Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved revenue growth of 16% on an underlying basis, with an EBITDA margin of 11.2% and free cash flow of $442 million, reflecting a 16% increase in free cash flow per share [9][24][26] - In Q4, revenue reached $2.3 billion, representing a 13% year-over-year growth, with an EBITDA margin of 11.5% [22][24] - Adjusted diluted earnings per share for Q4 were $8.4, a 27% increase from the previous year [22] Business Line Data and Key Metrics Changes - The company won $10 billion in contract awards for the year, resulting in a book-to-bill ratio of 1.1x [10][32] - The company reported 10% organic growth for the full year, driven by strong customer demand for its differentiated technology [24][26] Market Data and Key Metrics Changes - The company generates 90% of its revenue from national security customers, benefiting from government funding initiatives such as the One Big Beautiful Bill Act, which allocates over $150 billion for defense [18][32] - The company has a healthy pipeline with $16 billion in bids under evaluation, 80% of which are for new business [34] Company Strategy and Development Direction - The company has positioned itself in well-funded areas aligned with national security priorities, focusing on software-based capabilities and modernization [11][19] - The company anticipates revenue growth of nearly 8% for fiscal year 2026, with an EBITDA margin in the mid-11% range and free cash flow per share growth of over 60% [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting strong customer demand and a robust pipeline of opportunities [17][19] - The company is closely monitoring the fiscal year 2026 budget process, indicating comfort in operating under a continuing resolution if necessary [18][19] Other Important Information - The company completed three strategic acquisitions and repurchased $150 million of shares during the year [28] - The company has a modest leverage ratio of 2.9x net debt to trailing twelve-month EBITDA, providing significant optionality for future capital deployment [28] Q&A Session Summary Question: Concerns about the competitive landscape and pipeline - Management clarified that the majority of their $16 billion pipeline consists of new work to CACI, with over half being new customer work, indicating a focus on value bids rather than traditional government services [41][44] Question: Impact of ceiling reduction on iTask program - Management confirmed that the ceiling reduction from $5.7 billion to $5 billion does not impact revenue or margins, and the program continues to execute well [47][49] Question: Budget outlook and potential for organic growth - Management indicated that a quicker budget process could lead to achieving the higher end of organic growth guidance, emphasizing a robust process for setting guidance [54][56] Question: Award environment and contracting officer availability - Management noted some modest impacts on award decisions but emphasized their ability to operate effectively in the current environment, with expectations of extended current work due to tighter procurement bandwidth [68][70] Question: Updates on space optical terminals and Golden Dome initiative - Management reported strong demand for their technology and ongoing success in the space optical terminal market, with investments on track despite some production delays [78][80] Question: Federal civilian exposure and budget outlook - Management stated that only 6% of revenue comes from federal civilian work, with a strategic focus on defense and intelligence sectors, minimizing exposure to federal civilian budget fluctuations [92][94]

Core Insights - CACI International Inc. reported better-than-expected results for the fourth quarter of fiscal 2025, leading to a 3.5% increase in shares during extended trading [1] Financial Performance - CACI's fourth-quarter non-GAAP earnings were $8.40 per share, exceeding the Zacks Consensus Estimate by 28.4% and reflecting a 27.1% year-over-year increase, driven by higher revenues, increased operating income, lower taxes, and a reduction in share count, despite increased interest expenses [2][11] - Revenues for the fourth quarter reached $2.3 billion, surpassing the consensus mark by 0.3% and increasing 13% year-over-year, primarily due to 5.3% organic growth [3][11] - The operating income for the quarter was $206.7 million, up 4.5% year-over-year, with an operating margin of 9%, which contracted by 70 basis points [9] Contract Awards and Backlog - In Q4, CACI secured contract awards totaling $2.6 billion, with over 40% attributed to new business [4] - The total backlog as of June 30, 2025, was $31.4 billion, slightly down from $31.6 billion a year ago, while the funded backlog increased by 11% to $4.2 billion [5] Customer and Revenue Mix - The Department of Defense contributed 75.6% to total revenues, with Federal Civilian Agencies at 19.4% and Commercial and other customers at 5% [6] - Prime Contractor and Subcontractor revenues accounted for 90.5% and 9.5% of total revenues, respectively [7] - Revenue contributions by contract type were 60.5% from cost-plus-fee-type, 26.3% from fixed-price, and 13.2% from time and material-type contracts [8] Future Guidance - For fiscal 2026, CACI anticipates revenues between $9.2 billion and $9.4 billion, with a midpoint of $9.3 billion, indicating a 7.3% year-over-year increase [14] - Adjusted net income for fiscal 2026 is projected between $605 million and $625 million, with non-GAAP earnings per share estimated in the range of $27.13 to $28.03 [15]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved revenue growth of 16% on an underlying basis, with an EBITDA margin of 11.2% and free cash flow of $442 million, reflecting a growth of over 16% per share [8][25][30] - In the fourth quarter, revenue reached $2.3 billion, representing a 13% year-over-year growth, with an EBITDA margin of 11.5% [23][25] - Adjusted diluted earnings per share for the fourth quarter were $8.4, a 27% increase from the previous year [23] Business Line Data and Key Metrics Changes - The company won $10 billion in contract awards for the fiscal year, resulting in a book-to-bill ratio of 1.1x [8][33] - The fiscal year 2025 saw a 10% organic growth in revenue, driven by strong customer demand for differentiated technology and expertise [25][30] Market Data and Key Metrics Changes - The company generates 90% of its revenue from national security customers, benefiting from favorable government funding trends, including $150 billion allocated for defense [18][30] - The company has a healthy pipeline with $16 billion in bids under evaluation, 80% of which are for new business [33] Company Strategy and Development Direction - The company has positioned itself in well-funded areas aligned with national security priorities, focusing on software-based capabilities and modernization [10][17] - The strategy emphasizes bidding on high-value opportunities rather than competing aggressively on price, with a focus on differentiated capabilities [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2026 guidance, expecting revenue growth of nearly 8% and free cash flow per share growth of over 60% [20][30] - The company is closely monitoring the government fiscal year 2026 budget process, indicating resilience in operating under a continuing resolution [19][60] Other Important Information - The company completed three strategic acquisitions and repurchased $150 million of shares during the year [29] - The effective tax rate in the fourth quarter benefited from a $28 million tax resolution, which will positively impact future tax liabilities [23][27] Q&A Session Summary Question: Concerns about the competitive landscape and takeaway work - Management clarified that the majority of their pipeline consists of new work, with a focus on differentiated solutions rather than traditional government services [41][44] Question: Impact of ceiling reduction on iTask program - Management confirmed that the ceiling reduction does not affect revenue, margins, or guidance, and the program continues to execute well [48][50] Question: Outlook on federal civilian budget exposure - The company has minimal exposure to federal civilian work, focusing primarily on defense and intelligence sectors, which are more stable [98][100] Question: Software acquisition directive and its implications - Management views the software acquisition directive positively, anticipating increased opportunities for software solutions in government contracts [109][111] Question: Pipeline characterization and outcome-based pricing - Management indicated that their pipeline includes both new work to the market and new work to CACI, emphasizing their focus on delivering better solutions than competitors [116][118]

FY25 Performance Highlights - CACI achieved 16% underlying revenue growth, with 10% being organic[12] - The company secured $10 billion in contract awards, representing a 1.1x TTM book-to-bill ratio[12] - CACI reported an EBITDA margin of 11.2%[12,26] - Free cash flow reached $442 million, demonstrating efficient management of working capital and capital expenditures[12,26] - Adjusted EPS increased by 26% year-over-year[26] FY26 Guidance - CACI anticipates revenue growth of nearly 8% at the midpoint, with a range of 6.6% to 8.9%[22] - The company expects an EBITDA margin in the "mid 11% range"[22] - Free cash flow and free cash flow per share are projected to grow by more than 60%[22] - CACI forecasts free cash flow of at least $710 million[33] Capital Deployment and Balance Sheet - CACI repurchased 436,000 shares at an average price of $344 per share[12,32] - The company closed a $1 billion upsized offering of 6.375% senior unsecured notes[32] - CACI has a strong balance sheet with 2.9x leverage[32]

Core Insights - CACI International reported revenue of $2.3 billion for the quarter ended June 2025, reflecting a 13% increase year-over-year and a slight surprise of +0.34% over the Zacks Consensus Estimate [1] - Earnings per share (EPS) reached $8.40, significantly higher than the $6.61 reported in the same quarter last year, resulting in an EPS surprise of +28.44% compared to the consensus estimate of $6.54 [1] Revenue Performance - Total revenue organic growth year-over-year was 5.3%, slightly below the estimated 6% by analysts [4] - Revenue from Expertise was reported at $962.64 million, compared to the average estimate of $1.01 billion, marking a +5.5% year-over-year change [4] - Revenue from Technology reached $1.34 billion, exceeding the estimated $1.3 billion, with a +19.2% change year-over-year [4] - Revenue from the Commercial and other customer group was $114.43 million, significantly lower than the estimated $206.09 million, but still showing a +19% year-over-year change [4] - Revenue from Federal Civilian Agencies was $447.46 million, slightly above the average estimate of $445.3 million, representing a +9.2% year-over-year change [4] - Revenue from the Department of Defense was reported at $1.74 billion, surpassing the estimated $1.66 billion, with a +13.7% year-over-year change [4] Stock Performance - CACI International's shares have returned -3.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - CACI International reported quarterly earnings of $8.4 per share, exceeding the Zacks Consensus Estimate of $6.54 per share, and up from $6.61 per share a year ago, representing an earnings surprise of +28.44% [1] - The company posted revenues of $2.3 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.34%, and an increase from $2.04 billion year-over-year [2] - CACI has surpassed consensus EPS estimates in all four of the last quarters [2] Group 2: Stock Performance and Outlook - CACI shares have increased approximately 16.7% since the beginning of the year, compared to a 7.1% gain in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $6.56 for the coming quarter and $27.01 for the current fiscal year [4][7] - The estimate revisions trend for CACI was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Computer - Services industry, to which CACI belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

[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** |

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on financial markets, launching a book titled "Financial Markets: The Next Generation" in 2025 [1] - He has a non-traditional financial background, having worked as an analyst in the IT sector for Fortune 500 companies, which has informed his approach to equities research [1] - In 2021, he founded his own equities research firm, Albert Anthony & Company, which operates remotely [1] Background and Experience - Albert Anthony grew up in the New York City area and has ties to Austin, Texas, and Croatia, where he has participated in numerous business and innovation events [1] - He holds degrees and certifications from institutions such as Drew University and the Corporate Finance Institute [1] - In addition to his financial commentary, he has experience in European casting agencies and has appeared in regional media in Croatia [1] Future Endeavors - A new YouTube show titled "Financial Markets with Albert Anthony" is set to launch in 2025, where he will provide market commentary similar to his written work [1]

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.