Leidos has moved decisively to expand its footprint in energy infrastructure, agreeing to acquire ENTRUST Solutions Group for approximately $2.4 billion in a deal that underscores how power engineering is becoming a strategic asset in the AI-driven economy. From the perspective of YourNewsClub, the transaction is less about a single acquisition and more about positioning: Leidos is aligning itself with the parts of the infrastructure stack that will quietly determine whether large-scale AI deployment is feasible at all.
ENTRUST brings national-scale engineering and program management capabilities focused on electric power, gas utilities and grid modernization. Leidos expects the business to contribute immediately to revenue growth and adjusted operating margins, with ENTRUST projected to generate roughly $650 million in annual revenue and operate at EBITDA margins in the low-20% range. In YourNewsClub’s assessment, those margins are critical: they suggest Leidos is not buying speculative growth, but a disciplined services platform that can lift the profitability of its commercial energy segment while fitting within a conservative balance-sheet strategy.
The financing structure – a mix of new debt, existing cash and commercial paper – signals controlled ambition. Management has emphasized that leverage will remain within acceptable bounds, reinforcing the idea that this is a strategic extension rather than a transformational gamble. As Jessica Larn, who analyzes technology policy and infrastructure impacts of AI, would frame it, grid engineering firms that can operate at scale are becoming indispensable intermediaries between hyperscalers, regulators and local communities. That makes them unusually resilient assets in an environment where public scrutiny of energy use is intensifying.
The macro backdrop strengthens that case. Utilities are facing mounting pressure from aging infrastructure, electrification trends and the surge in data center demand tied to AI workloads. Leidos is effectively betting that utilities will prioritize partners capable of delivering repeatable, compliant solutions across multiple jurisdictions. From YourNewsClub’s standpoint, this creates a defensible niche: long-cycle contracts, regulated customers and recurring service relationships rather than volatile construction risk.
Still, the opportunity comes with structural constraints. Freddy Camacho, who focuses on the political economy of computing and energy as a form of dominance, would note that grid expansion is as much a political challenge as a technical one. Permitting delays, community opposition and cost allocation debates can slow projects and reshape returns. By concentrating on engineering and program management rather than asset ownership, Leidos appears to be insulating itself from the most volatile elements of that equation.
In sum, Your News Club sees the ENTRUST acquisition as a calculated move into the less visible but increasingly decisive layer of the AI economy. As capital continues to pour into compute and data centers, the firms that enable power delivery and grid resilience may capture the most stable, long-duration value. For Leidos, the strategic message is clear: owning the engineering behind the megawatts could prove just as important as supplying the technology that consumes them.