Core Insights - CACI International reported revenue of $2.29 billion for the quarter ended September 2025, reflecting an 11.2% increase year-over-year, with EPS at $6.85 compared to $5.93 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.25 billion, resulting in a surprise of +1.66%, while the EPS also surpassed expectations by +10.48% [1] Financial Performance Metrics - Total revenue organic growth was 5.5%, outperforming the estimated 3.5% by analysts [4] - Revenue from Expertise was $986.89 million, slightly below the average estimate of $996.55 million, indicating a -0.1% year-over-year change [4] - Revenue from Technology reached $1.3 billion, exceeding the average estimate of $1.25 billion, marking a significant year-over-year increase of +21.7% [4] - Revenue from the Commercial and other customer group was $99.84 million, surpassing the estimated $89.29 million, with a year-over-year growth of +20.3% [4] - Revenue from Federal Civilian Agencies was $411.73 million, below the estimated $453.65 million, reflecting a -6.3% change year-over-year [4] - Revenue from the Department of Defense was $1.18 billion, significantly lower than the estimated $1.7 billion, representing a -23.1% year-over-year decline [4] Stock Performance - CACI International's shares have returned +8.3% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - CACI International reported quarterly earnings of $6.85 per share, exceeding the Zacks Consensus Estimate of $6.2 per share, and up from $5.93 per share a year ago, representing an earnings surprise of +10.48% [1] - The company posted revenues of $2.29 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.66%, compared to revenues of $2.06 billion in the same quarter last year [2] Stock Performance - CACI International shares have increased approximately 32.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $6.28, with expected revenues of $2.24 billion, and for the current fiscal year, the consensus EPS estimate is $27.15 on revenues of $9.32 billion [7] - The Computer - Services industry, to which CACI belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [First Quarter Financial Highlights](index=1&type=section&id=First%20Quarter%20Financial%20Highlights) CACI reported a strong fiscal Q1 2026 with double-digit revenue growth and increased profitability, driven by organic growth and effective working capital management, showing significant year-over-year improvements in key metrics. | Metric | Value | YoY Change | | :-------------------------------- | :---------- | :--------- | | Revenues | $2.3 billion | 11.2% | | Net income | $124.8 million | - | | Diluted EPS | $5.63 | 5.6% | | Adjusted net income | $151.7 million | 13.5% | | Adjusted diluted EPS | $6.85 | 15.5% | | EBITDA | $268.6 million | - | | EBITDA margin | 11.7% | - | | Contract awards | $5.0 billion | - | | Book-to-bill | 2.2x | - | [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO John Mengucci highlighted CACI's exceptional start to FY2026, emphasizing robust financial results, significant contract awards, and growth in backlog, reinforcing confidence in achieving future commitments and shareholder value. - CACI delivered strong financial results, including **robust free cash flow** driven by **double-digit revenue growth** and **strong profitability**[2](index=2&type=chunk) - Contract awards of **$5 billion** and growth in total and funded backlog demonstrate focus on **critical national security priorities**[2](index=2&type=chunk) - Performance, continued investments, healthy pipeline, and strong customer demand signals provide confidence in delivering **FY2026 commitments** and achieving **three-year financial targets**[2](index=2&type=chunk) [First Quarter Results Overview](index=1&type=section&id=First%20Quarter%20Results%20Overview) [Financial Performance](index=1&type=section&id=Financial%20Performance) CACI's Q1 FY2026 saw significant revenue growth of 11.2% driven by 5.5% organic growth, leading to an 18.0% increase in income from operations, with diluted and adjusted diluted EPS also rising due to higher operating income and share repurchases, despite increased interest and tax expenses. | Metric | 9/30/2025 (in millions) | 9/30/2024 (in millions) | % Change | | :------------------------------------- | :---------------------- | :---------------------- | :------- | | Revenues | $2,287.6 | $2,056.9 | 11.2% | | Income from operations | $212.3 | $179.8 | 18.0% | | Net income | $124.8 | $120.2 | 3.9% | | Adjusted net income (non-GAAP) | $151.7 | $133.6 | 13.5% | | Diluted earnings per share | $5.63 | $5.33 | 5.6% | | Adjusted diluted earnings per share (non-GAAP) | $6.85 | $5.93 | 15.5% | | EBITDA (non-GAAP) | $268.6 | $215.9 | 24.4% | | Net cash provided by operating activities excluding MARPA (non-GAAP) | $160.0 | $60.9 | 162.8% | | Free cash flow (non-GAAP) | $143.0 | $49.4 | 189.4% | | Days sales outstanding (DSO) | 56 | 47 | - | - Revenue increase driven by **5.5% organic growth**[5](index=5&type=chunk) - Growth in diluted and adjusted diluted EPS driven by **higher income from operations** and **share repurchases**, partially offset by higher interest expense and tax provision[5](index=5&type=chunk) - Increase in cash from operations (excluding MARPA) driven by **higher net income** and **strong working capital management**[5](index=5&type=chunk) [Contract Awards and Backlog](index=2&type=section&id=Contract%20Awards%20and%20Backlog) CACI secured $5.0 billion in contract awards during Q1 FY2026, with 60% new business and a 2.2x book-to-bill ratio, driving total backlog up 4.6% to $33.9 billion and funded backlog up 25.6% to $5.4 billion. - Contract awards in the first quarter totaled **$5.0 billion**, with approximately **60% for new business** to CACI[6](index=6&type=chunk) - Total backlog as of September 30, 2025, was **$33.9 billion**, an increase of **4.6%** from $32.4 billion a year ago[7](index=7&type=chunk) - Funded backlog as of September 30, 2025, was **$5.4 billion**, an increase of **25.6%** from $4.3 billion a year ago[7](index=7&type=chunk) [Operational Highlights](index=2&type=section&id=Operational%20Highlights) CACI secured multiple significant task orders totaling over $2.3 billion from DoD, IC, and CBP for advanced communications, software-defined technology, and IT modernization, while also showcasing C-UAS and Beast+ technologies in government demonstrations. - CACI was awarded a five-year task order valued at up to **$548 million** for test and evaluation of emerging communications and electromagnetic spectrum technologies for a Department of Defense (DoD) customer[9](index=9&type=chunk) - CACI was awarded a 10-year IDIQ contract valued at up to **$423 million** to continue providing capability development and software-defined technology to an Intelligence Community (IC) customer[9](index=9&type=chunk) - CACI successfully displayed its industry-leading, commercially-developed **long-range C-UAS technology** that detects and defeats unmanned systems[9](index=9&type=chunk) - CACI showcased its **Beast+ technology**, a software-defined wearable EW and SIGINT sensor, during two recent U.S. Army demonstrations, delivering an **AI-enabled common operating system**[9](index=9&type=chunk) [Fiscal Year 2026 Guidance](index=3&type=section&id=Fiscal%20Year%202026%20Guidance) CACI reaffirmed its FY2026 guidance, projecting revenues of $9.2-$9.4 billion, adjusted net income of $605-$625 million, adjusted diluted EPS of $27.13-$28.03, and free cash flow of at least $710 million, including tax benefits. | Metric | Current Guidance (FY26) | Prior Guidance (FY26) | | :------------------------------------- | :---------------------- | :---------------------- | | Revenues | $9,200 - $9,400 million | $9,200 - $9,400 million | | Adjusted net income (non-GAAP) | $605 - $625 million | $605 - $625 million | | Adjusted diluted earnings per share (non-GAAP) | $27.13 - $28.03 | $27.13 - $28.03 | | Diluted weighted average shares | 22.3 million | 22.3 million | | Free cash flow (non-GAAP) | at least $710 million | at least $710 million | - Fiscal year 2026 free cash flow guidance assumes approximately **$50 million in tax benefit** related to the modification of Section 174 and an approximately **$40 million cash tax refund**[12](index=12&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) CACI scheduled a conference call for 8:00 AM ET on Thursday, October 23, 2025, to discuss Q1 results and operating trends, with a webcast and replay available on its investor relations website. - Conference call scheduled for **8:00 AM ET on Thursday, October 23, 2025**, to discuss first quarter results and operating trends[13](index=13&type=chunk) - Webcast and replay available on CACI's investor relations website at **http://investor.caci.com/events/default.aspx**[13](index=13&type=chunk) [About CACI](index=4&type=section&id=About%20CACI) CACI International Inc, a national security company with 25,000 employees, delivers differentiated technology and expertise to accelerate innovation and eliminate threats, recognized as a Fortune World's Most Admired Company and included in key market indices. - CACI International Inc is a national security company with **25,000 talented employees**[15](index=15&type=chunk) - Ensures customer success by delivering **differentiated technology** and **distinctive expertise** to accelerate innovation, drive speed and efficiency, and rapidly anticipate and eliminate threats[15](index=15&type=chunk) - Recognized as a **Fortune World's Most Admired Company** and members of the **Fortune 500™**, **Russell 1000 Index**, and **S&P MidCap 400 Index**[15](index=15&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various risk factors, including reliance on U.S. government contracts, funding delays, legislative changes, economic uncertainty, government audits, competitive pressures, and the ability to meet contractual obligations, which could cause actual results to differ materially. - Statements made herein that do not address historical facts could be interpreted as **forward-looking statements**, subject to risk factors[16](index=16&type=chunk) - Risk factors include **reliance on U.S. government contracts**, **delays or reductions in appropriations**, **legislative changes**, and **legal, regulatory, and political changes**[16](index=16&type=chunk) - Other risks include **government audits**, **competitive factors**, **failure to achieve contract awards**, **economic conditions**, **ability to meet contractual obligations**, and **effects of health epidemics**[16](index=16&type=chunk) [Corporate Contacts](index=4&type=section&id=Corporate%20Contacts) Provides contact information for CACI's Corporate Communications and Media, and Investor Relations departments. - Corporate Communications and Media contact: **Lauren Presti**, Executive Director, **(703) 434-5037**, **lauren.presti@caci.com**[17](index=17&type=chunk) - Investor Relations contact: **George Price**, Senior Vice President, **(703) 841-7818**, **george.price@caci.com**[17](index=17&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) CACI's consolidated statements of operations show Q1 FY2026 revenue increased by 11.2% to $2.288 billion, with income from operations growing 18.0% and net income rising 3.9% to $124.8 million, despite increased interest and depreciation/amortization expenses. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | % Change | | :-------------------------------- | :-------- | :-------- | :------- | | Revenues | $2,287,623 | $2,056,889 | 11.2% | | Total costs of revenues | $2,075,348 | $1,877,048 | 10.6% | | Income from operations | $212,275 | $179,841 | 18.0% | | Interest expense and other, net | $46,173 | $23,970 | 92.6% | | Income before income taxes | $166,102 | $155,871 | 6.6% | | Income taxes | $41,292 | $35,694 | 15.7% | | Net income | $124,810 | $120,177 | 3.9% | | Diluted earnings per share | $5.63 | $5.33 | 5.6% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2025, CACI's total assets slightly increased to $8.705 billion, driven by higher current assets like cash and accounts receivable, while long-term debt decreased and total shareholders' equity grew to $4.025 billion. | Metric (in thousands) | 9/30/2025 | 6/30/2025 | | :-------------------------------- | :-------- | :-------- | | Total assets | $8,704,955 | $8,647,598 | | Total current assets | $1,854,839 | $1,779,945 | | Goodwill | $5,018,687 | $5,021,805 | | Total liabilities | $4,679,456 | $4,753,653 | | Total shareholders' equity | $4,025,499 | $3,893,945 | | Long-term debt, net of current portion | $2,708,701 | $2,849,190 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 FY2026, net cash provided by operating activities significantly increased to $171.065 million from $34.661 million, largely offset by financing activities, resulting in a net change in cash and cash equivalents of $26.839 million. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $171,065 | $34,661 | | Net cash used in investing activities | $(1,214) | $(11,727) | | Net cash (used in) provided by financing activities | $(142,238) | $279,356 | | Net change in cash and cash equivalents | $26,839 | $306,745 | | Cash and cash equivalents, end of period | $133,020 | $440,706 | [Detailed Revenue and Contract Analysis (Unaudited)](index=8&type=section&id=Detailed%20Revenue%20and%20Contract%20Analysis%20(Unaudited)) [Revenues by Customer Type](index=8&type=section&id=Revenues%20by%20Customer%20Type) In Q1 FY2026, the Department of Defense remained CACI's largest customer, contributing 51.5% of revenues with an 8.5% increase, while the Intelligence Community, Federal civilian agencies, and commercial sectors also showed strong growth. | Customer Type | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Department of Defense | $1,179,626 | 51.5% | $1,087,288 | 52.9% | $92,338 | 8.5% | | Intelligence Community | $596,429 | 26.1% | $534,343 | 26.0% | $62,086 | 11.6% | | Federal civilian agencies | $411,730 | 18.0% | $352,219 | 17.1% | $59,511 | 16.9% | | Commercial and other | $99,838 | 4.4% | $83,039 | 4.0% | $16,799 | 20.2% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | [Revenues by Contract Type](index=8&type=section&id=Revenues%20by%20Contract%20Type) Cost-plus-fee contracts remained the dominant revenue source at 60.5% with 8.0% growth, while fixed-price contracts saw the highest growth at 28.7% to 26.7% of total revenues, and time-and-materials contracts slightly decreased. | Contract Type | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Cost-plus-fee | $1,382,630 | 60.5% | $1,280,010 | 62.2% | $102,620 | 8.0% | | Fixed-price | $611,493 | 26.7% | $475,256 | 23.1% | $136,237 | 28.7% | | Time-and-materials | $293,500 | 12.8% | $301,623 | 14.7% | $(8,123) | (2.7)% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | [Revenues by Prime or Subcontractor](index=8&type=section&id=Revenues%20by%20Prime%20or%20Subcontractor) CACI primarily operates as a prime contractor, generating 90.8% of Q1 FY2026 revenues with a 10.4% increase, while subcontractor revenues also grew significantly by 19.4% to contribute 9.2%. | Role | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Prime contractor | $2,076,899 | 90.8% | $1,880,419 | 91.4% | $196,480 | 10.4% | | Subcontractor | $210,724 | 9.2% | $176,470 | 8.6% | $34,254 | 19.4% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | [Revenues by Expertise or Technology](index=8&type=section&id=Revenues%20by%20Expertise%20or%20Technology) In Q1 FY2026, CACI's technology-driven revenues significantly outpaced expertise-based revenues, growing 21.7% to 56.9% of total revenues, while expertise revenues remained stable with a slight 0.1% decrease. | Category | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Expertise | $986,891 | 43.1% | $988,265 | 48.0% | $(1,374) | (0.1)% | | Technology | $1,300,732 | 56.9% | $1,068,624 | 52.0% | $232,108 | 21.7% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | [Contract Awards (Detailed)](index=8&type=section&id=Contract%20Awards%20Detailed) CACI's contract awards for the three months ended September 30, 2025, surged by 49.7% year-over-year to nearly $5.0 billion, indicating strong business momentum and successful bidding. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | $ Change | % Change | | :-------------------- | :-------- | :-------- | :------- | :------- | | Contract Awards | $4,998,684 | $3,339,635 | $1,659,049 | 49.7% | [Non-GAAP Financial Measures Reconciliations (Unaudited)](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations%20(Unaudited)) [Adjusted Net Income and Diluted EPS Reconciliation](index=9&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20EPS%20Reconciliation) CACI provides adjusted net income and adjusted diluted EPS as non-GAAP measures, excluding intangible amortization and its tax impact, to offer a clearer view of ongoing operating performance, with Q1 FY2026 adjusted net income up 13.5% and adjusted diluted EPS up 15.5%. | Metric (in thousands, except per share data) | 9/30/2025 | 9/30/2024 | % Change | | :------------------------------------------- | :-------- | :-------- | :------- | | Net income, as reported | $124,810 | $120,177 | 3.9% | | Intangible amortization expense | $36,033 | $18,007 | 100.1% | | Tax effect of intangible amortization | $(9,104) | $(4,550) | 100.1% | | Adjusted net income | $151,739 | $133,634 | 13.5% | | Diluted EPS, as reported | $5.63 | $5.33 | 5.6% | | Intangible amortization expense (per share) | $1.63 | $0.80 | 103.8% | | Tax effect of intangible amortization (per share) | $(0.41) | $(0.20) | 105.0% | | Adjusted diluted EPS | $6.85 | $5.93 | 15.5% | FY26 Current Guidance Range | Metric (in millions, except per share data) | Low End | High End | | :------------------------------------------- | :------ | :------- | | Net income, as reported | $499 | $519 | | Intangible amortization expense | $142 | $142 | | Tax effect of intangible amortization | $(36) | $(36) | | Adjusted net income | $605 | $625 | | Diluted EPS, as reported | $22.38 | $23.27 | | Intangible amortization expense (per share) | $6.37 | $6.37 | | Tax effect of intangible amortization (per share) | $(1.61) | $(1.61) | | Adjusted diluted EPS | $27.13 | $28.03 | - **Adjusted net income** and **adjusted diluted EPS** are non-GAAP measures excluding intangible amortization expense and related tax impact, used to assess **ongoing operating performance** and compare results to peers[35](index=35&type=chunk) [EBITDA Reconciliation](index=10&type=section&id=EBITDA%20Reconciliation) CACI uses EBITDA as a non-GAAP measure to evaluate ongoing operating performance by eliminating non-cash items, with Q1 FY2026 EBITDA increasing 24.4% to $268.6 million and an EBITDA margin of 11.7%. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | % Change | | :-------------------------------- | :-------- | :-------- | :------- | | Net income | $124,810 | $120,177 | 3.9% | | Plus: Income taxes | $41,292 | $35,694 | 15.7% | | Plus: Interest income and expense, net | $46,173 | $23,970 | 92.6% | | Plus: Depreciation and amortization expense | $56,338 | $36,050 | 56.3% | | EBITDA | $268,613 | $215,891 | 24.4% | | Revenues, as reported | $2,287,623 | $2,056,889 | 11.2% | | EBITDA margin | 11.7% | 10.5% | - | - **EBITDA** is a non-GAAP measure used to evaluate and compare **ongoing operating performance** by eliminating non-cash items such as depreciation and amortization[38](index=38&type=chunk) [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) CACI defines free cash flow as net cash provided by operating activities excluding MARPA, less capital expenditures, using this non-GAAP liquidity measure to show a significant 189.4% increase to $143.0 million in Q1 FY2026. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | | :------------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $171,065 | $34,661 | | Cash used in (provided by) MARPA | $(11,091) | $26,210 | | Net cash provided by operating activities excluding MARPA | $159,974 | $60,871 | | Capital expenditures | $(17,014) | $(11,476) | | Free cash flow | $142,960 | $49,395 | FY26 Guidance | Metric (in millions) | Current Guidance | Prior Guidance | | :------------------------------------------- | :--------------- | :------------- | | Net cash provided by operating activities | $795 | $795 | | Cash used in (provided by) MARPA | — | — | | Net cash provided by operating activities excluding MARPA | $795 | $795 | | Capital expenditures | $(85) | $(85) | | Free cash flow | $710 | $710 | - **Free cash flow** is a non-GAAP liquidity measure used to assess the ability to generate cash from business operations and plan for future operating and capital actions[41](index=41&type=chunk)

RESTON, Va.--(BUSINESS WIRE)-- #LimitlessPotential--CACI International Inc (NYSE: CACI) announced results today for its fiscal first quarter ended September 30, 2025. "CACI's exceptional start to fiscal year 2026 underscores our differentiated position in the market. We delivered strong financial results across the board, including robust free cash flow driven by double-digit revenue growth and strong profitability,†said John Mengucci, CACI President and Chief Executive Officer. "Our $5 billion of contract ...

Core Insights - Defense stocks may present a buying opportunity as the government shutdown continues, with analysts suggesting potential upward revisions in outlooks once funding clarity is restored [1][3][4] Market Performance - Defense stocks have underperformed during the government shutdown, with the iShares U.S. Aerospace & Defense ETF (ITA) and Invesco Aerospace & Defense ETF (PPA) remaining flat while the S&P 500 rose nearly 2% [2] - Northrop Grumman (NOC) shares have decreased about 1% since the shutdown began but have increased approximately 28% in 2025, outperforming the S&P 500's nearly 15% rise [5][9] Analyst Recommendations - Analysts from Morgan Stanley recommend buying defense stocks with muted outlooks, anticipating upward revisions as government funding issues are resolved [3][7] - Companies such as Northrop Grumman, Lockheed Martin (LMT), and RTX Corp. (RTX) are expected to report earnings soon, with analysts predicting conservative outlooks due to the ongoing shutdown [7][8] Future Expectations - The White House Economic Advisor indicated that the government shutdown is likely to end soon, which could positively impact defense stocks [9]

RESTON, Va.--(BUSINESS WIRE)-- #LimitlessPotential--CACI International Inc (NYSE: CACI) will release its financial results for the first quarter of fiscal year 2026 after the market closes on Oct. 22. The company will host a conference call the next morning, on Oct. 23 at 8:00 a.m. Eastern time, during which CACI's executive leaders will discuss quarterly results followed by a question-and-answer session. You can listen to the call and view the accompanying exhibits on CACI's Investor Relations site. A repl ...

Core Viewpoint - CACI International Inc has been awarded a five-year task order worth up to $180 million to enhance network operations for the Air Force in the Pacific region, supporting U.S. Indo-Pacific Command [1] Group 1: Contract Details - The task order is valued at up to $180 million [1] - The contract duration is five years [1] Group 2: Objectives and Impact - CACI's efforts will focus on modernizing the Air Force's IT infrastructure [1] - The modernization aims to strengthen mission readiness and defend against cyber threats [1]

Group 1 - CACI International Inc. has been recognized as a top IT stock by hedge funds, recently awarded two contracts with the Canadian Armed Forces valued at approximately $124 million [1][2] - The contracts are part of the second phase of the Counter Uncrewed Aircraft System (C-UAS) Urgent Operational Requirement, aimed at enhancing protection against hostile small UAS [1][2] - CACI's software-defined C-UAS systems will be modular, tailorable, and scalable, providing comprehensive detection and neutralization capabilities against drone threats [3] Group 2 - The awarded contracts will support a light-armored tactical C-UAS vehicle platform and include up to 10 years of support for the Canadian Armed Forces [2][3] - CACI International provides technology solutions and expertise in national security, focusing on intelligence, defense, and federal civilian sectors [4]

Group 1: Industry Overview - The U.S. government's push for military strength is creating investment opportunities for defense contractors, with over $150 billion allocated for defense projects in the One Big Beautiful Bill Act [1] - Analysts expect companies like CACI International, Booz Allen, and Viasat to benefit from this funding and achieve growth [1] Group 2: CACI International - CACI has quickly become a favored defense stock on Wall Street, with Goldman Sachs upgrading its rating to "Buy" and raising the target price from $407 to $544 [2] - The company has a strong relationship with the U.S. Department of Defense, which accounts for 75% of its revenue, and it is expected to outpace peers in growth due to its shift towards advanced technologies [2] - CACI's proprietary anti-drone systems differentiate it from competitors, with an estimated 26% of its revenue coming from these solutions [2] - CACI's stock has risen 21% year-to-date, with a 13% year-over-year revenue increase to $2.3 billion, surpassing expectations [2] Group 3: Booz Allen - Booz Allen, one of the oldest defense consulting firms, has seen its stock decline 15% this year and nearly 28% over the past 12 months [3] - The company faced contract terminations, with 97 agreements canceled by the Department of Defense, impacting its performance [3] - However, market sentiment is shifting, and analysts predict Booz Allen could rebound, with a focus on its core businesses in AI, cybersecurity, software development, and data analytics [3] - The latest financial report showed a slight revenue decline of 0.6% to $2.9 billion, but adjusted earnings per share increased by 7.2% to $1.48, exceeding expectations [3] Group 4: Viasat - Viasat is gaining attention as a potential high-growth stock, with analysts noting significant upside potential despite recent stock price increases [4] - Potential catalysts include management's consideration of an IPO or spin-off of its defense technology business and expected cash inflow of $568 million from a spectrum agreement with Ligado [4] - The company anticipates positive free cash flow in the second half of the year, boosting investor confidence [4] - Viasat's stock has surged over 200% year-to-date, with a 4% revenue increase to $1.17 billion, although net losses widened from $33 million to $56 million [5]

PART I [Business](index=5&type=section&id=Item%201.%20Business) CACI provides specialized expertise and technology to U.S. government agencies, with 97% domestic revenue and growth from acquisitions - **CACI provides expertise and technology to national security customers in intelligence, defense, and federal civilian sectors**[22](index=22&type=chunk) Revenue by Operation Segment (FY2023-2025) | Segment | FY2025 Revenue % | FY2024 Revenue % | FY2023 Revenue % | | :--- | :--- | :--- | :--- | | Domestic Operations | 97.0% | 97.0% | 97.2% | | International Operations | 3.0% | 3.0% | 2.8% | - **Top ten contracts generated $4.0 billion, representing 46.4% of fiscal 2025 revenues**[39](index=39&type=chunk) - **CACI employed approximately 25,000 full and part-time employees as of June 30, 2025**[42](index=42&type=chunk) - **Seven acquisitions completed over the past three fiscal years expanded offerings and customer presence**[40](index=40&type=chunk)[50](index=50&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) CACI faces material risks from heavy reliance on U.S. federal government contracts, competitive pressures, and debt management - **Federal government contracts accounted for 95.7% of fiscal 2025 revenue, with Department of Defense contracts comprising 75.4%**[59](index=59&type=chunk) - **Government contract procurement processes, including bid protests, pose risks of project delays and increased expenses**[60](index=60&type=chunk) - **Fixed-price contracts, representing 26.3% of FY2025 revenue, carry cost overrun and potential loss risks**[90](index=90&type=chunk) - **Goodwill from prior acquisitions totaled $5.0 billion as of June 30, 2025, subject to impairment risk**[96](index=96&type=chunk) - **Debt instruments, including the Credit Facility and Term Loan B, impose operating and financial restrictions, with non-compliance risking default**[97](index=97&type=chunk)[98](index=98&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - **None**[114](index=114&type=chunk) [Cybersecurity](index=16&type=section&id=Item%201C.%20Cybersecurity) CACI's cybersecurity program, managed by the CISO and overseen by the Audit and Risk Committee, aligns with NIST standards - **The cybersecurity program is managed by the CISO and integrated into the company's overall risk management framework**[116](index=116&type=chunk) - **The program aligns with NIST standards and complies with U.S. government cybersecurity regulations**[117](index=117&type=chunk) - **The Audit and Risk Committee of the Board of Directors oversees cybersecurity risks and incidents**[119](index=119&type=chunk) - **No cybersecurity threats have materially affected business operations or financial condition as of the report date**[120](index=120&type=chunk) [Properties](index=17&type=section&id=Item%202.%20Properties) CACI leases 3.7 million square feet across 136 U.S. locations and 0.1 million square feet internationally - **The company leases approximately 3.7 million square feet in 136 U.S. locations and 0.1 million square feet internationally**[121](index=121&type=chunk) [Legal Proceedings](index=17&type=section&id=Item%203.%20Legal%20Proceedings) CACI is appealing a **$42 million** jury award in the Al Shimari case, with the Abbass case stayed pending its outcome - **In the Al Shimari case, a jury awarded $3 million in compensatory and $11 million in punitive damages per plaintiff, with CACI appealing the decision**[136](index=136&type=chunk)[137](index=137&type=chunk) - **The Abbass v. CACI case, with similar allegations, is stayed pending the Al Shimari appeal outcome**[138](index=138&type=chunk)[139](index=139&type=chunk)[143](index=143&type=chunk) - **CACI is vigorously defending these legal proceedings, believing the lawsuits are without merit**[140](index=140&type=chunk) [Mine Safety Disclosures](index=20&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not Applicable**[144](index=144&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=21&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CACI common stock trades on NYSE, has never paid dividends, and repurchased **11,558 shares** in Q4 FY2025 - **The company retains earnings for business expansion and has never paid a cash dividend**[148](index=148&type=chunk) Share Repurchases (Quarter Ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | April 2025 | 11,558 | $394.95 | 494,741 | | May 2025 | — | — | 494,741 | | June 2025 | — | — | 494,741 | - **CACI's five-year cumulative total return was 119.8%, outperforming the Russell 1000 Index at 112.8%**[151](index=151&type=chunk) [Management's Discussion and Analysis of Financial Condition & Results of Operations](index=22&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20%26%20Results%20of%20Operations) FY2025 revenue grew **12.6% to $8.63 billion**, with net income up **19.0%**, supported by strong backlog Fiscal 2025 vs. 2024 Results of Operations (in thousands) | Metric | FY 2025 | FY 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $8,627,824 | $7,659,832 | $967,992 | 12.6% | | Income from operations | $764,185 | $649,708 | $114,477 | 17.6% | | Net income | $499,830 | $419,924 | $79,906 | 19.0% | - **Revenue increase primarily driven by 7.2% organic growth from new contract awards and existing programs**[164](index=164&type=chunk) - **Effective income tax rate decreased from 22.9% to 17.4% in FY2025 due to a federal income tax audit resolution**[169](index=169&type=chunk) - **Total contract backlog was $31.4 billion as of June 30, 2025, with funded backlog at $4.2 billion**[170](index=170&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $547,009 | $497,331 | | Net cash used in investing activities | $(1,758,943) | $(151,952) | | Net cash provided by (used in) financing activities | $1,177,881 | $(326,895) | [Quantitative and Qualitative Disclosure About Market Risk](index=28&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) CACI manages market risk from variable-rate debt interest changes and foreign currency fluctuations - **Interest rate risk is managed through floating-to-fixed interest rate swap agreements totaling $1.0 billion notional amount**[199](index=199&type=chunk) - **A one percent interest rate fluctuation would change annual interest expense on variable-rate debt by approximately $15.7 million**[199](index=199&type=chunk) - **International operations, 3.0% of FY2025 revenues, expose the company to foreign currency risk, mitigated by local currency contracts**[200](index=200&type=chunk) [Financial Statements and Supplementary Data](index=28&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents CACI's audited consolidated financial statements for FY2025, including balance sheets and cash flow [Consolidated Balance Sheets](index=31&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $1,779,945 | $1,374,529 | | Goodwill | $5,021,805 | $4,154,844 | | Total assets | $8,647,598 | $6,796,101 | | **Liabilities & Equity** | | | | Total current liabilities | $1,208,106 | $1,078,260 | | 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 Operations](index=32&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Revenues | $8,627,824 | $7,659,832 | $6,702,546 | | Income from operations | $764,185 | $649,708 | $567,500 | | Net income | $499,830 | $419,924 | $384,735 | | Diluted earnings per share | $22.32 | $18.60 | $16.43 | [Consolidated Statements of Cash Flows](index=34&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $547,009 | $497,331 | $388,056 | | Net cash used in investing activities | $(1,758,943) | $(151,952) | $(75,717) | | Net cash provided by (used in) financing activities | $1,177,881 | $(326,895) | $(316,108) | | Net change in cash and cash equivalents | $(27,780) | $18,185 | $972 | | Cash and cash equivalents, end of year | $106,181 | $133,961 | $115,776 | [Notes to the Consolidated Financial Statements](index=36&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) - **Note 4 - Acquisitions: CACI completed three acquisitions in FY2025, including Applied Insight for $314.2 million and Azure Summit Technology for $1.31 billion**[271](index=271&type=chunk)[272](index=272&type=chunk)[276](index=276&type=chunk) - **Note 5 - Revenues: Remaining performance obligations totaled $12.1 billion as of June 30, 2025, with 44% expected in 12 months**[286](index=286&type=chunk) - **Note 8 - Goodwill and Intangible Assets: Goodwill increased from $4.15 billion to $5.02 billion in FY2025, primarily due to acquisitions**[292](index=292&type=chunk)[293](index=293&type=chunk) - **Note 12 - Debt: Total long-term debt principal outstanding was $2.94 billion as of June 30, 2025, up from $1.55 billion**[302](index=302&type=chunk) - **Note 16 - Income Taxes: Effective tax rate for FY2025 was 17.4%, down from 22.9% in FY2024 due to a tax audit resolution**[335](index=335&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=58&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with its accountants on accounting or financial disclosure - **None**[353](index=353&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of June 30, 2025 - **Management concluded disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025**[356](index=356&type=chunk) - **Management concluded internal control over financial reporting was effective as of June 30, 2025, based on the COSO framework**[359](index=359&type=chunk) [Other Information](index=59&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements in Q4 FY2025 - **No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025**[361](index=361&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=59&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - **Not Applicable**[362](index=362&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=60&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Stockholders Proxy Statement**[365](index=365&type=chunk) - **The company adopted a code of ethics, "Standards of Ethics and Business Conduct," applicable to principal officers**[366](index=366&type=chunk) [Executive Compensation](index=60&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[369](index=369&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=60&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Security ownership information is incorporated by reference from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[370](index=370&type=chunk) [Certain Relationships and Related Transactions](index=60&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions) Information on certain relationships and related transactions is incorporated from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[371](index=371&type=chunk) [Principal Accountant Fees and Services](index=60&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[372](index=372&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=61&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K - **This section lists all financial statements and exhibits filed with the Annual Report, with schedules omitted as not applicable**[376](index=376&type=chunk) [Form 10-K Summary](index=65&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - **None**[379](index=379&type=chunk)