of period	941		448		928		683
Cash, cash equivalents and restricted cash at end of period	1,326		939		1,326		939
Less: restricted cash at end of period	141		189		141		189
Cash and cash equivalents at end of period	$	1,185	$	750	$	1,185	$	750

LEIDOS HOLDINGS, INC.

UNAUDITED SEGMENT OPERATING RESULTS

(in millions)


	Three Months Ended						Nine Months Ended
	September 27, 2024			September 29, 2023			September 27, 2024			September 29, 2023
Revenues:
National Security & Digital	$	1,865		$	1,852		$	5,471		$	5,400
Health & Civil	1,225			1,055			3,687			3,097
Commercial & International	578			552			1,648			1,588
Defense Systems	522			462			1,491			1,373
Total	$	4,190		$	3,921		$	12,297		$	11,458

Operating income (loss):
National Security & Digital	$	187		$	170		$	545		$	487
Health & Civil	287			165			816			412
Commercial & International	41			(646)			64			(599)
Defense Systems	37			3			92			47
Corporate	(36)			(28)			(111)			(87)
Total	$	516		$	(336)		$	1,406		$	260

Operating income (loss) margin:
National Security & Digital	10.0		%	9.2		%	10.0		%	9.0		%
Health & Civil	23.4		%	15.6		%	22.1		%	13.3		%
Commercial & International	7.1		%	(117.0)		%	3.9		%	(37.7)		%
Defense Systems	7.1		%	0.6		%	6.2		%	3.4		%
Total	12.3		%	(8.6)		%	11.4		%	2.3		%

National Security & Digital

National Security & Digital revenues of $1.87 billion increased by 1% compared to the prior year quarter. Revenue grew across several enterprise Information Technology (IT) programs, which offset reductions on certain Intelligence Community contracts. For the quarter, operating income margin increased to 10.0% from 9.2% in the prior year quarter, and non-GAAP operating income margin increased to 10.5% from 9.8% in the prior year quarter. The increase in segment profitability was primarily attributable to volume and efficiencies on certain fixed price programs.

Health & Civil

Health & Civil revenues of $1.23 billion increased by 16% compared to the prior year quarter. Health & Civil operating income margin for the quarter was 23.4%, compared to 15.6% in the prior year quarter, and non-GAAP operating income margin was 24.2%, compared to 16.5% in the prior year quarter. The increase in revenues and segment profitability was driven by increased volumes and case complexity within the managed health services business as well as net write-ups on certain programs.

Commercial & International

Commercial & International revenues of $578 million increased by 5% compared to the prior year quarter driven by increased deliveries of security products and commercial energy engineering services. Operating income margin for the quarter was 7.1%, compared to (117.0)% in the prior year quarter, which included non-cash impairment and restructuring charges of $679 million related to the SES reporting unit. Non-GAAP operating margin was 8.8%, compared to 9.2% in the prior year quarter.

LEIDOS HOLDINGS, INC.

UNAUDITED SEGMENT OPERATING RESULTS

(in millions)

Defense Systems

Defense Systems revenues of $522 million increased by 13% compared to the prior year quarter. Defense Systems operating income margin for the quarter was 7.1%, compared to 0.6% in the prior year quarter, and non-GAAP operating margin was 10.2%, compared to 7.4% in the prior year quarter. The increase in revenues and segment profitability was primarily driven by increased scope and improved program execution on fixed price development programs.

LEIDOS HOLDINGS, INC.

UNAUDITED BACKLOG BY REPORTABLE SEGMENT

(in millions)

Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts. Backlog value is based on management’s estimates about volume of services, availability of customer funding and other factors, and excludes contracts that are under protest. Estimated backlog comprises both funded and negotiated unfunded backlog. Backlog estimates are subject to change and may be affected by several factors, including modifications of contracts, non-exercise of options and foreign currency movements.

Funded backlog for contracts with the U.S. government represents the value on contracts for which funding is appropriated less revenues previously recognized on these contracts. Funded backlog for contracts with non-U.S. government entities and commercial customers represents the estimated value on contracts, which may cover multiple future years, under which Leidos is obligated to perform, less revenue previously recognized on the contracts.

Negotiated unfunded backlog represents estimated amounts of revenue to be earned in the future from contracts for which funding has not been appropriated and unexercised priced contract options. Negotiated unfunded backlog does not include unexercised option periods and future potential task orders expected to be awarded under IDIQ, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded or separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

The estimated value of backlog as of the dates presented was as follows:


	September 27, 2024						September 29, 2023
Segment	Funded		Unfunded		Total		Funded		Unfunded		Total
National Security & Digital	$	3,323	$	16,532	$	19,855	$	3,146	$	14,802	$	17,948
Health & Civil	1,536		9,835		11,371		2,022		10,141		12,163
Commercial & International	2,631		2,022		4,653		2,586		1,012		3,598
Defense Systems	1,602		3,080		4,682		1,293		3,041		4,334
Total	$	9,092	$	31,469	$	40,561	$	9,047	$	28,996	$	38,043

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

Leidos uses and refers to organic revenue, non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP diluted EPS, non-GAAP free cash flow and non-GAAP free cash flow conversion, which are not measures of financial performance under generally accepted accounting principles in the U.S. and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with Leidos's consolidated financial statements prepared in accordance with GAAP.

Management believes that these non-GAAP measures provide another representation of the results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Organic revenues capture the revenue that is inherent in the underlying business excluding the impact of acquisitions and divestitures made within the prior year; it is computed as current revenues excluding revenues from acquisitions within the last 12 months and divestitures within the current and year-ago periods.

Non-GAAP operating income is computed by excluding the following discrete items from operating income:

•Acquisition, integration and restructuring costs – Represents acquisition, integration, lease termination, severance and retention costs and asset markdowns related to acquisitions and restructuring activities.

•Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets.

•Gain on sale of intangible assets – Represents the gain on sale of intellectual property not used in operations.

•Asset impairment charges – Represents impairments of long-lived intangible assets, right-of-use assets, and other assets related to our facility rationalization effort.

•Goodwill impairment charges – Represents impairments of goodwill due to changes in actual performance against performance projected when the goodwill was acquired.

Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenues.

Adjusted EBITDA is computed by excluding the following items from income before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; (iv) depreciation expense; and (v) amortization of internally developed intangible assets.

Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenues.

Non-GAAP net income is computed by excluding the discrete items listed under non-GAAP operating income and their related tax impacts.

Non-GAAP diluted EPS is computed by dividing net income attributable to Leidos common stockholders, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding.

Non-GAAP free cash flow is computed by deducting expenditures for property, equipment and software from net cash provided by (used in) operating activities.

Non-GAAP free cash flow conversion is computed by dividing non-GAAP free cash flow by non-GAAP net income attributable to Leidos common stockholders; operating cash flow conversion is computed by dividing net cash provided by (used in) operating activities by net income attributable to Leidos shareholders.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except growth percentages)

The following table presents the reconciliation of revenues to organic revenues by reportable segment and total operations:


	Three Months Ended
	September 27, 2024		September 29, 2023		Percent Change
National Security & Digital
Revenues, as reported	$	1,865	$	1,852	1	%

Health & Civil
Revenues, as reported	$	1,225	$	1,055	16	%

Commercial & International
Revenues, as reported	$	578	$	552	5	%



Defense Systems
Revenues, as reported	$	522	$	462	13	%
Acquisition and divestiture revenues(1)	—		3
Organic revenues	$	522	$	459	14	%

Total Operations
Revenues, as reported	$	4,190	$	3,921	7	%
Acquisition and divestiture revenues(1)	—		3
Organic revenues	$	4,190	$	3,918	7	%

(1) Year ago acquisition and divestiture revenues reflect revenues from assets subsequently divested. For the three months ended September 29, 2023, Defense Systems segment acquisition and divestiture revenues include the divestiture of an immaterial asset that was completed on October 20, 2023.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended September 27, 2024:


	Three Months Ended September 27, 2024
	As reported		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP results
Operating income	$	516	$	3	$	37	$	6	$	562
Non-operating expense, net	(46)		—		—		—		(46)
Income before income taxes	470		3		37		6		516
Income tax expense(1)	(108)		(1)		(9)		(2)		(120)
Net income	362		2		28		4		396
Less: net loss attributable to non-controlling interest	(2)		—		—		—		(2)
Net income attributable to Leidos common stockholders	$	364	$	2	$	28	$	4	$	398

Diluted EPS attributable to Leidos common stockholders(2)	$	2.68	$	0.01	$	0.21	$	0.03	$	2.93
Diluted shares	136		136		136		136		136


	Three Months Ended September 27, 2024
	As reported			Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP results
Net income	$	362		$	2	$	28	$	4	$	396
Income tax expense(1)	108			1		9		2		120
Income before income taxes	470			3		37		6		516
Depreciation expense	34			—		—		—		34
Amortization of intangibles	37			—		(37)		—		—
Interest expense, net	46			—		—		—		46
Adjusted EBITDA	$	587		$	3	$	—	$	6	$	596
Adjusted EBITDA margin	14.0		%							14.2		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)


	Three Months Ended September 29, 2023
	As reported		Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Operating (loss) income	$	(336)	$	17	$	50	$	88	$	599	$	418
Non-operating expense, net	(52)		—		—		—		—		(52)
(Loss) income before income taxes	(388)		17		50		88		599		366
Income tax expense(1)(4)	(8)		(4)		(12)		(31)		(28)		(83)
Net (loss) income	(396)		13		38		57		571		283
Less: net income attributable to non-controlling interest	3		—		—		—		—		3
Net (loss) income attributable to Leidos common stockholders	$	(399)	$	13	$	38	$	57	$	571	$	280

Diluted EPS attributable to Leidos common stockholders(2)	$	(2.91)	$	0.09	$	0.28	$	0.41	$	4.14	$	2.03
Diluted shares	137		138		138		138		138		138


	Three Months Ended September 29, 2023
	As reported			Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Net (loss) income	$	(396)		$	13	$	38	$	57	$	571	$	283
Income tax expense(1)(4)	8			4		12		31		28		83
(Loss) income before income taxes	(388)			17		50		88		599		366
Depreciation expense	32			—		—		—		—		32
Amortization of intangibles	50			—		(50)		—		—		—
Interest expense, net	53			—		—		—		—		53
Adjusted EBITDA	$	(253)		$	17	$	—	$	88	$	599	$	451
Adjusted EBITDA margin	(6.5)		%									11.5		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(4) Non-GAAP tax rates were revised from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)


	Nine Months Ended September 27, 2024
	As reported		Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Gain on sale of intangible assets		Non-GAAP results
Operating income	$	1,406	$	20	$	110	$	6	$	—	$	1,542
Non-operating expense, net	(142)		—		—		—		(2)		(144)
Income before income taxes	1,264		20		110		6		(2)		1,398
Income tax expense(1)	(295)		(4)		(28)		(2)		—		(329)
Net income	969		16		82		4		(2)		1,069
Less: net loss attributable to non-controlling interest	(1)		—		—		—		—		(1)
Net income attributable to Leidos common stockholders	$	970	$	16	$	82	$	4	$	(2)	$	1,070

Diluted EPS attributable to Leidos common stockholders(2)	$	7.13	$	0.12	$	0.60	$	0.03	$	(0.01)	$	7.87
Diluted shares	136		136		136		136		136		136


	Nine Months Ended September 27, 2024
	As reported			Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Gain on sale of intangible assets		Non-GAAP results
Net income	$	969		$	16	$	82	$	4	$	(2)	$	1,069
Income tax expense(1)	295			4		28		2		—		329
Income before income taxes	1,264			20		110		6		(2)		1,398
Depreciation expense	101			—		—		—		—		101
Amortization of intangibles	110			—		(110)		—		—		—
Interest expense, net	146			—		—		—		—		146
Adjusted EBITDA	$	1,621		$	20	$	—	$	6	$	(2)	$	1,645
Adjusted EBITDA margin	13.2		%									13.4		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)


	Nine Months Ended September 29, 2023
	As reported		Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Operating income	$	260	$	26	$	153	$	88	$	599	$	1,126
Non-operating expense, net	(167)		—		—		—		—		(167)
Income before income taxes	93		26		153		88		599		959
Income tax expense(1)(4)	(115)		(6)		(39)		(31)		(28)		(219)
Net (loss) income	(22)		20		114		57		571		740
Less: net income attributable to non-controlling interest	8		—		—		—		—		8
Net (loss) income attributable to Leidos common stockholders	$	(30)	$	20	$	114	$	57	$	571	$	732

Diluted EPS attributable to Leidos common stockholders(2)	$	(0.22)	$	0.14	$	0.83	$	0.41	$	4.14	$	5.30
Diluted shares	137		138		138		138		138		138


	Nine Months Ended September 29, 2023
	As reported			Acquisition, integration and restructuring costs(3)		Amortization of acquired intangibles		Asset impairment charges		Goodwill impairment charges		Non-GAAP results
Net (loss) income	$	(22)		$	20	$	114	$	57	$	571	$	740
Income tax expense(1)(4)	115			6		39		31		28		219
Income before income taxes	93			26		153		88		599		959
Depreciation expense	95			—		—		—		—		95
Amortization of intangibles	153			—		(153)		—		—		—
Interest expense, net	163			—		—		—		—		163
Adjusted EBITDA	$	504		$	26	$	—	$	88	$	599	$	1,217
Adjusted EBITDA margin	4.4		%									10.6		%

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2) Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

(3) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(4) Non-GAAP tax rates were revised from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except margin percentages)

The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income:


	Three Months Ended September 27, 2024
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	187	$	—	$	6	$	2	$	195	10.5	%
Health & Civil	287		—		8		2		297		24.2	%
Commercial & International	41		1		7		2		51		8.8	%
Defense Systems	37		—		16		—		53		10.2	%
Corporate	(36)		2		—		—		(34)		NM
Total	$	516	$	3	$	37	$	6	$	562	13.4	%


	Three Months Ended September 29, 2023
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Goodwill impairment charges		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	170	$	—	$	12	$	—	$	—	$	182	9.8	%
Health & Civil	165		—		9		—		—		174		16.5	%
Commercial & International	(646)		9		9		599		80		51		9.2	%
Defense Systems	3		3		20		—		8		34		7.4	%
Corporate	(28)		5		—		—		—		(23)		NM
Total	$	(336)	$	17	$	50	$	599	$	88	$	418	10.7	%


	Nine Months Ended September 27, 2024
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	545	$	—	$	17	$	2	$	564	10.3	%
Health & Civil	816		—		21		2		839		22.8	%
Commercial & International	64		9		22		2		97		5.9	%
Defense Systems	92		—		50		—		142		9.5	%
Corporate	(111)		11		—		—		(100)		NM
Total	$	1,406	$	20	$	110	$	6	$	1,542	12.5	%


	Nine Months Ended September 29, 2023
	Operating income (loss)		Acquisition, integration and restructuring costs		Amortization of acquired intangibles		Goodwill impairment charges		Asset impairment charges		Non-GAAP operating income (loss)		Non-GAAP operating margin
National Security & Digital	$	487	$	—	$	35	$	—	$	—	$	522	9.7	%
Health & Civil	412		—		30		—		—		442		14.3	%
Commercial & International	(599)		10		29		599		80		119		7.5	%
Defense Systems	47		3		59		—		8		117		8.5	%
Corporate	(87)		13		—		—		—		(74)		NM
Total	$	260	$	26	$	153	$	599	$	88	$	1,126	9.8	%

NM - Not Meaningful

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except percentages)

The following table presents the reconciliation of non-GAAP free cash flow to net cash provided by operating activities as well as the calculation of operating cash flow and non-GAAP free cash flow conversion ratios:


	Three Months Ended
	September 27, 2024			September 29, 2023
Net cash provided by operating activities	$	656		$	795
Payments for property, equipment and software	(23)			(50)
Non-GAAP free cash flow	$	633		$	745

Net income (loss) attributable to Leidos common stockholders	$	364		$	(399)
Acquisition, integration and restructuring costs(1)(2)(3)	2			13
Amortization of acquired intangibles(1)(3)	28			38

Goodwill impairment charges(2)(3)	—			571
Asset impairment charges(2)(3)	4			57


Non-GAAP net income attributable to Leidos common stockholders	$	398		$	280

Operating cash flow conversion ratio	180		%	(199)		%
Non-GAAP free cash flow conversion ratio	159		%	266		%

(1) After-tax expenses excluded from non-GAAP net income.

(2) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(3) Non-GAAP tax rates were revised for the three months ended September 29, 2023, from using a blended rate to an individual tax rate for each non-GAAP adjustment, as this approach better reflects the allocation of the tax adjustment.