Leidos secures $390 million NSA contract for SIGINT

Published 03/04/2025, 13:06
Leidos secures $390 million NSA contract for SIGINT

RESTON, Va. - Defense and technology company Leidos has been awarded a $390 million contract to supply the National Security Agency (NSA) with signals intelligence (SIGINT) capabilities, as well as engineering and analysis tools. The contract, which includes a base year with four additional option years, will encompass a wide array of services from Leidos, ranging from systems administration to engineering support. According to InvestingPro data, Leidos maintains a "GREAT" financial health score, positioning it well for major contract execution.

Under the terms of the single-award contract, Leidos will be responsible for delivering SIGINT capabilities, modifying analysis and reporting tools, providing engineering services, and managing labs and testbeds. Additionally, the company will handle the integration and testing, deployment, training, and sustainment of a subset of NSA systems.

Roy Stevens, president of Leidos’ National Security Sector, emphasized the importance of providing "tailored and unique SIGINT solutions" to maintain information superiority for military and intelligence operations. He stated that the contract allows Leidos to extend its engineering and technical expertise to the NSA.

Leidos, known for its cyber and IT managed services, as well as its work in radar, sensors, and other technologies, focuses on developing SIGINT technologies that ensure resilient communication, even in disruptive conditions. This commitment aims to keep critical mission data in continuous flow.

The company, headquartered in Reston, Virginia, employs approximately 48,000 people worldwide and reported annual revenues of around $16.7 billion for the fiscal year ending January 3, 2025. Leidos is recognized for serving government and commercial customers with digital and mission innovations designed to be smarter and more efficient.

The information regarding the contract is based on a press release statement from Leidos. It should be noted that the company’s statements about future expectations are classified as "forward-looking statements" and are subject to risks and uncertainties, which may result in outcomes that differ from those currently anticipated.

In other recent news, Leidos Holdings has been active with several significant developments. The company announced an accelerated share repurchase agreement to buy back $500 million of its common stock, reflecting its strategy to manage capital and return value to shareholders. This move is part of Leidos’ ongoing commitment to financial management and shareholder engagement. Additionally, Leidos has achieved a milestone in its collaboration with the UK Ministry of Defence by migrating the Support Chain Integration Platform to the Amazon Web Services cloud, enhancing the MOD’s operational capabilities.

In other updates, Leidos faced a setback as the Pentagon canceled a software project involving Oracle, which Leidos was part of, leading to concerns over lost potential revenue valued at approximately $75 million. Despite this, Jefferies maintained a Hold rating on Leidos, with a price target of $155.00, suggesting a stable outlook for the company. The analyst noted some potential pressures, including government layoffs affecting procurement cycles, but projected a 3% organic growth for Leidos in 2025.

Leidos’ involvement in the defense sector also saw positive sentiment as shares rose alongside other defense firms due to investor optimism, despite a White House rebuttal of a report affecting market sentiment. These developments highlight Leidos’ dynamic engagement in both strategic initiatives and market responses.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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