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Leidos-designed low-profile vessels participate in U.S. Army's Project Convergence Capstone 4 exercise

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Leidos (LDOS) recently showcased their innovative low-profile vessels (LPVs) in military exercises, highlighting their disruptive logistics capabilities and autonomy. The vessels, designed for the U.S. Marine Corps, aim to enhance mission success rates for dispersed Marine fire units with their low profile and long-range capabilities.
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The participation of Leidos-designed uncrewed and autonomous-capable low-profile vessels (LPVs) in military exercises marks a significant step in the evolution of maritime military technology. The focus on autonomous capabilities reflects a broader trend in defense where there is an increasing reliance on unmanned systems to perform a variety of tasks traditionally handled by crewed vehicles. This is driven by the need to reduce risk to human life and to increase operational efficiency.

The LPVs' design, emphasizing a low visual profile and the ability to transport logistics payloads over long ranges, suggests that these vessels are intended to enhance the Marine Corps' logistical operations, particularly in contested environments. The ability to support dispersed fire units with a reduced probability of detection could provide a tactical advantage, thereby potentially altering threat assessments and engagement strategies of adversaries.

The ongoing testing and technical assessment of these vessels, including their integration into joint and multi-national exercises like Project Convergence, are important for validating their operational effectiveness and reliability. As these vessels transition from prototypes to operational assets, they could represent a new class of support vessels within the U.S. military's arsenal, with implications for future procurement and force structure decisions.

Leidos' delivery of the LPVs under contract with MilTech aligns with the U.S. military's strategic objective to leverage innovation from private sector and academic partnerships. The integration of these vessels into military exercises demonstrates the practical application of research and development efforts in a field setting, which is a critical step in the defense procurement process.

From a procurement perspective, the successful deployment of these vessels could lead to increased demand for autonomous maritime systems. This could influence defense spending and budget allocations, with potential ripple effects across the defense industry. Companies that specialize in maritime autonomy and related technologies might see a growing market for their products and services.

Furthermore, the operation and maintenance contract awarded to Leidos for the Navy's Overlord and medium unmanned surface vessels underlines the company's growing role in the field of maritime autonomy. It suggests that Leidos is positioning itself as a key player in this niche market, which could have implications for the company's financial performance and stock valuation, particularly if they secure additional contracts in this domain.

For investors, Leidos' involvement in Project Convergence and its maritime autonomy portfolio could be indicative of the company's future revenue streams and growth potential. The successful delivery and testing of LPVs may enhance the company's reputation as an innovator in defense technology, potentially leading to new contracts and partnerships.

As Leidos continues to expand its portfolio in autonomous systems, it is essential to monitor the company's ability to scale production and integrate these systems into the existing military infrastructure. The long-term financial impact will depend on the Department of Defense's continued investment in unmanned systems and the outcomes of ongoing testing and exercises.

Investors should consider the competitive landscape and the possibility of budget constraints or shifts in military strategy that could affect the demand for such technologies. While the current involvement in high-profile military exercises is positive, it is also important to assess the sustainability of this growth area within the broader defense sector.

RESTON, Va., March 29, 2024 /PRNewswire/ -- Two Leidos-designed uncrewed and autonomous-capable low-profile vessels (LPVs) recently participated in the Project Convergence Capstone 4 military exercises in California. Leidos (NYSE: LDOS), a Fortune® 500 innovation company, delivered the vessels to the U.S. Marine Corps last year.

"Leidos once again designed and delivered innovative solutions with these LPVs, and it was great to see them participate in Project Convergence," said Dave Lewis, Leidos senior vice president, Sea Systems Business Area. "The prototypes we've delivered will help create new disruptive logistics capabilities for the Marine Corps. Its low profile and long range are intended to help the vessels achieve a higher mission success rate supporting dispersed Marine fire units than conventional methods."

The LPV's low-to-the-water visual profile helps to reduce probability of detection. The vessels are intended to transport a logistics payload of up to five tons over a range of 2,000 nautical miles, and have been built to experiment with different autonomous control systems. The two LPV prototypes were delivered last year to the Marine Corps Warfighting Laboratory for testing and technical assessment. Their participation in the joint and multi-national Project Convergence Capstone 4 exercises represents the next stage of testing and experimentation with the vessels' capabilities alongside warfighters.

Leidos designed the LPVs under contract with MilTech, a Montana State University research lab and an authorized National Government Partnership Intermediary.

The delivery of the LPV prototypes complements Leidos' extensive maritime autonomy portfolio. Leidos-designed and built autonomous vessels recently completed joint naval exercises in the western Pacific as part of the Navy's Integrated Battle Problem 23.2. Last year, Leidos was awarded a U.S. Navy task order to manage, operate and maintain the Navy's Overlord and medium unmanned surface vessels.

About Leidos

Leidos is a Fortune 500® innovation company rapidly addressing the world's most vexing challenges in national security and health. The company's global workforce of 47,000 collaborates to create smarter technology solutions for customers in heavily regulated industries. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. 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 29, 2023, 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.

Contact:

Melissa Dueñas


(571) 526-6850


duenasml@leidos.com                                                    


Alyssa Pettus


(571) 526-6743


Alyssa.t.pettus@leidos.com


Brandon VerVelde


(571) 526-6257 


Brandon.p.vervelde@leidos.com 

 

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SOURCE Leidos Holdings, Inc.

FAQ

What type of vessels did Leidos showcase in the military exercises?

Leidos showcased uncrewed and autonomous-capable low-profile vessels (LPVs).

What is the ticker symbol for Leidos?

The ticker symbol for Leidos is LDOS.

What is the purpose of the LPVs designed by Leidos?

The LPVs are intended to transport a logistics payload of up to five tons over a range of 2,000 nautical miles and experiment with different autonomous control systems.

Who delivered the LPV prototypes to the U.S. Marine Corps?

Leidos delivered the LPV prototypes to the U.S. Marine Corps.

What recent naval exercises did Leidos autonomous vessels participate in?

Leidos autonomous vessels recently completed joint naval exercises in the western Pacific as part of the Navy's Integrated Battle Problem 23.2.

Leidos Holdings, Inc.

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