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Leidos (LDOS) Wins $158M Contract for Command-and-Control Systems
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Leidos Holdings, Inc. (LDOS - Free Report) recently clinched a contract from Kessel Run, a division within the Air Force Life Cycle Management Center. The contract is valued at $158 million, on exercising all options.
Per the terms of the agreement, Leidos will develop and expand the Air Force's Command and Control Incident Management Emergency Response Application (C2IMERA) to include all Air Force installations, associated forward operating locations, and contingency locations for command and control and emergency management requirements.
Importance of C2IMERA
Developed by Leidos, C2IMERA is an automated Command and Control (C2) and emergency management system providing enhanced situational awareness through “a single pane of glass” to wing commanders, staff and their subordinates, whether in garrison or deployed. It is a government-owned software application system that provides an integrated composite picture of wing and unit resources for reporting, planning, force employment, emergency management, C2 monitoring and execution.
C2IMERA is an application focused on reporting, planning, force generation, emergency management, and command and control monitoring and execution. Its primary purpose is to conduct C2, allowing commanders and their staff to issue directives, plan and coordinate operations, conduct and track personnel recalls, accountability and status, and rapidly communicate to C2 personnel through a near real-time live-fed common picture.
As nations across the globe have been rapidly strengthening their defense arsenal in recent times, thanks to widespread unrest witnessed in different parts of the world, the need for improved situational awareness for warfighters has increased manifold. This must have been the primary catalyst that boosted the demand for state-of-the-art C2 monitoring system like LDOS’ C2IMERA.
Leidos currently supports approximately 25,000 C2IMERA users across 90 locations worldwide, which surely reflects the solid demand that this application enjoys in the global C2 market.
Growth Prospects
The need for more technologically advanced C2 monitoring systems has increased over the past few years, owing to notable improvements in communication technologies. Lately, geopolitical events like the Russian invasion in Ukraine and the ongoing unrest in the Middle East between Palestine’s Hamas group and Israeli militants have prompted the need for high-speed, low-latency communication systems.
To this end, the Mordor Intelligence firm expects the global command and control systems market to witness a CAGR of 2.3% during 2024-2029. This should bode well for Leidos, with the company’s ever-changing technologies and innovations covering a wide spectrum of markets with primary areas of concentration, including command and control systems.
Notably, Leidos develops primary strategic C2 planning systems, including Aimpoint Construction System (APCS), processing the creation of aimpoints for strategic weapon applications and the Attack Structure Manager system. Within the Command, Control, Communications, Computers Intelligence, Surveillance and Reconnaissance (C4ISR) operation, the company provides innovative technologies, unique methodologies, and world-class software and services for customers in the broader intelligence, surveillance and reconnaissance community.
Opportunities for Peers
LDOS apart, other defense majors that enjoy a solid footprint in the command and control systems market and are thus expected to gain from this market’s expansion have been discussed below.
Northrop Grumman (NOC - Free Report) : The company is a critical partner in delivering advanced C4ISR capabilities, systems integration and open architectures across multiple domains. For 60 years, Northrop Grumman has been a leader in the design, development and delivery of end-to-end communications & advanced networking capabilities for U.S. and allied military forces operating across multiple battlespace domains.
The stock boasts a long-term earnings growth rate of 10.1%. The consensus estimate for NOC’s 2024 sales is pegged at $41.09 billion, indicating an improvement of 4.6% from the previous year’s reported sales.
Lockheed Martin (LMT - Free Report) : The company’s Rotary and Mission Systems unit designs, manufactures, services and supports command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance (C6ISR) programs. LMT’s C6ISR programs include the Command, Control, Battle Management and Communications (C2BMC) program for the U.S. Government, undersea combat system programs largely serving the U.S. Navy, and Australia's Joint Air Battle Management System (AIR 6500).
The stock boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for LMT’s 2024 sales is pegged at $69.22 billion, implying an improvement of 2.4% from the previous year’s reported level.
L3Harris Technologies (LHX - Free Report) : The company offers a complete maritime domain awareness C2 system. Its Vigilis is an efficient C2 system that monitors the movement of vessels around identified risk areas and regions to improve security and safety. It protects against and alerts to collisions, hostile vessels, smuggling, piracy, illegal immigration, obstruction of sea lanes, and pollution. The system is deployed in multiple international locations, including some of the world’s most critical water bodies.
The stock boasts a long-term earnings growth rate of 8.4%. The consensus estimate for LHX’s 2024 sales is pegged at $21.22 billion, indicating an improvement of 9.3% from the previous year’s reported figure.
Price Movement
Shares of Leidos have rallied 39.6% in the past year against the industry’s 7.6% decline.
Image: Bigstock
Leidos (LDOS) Wins $158M Contract for Command-and-Control Systems
Leidos Holdings, Inc. (LDOS - Free Report) recently clinched a contract from Kessel Run, a division within the Air Force Life Cycle Management Center. The contract is valued at $158 million, on exercising all options.
Per the terms of the agreement, Leidos will develop and expand the Air Force's Command and Control Incident Management Emergency Response Application (C2IMERA) to include all Air Force installations, associated forward operating locations, and contingency locations for command and control and emergency management requirements.
Importance of C2IMERA
Developed by Leidos, C2IMERA is an automated Command and Control (C2) and emergency management system providing enhanced situational awareness through “a single pane of glass” to wing commanders, staff and their subordinates, whether in garrison or deployed. It is a government-owned software application system that provides an integrated composite picture of wing and unit resources for reporting, planning, force employment, emergency management, C2 monitoring and execution.
C2IMERA is an application focused on reporting, planning, force generation, emergency management, and command and control monitoring and execution. Its primary purpose is to conduct C2, allowing commanders and their staff to issue directives, plan and coordinate operations, conduct and track personnel recalls, accountability and status, and rapidly communicate to C2 personnel through a near real-time live-fed common picture.
As nations across the globe have been rapidly strengthening their defense arsenal in recent times, thanks to widespread unrest witnessed in different parts of the world, the need for improved situational awareness for warfighters has increased manifold. This must have been the primary catalyst that boosted the demand for state-of-the-art C2 monitoring system like LDOS’ C2IMERA.
Leidos currently supports approximately 25,000 C2IMERA users across 90 locations worldwide, which surely reflects the solid demand that this application enjoys in the global C2 market.
Growth Prospects
The need for more technologically advanced C2 monitoring systems has increased over the past few years, owing to notable improvements in communication technologies. Lately, geopolitical events like the Russian invasion in Ukraine and the ongoing unrest in the Middle East between Palestine’s Hamas group and Israeli militants have prompted the need for high-speed, low-latency communication systems.
To this end, the Mordor Intelligence firm expects the global command and control systems market to witness a CAGR of 2.3% during 2024-2029. This should bode well for Leidos, with the company’s ever-changing technologies and innovations covering a wide spectrum of markets with primary areas of concentration, including command and control systems.
Notably, Leidos develops primary strategic C2 planning systems, including Aimpoint Construction System (APCS), processing the creation of aimpoints for strategic weapon applications and the Attack Structure Manager system. Within the Command, Control, Communications, Computers Intelligence, Surveillance and Reconnaissance (C4ISR) operation, the company provides innovative technologies, unique methodologies, and world-class software and services for customers in the broader intelligence, surveillance and reconnaissance community.
Opportunities for Peers
LDOS apart, other defense majors that enjoy a solid footprint in the command and control systems market and are thus expected to gain from this market’s expansion have been discussed below.
Northrop Grumman (NOC - Free Report) : The company is a critical partner in delivering advanced C4ISR capabilities, systems integration and open architectures across multiple domains. For 60 years, Northrop Grumman has been a leader in the design, development and delivery of end-to-end communications & advanced networking capabilities for U.S. and allied military forces operating across multiple battlespace domains.
The stock boasts a long-term earnings growth rate of 10.1%. The consensus estimate for NOC’s 2024 sales is pegged at $41.09 billion, indicating an improvement of 4.6% from the previous year’s reported sales.
Lockheed Martin (LMT - Free Report) : The company’s Rotary and Mission Systems unit designs, manufactures, services and supports command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance (C6ISR) programs. LMT’s C6ISR programs include the Command, Control, Battle Management and Communications (C2BMC) program for the U.S. Government, undersea combat system programs largely serving the U.S. Navy, and Australia's Joint Air Battle Management System (AIR 6500).
The stock boasts a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for LMT’s 2024 sales is pegged at $69.22 billion, implying an improvement of 2.4% from the previous year’s reported level.
L3Harris Technologies (LHX - Free Report) : The company offers a complete maritime domain awareness C2 system. Its Vigilis is an efficient C2 system that monitors the movement of vessels around identified risk areas and regions to improve security and safety. It protects against and alerts to collisions, hostile vessels, smuggling, piracy, illegal immigration, obstruction of sea lanes, and pollution. The system is deployed in multiple international locations, including some of the world’s most critical water bodies.
The stock boasts a long-term earnings growth rate of 8.4%. The consensus estimate for LHX’s 2024 sales is pegged at $21.22 billion, indicating an improvement of 9.3% from the previous year’s reported figure.
Price Movement
Shares of Leidos have rallied 39.6% in the past year against the industry’s 7.6% decline.
Image Source: Zacks Investment Research
Zacks Rank
Leidos currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.