Leidos Holdings, Inc. completed its $2.4 billion acquisition of ENTRUST Solutions Group on March 27, 2026, a transaction announced on March 30, 2026. The deal adds more than 3,100 professionals and effectively doubles Leidos’ presence in the energy‑infrastructure market, expanding its electric‑grid engineering and natural‑gas infrastructure capabilities.
The acquisition is a cornerstone of Leidos’ NorthStar 2030 strategy, positioning the company to capture a larger share of the projected $1 trillion utility‑modernization investment over the next decade. By integrating ENTRUST’s expertise, Leidos can offer end‑to‑end solutions that help utilities address accelerating load growth and resilience requirements.
Leidos’ recent financial performance underscores the strategic fit. Q4 2025 revenue was $4.21 billion, down 4% year‑over‑year, while full‑year 2025 revenue reached $17.17 billion, up 3% year‑over‑year. Non‑GAAP diluted earnings per share were $11.99, up 17% year‑over‑year, and the net‑income margin rose to 8.5% from 7.5% in FY 2024. Adjusted EBITDA margin for Q4 2025 was 13.2%. Management expects the acquisition to be immediately accretive to revenue and adjusted EBITDA and to EPS in 2027.
Segment data shows that Leidos’ National Security & Digital segment generated $1.85 billion in Q4 2025, a 3% decline year‑over‑year, while the energy‑infrastructure segment has historically delivered double‑digit revenue growth and margins. The ENTRUST addition strengthens this high‑margin segment and expands Leidos’ service breadth across the utility value chain.
"A bold step forward in support of Leidos’ growth strategy and a national priority to expand America’s energy infrastructure," said CEO Tom Bell. The comment highlights the strategic importance of the deal and the company’s confidence in its long‑term vision.
The initial announcement of the acquisition on January 26, 2026 was met with a modest market reaction of a 0.9% decline, indicating cautious investor sentiment toward the transaction’s scale and integration risk.
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