Leidos Holdings Inc. (NYSE:LDOS) is making a decisive move into U.S. energy infrastructure. The Reston, Virginia-based contractor announced Monday that it will acquire ENTRUST Solutions Group in an all-cash $2.4 billion transaction, aiming to capitalize on rising utility spending tied to grid modernization and resilience.
Leidos said it reached a definitive agreement to buy ENTRUST from private equity firm Kohlberg, expanding its footprint in regulated utility markets and broadening its engineering capabilities nationwide.
The deal is expected to significantly scale Leidos’ energy infrastructure engineering business, which currently produces about $600 million in annual revenue.
ENTRUST adds experience across electric and gas utilities, spanning generation, transmission, and distribution, giving Leidos broader exposure across the power delivery chain.
Why The Timing Matters
U.S. utilities are facing mounting pressure to upgrade aging systems, harden infrastructure against extreme weather, and meet rising electricity demand. Leidos said these challenges are driving long-term capital investment, positioning utility engineering as a stable and resilient growth area.
CEO Tom Bell said, “This deal is a bold step forward in support of Leidos’ growth strategy and a national priority to expand America’s energy infrastructure, while improving reliability and resilience against aging systems and extreme weather events.”
Financial Impact And Closing Timeline
Leidos expects the transaction to be immediately accretive to revenue growth and adjusted EBITDA margin, with earnings benefits anticipated in 2027. The company plans to fund the deal through debt and available liquidity, with closing expected by the end of the second quarter of 2026, pending regulatory approvals.
As of October 3, 2025, Leidos had $974 million in cash and cash equivalents.
LDOS Price Action: LDOS shares closed 1.15% lower at $191.23 on Friday, according to Benzinga Pro data.
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