LEIDOS, INC.: $318M Department of Homeland Security Contract
Summary
Leidos Holdings ($LDOS) secured a $318M contract from CBP for traveler vetting software, representing ~2.1% of annual revenue. This award reinforces Leidos' position in homeland security IT and provides a multi-year revenue stream.
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Key Takeaways
- 1.Leidos ($LDOS) wins $318M CBP contract for traveler vetting software, ~2.1% of annual revenue.
- 2.Multi-year contract (2024-2027) provides revenue visibility for Leidos' Civil segment.
- 3.No direct legislative connection, but aligns with homeland security spending trends.
Market Implications
Leidos is the primary beneficiary, with the contract boosting its backlog and supporting its Civil segment. The stock may see modest positive sentiment from this award, but given its size relative to $15.3B revenue, the impact is limited. Investors should monitor Leidos' Civil segment performance and future task orders under this BPA. No other public companies are directly impacted, though subcontractors like CACI ($CACI) could see indirect benefits.
Full Analysis
Leidos, Inc., a subsidiary of Leidos Holdings, Inc., has been awarded a $318M BPA Call contract by the U.S. Customs and Border Protection (CBP) for Travelers Processing Vetting Software Task Order 7. This contract runs from September 2024 to May 2027, providing a steady revenue stream over nearly three years. Leidos is a leading provider of technology solutions for defense, intelligence, and civil markets, and this award specifically supports its Civil segment, which focuses on homeland security and border management. The $318M award represents approximately 2.1% of Leidos' FY2025 annual revenue of $15.3B, making it a meaningful but not transformative addition. The company's financial health is solid, with $641M in cash and $13.0B in total assets, allowing it to execute on such contracts without strain. The contract is a task order under an existing BPA, indicating a strong, ongoing relationship with CBP. While no specific legislation is directly tied to this award, the broader trend of increased homeland security spending supports such contracts. Supply chain beneficiaries could include smaller IT and software firms that subcontract with Leidos, such as CACI International ($CACI) or Booz Allen Hamilton ($BAH), though specific subcontractors are not named. Historically, Leidos has seen consistent revenue growth from its Civil segment, and this award aligns with that pattern. The contract is a positive signal for Leidos' backlog and future revenue, but given its size relative to total revenue, the impact is moderate.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
LEIDOS, INC.: $422M Department of Homeland Security Contract
CACI, INC. - FEDERAL: $478M Department of Homeland Security Contract
CACI, INC. - FEDERAL: $478M Department of Homeland Security Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Presidential Determination Pursuant to Section 101 of the Defense Production Act of 1950, as Amended, on Recoverable Critical Minerals and Materials
This memorandum invokes the Defense Production Act (DPA) Section 101 to declare that recoverable critical minerals and materials (such as black mass, end-of-life rare-earth magnets, and scrap) are essential to national defense and that the U.S. cannot meet defense needs without disrupting civilian markets. It directs the Secretary of Commerce to issue regulations and take actions—including priority contracts and supply-chain interventions—to rapidly expand domestic recovery and processing of these materials, while explicitly excluding copper scrap already covered by a separate proclamation.
Further Strengthening Actions Taken to Adjust Imports of Aluminum into the United States
This proclamation modifies the Section 232 tariff regime on aluminum imports by authorizing the Secretary of Commerce to establish a program that incentivizes new U.S. investment in primary aluminum production. Companies with approved onshoring plans can import primary aluminum at half the standard Section 232 duty rate, up to the anticipated annual output of their new or expanded facilities, with construction required to start by January 20, 2029. The action aims to boost domestic primary aluminum supply for national security and defense industrial base needs.
Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials
This executive order restricts waivers for foreign-sourced critical materials in defense contracts, effective January 1, 2027, and mandates that defense contractors map their supply chains from raw materials to end products, vet subcontractors for risks, and prohibit covered materials from unreliable foreign suppliers. It directs the Secretary of War to enforce strict compliance, including requiring mitigation plans for any non-compliant materials and establishing penalties for fraud or willful noncompliance.
Contract Details
Recipient
LEIDOS, INC.
Award Amount
$318,445,310
Awarding Agency
Department of Homeland Security
Sub-Agency
U.S. Customs and Border Protection
Contract Type
BPA CALL
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