Leidos touts hiring success as backlog grows

Government services companies like Leidos have to grow headcount as they win more contracts and add those into backlog. Leidos is seeing some signs of success after the first quarter of this year.

Leidos is scoring some wins on the recruiting front as the government services company looks outside the Washington, D.C. metropolitan region for new sources of talent amid ongoing robust competition for skilled technical talent.

During Leidos first quarter earnings call Tuesday, executives said the company added 2,000 employees during the January-March period as it targets headcount growth of 5-to-6.5 percent for the year. Leidos reported nearly 32,000 employees on its roster last year.

The company and its peers have to grow talent as their backlogs also increase. Leidos reported a record $21.5 billion backlog as of the first quarter’s end with $6.1 billion of it funded. The company booked $3.3 billion in awards for the quarter at a book-to-bill ratio of 1.3, which indicates future revenue growth as that reading is greater than 1.0.

Reston, Virginia-based Leidos is one of several contractors that have embraced the so-called “onshoring” concept to find more talent outside of a D.C. area many economists see at essentially zero unemployment, or even negative unemployment as another way to put it.

Amazon’s future "HQ2 site in Arlington’s Crystal City is a main factor to consider in the fight for technical talent in both the public and private sectors.

CEO Roger Krone said Tuesday the company does “significant software” work in Denver, Colorado Springs and San Diego. That is in addition to the software factory opened last year in Morgantown, West Virginia and a second one being built in Charlottesville, Virginia -- both within the vicinity of the University of Virginia and University of West Virginia.

“We still have some customers who want our team within 15 miles of their facility and that puts some constraints on where we hire,” Krone told analysts. “So there's always this emphasis in the National Capital Region.

“I won't call it a sea change, but we are seeing more flexibility on behalf of customers for us to move the work to where we can hire people.”

As Krone pointed out, the National Geospatial-Intelligence Agency is one example of a government customer being more flexible. NGA is building a second major campus to be called “NGA West” in downtown St. Louis.

Leidos’ first quarter revenue of $2.6 billion showed a 5.5-percent increase over the prior year period. The company left its revenue outlook for this year unchanged at $10.5 billion-to-$10.9 billion for the year, which would show growth of 3-to-7 percent.

Profit margin expectations remain at 9.9-to-10.1 percent adjusted earnings before interest, taxes, depreciation and amortization. Leidos indicated in January they were prioritizing sales growth this year and that would pressure margins somewhat.

Here is what Leidos is also expecting this year: a continuing resolution to start the 2020 government fiscal year Oct. 1. Despite a stopgap spending bill being “always a little bit of (a) dampening,” Krone said he is hopeful for another two-year budget agreement to “get us on the other side of the presidential elections.”

What is Leidos is waiting on this year? An award on the $3.5 billion Navy NGEN IT services contract it is looking to wrestle away from incumbent Perspecta, plus a decision on the Defense Information Systems Agency’s $6.5 billion “GSM-O” contract to run DISA’s global information grid.

Leidos is the incumbent on GSM-O and Perspecta is pursuing that award as a takeaway opportunity.

Leidos is also awaiting the outcome of a protest on a $2.9 billion NASA end-user IT services contract they won in February from incumbent Perspecta. A Government Accountability Office ruling on that protest is anticipated by June.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.