Leidos realigned its business into four segments: National Security & Digital, Health & Civil, Commercial & International, and Defense Systems. This strategic realignment aims to focus on specific capability sets and better serve customer needs.

Net bookings increased to $23.4 billion in fiscal 2024 from $16.5 billion in fiscal 2023, representing a substantial increase. This indicates strong demand for Leidos' services and solutions and suggests positive future revenue growth.

The SES reporting unit made strategic business decisions to exit certain product offerings and cease operations in certain countries. This indicates a focus on streamlining operations and optimizing the portfolio, which could impact future growth and profitability.

Management is focused on improving back-office infrastructure and related business processes for greater effectiveness and efficiency across all business functions. This indicates a commitment to operational excellence and cost management.

Management is focused on disciplined deployment of cash resources and use of capital structure to enhance shareholder value while retaining an appropriate amount of financial leverage. This indicates a commitment to shareholder returns and prudent financial management.

Thomas A. Bell appointed as CEO on May 3, 2023, and Gerard A. Fasano appointed as Executive Vice President, Chief Growth Officer since January 2024. These changes in leadership could signal shifts in strategy or operational focus.

Approximately 87% of Leidos' revenues are derived from U.S. government contracts, making the company highly susceptible to changes in government spending, budgetary priorities, and delays in contract awards. A decline in government spending or changes in priorities could significantly affect future revenues.

The competitive process to obtain contracts, coupled with the likelihood of bid protests, presents a risk to achieving and sustaining revenue growth and profitability. This highlights the challenges Leidos faces in securing new business and managing potential disruptions.

Non-compliance with complex procurement rules and regulations could lead to penalties, including contract termination, disqualification from bidding, and suspension or debarment from U.S. government contracting. This underscores the importance of maintaining robust compliance programs.

Leidos faces intense competition from larger companies with greater resources and smaller, more specialized companies. This competitive pressure can impact the company's ability to obtain contracts and affect future revenues and growth prospects.

Leidos depends on teaming arrangements and relationships with other contractors and subcontractors, and if these parties fail to satisfy their obligations, Leidos' revenues, profitability, and growth prospects could be adversely affected. This highlights the importance of managing these relationships effectively.

Leidos competes with the U.S. government's own capabilities and federal non-profit contract research centers, which could limit the company's opportunities. This suggests a need to differentiate Leidos' offerings.

Leidos reduced leased space by exiting and consolidating underutilized buildings, indicating efforts to improve operational efficiency and reduce costs. This indicates a focus on optimizing resource utilization.

Leidos is focused on improving back-office infrastructure and related business processes for greater effectiveness and efficiency across all business functions. This indicates a commitment to streamlining operations and reducing administrative overhead.

Global supply chain issues and inflationary pressures have disrupted supply and increased the prices of goods and services, potentially impacting profitability. This highlights the importance of effective cost management and supply chain strategies.

Leidos emphasizes its role as an industry and technology leader, leveraging seven technical core capabilities. This highlights the importance of innovation and technological advancement in the company's strategy.

Leidos utilizes artificial intelligence, which could expose the company to liability or adversely affect its business, especially if it is unable to compete effectively with others in adopting artificial intelligence. This highlights the need to manage the risks associated with AI while capitalizing on its potential.

Leidos' success depends, in part, on its ability to work with complex and rapidly changing technologies to meet the needs of its customers. This underscores the importance of continuous learning and adaptation.

Leidos has an active share repurchase program, indicating management's belief that the company's stock is undervalued. This can positively impact shareholder value.

Leidos continues to pay quarterly dividends, demonstrating a commitment to returning capital to shareholders. The declaration of future dividends depends on various factors.

Leidos has made and continues to make acquisitions, investments, joint ventures and divestitures that involve numerous risks and uncertainties. This indicates a dynamic approach to portfolio management.

Increasing attention from stakeholders on ESG practices may require Leidos to expend resources to monitor, report on, and adopt policies and practices. This could impose additional costs on the company.

Leidos strives to ensure that its reputation across climate science, environmental management and operations, nuclear security, infrastructure management, mission support and IT modernization provides the applicable expertise needed to transform operations while modernizing aging infrastructure and maintaining environmental stewardship.

Leidos emphasizes the importance of ethics and compliance, with policies, procedures, training programs, and compliance controls designed to prevent and detect misconduct. This contributes to a strong corporate governance framework.

Laws and plans adopted by the U.S. government relating to, along with pressures on and uncertainty surrounding the U.S. federal budget, potential changes in budgetary priorities and defense spending levels, the appropriations process and the permissible federal debt limit, could adversely affect the funding for individual programs and delay purchasing or payment decisions by our customers.

Ongoing instability and current conflicts in global markets, including in Eastern Europe, the Middle East, and Asia, and the potential for other conflicts and future terrorist activities and other recent geopolitical events throughout the world, including the ongoing conflict between Russia and Ukraine, the ongoing conflict in the Middle East, which continues to expand, and increased tensions in Asia, have created and may continue to create economic and political uncertainties and impacts that could have a material adverse effect on our business, operations, and profitability.

Leidos is subject to various laws and regulations in the U.S. and globally relating to data privacy and security. These laws and regulations are complex, constantly evolving, and may be subject to significant change in the future. In addition, the application, interpretation and enforcement of these laws and regulations are often uncertain, particularly in new and rapidly evolving areas of technology, and may differ in material respects among jurisdictions, interpreted and applied inconsistently among jurisdictions or in a manner that is inconsistent with our current policies and practices, all of which can make compliance challenging and costly, and expose us to related risks and liabilities.