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.

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]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - CACI International is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [4] - CACI International has a historical EPS growth rate of 9.8%, but projected EPS growth for this year is expected to be 14.6%, significantly surpassing the industry average of 4.8% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - CACI International's year-over-year cash flow growth stands at 5.9%, exceeding the industry average of 4.9% [6] - 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% [7] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of a stock's potential performance, with positive revisions correlating strongly with stock price movements [8] - Current-year earnings estimates for CACI International have been revised upward, with the Zacks Consensus Estimate increasing by 0.8% over the past month [9] Group 5: Overall Assessment - CACI International has achieved a Zacks Rank of 2 due to favorable earnings estimate revisions and has earned a Growth Score of B based on various factors [10] - This combination positions CACI International as a potential outperformer and a solid choice for growth investors [11]

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]