Leidos [LDOS] on Tuesday posted higher sales and earnings due to top line growth across its business segments and higher operating income in its Health and Civil segments.

Net income increased 65 percent to $188 million, $1.25 earnings per share (EPS), from $114 million (74 cents EPS) a year ago. The strong earnings were driven by a huge increase in operating income, in large part due to higher acquisition and restructuring costs a year ago. Lower taxes also provided a bigger benefit to the company’s results a year ago.

Leidos won a potential $2.9 billion NASA IT contract in the first quarter of 2019.

Adjusted earnings, which exclude various non-operating costs, were $1.10 EPS in the quarter versus 87 cents EPS a year ago, topping consensus estimates by three pennies.

Sales grew 5 percent to $2.7 billion from $2.5 billion a year ago on new programs in the Defense segment, higher volume in the Health and Civil segments. Leidos said the partial shutdown of the federal government had an immaterial impact on its quarterly results.

For the year, net income increased 59 percent to $581 million ($3.80 EPS) from $366 million ($2.38 EPS) in 2017. Sales were flat at $10.2 billion. Segment operating margin increased to 7.3 percent from 5.5 percent.

Orders in the quarter were $3.2 billion and for the year a record $13.7 billion and total backlog at the end of 2018 was a record $20.8 billion, up 19 percent from $17.5 billion a year ago.  In the first quarter of 2019, Leidos won a potential 10-year, $2.9 billion NASA contract for end user information technology services. The contract represents new work for Leidos, although the award is still subject to protest.

Leidos introduced guidance for 2019 with sales expected to be up between 3 and 7 percent to between $10.5 billion and $10.9 billion and adjusted earnings between $4.25 and $4.60 EPS.