Q3 2025 Earnings Summary
Metric | YoY Change | Reason |
---|---|---|
Total Revenue | +7% | Underlying Business Factors: Expanded portfolios in health, defense, and civil programs led to higher contract volumes and new awards. Market Conditions: Continued federal spending and stable demand in key markets supported revenue growth. |
U.S. Revenue | +8% | Underlying Business Factors: Increase in domestic managed health services and defense-related contracts boosted sales. Company-Specific Initiatives: Focus on U.S. government opportunities led to strong backlog execution, improving year-over-year performance. |
Operating Income (EBIT) | $516M vs. -$336M in Q3 2024 | Previous Values: Q3 2024 was impacted by one-time charges and contract write-downs, leading to negative EBIT. Current Period: Cost controls, program wins, and better execution drove margins higher, reversing the prior-year loss. Forward-Looking: A more profitable contract mix may sustain operating momentum. |
Net Income | $362M vs. -$396M in Q3 2024 | Previous Values: Large non-cash impairment and restructuring expenses weighed on prior-year results. Current Period: Higher revenues, improved cost management, and absence of major write-downs significantly lifted profitability. Forward-Looking: Continued focus on high-margin segments could maintain stronger net income. |
EPS – Basic | $2.70 vs. -$2.91 in Q3 2024 | Underlying Business Factors: Net income growth and fewer shares outstanding, due to share repurchases, amplified EPS. Company-Specific Initiatives: Operational efficiencies and the recovery from one-time charges in Q3 2024 boosted earnings per share. Forward-Looking: Future repurchases and steady margins may continue to support EPS. |
Net Change in Cash | -22% YoY | Previous Values: Prior period included higher cash proceeds from contract completions and favorable working capital timing. Current Period: Increased capital deployment for strategic initiatives and share repurchases reduced cash inflows. Company-Specific Challenges: Balancing investments in growth with maintaining liquidity remains a focus area. |
Research analysts covering Leidos Holdings.