RESTON, Va. - Leidos (NYSE: LDOS), a Fortune 500 innovation company, has been awarded a $249 million contract to enhance security at 92 Army and Joint-Service installation access points worldwide. The Automated Installation Entry (AIE) Next Generation contract, a single award Indefinite Delivery, Indefinite Quantity (IDIQ) agreement, was granted by the Army Contract Command for the Program Executive Office Intelligence, Electronic Warfare & Sensors.
Under the six-year contract, Leidos will expand its work as the AIE prime contractor, continuing to transform the Army's enterprise Physical Access Control System into a cloud-based solution incorporating advanced biometric modalities. This effort aims to provide secure, frictionless entry for authorized personnel and vehicles at military access points by validating identification against authoritative and law enforcement databases.
Mike Diggins, Senior Vice President of Homeland and Force Protection Solutions at Leidos, emphasized the company's commitment to security and innovation, stating, "Our use of cloud technology and biometrics applications is intended to enable secure, frictionless pedestrian and vehicle throughput at military access control points."
The company, which reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023, develops its biometric systems to include evolving cybersecurity protections and enable near real-time updates to authentication requirements in response to changing force protection conditions.
Work on the AIE program will be performed on site at Army and Joint-Service installations, with systems engineering and test activities primarily conducted at Leidos' facility in Edgewood, Maryland. The contract represents a continuation of Leidos' efforts to provide cloud-scale solutions and persistent innovation in force protection.
The information in this article is based on a press release statement from Leidos Holdings (NYSE:LDOS), Inc.
In other recent news, Leidos has seen a significant uptick in revenue and earnings, reporting a 7.7% year-over-year increase in revenue, reaching $4.13 billion, and a 33% rise in adjusted EBITDA to $559 million. The company also secured several major contracts, including a $303 million contract from the Department of the Air Force for the management of the Advanced Battle Management System – Digital Infrastructure and a $51 million contract by the Centers for Disease Control and Prevention for the enhancement of the National Healthcare Safety Network. Leidos also appointed Leslie Fautsch as its new chief human resources officer and Thomas J. Downey as the new Executive Vice President and Chief Communications and Marketing Officer. Truist Securities upgraded its price target for Leidos, citing potential value from its existing portfolio and opportunities for profit margin expansion through cost optimization strategies. These are recent developments in the company's performance and strategic focus.
InvestingPro Insights
Leidos' recent $249 million contract win aligns well with its strong market position and financial performance. According to InvestingPro data, the company boasts a market capitalization of $22.49 billion and has demonstrated impressive revenue growth of 7.86% over the last twelve months as of Q2 2024, reaching $16.01 billion. This new contract is likely to contribute positively to the company's future revenue streams.
InvestingPro Tips highlight Leidos' financial strength and market performance. The company has maintained dividend payments for 13 consecutive years, showcasing its commitment to shareholder returns. Additionally, Leidos is trading near its 52-week high, reflecting investor confidence in its business model and growth prospects.
The company's profitability is also noteworthy, with an operating income margin of 9.97% over the last twelve months. This robust profitability supports Leidos' ability to invest in innovative technologies like the cloud-based biometric systems mentioned in the contract.
For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips for Leidos, providing a deeper understanding of the company's financial health and market position.
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