[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) CACI delivered strong fiscal year 2025 results, marked by significant revenue and earnings growth across both the fourth quarter and full year, supported by robust contract awards and a positive outlook for FY2026 [Fourth Quarter Fiscal Year 2025 Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Results) CACI reported strong Q4 FY2025 results with a 13.0% year-over-year revenue increase to $2.3 billion, driven by 5.3% organic growth, and adjusted diluted EPS rose 27.1% to $8.40 Q4 FY2025 Financial Highlights (vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $2,304.1M | $2,038.3M | 13.0% | | Net Income | $157.9M | $134.7M | 17.2% | | Adjusted Net Income | $185.8M | $148.7M | 24.9% | | Diluted EPS | $7.14 | $5.98 | 19.4% | | Adjusted Diluted EPS | $8.40 | $6.61 | 27.1% | | EBITDA | $264.5M | $234.9M | 12.6% | - The **13.0% year-over-year revenue growth** in the fourth quarter was driven by **5.3% organic growth**[4](index=4&type=chunk) - Growth in diluted and adjusted diluted EPS was primarily driven by higher income from operations, a lower tax provision, and share repurchases, partially offset by increased interest expense[4](index=4&type=chunk) [Full Fiscal Year 2025 Results](index=3&type=section&id=Full%20Fiscal%20Year%202025%20Results) For the full fiscal year 2025, CACI achieved revenues of $8.6 billion, a 12.6% increase, with 7.2% organic growth, and adjusted diluted EPS increased by 25.8% to $26.48 Full Year FY2025 Financial Highlights (vs. FY2024) | Metric | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $8,627.8M | $7,659.8M | 12.6% | | Net Income | $499.8M | $419.9M | 19.0% | | Adjusted Net Income | $593.0M | $475.1M | 24.8% | | Diluted EPS | $22.32 | $18.60 | 20.0% | | Adjusted Diluted EPS | $26.48 | $21.05 | 25.8% | | EBITDA | $966.8M | $798.0M | 21.2% | - Full-year revenue growth of **12.6%** was supported by **7.2% organic growth**[9](index=9&type=chunk) - The increase in cash from operations was driven by higher net income, lower tax payments under the Tax Cuts and Jobs Act of 2017, and strong working capital management[9](index=9&type=chunk) [Contract Awards and Backlog](index=1&type=section&id=Contract%20Awards%20and%20Backlog) The company secured $2.6 billion in Q4 and $9.6 billion for the full fiscal year contract awards, resulting in a 1.1x book-to-bill ratio and a total backlog of $31.4 billion - Contract awards in the fourth quarter totaled **$2.6 billion**, with over **40% for new business**[5](index=5&type=chunk) - For the full fiscal year, contract awards were **$9.6 billion**, with a book-to-bill ratio of **1.1x**[1](index=1&type=chunk) Backlog as of June 30, 2025 | Backlog Type | Amount | YoY Change | | :--- | :--- | :--- | | Total Backlog | $31.4B | <1% decrease | | Funded Backlog | $4.2B | 11% increase | [Fiscal Year 2026 Guidance](index=3&type=section&id=Fiscal%20Year%202026%20Guidance) CACI issued guidance for fiscal year 2026, projecting revenues between $9.2 billion and $9.4 billion, adjusted diluted EPS of $27.13 to $28.03, and free cash flow of at least $710 million FY2026 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenues | $9,200M - $9,400M | | Adjusted Net Income | $605M - $625M | | Adjusted Diluted EPS | $27.13 - $28.03 | | Free Cash Flow | at least $710M | - The FY2026 free cash flow guidance assumes approximately **$50 million in tax benefits** from the modification of Section 174 and a **$40 million cash tax refund**[12](index=12&type=chunk) [Operational and Corporate Highlights](index=2&type=section&id=Operational%20and%20Corporate%20Highlights) CACI achieved significant contract wins, including major awards with the U.S. Army and intelligence community, alongside corporate recognition and governance updates [Key Contract Wins](index=2&type=section&id=Key%20Contract%20Wins) CACI announced several significant contract awards, including an $855 million task order with the U.S. Army INSCOM and a $616 million task order with an intelligence community customer - Awarded a five-year contract valued at up to **$855 million** to support the U.S. Army Intelligence and Security Command's (INSCOM) military intelligence operations[7](index=7&type=chunk) - Secured a seven-year task order valued at up to **$616 million** to support an intelligence community customer, strengthening the company's footprint in this area[7](index=7&type=chunk) - Won a seven-year task order worth an estimated **$437 million** to continue assisting U.S. Africa Command (USAFRICOM) in countering emerging threats[7](index=7&type=chunk) [Corporate Achievements and Governance](index=2&type=section&id=Corporate%20Achievements%20and%20Governance) The company was recognized as a 2025 Fortune 500™ company, advanced in the U.S. Space Force's EST program, and updated its corporate governance with a new Board Chair - CACI was named a **2025 Fortune 500™ company** based on its fiscal year 2024 results[7](index=7&type=chunk) - Advanced to Phase 2 of the U.S. Space Force's **$100 million Enterprise Space Terminal (EST) program** to develop laser-based space communication terminals[7](index=7&type=chunk) - Corporate governance updates include CEO John Mengucci being named Public Company Executive of the Year and Lisa S. Disbrow's election as Chair of the Board of Directors[7](index=7&type=chunk) [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) This section provides a comprehensive overview of CACI's consolidated statements of operations, balance sheets, and cash flows for fiscal year 2025, detailing key financial movements [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For FY2025, revenues grew 12.6% to $8.63 billion, income from operations increased 17.6% to $764.2 million, and net income rose 19.0% to $499.8 million Consolidated Statement of Operations (Full Year, in thousands) | Metric | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $8,627,824 | $7,659,832 | 12.6% | | Income from operations | $764,185 | $649,708 | 17.6% | | Interest expense and other, net | $158,844 | $105,059 | 51.2% | | Net income | $499,830 | $419,924 | 19.0% | | Diluted earnings per share | $22.32 | $18.60 | 20.0% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $8.65 billion, driven by goodwill and intangible assets, while total liabilities grew, with long-term debt nearly doubling to $2.85 billion Consolidated Balance Sheet Highlights (in thousands) | Metric | 6/30/2025 | 6/30/2024 | | :--- | :--- | :--- | | Total current assets | $1,779,945 | $1,374,529 | | Goodwill | $5,021,805 | $4,154,844 | | Total assets | $8,647,598 | $6,796,101 | | Long-term debt, net | $2,849,190 | $1,481,387 | | Total liabilities | $4,753,653 | $3,277,894 | | Total shareholders' equity | $3,893,945 | $3,518,207 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2025, net cash from operating activities was $547.0 million, with $1.76 billion used in investing activities, primarily for acquisitions, and $1.18 billion generated from financing Consolidated Statement of Cash Flows (Full Year, in thousands) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $547,009 | $497,331 | | Net cash used in investing activities | ($1,758,943) | ($151,952) | | - Acquisitions of businesses, net | ($1,695,749) | ($90,240) | | Net cash provided by (used in) financing activities | $1,177,881 | ($326,895) | | Net change in cash and cash equivalents | ($27,780) | $18,185 | [Supplemental Data and Reconciliations](index=8&type=section&id=Supplemental%20Data%20and%20Reconciliations) This section provides a detailed breakdown of CACI's fiscal year 2025 revenue by customer, contract type, and expertise, along with reconciliations for non-GAAP financial measures [Revenue Breakdown](index=8&type=section&id=Revenue%20Breakdown) For fiscal year 2025, the Department of Defense accounted for 75.4% of revenue, technology-related work represented 55.4%, and 90.2% of revenue was generated as a prime contractor FY2025 Revenue by Customer Group (in thousands) | Customer Group | Revenue | % of Total | | :--- | :--- | :--- | | Department of Defense | $6,507,728 | 75.4% | | Federal Civilian agencies | $1,751,973 | 20.3% | | Commercial and other | $368,123 | 4.3% | FY2025 Revenue by Contract Type (in thousands) | Contract Type | Revenue | % of Total | | :--- | :--- | :--- | | Cost-plus-fee | $5,221,011 | 60.5% | | Fixed-price | $2,271,602 | 26.3% | | Time-and-materials | $1,135,211 | 13.2% | FY2025 Revenue by Expertise/Technology (in thousands) | Category | Revenue | % of Total | | :--- | :--- | :--- | | Technology | $4,777,983 | 55.4% | | Expertise | $3,849,841 | 44.6% | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations for key non-GAAP metrics, showing adjusted net income of $593.0 million, EBITDA of $966.8 million, and free cash flow of $442.5 million for FY2025 FY2025 Reconciliation of Net Income to Adjusted Net Income (in thousands) | Metric | Amount | | :--- | :--- | | Net income, as reported | $499,830 | | Intangible amortization expense | $124,618 | | Tax effect of intangible amortization | ($31,486) | | **Adjusted net income** | **$592,962** | FY2025 Reconciliation of Net Income to EBITDA (in thousands) | Metric | Amount | | :--- | :--- | | Net income | $499,830 | | Plus: Income taxes | $105,511 | | Plus: Interest income and expense, net | $158,844 | | Plus: Depreciation and amortization expense | $202,611 | | **EBITDA** | **$966,796** | FY2025 Reconciliation to Free Cash Flow (in thousands) | Metric | Amount | | :--- | :--- | | Net cash provided by operating activities | $547,009 | | Cash used in MARPA | ($38,909) | | Net cash provided by operating activities excluding MARPA | $508,100 | | Capital expenditures | ($65,603) | | **Free cash flow** | **$442,497** |

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Core Viewpoint - CACI International is expected to report a year-over-year decline in earnings despite an increase in revenues, with the market closely watching how actual results compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $6.54 per share, reflecting a -1.1% change year-over-year, while revenues are projected to be $2.3 billion, representing a 12.7% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.79% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for CACI International is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.08%, suggesting a bearish outlook [12]. Historical Performance - CACI International has consistently beaten consensus EPS estimates in the last four quarters, with a notable surprise of +12.66% in the most recent quarter [13][14]. Overall Assessment - Given the current Zacks Rank of 4, CACI International does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [17].

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.

Core Viewpoint - CACI International has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4]. - Rising earnings estimates for CACI International suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5]. Earnings Estimate Revisions - CACI International is projected to earn $24.62 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 17% [8]. - Over the past three months, the Zacks Consensus Estimate for CACI International has risen by 2.8%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - CACI International's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].

Core Viewpoint - CACI International's shares have increased by approximately 4% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for CACI International have trended downward over the past month, with the consensus estimate shifting down by 5.61% [2] VGM Scores - CACI International has a Growth Score of B, a Momentum Score of D, and a Value Score of B, resulting in an aggregate VGM Score of B, indicating a solid performance across different investment strategies [3] Outlook - The downward trend in estimates suggests a negative shift, with CACI International holding a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4]

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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]