Leidos and DHL Supply Chain have formed a strategic alliance to provide integrated logistics capabilities aligned to the UK Ministry of Defence's Future Defence Support Services (FDSS) programme. The partnership aims to modernise Defence logistics, strengthen readiness, and improve resilience for the UK Armed Forces. Operating as the Logistics & Mission Support Alliance, the entities are participating in a competitive contract bidding process to support future Defence logistics requirements.

The alliance combines Leidos' Defence integration expertise with DHL's global logistics scale and operational capability. It is designed to operate as a single, integrated team in complex and contested environments. By drawing on global networks, proven infrastructure, and surge capacity, the partnership intends to maintain continuity of supply and enable rapid recovery through disruption.

Advanced technologies, including artificial intelligence, data analytics, and automation, will be utilized to optimise logistics operations. This approach is intended to enhance visibility across demand, inventory, and assets, supporting more informed decision-making and strengthening operational effectiveness.

Adam Clarke, Chief Executive Officer, Leidos UK & Europe, stated that the alliance aligns capability, data, and decision-making to enable faster and more precise support. He emphasized that combining advanced technologies with deep operational experience will deliver the agility Defence needs to respond in complex environments.

Martin Willmor, Chief Executive Officer, DHL Supply Chain UK&I, highlighted the opportunity to modernise UK Defence support. He noted that DHL brings global logistics scale and advanced digital capabilities to the partnership, aiming to enable a more integrated and responsive supply chain for the MOD.

Key Alliance Details

Goldman Sachs analyst Gavin Parsons has maintained a Neutral rating on Leidos Holdings while reducing the stock's price target. The firm lowered the target to $152 from the previous $171, reflecting a revised outlook on the company's valuation.

Rating and Price Target Changes

The adjustment follows similar moves by other firms. JP Morgan recently maintained an Overweight rating but reduced its target to $160 from $210. Truist Securities also maintained a Buy rating while cutting its target to $160 from $195. The table below summarizes the latest changes:

Leidos Holdings trades on the NYSE under the ticker symbol LDOS.