Leidos Bundle

Who Really Owns Leidos?
Understanding the ownership structure of Leidos, a leading player in the defense and technology sectors, is crucial for investors and stakeholders alike. From its inception as Science Applications Incorporated (SAI) to its current status as a global powerhouse, Leidos's journey has been marked by significant shifts in ownership and strategic direction. Knowing Leidos SWOT Analysis can help you understand the company better.

This analysis will explore the evolution of Leidos's ownership, examining key milestones like the 2013 split from SAIC and the 2016 merger with Lockheed Martin's IS&GS. We'll delve into who owns Leidos, from its founder's initial vision to the current mix of institutional investors and public shareholders, providing insights into the Leidos company's trajectory and the influence of its Leidos leadership.
Who Founded Leidos?
The story of Leidos begins with its founder, Dr. J. Robert Beyster, who established the company in 1969. Originally named Science Applications Incorporated (SAI), the company was built on a unique foundation of employee ownership, a core principle that shaped its culture and growth. This model distinguished the company and played a key role in its early success.
Dr. Beyster, a nuclear physicist, launched SAI with a personal investment of $50,000 and a bank loan. His vision extended beyond just scientific endeavors; he aimed to create a company where every employee had a stake. This approach became a significant factor in attracting and retaining talent, fostering a collaborative environment where employees were encouraged to contribute to both scientific work and the overall management of the company.
SAI's evolution involved significant expansion, particularly in the national security and defense sectors during the 1980s. The company was renamed Science Applications International Corporation (SAIC) in 1984, reflecting its broader scope. Dr. Beyster remained at the helm as Chairman and CEO for over three decades, guiding SAIC through various projects. These included work on radiation therapy, cruise missile development, and environmental cleanups.
The initial ownership of Leidos, then SAI, was primarily held by its founder, Dr. J. Robert Beyster, and its employees. Beyster's emphasis on employee ownership was a defining characteristic of the company's culture and operational model. This approach fostered a sense of shared responsibility and encouraged employees to actively participate in the company's growth. The company's evolution and leadership under Dr. Beyster set the stage for its future expansion and diversification. Learn more about the Growth Strategy of Leidos.
- Who owns Leidos: Initially, Dr. J. Robert Beyster and employees.
- Leidos ownership: Employee ownership was a core principle.
- Leidos company history and ownership: SAI expanded into national security and defense in the 1980s.
- Who founded Leidos: Dr. J. Robert Beyster founded SAI in 1969.
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How Has Leidos’s Ownership Changed Over Time?
The question of 'Who owns Leidos' is central to understanding the company's structure. Leidos Holdings, Inc., a publicly traded entity on the NYSE under the ticker LDOS, has a diverse ownership structure. This includes institutional investors, individual shareholders, and company insiders. The ownership landscape has evolved significantly over time, shaping the company's strategic direction and market position. A key event was the 2013 split from SAIC, allowing Leidos to specialize in national security, health, and engineering solutions. The merger with Lockheed Martin's Information Systems & Global Solutions (IS&GS) business in August 2016 further solidified its position as a major player in the IT services sector within the defense industry.
The evolution of Leidos's ownership reflects strategic shifts and market consolidations. Understanding these changes is crucial for anyone interested in the company's trajectory. The company's history, including its split from SAIC and the merger with IS&GS, has significantly impacted its ownership structure and strategic focus. For a deeper dive into its operational aspects, you can explore the Revenue Streams & Business Model of Leidos.
Ownership Category | Approximate Ownership (as of May 2025) | Key Holders (as of March 31, 2025) |
---|---|---|
Institutional Investors | 77.01% | Vanguard Group Inc. (11.87%), BlackRock, Inc. (9.03%), State Street Corp (4.45%) |
Public Companies and Individual Investors | 38.61% | Geode Capital Management, LLC (2.76%), JPMorgan Chase & Co (2.65%), First Trust Advisors LP (2.42%) |
Insiders | 0.73% |
As of May 2025, institutional investors hold the majority of Leidos's shares, approximately 77.01%. This significant ownership stake gives these institutions considerable influence over the company's direction. Key institutional holders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Public companies and individual investors hold about 38.61% of the stock, while insiders own around 0.73%. This distribution highlights the company's structure and the influence of various stakeholders in the Leidos corporation.
Leidos's ownership is primarily held by institutional investors, indicating a strong institutional presence.
- The split from SAIC and the merger with IS&GS were pivotal events that shaped the company's ownership structure.
- Vanguard, BlackRock, and State Street are among the largest institutional shareholders.
- Understanding the ownership structure is crucial for assessing the company's strategic direction and market position.
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Who Sits on Leidos’s Board?
The current board of directors at Leidos plays a significant role in guiding the company's strategy and overseeing its operations. The size of the Board is determined by the Board itself, with a range between 7 and 14 members. Shareholders elect these directors annually at the company's annual meeting. In an uncontested election, a director is elected if they receive a majority of the votes cast. In a contested election, the directors are elected by a plurality of votes cast.
The election process and the composition of the board are crucial aspects of understanding Leidos's marketing strategy. The board's decisions can influence various aspects of the company, including its financial performance and strategic direction. The 2025 Proxy Statement, filed on March 17, 2025, provides details on the nominees for election to the board at the annual meeting held on May 2, 2025.
Director Name | Position | Date of Appointment |
---|---|---|
Roger A. Krone | Chairman of the Board | 2014 |
Thomas A. Bell | Lead Independent Director | 2019 |
Erich D. Bacher | Director | 2018 |
Leidos has one class of securities registered under Section 12 of the Securities Exchange Act of 1934: its common stock. Holders of common stock are entitled to one vote per share on all matters submitted for action by the stockholders. The company's bylaws and certificate of incorporation govern the voting structure and director removal. The Board has also adopted stock ownership guidelines to encourage directors to hold shares with a value of at least five times their annual cash retainer.
Understanding the voting structure is key to knowing who owns Leidos. Each share of common stock carries one vote, giving shareholders direct influence over company decisions. The Board's composition and the voting process are designed to ensure accountability and align the interests of the directors with those of the shareholders.
- Directors are elected annually by shareholders.
- Directors are generally removable with or without cause by an affirmative vote of a majority of the total voting power of all outstanding shares.
- The Board has stock ownership guidelines.
- The 2025 Proxy Statement outlines board nominees.
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What Recent Changes Have Shaped Leidos’s Ownership Landscape?
Over the past few years, the financial performance of the Leidos company has remained strong. For the fiscal year 2024, the company reported revenues of $16.7 billion, with an operating margin of approximately 9.8%. The backlog at the end of fiscal year 2024 was a substantial $43.6 billion. In the first quarter of fiscal year 2025, Leidos reported revenues of $4.25 billion, a 7% increase year-over-year, and a net income of $365 million. The backlog further increased to $46.30 billion at the end of March 2025.
Recent ownership trends reveal that institutional investors continue to dominate the shareholder base. Their holdings remained largely unchanged at 77.01% as of May 2025. Insider holdings saw minor fluctuations, increasing from 0.47% to 0.47% in May 2025. Leidos has also focused on shareholder-friendly initiatives, including paying quarterly dividends of $0.40 per share, resulting in an annualized dividend of $1.60. In the first quarter of 2025, the company paid $53 million in dividends and repurchased $528 million worth of its shares, an increase of 188.5% year-over-year. If you're interested in understanding the competitive landscape, you can explore the Competitors Landscape of Leidos.
Strategic moves include the acquisition of Kudu Dynamics in May 2025 to boost AI-enabled cyber capabilities and a tender offer in February 2025 to purchase its outstanding 3.625% Senior Notes due 2025. Leidos is aligning its 'NorthStar 2030 Strategy' with the U.S. administration's priorities, emphasizing investments in technologies and strengthening cyber capabilities. These initiatives show a proactive approach to growth and strategic alignment.
Institutional investors hold a significant portion of Leidos's shares, with holdings at 77.01% as of May 2025. Insider ownership remains relatively stable, showing minor fluctuations. The company's financial strategies include dividend payments and share repurchases.
In fiscal year 2024, Leidos reported $16.7 billion in revenue and an operating margin of 9.8%. The backlog reached $43.6 billion. The first quarter of 2025 showed continued growth with $4.25 billion in revenue, a 7% increase year-over-year, and a net income of $365 million.
Leidos acquired Kudu Dynamics to enhance its AI-driven cyber capabilities. A tender offer was launched to purchase Senior Notes due in 2025. The company is aligning its strategy with U.S. administration priorities, focusing on technology investments.
Leidos is committed to returning value to shareholders through quarterly dividends of $0.40 per share. In Q1 2025, $53 million was paid in dividends. Share repurchases totaled $528 million in Q1 2025, a 188.5% increase year-over-year.
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