Leidos at Jefferies Global Industrials Conference 2026: growth broadens

On Wednesday, September 9, 2026, Leidos Holdings Inc. (LDOS) participated in the Jefferies Global Industrials Conference to present its growth trajectory. CFO Chris Cage discussed the company's ability to raise guidance despite headwinds in the health sector, attributing its success to a mix of federal missions and commercial-like engineering work. Leidos' NorthStar 2030 plan is built around five growth pillars, positioning it at the center of major government programs.

The defense and homeland security sectors were the main drivers of growth, while health remained the most profitable segment. The company reported 4% organic growth in the second quarter and 5% in the first half of 2024. Leidos' $2.4 billion acquisition of ENTRUST is expanding its energy infrastructure business and broadening its addressable market by about 3x.

Leverage is low, and capital spending is easing to $250 million for 2024, leaving flexibility for future investments. Catalysts ahead include the FAA Common Automation Platform, the VBA recompete, and potential maritime and munitions awards. Leidos expects about 8% organic growth in the second half of 2024, driven by strength in defense and homeland security segments.

The defense segment generated $3.6 billion in revenue, representing 22% of total sales, with quarterly growth of 6%. The Integrated Fixed Tower Platform (IFPC) is producing four units a month and is expected to double by year-end 2024. Leidos also highlighted the $4 billion IDIQ vehicle tied to the IFPC program and a $869 million Army MACRO 2 contract.

In the homeland security segment, revenue increased by 32%, with 15% organic growth. Margins are improving, and the company is negotiating a one-year extension for sustainment and operations support with the Department of Defense on the MHS GENESIS electronic health record system. Despite near-term pressures in the health sector, Leidos maintains a strong portfolio and robust cash flow generation.