Leidos Holdings (NYSE:LDOS) reported record fiscal 2025 results on Tuesday, fueled by a surge in demand for national security and AI-enabled cyber solutions, while simultaneously announcing a massive $2.4 billion acquisition of ENTRUST Solutions Group to double its footprint in the power and utility sector.
The Reston, Virginia-based defense and technology leader posted full-year revenues of $17.17 billion, a 3% increase over the prior year.
Profitability saw an even sharper climb, with annual diluted earnings per share (EPS) jumping 21% to $11.14.
The company’s fourth-quarter results, however, showed a slight 4% revenue dip to $4.21 billion, which management attributed to the timing of product deliveries and the divestiture of its Varec business earlier in the year.
The centerpiece of the earnings announcement was the definitive agreement to acquire ENTRUST Solutions Group for $2.4 billion in cash.
The deal is a cornerstone of Leidos’ "NorthStar 2030" strategy, aimed at diversifying away from pure-play defense toward resilient, high-margin commercial sectors.
By absorbing ENTRUST, Leidos will effectively double its current $600 million energy engineering business.
The move positions the company to capture a larger share of the projected $1 trillion in U.S. utility investments expected over the next decade as providers modernize aging grids and integrate renewable energy sources.