Leidos wins $35 million contract to modernize DoD data transfer tools

RESTON, Va. - Leidos (NYSE:LDOS), a prominent player in the Professional Services industry with a market capitalization of $19.2 billion, has secured a five-year, $35 million contract to modernize the tools that transfer critical data between classified and unclassified networks for the Defense Information Systems Agency (DISA), according to a press release statement issued Tuesday.

Under the Cross-Domain Enterprise Services program award, Leidos will integrate the design, engineering and operations of DISA’s data-sharing platform to enable faster mission performance across Department of Defense networks.

The contract is part of a Systems Engineering Technology and Innovation indefinite delivery/indefinite quantity agreement with DISA.

Paul Welch, vice president and division manager at Leidos, said, "Modern defense missions, driven by joint operations and real-time coordination, depend on the ability to transfer data across networks without delay or compromise."

The Virginia-based technology company, which reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025, will focus on developing secure data transfer capabilities between different security classification levels. According to InvestingPro analysis, Leidos maintains a strong financial health score and has consistently raised its dividend for 6 consecutive years, demonstrating solid operational performance. The stock currently appears to be trading below its Fair Value, according to InvestingPro’s proprietary valuation model.

Leidos employs approximately 47,000 people globally and has been a partner to DISA in operating and sustaining the DoD’s enterprise network infrastructure. With a healthy current ratio of 1.54 and operating with moderate debt levels, the company maintains strong financial flexibility. Investors seeking detailed insights can access comprehensive analysis and 8 additional ProTips through InvestingPro’s exclusive research reports.

The modernization effort aims to address the increasing need for secure data sharing across DoD mission networks while maintaining appropriate security protocols between systems with different classification levels.

In other recent news, Leidos Holdings, Inc. has made strategic moves to enhance its capabilities and manage its financial outlook. The company completed the acquisition of Kudu Dynamics for approximately $300 million, aiming to strengthen its AI cyber capabilities for defense and security clients. This acquisition is part of Leidos’ NorthStar 2030 strategy, focusing on cyber capabilities as a growth pillar. Meanwhile, Baird analysts downgraded Leidos’ stock from Outperform to Neutral, citing ongoing headline risks and a weaker bookings environment. Despite Leidos exceeding first-quarter financial expectations, Baird pointed to challenges such as contract terminations and weak government outlays.

Additionally, Leidos announced a trading blackout period for its Retirement Plan participants, starting in late June and ending in late July 2025. This suspension is due to administrative changes, including updates to the plan’s recordkeeper and trustee, and aims to prevent insider trading during this period. On a different note, ScanTech AI Systems Inc. appointed Brad Buswell as its new Chairman of the Board, replacing Karl Brenza. Buswell’s extensive experience in national security and aviation screening is expected to support ScanTech AI’s expansion efforts. These developments reflect significant changes and strategic decisions within these companies.

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