Leidos Holdings: Initiation of Coverage- Expaning Border Security Tech But Will $3 Billion in Funding Fuel Sufficient Growth?

Leidos’ second quarter results for 2025 reflected both positive growth and notable challenges. The company recorded robust revenue growth of 4.8% year-to-date, achieving record profitability with a 15.2% EBITDA margin and a 28% increase in operating cash flow for the quarter. These achievements were realized amidst a dynamic market environment and were attributed to Leidos’ strategic focus, centered on five growth pillars under their North Star 2030 strategy: space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services.