Leidos Holdings: MHS Genesis and RHRP 4 Losses: $400MM Annualized Headwind

研报英文原文证据摘录

Leidos Holdings: MHS Genesis and RHRP 4 Losses: $400MM Annualized Headwind

USA | Aerospace & Defense Electronics

Leidos Holdings EquityJuneResearch15, 2026

FLASH NOTEMHS Genesis and RHRP 4 Losses: $400MM

RATING HOLDAnnualized Headwind

PRICE $122.16^

The DHA awarded five vendors sole-source contracts for the MHS Genesis

program, which LDOS led the system integration on starting in 2015. The PRICE TARGET | % TO PT $140.00 | +15%

installation was always set to be complete in 2026 where work transitions to 52W HIGH-LOW $205.77 - $121.20

sustainment. We est LDOS generated $340MM of annual revs on the program FLOAT (%) | ADV MM (USD) 97.4% | 170.53

w/ a 0.8pt net headwind to 26. This loss along w/ RHRP ($100MM or 0.3pt) and MARKET CAP $15.6B

VBA sentiment weigh on valuation. $140 PT based on 44% disc to mkt vs 3-yr TICKER LDOS ^Prior trading day's closing price unless otherwise

avg -30%. noted.

MHS Genesis Program Loss - 1% Headwind to 2026 / 27 Revs. The Defense Health Agency (DHA)

awarded five sole-source contracts for the Military Health System (MHS) Genesis environment. Exhibit 1 - Health Growth Impacted by

LDOS was selected in 2015 as the lead system integrator to roll out Cerner's electronic health Medical Exams Stabilizing Given Increased

records across US military hospitals. The five sole-source awards will be FFP, outcome-based Competition in 2026E With $150MM Headwind

Baked Into Our 2027E Forecast On the

contracts for no more than five yrs and are directly with the providers of the underlying technologies Recompete

Bridge 3,945 4,238 4,553 4,682 4,612 4,562for MHS Genesis, including Cerner (Oracle Health), Phillips, Amwell, Henry Schein, and Solventum. HealthRevenueRecompeteSegment ($MM) 2023 2024 2025 2026E 2027E 2028E Loss (39) (42) (46) 0 0 (55)