Leidos Selected to Prototype Enterprise Test Vehicle

Rhea-AI Summary

Leidos has been selected by the Air Force Armament Directorate (EB) and the Defense Innovation Unit (DIU) to prototype an enterprise test vehicle (ETV). This vehicle is intended to demonstrate modularity for subsystem upgrades and serve as a basis for mass production. Leidos' ETV technology merges expertise from their GBU-69 Small Glide Munition and X-61 Gremlins UAS projects. The initial flight demonstrations are expected to occur within seven months, with the best prototypes moving forward for further development. Leidos was one of four companies chosen from over 100 applicants.

Positive

• Leidos selected by Air Force Armament Directorate and Defense Innovation Unit for ETV prototype.
• ETV technology combines Leidos' expertise from the GBU-69 Small Glide Munition and X-61 Gremlins UAS projects.
• Initial flight demonstrations expected within seven months of award date.
• Leidos chosen among four companies from over 100 applicants, indicating strong competitive standing.
• Support and evaluation from notable entities like AFRL, SOCOM, NAVAIR, and USINDOPACOM.

Negative

• No concrete financial figures or contract value disclosed, leaving financial impact on Leidos unclear.
• High competition with over 100 applicants suggests a challenging market environment.
• Success contingent on performance in initial flight demonstrations, introducing uncertainty.

Insights

Defense Industry Analyst

The selection of Leidos by the Air Force Armament Directorate and the Defense Innovation Unit to prototype an enterprise test vehicle is a significant development in the defense sector. This initiative underscores the growing trend towards integrating modular and affordable solutions in defense technology. The utilization of Leidos' existing expertise in developing the GBU-69 Small Glide Munition and the X-61 Gremlins UAS highlights their capability to deliver cost-effective and innovative defense solutions. The modularity aspect indicates potential for flexibility and scalability, which are critical for modern defense needs. The initial flight demonstrations within seven months suggest a rapid development timeline, aligning with the military's emphasis on agility and speed. This contract positions Leidos well for future opportunities, as successful prototypes are likely to lead to larger-scale production contracts.

Financial Analyst

From a financial perspective, being selected out of over 100 applicants reflects positively on Leidos' competitive edge. This contract can potentially enhance Leidos' revenue streams, given the focus on developing affordable and scalable solutions that meet the cost-per-unit goals of their clients. The involvement of multiple military and defense organizations, such as AFRL, SOCOM, NAVAIR and USINDOPACOM, implies substantial backing and validation of Leidos' technologies. However, it is essential for investors to monitor the progression of initial flight demonstrations and subsequent prototype selections. Successful progression in this endeavor could translate into long-term financial stability and growth for Leidos, making it an attractive prospect for investors looking at defense sector stocks. It is also important to note the alignment of this project with broader defense spending trends, which currently favor innovative and cost-efficient solutions. Long-term investors should consider the potential for repeated contracts and scaling opportunities.

HUNTSVILLE, Ala., June 6, 2024 /PRNewswire/ -- Leidos, a national security and health industry innovator, was selected by the Air Force Armament Directorate (EB) and the Defense Innovation Unit (DIU) to prototype an enterprise test vehicle (ETV) intended to demonstrate modularity for subsystem upgrade testing, and an integrated solution that can serve as a foundation for affordable mass production.

"We believe that the Leidos Dynetics developed air vehicle solution provides a compelling offer for the ETV effort. Leidos' ETV technology is the merger of our strike systems expertise, as exemplified by the modular, affordable and network enabled GBU-69 Small Glide Munition, and our recent experience developing the air-launched, and air-recovered, X-61 Gremlins UAS," said Mark Miller, Senior Vice President for Missile and Aviation Systems. "The existing digital design of the system will facilitate thorough engineering studies under this contract. In addition, our extensive experience integrating weapons on C-130 aircraft, that extends all the way back to the GBU-43 MOAB program, will enable us to confidently address platform integration issues."

Leidos is one of four companies selected from a highly competitive field of over 100 applicants and will leverage a capability in development since 2022 to support the cost, schedule, and production goals established by customers and sought by warfighters to achieve mission success.

Initial flight demonstrations should occur within seven months of award date, and the most promising prototypes will be selected for continued development.      

"While the Armament Directorate remains committed to our highly capable legacy products, we have become convinced that widening the aperture to include nontraditional aerospace companies offers the best chance at accomplishing our cost-per-unit goals, project timeline and production quantity goals," said Cassie Johnson, EB's Enterprise Test Vehicle Program Manager. "We eagerly anticipate bringing respectable capability to our warfighters."

In addition to the four industry teams, other project collaborators and evaluators include Air Force Research Laboratory (AFRL), Special Operations Command (SOCOM), Naval Air Systems Command (NAVAIR), and U.S. Indo-Pacific Command (USINDOPACOM).

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.

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. 

Contact:

Melissa Lee Dueñas (571) 526-6850  duenasml@leidos.com

Alyssa Pettus  (571) 526-6743 alyssa.t.pettus@leidos.com

 

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SOURCE Leidos

FAQ

What is the purpose of Leidos' ETV prototype?

Leidos' ETV prototype aims to demonstrate modularity for subsystem upgrades and serve as a basis for affordable mass production.

When will the initial flight demonstrations of Leidos' ETV take place?

Initial flight demonstrations for Leidos' ETV are expected to occur within seven months of the award date.

How many companies were selected to prototype the ETV?

Leidos was one of four companies selected to prototype the ETV out of over 100 applicants.

What technologies does Leidos' ETV prototype integrate?

Leidos' ETV integrates their expertise from the GBU-69 Small Glide Munition and X-61 Gremlins UAS projects.

Which organizations are involved in evaluating the ETV prototypes?

Organizations involved in evaluating the ETV prototypes include AFRL, SOCOM, NAVAIR, and USINDOPACOM.