John Godden

John Godden with Citigroup Inc. asked for further details on Leidos' strong book-to-bill performance, inquiring about the expected acceleration in award activity and bookings throughout the year, especially given the absence of a dip seen in other services players.

Answer

CEO Thomas Bell explained that the consistent 1.3 book-to-bill ratio in Q3 and Q4 was a result of strategic investment in their growth function and new leadership. CFO Chris Cage added that the next twelve-month bid pipeline is robust, with a significant portion focused on new business and takeaways, indicating continued strong award activity.

John Godden from Citi asked for further elaboration on Leidos's book-to-bill performance, noting that while other services players saw a dip, Leidos maintained strong ratios. He sought additional color on the expectation for accelerating award activity and bookings backdrop throughout the year.

Answer

CEO Thomas Bell attributed the consistent 1.3 book-to-bill ratio in Q3 and Q4 2025 to purposeful investment in the growth function and new leadership over the past 2.5 to 3 years. He emphasized a robust pipeline and order backlog, with strong recompete and takeaway win rates. CFO Chris Cage added that the next 12-month pipeline of submittal activity was highest in Q4, with three-quarters geared towards new business and takeaways, indicating strong opportunities across segments.