Leidos and Altaris Form Joint Venture for Security Solutions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 15 2026
0mins
Should l Buy LDOS?
Source: PRnewswire
- Joint Venture Formation: Leidos and investment firm Altaris have entered into a joint venture agreement aimed at enhancing global airport, border, and critical infrastructure security by integrating advanced security detection systems and imaging technologies, which is expected to drive innovation and improve efficiency.
- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Analogic's detection technologies, which is anticipated to enhance efficiencies in research, development, and operations, thereby accelerating the market application of next-generation security screening technologies.
- Market Growth Potential: Leidos will contribute approximately 1,500 employees and $625 million in projected 2026 revenue to the joint venture, which will focus on growth in the global detection and imaging market, further solidifying Leidos' leadership position in security technology.
- Strategic Investment Direction: The establishment of this joint venture aligns with Leidos' NorthStar 2030 strategy, indicating the company's commitment to continue investing in core growth areas to meet the increasing security demands arising from the growth of global travel and trade.
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Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 124.840
Low
178.00
Averages
219.70
High
235.00
Current: 124.840
Low
178.00
Averages
219.70
High
235.00
About LDOS
Leidos Holdings, Inc. is a holding company, which operates through its wholly owned subsidiary, Leidos, Inc. (Leidos). The Company's segments include National Security & Digital, Health & Civil, Commercial & International and Defense Systems. Its National Security & Digital business provides technologically advanced services, solutions and products, as well as mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics. Its Health & Civil business provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. Its Commercial & International business delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. The Company serves government and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DoD Signs Framework Agreements to Expand U.S. Missile Production Capacity
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- Testing and Evaluation Plan: The agreements outline an experimentation campaign set to begin in mid-2026, with test missiles acquired from participating companies, and the results will inform formal military assessments that will influence full-scale procurement decisions, ensuring alignment with military demand.
- New Industry Participation Model: Some participating companies are expected to reach production scale through private capital investment rather than direct government funding, marking a shift in defense procurement models aimed at accelerating weapons development and procurement processes.
- Industrial Capacity Enhancement: This initiative is part of a broader effort to increase U.S. munitions production capacity, focusing on creating a flexible industrial base capable of scaling output during periods of heightened demand, reflecting the Pentagon's ongoing interest in leveraging commercial manufacturing approaches.
See More
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- Production Capacity Expansion: The company will expand its facilities in Huntsville, Alabama, and McEwen, Tennessee, to support LCCM production, with production expected to begin in 2027, reflecting Leidos' commitment to advancing operational capabilities.
- Technological Innovation: The LCCM design builds on the AGM-190A Small Cruise Missile, featuring a modular airframe and a common Weapon Open Systems Architecture (WOSA) that enables rapid integration and mission adaptability, enhancing mission effectiveness and fuel capacity.
- Strategic Implications: Leidos' decision to fund development and expand production capabilities aligns with its NorthStar 2030 strategy, demonstrating the company's leadership in advanced missile system design and integration, thereby reinforcing its technological trust with the U.S. military.
See More
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- Production Capacity Expansion: The company plans to expand its facilities in Huntsville, Alabama, and McEwen, Tennessee, with production of the LCCM expected to begin in 2027, reflecting Leidos' commitment to advancing operational capabilities through strategic investments.
- Technological Innovation: The LCCM design builds on the AGM-190A Small Cruise Missile, featuring a modular airframe and a common Weapon Open Systems Architecture (WOSA), which not only increases mission effectiveness and fuel capacity but also supports rapid integration and upgrades, enhancing mission adaptability.
- Future Development Strategy: Leidos' NorthStar 2030 strategy emphasizes responding to the Department of Defense's need for rapid procurement of critical capabilities through self-funded development and expanded production capabilities, further solidifying its leadership in advanced missile system design and integration.
See More
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- Test Missile Acquisition: The assessment phase of the program will begin in June 2026, involving the purchase of test missiles from Anduril, CoAspire, Leidos, and Zone 5, establishing terms for future firm-fixed-price production contracts, which indicates strong support for emerging contractors by the Pentagon.
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See More
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- Technological Integration Benefits: This deal combines Leidos' Thermal Protection Shield program, which protects hypersonic weapons from extreme heat and pressure during flight, with its Common Hypersonic Glide Body program responsible for the body of the long-range hypersonic missile named 'Dark Eagle'.
- Production Efficiency Gains: By integrating these two programs, Leidos stated it would help reduce production timelines and ensure a reliable supply of components to meet increasing operational demands, thereby enhancing the company's competitive position in the defense sector.
- Far-reaching Strategic Implications: Hypersonic weapons are central to the U.S.-China arms race, and this contract not only strengthens Leidos' position in the defense industry but may also drive further development and application of related technologies.
See More
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- Significant Contract Value: Leidos has been awarded a $2.7 billion U.S. Army contract aimed at advancing hypersonic weapons from prototyping to production, showcasing the company's robust capabilities in the defense sector.
- Efficiency Through Integration: This contract unifies the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs to accelerate development and delivery, aligning with Army acquisition reform initiatives to enhance operational efficiency.
- Technological Leadership: Leidos' expertise in guidance systems, sensor technologies, and precision munitions integration will bolster the nation's hypersonic capabilities and strengthen integrated air and missile defense, ensuring operational demands are met.
- Strategic Alignment for the Future: The contract aligns with Leidos' NorthStar 2030 strategy, emphasizing a commitment to innovation in defense and national security, positioning the company to establish future military capabilities as a key pillar of its long-term corporate vision.
See More
DoD Signs Framework Agreements to Expand U.S. Missile Production Capacity
- Missile Production Agreements: The DoD has signed framework agreements with Anduril, CoAspire, Leidos, and Zone 5 to procure over 10,000 low-cost cruise missiles starting in 2027, aimed at increasing munitions supply and reducing unit costs to address supply constraints in potential large-scale conflicts.
- Testing and Evaluation Plan: The agreements outline an experimentation campaign set to begin in mid-2026, with test missiles acquired from participating companies, and the results will inform formal military assessments that will influence full-scale procurement decisions, ensuring alignment with military demand.
- New Industry Participation Model: Some participating companies are expected to reach production scale through private capital investment rather than direct government funding, marking a shift in defense procurement models aimed at accelerating weapons development and procurement processes.
- Industrial Capacity Enhancement: This initiative is part of a broader effort to increase U.S. munitions production capacity, focusing on creating a flexible industrial base capable of scaling output during periods of heightened demand, reflecting the Pentagon's ongoing interest in leveraging commercial manufacturing approaches.
See More
Leidos Secures Contract for 3,000 Low-Cost Munitions
- Contract Scale: Leidos has signed a framework agreement with the Department of War to deliver an initial 3,000 Low-Cost Containerized Munitions (LCCM), which is expected to significantly enhance the U.S. ground-launched combat capabilities, showcasing Leidos' ability to rapidly scale defense production.
- Production Capacity Expansion: The company will expand its facilities in Huntsville, Alabama, and McEwen, Tennessee, to support LCCM production, with production expected to begin in 2027, reflecting Leidos' commitment to advancing operational capabilities.
- Technological Innovation: The LCCM design builds on the AGM-190A Small Cruise Missile, featuring a modular airframe and a common Weapon Open Systems Architecture (WOSA) that enables rapid integration and mission adaptability, enhancing mission effectiveness and fuel capacity.
- Strategic Implications: Leidos' decision to fund development and expand production capabilities aligns with its NorthStar 2030 strategy, demonstrating the company's leadership in advanced missile system design and integration, thereby reinforcing its technological trust with the U.S. military.
See More
Leidos Secures Defense Agreement to Enhance Military Capabilities
- Defense Agreement Signed: Leidos has secured a framework agreement with the Department of Defense to deliver an initial 3,000 Low-Cost Containerized Munitions (LCCM), significantly enhancing the U.S. ground-launched combat capabilities and showcasing Leidos' ability to rapidly scale defense production.
- Production Capacity Expansion: The company plans to expand its facilities in Huntsville, Alabama, and McEwen, Tennessee, with production of the LCCM expected to begin in 2027, reflecting Leidos' commitment to advancing operational capabilities through strategic investments.
- Technological Innovation: The LCCM design builds on the AGM-190A Small Cruise Missile, featuring a modular airframe and a common Weapon Open Systems Architecture (WOSA), which not only increases mission effectiveness and fuel capacity but also supports rapid integration and upgrades, enhancing mission adaptability.
- Future Development Strategy: Leidos' NorthStar 2030 strategy emphasizes responding to the Department of Defense's need for rapid procurement of critical capabilities through self-funded development and expanded production capabilities, further solidifying its leadership in advanced missile system design and integration.
See More
Pentagon Plans to Acquire Over 12,000 Missiles in Five Years
- Low-Cost Missile Procurement: The Pentagon is set to launch the Low-Cost Containerized Munitions (LCCM) program in 2027, aiming to acquire over 10,000 low-cost missiles over three years, reflecting a strategic shift towards innovative defense technologies to enhance military deployment flexibility and cost-effectiveness.
- Test Missile Acquisition: The assessment phase of the program will begin in June 2026, involving the purchase of test missiles from Anduril, CoAspire, Leidos, and Zone 5, establishing terms for future firm-fixed-price production contracts, which indicates strong support for emerging contractors by the Pentagon.
- Blackbeard Missile Contract: A separate agreement with defense startup Castelion outlines a plan for a two-year contract to purchase a minimum of 500 Blackbeard missiles once testing and validation are completed, highlighting the Pentagon's focus on hypersonic weapons, with plans to acquire over 12,000 missiles in five years.
- Increased Funding Demand: The Pentagon is ramping up requests to Congress for over $26 billion in funding for multi-year procurement contracts for critical munitions, emphasizing the urgency and significance of military equipment in response to ongoing demands from the war in Iran.
See More
Leidos Secures $2.7 Billion Hypersonic Weapons Contract
- Significant Contract Value: The U.S. Army has awarded Leidos Holdings a $2.7 billion contract aimed at advancing hypersonic weapons from prototype development to production, highlighting the strategic importance of hypersonic technology in the arms race.
- Technological Integration Benefits: This deal combines Leidos' Thermal Protection Shield program, which protects hypersonic weapons from extreme heat and pressure during flight, with its Common Hypersonic Glide Body program responsible for the body of the long-range hypersonic missile named 'Dark Eagle'.
- Production Efficiency Gains: By integrating these two programs, Leidos stated it would help reduce production timelines and ensure a reliable supply of components to meet increasing operational demands, thereby enhancing the company's competitive position in the defense sector.
- Far-reaching Strategic Implications: Hypersonic weapons are central to the U.S.-China arms race, and this contract not only strengthens Leidos' position in the defense industry but may also drive further development and application of related technologies.
See More
Leidos Secures $2.7 Billion Army Contract for Hypersonic Weapons
- Significant Contract Value: Leidos has been awarded a $2.7 billion U.S. Army contract aimed at advancing hypersonic weapons from prototyping to production, showcasing the company's robust capabilities in the defense sector.
- Efficiency Through Integration: This contract unifies the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs to accelerate development and delivery, aligning with Army acquisition reform initiatives to enhance operational efficiency.
- Technological Leadership: Leidos' expertise in guidance systems, sensor technologies, and precision munitions integration will bolster the nation's hypersonic capabilities and strengthen integrated air and missile defense, ensuring operational demands are met.
- Strategic Alignment for the Future: The contract aligns with Leidos' NorthStar 2030 strategy, emphasizing a commitment to innovation in defense and national security, positioning the company to establish future military capabilities as a key pillar of its long-term corporate vision.
See More
