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Research Alert: Ldos Q1: Revenue Beat And Strong Cash Flow Counter Margin Compression

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

LDOS delivered solid Q1 results with adjusted EPS of $3.13 vs $2.97 prior year, beating consensus by $0.22. Revenue grew 4% Y/Y (+3% organic) to $4.40B, exceeding estimates by $110M, driven by Intelligence, commercial energy infrastructure, and air traffic management demand. The quarter's standout performance was exceptional cash generation, with operating cash flow reaching $301M vs $58M prior year and free cash flow improving to $270M from $36M, delivering 67% conversion driven by solid EBITDA generation and effective working capital management. However, adjusted EBITDA margin contracted 20 bps to 14.0% due to acquisition-related costs. Net bookings of $3.3B resulted in quarterly book-to-bill of 0.8x, though trailing-12-month ratio remained healthy at 1.1x. Total backlog reached $48.4B with funded backlog of $9.6B, representing 4% and 31% Y/Y growth respectively, providing enhanced revenue visibility going forward.

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Research Alert: Wec Energy Beats Q1 Estimates; Capex Up 16.7%, Ahead Of Data Center Demand

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:WEC Energy delivered solid Q1 results with adjusted EPS up 7.9% Y/Y, beating consensus by 6.5%, while revenue increased 9.0% to $3.43B (+0.5% vs. consensus), driven by higher rates and modest volume growth. Weather-normalized retail electricity deliveries rose 1.3% with large C&I customers leading at 2.7% growth, though natural gas deliveries declined 3.5% due to milder conditions. The diversified utility portfolio positions WEC well for accelerating demand growth expected around 2027 from data centers and manufacturing facilities. WEC reaffirmed 2026 EPS guidance of $5.51-$5.61, aligning with 7%-8% EPS growth expectations over five years. Capital investment remained elevated at $817.9M (+16.7% Y/Y) supporting infrastructure expansion, while operating cash flow of $1.22B provides strong coverage for capex and dividends. The company maintained dividend growth with a 6.7% increase to $0.9525 per share, reinforcing its track record of reliable earnings and shareholder returns.

$WEC