Leidos Holdings, Inc. Jefferies Global Industrials Conference 2026

All right. Good morning, everyone.

Yeah, definitely. Well, thanks, Sheila. It's always great to be here with you and the conference you guys put on, first-class job. Leidos, IT services is just one of the dimensions of what we do, and I think it's really our deep mission understanding with our customers. We're in the center of the action across so many different customers, and what we bring to bear is the expertise to ensure that their mission success is paramount. We've demonstrated that time and time again, which is why Leidos is positioned with some of the biggest programs on the digital side in the federal government domain, and then helping them manage their environments has led to how we can help them in other ways now, as we talk about software modernization, now branching into what we're doing in the defense side on the products, hardware arena.

Leidos is touching so many aspects of making their mission outcome successful, and that's the key to our success.

Sure. Well, Tom Bell came on board a little over three years ago now, and one of the first things we did under his leadership was refresh the strategy. Out of that process came NorthStar 2030, and we've identified five key growth pillars that have actually morphed slightly as we've fast-forwarded and got into execution mode. Just quickly, those are defense tech. A lot of great things going on in our defense tech portfolio. The demand signal from the customer is very robust. Our energy infrastructure growth pillar, we did a major acquisition earlier this year to add to that capability. Very excited about the demand signals in that domain as well. Cyber, clearly both on the offense and the defensive side, cyber, it's not getting any safer out there. The risk posture is highly elevated. Customers are demanding more capabilities.

Mission and digital, and again, we talked a little bit about that. Some of the IT digital services that we perform, mission software services we perform. Then finally, managed health services. So we've got these five growth pillars. We're seeing several of them that are really showing acceleration from growth and momentum perspective. Love to see that, and we've put our money where our mouth is on the investment side, as I mentioned, energy infrastructure. Before that, we added capabilities in the cyber domain. So that's the guiding Leidos' investment decisions is where we're going to put both our internal resources and inorganic plays to ensure that these five growth pillars achieve their full potential.

Well, certainly, as I mentioned, in the defense tech arena, we're seeing some of those programs. We've been carefully curating these contract vehicles and demonstrating our capability, and the demand signal continues to grow. So some of the areas you'll see increased output would be in our integrated air defense arena. Think our IFPC program, our counter-UAS with some of our passive radar detection capabilities under the ABAD program. Hopefully, we'll see a successful outcome of our maritime autonomy testing. We're in the thick of that right now with our Navy customer, and that could lead to some acceleration here in the fourth quarter if we're one of the awardees there. So we have a lot going on in that part of the business that'll be catalyst for some second half growth. I mentioned earlier the energy business. We had acquired ENTRUST. That is continuing to be a growth catalyst for us in the energy infrastructure side.

Then there's just any number of other programs. The FAA has been on a nice run this year. There's a demand signal to accelerate some of the programs that we had been operating on for them. They're looking to modernize the air traffic control experience. So in addition to some of the legacy programs that we're executing and accelerating, we're in the heat of the battle in a competitive process for a position on the Common Automation Platform of the future. Leidos feels like we're very well positioned to be a key player in that regard. So most of the things that are going to lead to second half acceleration are already in the bag in backlog and execution.

But there are a few things from an award perspective that we believe will play out, and those could provide some additional momentum heading into 2027.

Sure. FAA was very contentious this time last year.