Leidos Holdings (LDOS) Company Report

Leidos to acquire Entrust Solutions Group for ~$2.4 billion in cash (≈16× next-twelve-month EBITDA)
Acquisition brings $650 million in annual revenues and 3,100 employees, adding power generation and gas infrastructure capabilities
Deal expected to be EPS-accretive in 2027 with cost and revenue synergies via Leidos’ AI tools and pro forma leverage of 2.6× debt/EBITDA
Closing targeted in Q2 2026, making Leidos the third-largest transmission & distribution and fourth-largest power engineering firm in the U.S.

Jan 26, 2026, 1:00 PM

Transcript

Leidos to acquire ENTRUST Solutions Group

LDOS

M&A

Leidos will acquire ENTRUST Solutions Group, a premier power and energy service provider, for $2.4 billion in an all-cash transaction.
The deal adds $650 million of annual revenue at attractive margins, creating a $1.3 billion combined energy platform with clear visibility to double-digit growth.
The acquisition will be financed with a committed bridge facility, $1.4 billion in bond issuance, $500 million of cash on hand and $500 million of commercial paper, yielding 2.6x pro forma gross debt to trailing EBITDA.
Strategically aligned with Leidos’ North Star 2030, the transaction adds 3,100 employees, complements transmission, distribution and generation services, and positions Leidos as the third-largest T&D and fourth-largest power engineering firm in the U.S..

Jan 26, 2026, 1:00 PM

Transcript

Leidos to acquire Entrust Energy Services Group

LDOS

M&A

Leidos will acquire Entrust Energy Services Group for $2.4 billion in an all-cash transaction.
The deal is expected to be accretive to 2026E revenue (pro forma ~$1.3 billion) and boosted to a high-teens adjusted EBITDA margin.
Financing comprises $1.4 billion new debt, $500 million cash, and $500 million commercial paper, resulting in pro forma gross leverage of 2.6x.
The transaction is expected to close in Q2 2026, subject to regulatory approvals.
This acquisition aligns with Leidos’s NorthStar 2030 strategy to expand its energy infrastructure capabilities and diversify its blue-chip client base.

Jan 26, 2026, 1:00 PM

Presentation

Leidos announces acquisition of Entrust Solutions Group

LDOS

M&A

Leidos will acquire Entrust Solutions Group, a premier power and energy service provider, for an all-cash purchase price of $2.4 billion.
Entrust contributes approximately $650 million in annual revenues and was valued at a multiple of 16x next twelve-month EBITDA before synergies.
The deal adds depth to Leidos’s energy growth pillar—expanding transmission & distribution and power generation capabilities—and integrates 3,100 employees, accelerating scale and market reach.
The transaction is expected to close in Q2 2026, financed with $1.4 billion of bond issuances, $500 million of cash on hand, and $500 million of commercial paper, resulting in pro forma leverage of 2.6x EBITDA.

Jan 26, 2026, 1:00 PM

Transcript

Leidos to Acquire ENTRUST Solutions Group

LDOS

M&A

All-cash $2.4 billion acquisition of ENTRUST Solutions Group to double Leidos’ $600 million energy infrastructure engineering business and expand into utility gas and electric generation markets.
Complementary capabilities and national footprint broaden Leidos’ utility client base across generation, transmission and distribution while building on eight years of double-digit growth and margins.
Pro forma 2026E revenue of $1.3 billion with mid-teens growth and high-teens adjusted EBITDA margin; transaction is immediately accretive to revenue growth, adjusted EBITDA margin and non-GAAP EPS in 2027.
Financed with $1.4 billion bridge facility, $500 million cash and $500 million commercial paper, resulting in a pro forma gross leverage of 2.6x; expected close in Q2 2026 subject to regulatory approvals.

Jan 26, 2026, 11:28 AM

8-K

Leidos to acquire ENTRUST Solutions Group for $2.4 B

LDOS

M&A

New Projects/Investments

Leidos signed a definitive agreement to acquire ENTRUST Solutions Group from Kohlberg for $2.4 billion, expanding its position in utility engineering services.
The transaction will double the size of Leidos’ $600 million energy infrastructure engineering business and add capabilities in both gas and electric generation markets.
Expected to close by end of Q2 2026, the deal is projected to be immediately accretive to revenue growth and adjusted EBITDA margin, and accretive to non-GAAP EPS in 2027.
ENTRUST brings 3,100+ professionals across 40+ North American locations, creating a combined network of 5,500+ energy professionals under Leidos’ NorthStar 2030 strategy.

Jan 26, 2026, 11:01 AM

Press Release

Leidos partners with OpenAI to deploy AI in federal operations

LDOS

New Projects/Investments

Leidos and OpenAI will integrate generative and agentic AI into core workflows of federal agencies—spanning digital modernization, health services, national security, infrastructure, and defense—as part of Leidos’ NorthStar 2030 strategy.
The collaboration seeks to move government AI use from experimentation to real-world deployment, enhancing efficiency, resilience, and public service delivery.
Thousands of Leidos employees will leverage OpenAI’s ChatGPT and API Platform for internal automation, accelerating product design and tasks such as global threat assessments, supply chain monitoring, and deepfake detection.
Leidos reported annual revenues of $16.7 billion for the fiscal year ended January 3, 2025, and has 47,000 employees worldwide, underscoring its capacity to scale AI solutions.

Jan 22, 2026, 8:00 PM

Press Release

Leidos and CargoSeer collaborate on customs inspection AI integration

LDOS

New Projects/Investments

On Dec. 8, 2025, Leidos (NYSE: LDOS) and AI software firm CargoSeer partnered to integrate CargoSeer’s advanced trade-analysis algorithms into Leidos’ Mezzo™ Enterprise Software Platform, enhancing non-intrusive inspection and security solutions for customs and border protection agencies.
The combined solution aims to deliver instant, actionable intelligence for faster security risk assessments and trade compliance at ports of entry without hindering cargo flow.
Both companies plan further integration efforts following the initial rollout.
Leidos, with 47,000 employees and FY 2025 revenues of $16.7 billion, reinforces its border security offerings through this AI-driven collaboration.

Dec 8, 2025, 1:00 PM

Press Release

Leidos secures $127M Hawaiʻi Energy contract

LDOS

New Projects/Investments

Leidos won a three-year, $127 million contract to continue administering Hawaiʻi’s Energy program and Electric Vehicle Charging Station Rebate program for the Public Utilities Commission, extending work it has performed since 2009.
The scope includes managing market solutions, educational initiatives, and training to lower energy costs, cut carbon emissions, and enhance the state’s energy resiliency.
Since its inception, Hawaiʻi Energy has delivered over $7 billion in statewide savings; in the most recent program year, it issued more than 18,000 rebates totaling $20 million.
The award aligns with Leidos’ NorthStar 2030 strategic focus on energy infrastructure; the company reported $16.7 billion in revenue for FY 2025 and has 47,000 employees worldwide.

Dec 4, 2025, 9:01 PM

Press Release

Leidos at Goldman Sachs Industrials and Materials Conference 2025

LDOS

Revenue Acceleration/Inflection

New Projects/Investments

Leidos navigated the longest U.S. government shutdown and DOGE-related delays, raised its 2025 guidance twice with strong Q3 organic revenue growth and book-to-bill, and expects momentum to accelerate into late 2026 and beyond.
Management identified multi-billion-dollar growth pillars: defense systems (~15% of revenue), cyber within its Digimod segment, and a fast-growing energy infrastructure engineering business.
The health segment, Leidos’s leading grower and margin performer, will consolidate recent gains with key VA disability exam contracts up for recompete in late 2026.
Leidos is bidding on major Golden Dome counter-UAS/missile defense IDIQs and plans to compete for FAA’s Common Automation Platform as a subcontractor, leveraging existing hardware/software offerings.
The company targets 13%+ adjusted operating margins sustainably, driven by scale in defense systems, higher-margin commercial energy projects, and internal AI-enabled efficiency programs through 2026–28.