Leidos delivers first set of Enduring Shield launchers

Rhea-AI Summary

Leidos (LDOS) Delivers First Enduring Shield Launchers to U.S. Army's IFPC Inc 2 Program

Positive

• Successful delivery of the first Enduring Shield launchers demonstrates Leidos' commitment to critical weapons systems development for the U.S. Army
• Enduring Shield is a ground-based, mobile system designed to combat cruise missiles and unmanned aircraft systems, filling a crucial role in protecting civilian and military infrastructure
• Integration with the Integrated Air and Missile Defense Battle Command System (IBCS) was successfully demonstrated in summer 2023, showcasing the system's capabilities
• Leidos' Dynetics team was selected as the primary contractor for the Enduring Shield system, highlighting the company's expertise and leadership in defense technology

Negative

• Original delivery date for the launchers was delayed due to supply chain issues and technical challenges, potentially affecting production and fielding target timelines
• The Army's Developmental Test program for the prototype launchers is scheduled for 2024, indicating potential delays in the system's full deployment

Insights

Defense Industry Analyst

The delivery of the first Enduring Shield launchers by Leidos represents a significant milestone in the U.S. Army's Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) program. This event underscores the company's role in advancing the Department of Defense's layered defense strategy. The system's capability to address cruise missiles and unmanned aircraft systems fills a critical niche in both civilian and military infrastructure defense.

The integration of Enduring Shield with the Integrated Air and Missile Defense Battle Command System (IBCS) is a key feature, enhancing the system's utility and potential for future orders. The fact that these units are fieldable prototypes suggests readiness for immediate deployment, which may influence the speed at which further contracts are awarded and fulfilled.

Delays due to supply chain issues and technical challenges are noteworthy as they reflect broader industry trends affecting defense contractors. The successful mitigation of these delays by Leidos, in collaboration with the Army, may indicate strong project management capabilities and adaptability, which are valuable traits for stakeholders considering long-term investments.

Supply Chain Management Expert

The mention of supply chain issues causing delays in the delivery of the Enduring Shield launchers by Leidos highlights the vulnerability of defense projects to logistical disruptions. This is a common challenge in the current global economic environment, impacting production timelines across various industries, including defense manufacturing.

The ability of Leidos to work closely with the U.S. Army to mitigate these delays without affecting the overall production and fielding target timelines can be seen as a positive indicator of the company's supply chain resilience and contingency planning. For investors, this can be reassuring, as it suggests that Leidos may be better positioned than competitors to manage such disruptions, potentially minimizing future risks to revenue and project timelines.

Military Technology Analyst

The Enduring Shield system's role in bridging the tactical and strategic gap in air defense is a technological advancement that could have significant implications for the defense sector. The ability to combat both cruise missiles and unmanned aircraft systems is increasingly important as threats evolve and adversaries seek to exploit vulnerabilities in air defense systems.

Leidos' ongoing work with the U.S. Army and the integration of the system with IBCS may lead to further innovation and improvements in air defense capabilities. The developmental test program set for 2024 will be a crucial step in validating the system's effectiveness and reliability, which could influence future defense spending and procurement decisions.

HUNTSVILLE, Ala., Dec. 21, 2023 /PRNewswire/ -- Leidos, a Fortune® 500 science and technology innovator, announced today the delivery of the first Enduring Shield launchers. The Enduring Shield program supports the U.S. Army's Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) program, which is a critical part of the Department of Defense's layered defense strategy.

Leidos celebrated the event with Huntsville-based employees via a large gathering at its Chase facility. Speeches were given by Larry Barisciano, Leidos Weapon Systems Operations Manager; Brig. Gen. Frank Lozano, Program Executive Officer (PEO) Missiles and Space; Alex Burns, Leidos Division Manager over the Enduring Shield program; Col. Andrew Lunoff, Program Manager for the Army's Short and Intermediate Effectors for Layered Defense (SHIELD). Afterwards, employees and esteemed visitors were invited to view all prototype units on the manufacturing floor while enjoying light refreshments.

"We know how vital Enduring Shield is to our Army customer, our warfighters and our nation," Barisciano said. "Delivering these units today means so much to our team. We are proud to have reached this point and are excited for the testing and fielding milestones to come."

"This milestone by the Enduring Shield team is a prime example of how Leidos Dynetics is working to build critical weapons systems for our warfighters right here in North Alabama. I'm incredibly proud of this accomplishment by the team and look forward to our continued work with the U.S. Army on this important program," Cook said.

Enduring Shield is a ground-based, mobile system that aims to combat cruise missiles and unmanned aircraft systems. The system is a key part of the solution to protect and defend critical civilian and military infrastructure. It also bridges the gap between tactical short range air defense and strategic systems. Enduring Shield is able to integrate with the Integrated Air and Missile Defense Battle Command System (IBCS), which was successfully demonstrated in summer 2023. All units being provided by Leidos are fieldable prototypes, which means if the need arises, the systems can be deployed.

Leidos' Dynetics team was selected as the primary contractor to develop the Enduring Shield system as part of the Army's IFPC Inc 2 program in September 2021. The original delivery date for the launchers was scheduled for March 2023, but supply chain issues and technical challenges led to a delay in physical delivery. However, Leidos and the Army worked closely together to integrate and test different facets of the program to mitigate any potential negative impacts to the system production and fielding target timelines.

The Army will begin its Developmental Test program in 2024 for the prototype launchers as part of the next phase for the Department of Defense's layered defense strategy. Leidos is making preparations at its Chase facility for the next order of launchers, which is expected in 2025.

About Leidos

Leidos is a Fortune 500® technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, civil, and health markets. The company's 46,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $14.4 billion for the fiscal year ended December 30, 2022. For more information, visit www.Leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended December 30, 2022, and other such filings that Leidos makes with the SEC from time to time.  Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contacts:

Alyssa Pettus                                                                       
Dynetics Group Communications Director
O: 571-526-6743 | C: 571-992-5499
alyssa.t.pettus@leidos.com

Mackenzie Hicks
Dynetics Communications Specialist
O: 256-964-4034 | C: 2556-929-5229
shawna.hicks@dynetics.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-delivers-first-set-of-enduring-shield-launchers-302020686.html

SOURCE Leidos

FAQ

What did Leidos announce today?

Leidos announced the delivery of the first Enduring Shield launchers to the U.S. Army's IFPC Inc 2 program, demonstrating its commitment to critical defense technology.

What is the purpose of the Enduring Shield program?

The Enduring Shield program aims to combat cruise missiles and unmanned aircraft systems, providing a crucial defense capability for protecting civilian and military infrastructure.

Who was involved in the celebration event for the Enduring Shield delivery?

The celebration event for the Enduring Shield delivery involved employees and esteemed visitors at Leidos' Chase facility, featuring speeches by key personnel involved in the program.

What challenges led to a delay in the original delivery date for the launchers?

Supply chain issues and technical challenges led to a delay in the original delivery date for the launchers, requiring close collaboration between Leidos and the Army to mitigate potential impacts.

What is the next phase for the Enduring Shield program?

The Army will begin its Developmental Test program for the prototype launchers in 2024, indicating the next phase for the Department of Defense's layered defense strategy.