Leidos
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Leidos (LDOS) investor relations material

Leidos M&A announcement summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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M&A announcement summary26 Jan, 2026

Deal rationale and strategic fit

  • Acquisition aligns with the North Star 2030 strategy, advancing digital, mission, and energy infrastructure leadership while expanding into power generation, gas, and electric infrastructure.

  • Doubles the size of the energy infrastructure engineering business, expanding capabilities and customer base.

  • Cultural alignment and similar business models and compensation structures enable rapid integration and talent retention.

  • Supports national priorities for energy infrastructure resilience, security, and modernization, addressing growing demand and aging infrastructure.

  • Positions the combined entity as a top-three provider of transmission and distribution engineering services in the U.S., enhancing scale in a fragmented market.

Financial terms and conditions

  • All-cash purchase price of approximately $2.4 billion, representing a multiple of around 16x ENTRUST's next 12 months EBITDA, net of tax asset value.

  • Funded with $1.4 billion in bonds/new debt, $500 million in cash on hand, and $500 million in commercial paper; $1.4 billion bridge facility committed.

  • ENTRUST brings about $650 million in annual revenues at attractive margins, with clear visibility to double-digit revenue growth.

  • Expected pro forma leverage of 2.6x gross debt to trailing 12 months EBITDA at close, within target range.

  • Transaction expected to be immediately accretive to revenue growth and EBITDA margin, and accretive to non-GAAP diluted EPS by 2027.

Synergies and expected cost savings

  • Significant revenue and cost synergies anticipated, with technology integration (including AI tools like Skywire) expected to deliver up to 30% efficiency savings.

  • Clear visibility into run-rate cost synergies and increased scale expected to drive innovation and organic growth.

  • Cross-selling opportunities in IT and cybersecurity services to ENTRUST customers.

  • Combined entity will have over 5,500 energy professionals, enhancing resources for complex utility and power market challenges.

  • Tens of millions of dollars in synergies expected to be realized on the bottom line.

What is the combined energy business growth outlook?
What new utility markets does ENTRUST open?
Detail the intended permanent financing for the debt.
How will AI tools specifically drive ENTRUST margins?
Future M&A focus beyond energy pillar?
What specific market drivers ensure sustained growth?
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Q4 202517 Feb, 2026
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Q4 202517 Feb, 2026

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Frequently asked questions

Leidos Holdings, Inc., provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through three segments: Aerospace, Defense and Intelligence Solutions; Health, Engineering and Operations; and Enterprises. The Aerospace, Defense and Intelligence Solutions segment engages in providing command, control, communications systems. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia.

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