CACI International Conference Summary Company Overview - CACI International has undergone a significant transformation over the past decade, repositioning itself to focus on differentiated services and technology integration, moving away from low-margin, undifferentiated business lines [4][5][6] Market Position and Strategy - The company has leveraged long-standing customer relationships to introduce technology into its offerings, allowing for a more competitive and sticky business model [5] - CACI has shifted its focus to larger, longer-duration contracts, enabling better strategic planning and customer engagement [5][6] - The company emphasizes a dual focus on expertise (input-based) and technology (output-based), allowing for a comprehensive service offering [11][12] Financial Guidance and Growth - CACI maintains confidence in achieving high single-digit growth and low 11% margins for the current year, despite potential risks from changes in administration [13][14] - Projected revenue for the year is over $8.5 billion, with a total addressable market (TAM) exceeding $250 billion [15] - The company is strategically positioned in areas of enduring need, such as counter UAS and SIGINT collection systems, which are expected to grow due to geopolitical tensions [15][16] Response to Government Initiatives - CACI is well-positioned to respond to new government priorities, particularly in Homeland Security, where it has seen increased demand for software capabilities and IT modernization [26][27] - The company has adapted quickly to executive orders related to border security, enhancing its software deployment capabilities [27][28] International Expansion - Historically, CACI's international business has been small, but there are opportunities for growth, particularly in SIGINT technology solutions in Eastern Europe and Ukraine [31][32] - The company does not plan to build a large international marketing organization but will pursue opportunities that align with existing capabilities [32] Capital Deployment and M&A Strategy - CACI has adopted a flexible and opportunistic approach to capital allocation, balancing between share repurchases and acquisitions [35][36] - The company has repurchased approximately 15% of its outstanding shares over the past five years and made several acquisitions to fill capability gaps [35][36] - Current market conditions have made sellers cautious, but CACI remains confident in its acquisition pipeline [38] Recent Acquisitions and Technological Advancements - Recent acquisitions, such as Azure, have performed well and enhanced CACI's capabilities, particularly in SIGINT technology [41][42] - The company is transitioning its SA Photonics investment from development to production, significantly increasing its optical communication terminal output [44][46] Focus on Emerging Technologies - CACI is investing in areas like the electromagnetic spectrum and space domain, which are critical for national security [24][25] - The company is also exploring the integration of generative AI into its operations, viewing it as a tool to enhance mission outcomes rather than a standalone solution [55][56][57] Legislative Opportunities - The reconciliation bill currently in Congress presents potential upside for CACI, with an estimated $300 million in multiyear funding relevant to its customer base [52][53] Conclusion - CACI International is strategically positioned to capitalize on government priorities and emerging technologies, with a strong focus on differentiated services and a flexible approach to capital deployment. The company remains optimistic about its growth prospects and ability to adapt to changing market conditions.

CACI International (CACI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors o ...

It has been about a month since the last earnings report for CACI International (CACI) . Shares have added about 4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is CACI International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Sin ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Gro ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: CACI International Overview - CACI International is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 9.8%, with projected EPS growth of 14.3% this year, significantly outperforming the industry average of 3% [4] Group 2: Financial Metrics - CACI International's year-over-year cash flow growth stands at 5.9%, exceeding the industry average of 4.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11.8%, compared to the industry average of 6.1% [6] Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for CACI International, with the Zacks Consensus Estimate increasing by 0.6% over the past month [8] - The positive trend in earnings estimate revisions correlates strongly with near-term stock price movements, indicating potential for growth [7] Group 4: Investment Potential - CACI International holds a Zacks Rank of 2 (Buy) and a Growth Score of B, suggesting it is a solid choice for growth investors [10]

Company Overview - CACI International currently holds a Momentum Style Score of B, indicating a positive outlook for the stock based on its price trends and earnings estimate revisions [3][12] - The company has a Zacks Rank of 2 (Buy), suggesting it is expected to outperform the market [4][12] Price Performance - Over the past week, CACI shares have increased by 7.02%, outperforming the Zacks Computer - Services industry, which rose by 5.22% [6] - In a longer time frame, CACI's shares have shown a monthly price change of 22.32%, significantly higher than the industry's 3.86% [6] - For the past quarter, CACI shares have risen by 16.66%, and over the last year, they are up 10.82%, while the S&P 500 has moved -8.61% and 9.87%, respectively [7] Trading Volume - CACI's average 20-day trading volume is 611,873 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the last two months, 5 earnings estimates for CACI have been revised upwards, while 3 have been revised downwards, leading to an increase in the consensus estimate from $23.94 to $24.05 [10] - For the next fiscal year, 7 estimates have moved upwards with no downward revisions during the same period [10]

Revenue Growth - Revenues for the three months ended March 31, 2025, increased by 11.8% to $2,166,982,000 compared to $1,937,456,000 for the same period in 2024[88] - Revenues for the nine months ended March 31, 2025, increased by 12.5% to $6,323,680,000 compared to $5,621,537,000 for the same period in 2024[88] - The Department of Defense contributed $1,652,206,000 in revenues for the three months ended March 31, 2025, representing a 13.8% increase from $1,452,264,000 in 2024[89] - The total addressable market for the company's offerings is expected to continue to grow, with approximately 75% of revenue coming from defense-related customers[84] Costs and Expenses - Direct costs as a percentage of revenue were 66.2% for the three months ended March 31, 2025, compared to 66.6% for the same period in 2024[89] - Indirect costs and selling expenses were 22.2% of revenue for the three months ended March 31, 2025, consistent with the same percentage in 2024[90] - The increase in interest expense for the three months ended March 31, 2025, was primarily due to higher outstanding debt balances related to acquisitions[92] Net Income and Cash Flow - Net income for the three months ended March 31, 2025, was $111,860,000, a decrease of 3.0% from $115,350,000 in 2024[88] - Net cash provided by operating activities increased by $50.9 million for the nine months ended March 31, 2025, totaling $391.0 million[106] - Net cash used in investing activities increased by $1,556.6 million for the nine months ended March 31, 2025, primarily due to cash used in acquisitions[107] Backlog and Acquisitions - As of March 31, 2025, the company's total backlog was $31.4 billion, an increase of 9.8% from $28.6 billion a year ago[95] - The funded backlog as of March 31, 2025, was $4.2 billion[95] - The company completed two acquisitions during fiscal 2025, contributing to revenue growth and increased direct costs[88] Tax and Interest Rates - The effective income tax rate for the three months ended March 31, 2025, was 26.0%, compared to 24.9% for the same period in 2024[94] - The provision of the TCJA is expected to decrease fiscal 2025 cash flows from operations by $47.7 million[104] - The company has entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $1,000.0 million[112] Debt and Financing - The company had $1,290.0 million outstanding under the Revolving Facility as of March 31, 2025[98] - The Term Loan B facility has a principal amount of $750.0 million, with quarterly principal payments of $1.9 million starting March 2025[103] International Operations - Approximately 2.9% of total revenues during the nine months ended March 31, 2025, were derived from international operations headquartered in the U.K.[113] Budget Environment - The budget environment is viewed as constructive, with defense spending capped at a 1% growth for GFY25[81]

CACI International Inc Q3 FY25 Earnings Conference Call April 24, 2025 EXPERTISE and TECHNOLOGY 1 | CACI Proprietary Information EXPERTISE and TECHNOLOGY for National Security for National Security Forward-looking statements There are statements made herein that do not address historical facts and, therefore, could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to risk factors that could cause actua ...

CACI International Inc (NYSE:CACI) Q3 2025 Earnings Conference Call April 24, 2025 8:00 AM ET Company Participants George Price - Senior Vice President, Investor Relations John Mengucci - President and Chief Executive Officer Jeffrey MacLauchlan - Executive Vice President, Chief Financial Officer, and Treasurer Conference Call Participants Scott Mikus - Melius Research Joshua Korn - Barclays Colin Canfield - Cantor Tobey Sommer - Truist Securities Sheila Kahyaoglu - Jefferies Gavin Parsons - UBS Jan-Frans E ...

Financial Data and Key Metrics Changes - CACI reported revenue growth of 12% for Q3 2025, with total revenue reaching $2.2 billion, of which 5.6% was organic growth [9][32] - EBITDA margin improved to 11.7%, reflecting a year-over-year increase of 40 basis points [32] - Free cash flow for the quarter was $188 million, showing strong sequential and year-over-year increases [35][40] - Adjusted diluted earnings per share increased by 9% year-over-year to $6.23 [33] Business Line Data and Key Metrics Changes - The company won $2.5 billion in awards during the quarter, resulting in a book-to-bill ratio of 1.2 times for the quarter and 1.5 times on a trailing twelve-month basis [9][42] - The backlog increased by 10% year-over-year to $31 billion, representing nearly four years of annual revenue [42] Market Data and Key Metrics Changes - Demand signals from customers remain strong, driven by geopolitical realities and a supportive funding environment for national security spending [12][17] - The company has seen a constructive funding environment with healthy budgets and an upward bias in national security spending [12][17] Company Strategy and Development Direction - CACI's strategy focuses on software-defined capabilities, aligning with the new administration's priorities for national security [13][14] - The company is positioned to benefit from increased defense budgets and bipartisan support for national security initiatives [30][39] - CACI continues to invest ahead of customer needs, which has proven to be a successful strategy in winning contracts [29][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving three-year financial targets and driving long-term growth and shareholder value [10][30] - The macro environment is seen as favorable, with expectations of continued demand for national security solutions [12][30] - Management noted that while there may be some slower decision-making, the overall business performance remains strong [9][12] Other Important Information - CACI initiated an open market share repurchase program, buying back 436,000 shares at an average price of approximately $344 per share [35][36] - The company raised its fiscal year 2025 guidance for revenue, adjusted EPS, and free cash flow due to strong business performance [38][40] Q&A Session Summary Question: How has contract growth trended since the change in administration? - Management indicated no slowdown in on-contract growth measures and noted a strong level of RFPs being responded to [54][56] Question: How much revenue is already in the backlog for FY '26? - Management stated that no single program accounts for more than 5% of revenue and that the backlog is building well [57][58] Question: What are the implications of the DOD memo about insourcing or updating acquisition for tech? - Management sees the executive orders as a net positive for CACI, aligning with their software-defined capabilities strategy [61][64] Question: Can you discuss the budget cadence and outlay mechanics? - Management highlighted that the full-year continuing resolution allows for new starts and provides good visibility for national security spending [75][80] Question: What specific areas of incremental funding represent the biggest opportunities? - Management identified electronic warfare, border security, and DOD IT modernization as key areas for future growth [88][92] Question: Can you provide an update on the development and ramp of production for your optical communications business? - Management confirmed they are on track to deliver six times the volume of optical communications terminals compared to FY 2024 [96][98] Question: How is CACI positioned regarding the ongoing GSA review? - Management stated they are not part of the top 10 contractors but have been proactive in discussions about cost savings and agile development [140][144]