Leidos wins $717 million Air Force ISR contract, extending decade-long role

Leidos won a task order worth as much as $717 million from the US Air Force's Air Combat Command to continue providing intelligence, surveillance and reconnaissance operations support, the company said Tuesday.

"Since 2019, our team has worked alongside Air Combat Command to provide mission-focused ISR support, training and analysis," said Jason McCarthy, senior vice president of Airborne & Mission Solutions at Leidos.

The task order includes a one-year base period and four one-year options, with work at more than 35 locations in the US and overseas. Leidos will deliver intelligence analysis, threat mitigation, ISR operations support, training and mission support services for ACC headquarters, subordinate Numbered Air Forces, centers and wings. The company has served as prime contractor on the mission since 2019.

The award extends Leidos' position as an embedded partner in Air Force intelligence operations at a time when military leaders require faster, more accurate threat assessment across air, space, cyber and intelligence domains. Leidos, which employs about 50,000 people globally, reported annual revenue of approximately $17.2 billion for its fiscal year ended Jan. 2.

The contract was awarded by the Air Combat Command Acquisition Management and Integration Center. ACC, headquartered at Joint Base Langley-Eustis in Hampton, Virginia, serves as a primary provider of combat air, space, cyber and intelligence capabilities to US warfighting commands.

Leidos shares rose 3.26% on the news, adding to gains after the company announced an AI platform expansion on July 22 that pushed the stock up 2.86%. The defense technology firm has been building momentum through a series of recent contract wins, including a UK defense logistics alliance with DHL announced July 17 and an AI-enabled predictive logistics partnership for Indo-Pacific military operations announced July 9.

The task order reflects Leidos' NorthStar 2030 strategy of deepening its work with Department of War customers to maintain combat-ready forces. With the US defense budget under continued pressure from lawmakers, contracts that demonstrate multi-year cost efficiency and operational integration are likely to face less scrutiny than new program starts.

This article is for informational purposes only and does not constitute investment advice.