Science Applications International (SAIC) secured a five-year contract from the U.S. Navy worth $80.5 million. SAIC is set to complete the designing, production and deployment of the MK 710 Torpedo System Test Sets (TSTS) for the U.S. Navy’s MK 48 heavyweight torpedoes used in the latter’s submarine force.SAIC will supply MK 710 TSTS, which will be utilized to test and ensure the reliability and functionality of MK 48 heavyweight torpedoes before the solutions are handed over to the Navy. The U.S. Navy will ...

RESTON, Va.--(BUSINESS WIRE)--Science Applications International Corp. (NYSE: SAIC) has been awarded a $80.5 million task order by the U.S. Navy for the completion of the MK710 TSTS design and then to produce and deliver MK 710 Torpedo System Test Sets (TSTS) to enhance the Navy’s capability to provide the Submarine force with high quality, tested and validated MK 48 heavyweight torpedoes. “SAIC looks forward to expanding our support to the Navy’s heavyweight torpedo program,” said Barbara Supplee, execu ...

Science Applications International Corporation (SAIC) has secured a $156 million contract to offer system support to the U.S. Army Reserve Command (“USARC”) under the United States Army Reserve Command Information Technology Support Services (USARC ITSS II) contract. Leveraging its extensive history of collaboration with the U.S. Army Reserve, Science Applications aims to deliver innovative, cost-effective and mission-oriented managed IT services.The contract focuses on consolidating global enterprise IT se ...

RESTON, Va.--(BUSINESS WIRE)--Science Applications International Corp. (NYSE: SAIC) has been awarded a $156 million contract to provide system support to the U.S. Army Reserve Command (USARC) through their United States Army Reserve Command Information Technology Support Services (USARC ITSS II) contract. “SAIC has a decades-long history of partnering with the U.S. Army Reserve to advance their mission,” said Josh Jackson, senior vice president, Army Business Group at SAIC. “We are proud to support their ...

Science Applications International (SAIC) has bagged a $375 million contract from the U.S. Navy. The contract is for extending the supply and integration of its Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4/ISR) systems for land-based vehicle platforms to support the Naval Information Warfare Center Atlantic (NIWC Atlantic).SAIC will use its professionals to install C4/ISR components in the tactical vehicles before NIWC Atlantic deploys them for critical oper ...

RESTON, Va.--(BUSINESS WIRE)--Science Applications International Corp. (NYSE: SAIC) has been selected to provide a range of Information Technology (IT) services on the Department of Veterans Affairs (VA) contracting vehicle called Transformation Twenty-One Total Technology Next Generation Two (T4NG2). “SAIC is ready to deliver best-in-class innovation and modernization in support of our nation’s heroes, the veteran community,” said Vishal Tulsian, senior vice president, Health, State and Local, and Feder ...

RESTON, Va.--(BUSINESS WIRE)--The U.S. Navy has awarded Science Applications International Corp. (NYSE: SAIC) a $375 million contract to continue providing Command, Control, Communications, Computers (C4) Intelligence, Surveillance and Reconnaissance (ISR) fielding and integration on land-based vehicle platforms to support Naval Information Warfare Center Atlantic (NIWC Atlantic). “SAIC is proud to continue supporting this important mission,” said Barbara Supplee, senior vice president, Navy Business Gro ...

RESTON, Va.--(BUSINESS WIRE)--Science Applications International Corp. (NYSE: SAIC) has been awarded a $63 million contract from the U.S. Navy to support hypersonics advanced concepts and strategic mission solutions for the Navy’s Strategic Systems Programs (SSP) and the Naval Surface Warfare Center (NSWC) Crane, Ind., Strategic Systems Hardware Division (GXW). “Every day, SAIC provides expertise in systems integration and delivery solutions in support of the U.S. Navy’s strategic priorities,” said Barba ...

It has been about a month since the last earnings report for SAIC (SAIC) . Shares have lost about 5.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is SAIC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Science Applications Q3 Earnings & Sales Beat EstimatesScien ...

Financial Data and Key Metrics - Revenue for Q3 FY24 was $1.90 billion, an 11% increase YoY excluding FSA and supply chain revenue [18] - Adjusted EBITDA margin in Q3 was 9.4%, up 50 basis points YoY [18] - Adjusted diluted EPS was $2.27, a 19% increase YoY [18] - Free cash flow adjusted for transaction fees was $148 million in Q3 and $367 million YTD [18] - Net bookings of $2.5 billion resulted in a book-to-bill ratio of 1.3x for the quarter and 1x on a trailing 12-month basis [18] - FY24 adjusted EPS guidance increased to $7.70-$7.90, driven by improved operating results, lower interest expense, and a lower tax rate [19] - FY24 free cash flow guidance maintained at $460-$480 million [19] Business Line Data and Key Metrics - The company's solutions portfolio is majority at enterprise scale, with recent investments in digital engineering, secure data analytics, operational AI, and multilevel security [1] - Customers have cited these solutions in recent bids and recompete efforts, indicating differentiation and mission relevance [1] - The company is focusing on improving value creation processes post-contract to enhance profitability for both the company and customers [1] Market Data and Key Metrics - The company expects to double its revenue from the NASA NCAP program to $200 million annually if the new procurement is secured [8] - Backlog is currently at $23-$24 billion, providing a strong foundation for future growth [9] - The company is cautious about potential government funding disruptions in Q4 and FY25 [31] Company Strategy and Industry Competition - The company is focusing on four strategic pivots: solutions portfolio, go-to-market strategy, culture, and brand [20] - A new enterprise business development function is being established to standardize and optimize the go-to-market strategy [29] - The company aims to achieve sustainable organic growth above the 2%-4% framework provided at Investor Day [29] - The company is committed to a capital-light business model and differentiating itself in the market with mission-relevant, scalable, and differentiated solutions [16] Management Commentary on Operating Environment and Future Outlook - The company is confident in its ability to deliver growth rates consistently above mid-single digits, driven by strong program performance and cost efficiency initiatives [2][18] - Management is focused on driving outsized EBITDA growth and cash flow, while maintaining a cautious outlook for FY25 [6] - The company is optimistic about the potential for the NASA NCAP program to be accretive, but is also preparing for potential downside scenarios [8][9] Other Important Information - The company has hired Lauren Knausenberger as its first Chief Innovation Officer to manage the technology roadmap and maximize differentiation and long-term value [16] - The company is open to M&A but remains skeptical of larger transactions, focusing instead on shoring up its solutions portfolio with new technology [17] - The company is increasing its FY24 revenue guidance by 2% to $7.325-$7.35 billion, reflecting stronger operating performance and potential government funding pressures [31] Q&A Summary Question: How does the company plan to maintain its earnings trajectory given the current book-to-bill ratio? [4] - The company is focusing on delivering outsized EBITDA growth and cash flow, while maintaining a cautious outlook for FY25 [6] Question: What is the company's outlook on the NASA NCAP contract and its impact on growth? [7] - The company expects the NASA NCAP program to potentially double its revenue to $200 million annually if the new procurement is secured, but is also preparing for potential downside scenarios [8][9] Question: How is the company addressing recompete losses and improving its recompete win rate? [49] - The company is focusing on differentiation in its programs, rigorous business development execution, and applying lessons learned across the enterprise to improve recompete win rates [22] Question: What changes are being made to incentive compensation to drive growth? [64] - The company is focusing on aligning incentive compensation with both short-term and long-term performance, particularly in business development and program management [33][37] Question: What is the company's philosophy on M&A and the use of the balance sheet? [80] - The company is focused on organic growth and tightening internal processes before pursuing M&A, with a preference for smaller, capability-based tuck-ins [17][80] Question: How does the company view its tax rate and cash tax management going forward? [72] - The company has managed its tax rate effectively and is focused on maintaining strong cash tax management, with plans to increase cash taxes from $0 in FY23 to $100 million in FY26 [19][72]