Leidos unveils Sea Dagger craft for Royal Navy commando operations

Published 04/09/2025, 16:54
Leidos unveils Sea Dagger craft for Royal Navy commando operations

LONDON - Defense technology company Leidos (NYSE:LDOS), a prominent player in the Professional Services industry with a market capitalization of $22.85 billion, has introduced Sea Dagger, a new Commando Insertion Craft concept designed for the Royal Navy, according to a company press release issued Thursday. According to InvestingPro analysis, Leidos currently appears undervalued based on its Fair Value estimate.

The craft is being developed under the UK Commando Force program, which aims to deliver 24 medium surface insertion vessels. Sea Dagger can reportedly exceed speeds of 40 knots and combines vehicle delivery capabilities with modular mission systems. With a strong financial health score rated as "GREAT" by InvestingPro, Leidos demonstrates the financial stability needed for such major defense projects.

The vessel incorporates Leidos technology including autonomous systems, integrated weaponry, and what the company calls "Trusted Mission AI." The design focuses on operational resilience with emphasis on readiness and maintainability.

Adam Clarke, senior vice president and chief executive at Leidos UK & Europe, said the craft "represents a pivotal step in equipping the UK Commando Force with the capability to operate with greater agility, survivability and intent in a complex and congested maritime environment."

According to the announcement, Sea Dagger aligns with AUKUS Pillar 2 maritime autonomy objectives and the UK Strategic Defence Review’s goals. AUKUS is a security partnership between Australia, the United Kingdom, and the United States.

The company states the craft is the first of its size to combine speed, range, vehicle delivery and modular mission systems into a single platform. The design builds on Leidos’ experience in fast-craft development spanning more than 30 years.

Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025. The company maintains impressive financial metrics, with a healthy return on equity of 31% and operates with a moderate level of debt. InvestingPro subscribers have access to 14 additional key insights about Leidos, including detailed analysis of its growth trajectory and financial health metrics.

In other recent news, Leidos Holdings has reported strong second-quarter financial results, leading to an increase in its fiscal year 2025 guidance. Stifel responded to these results by raising its price target for the company to $204, maintaining a Buy rating, as Leidos exceeded EBITDA estimates by 18%. UBS also raised its price target to $184 from $168, citing impressive margin performance despite an uncertain government spending environment, while maintaining a Neutral rating. Leidos has secured a $105.5 million contract from the U.S. Department of Defense to support the Naval Health Research Center, focusing on operational readiness research services.

Additionally, Leidos announced a strategic partnership with Second Front Systems to enhance software delivery across federal agencies. This collaboration aims to streamline the approval process for commercial and government software through the Game Warden platform. Meanwhile, UBS noted a significant decline in Leidos’ second-quarter funded Health & Civil backlog, with a 60% year-over-year and 35% quarter-over-quarter drop. Despite these challenges, UBS maintains a Neutral rating on the stock, acknowledging recent Veterans Benefits Administration contract developments. These developments reflect Leidos’ ongoing efforts to navigate the current market environment and secure new opportunities.

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