SAIC(SAIC) - 2025 Q2 - Quarterly Results

Financial Performance - Revenues for Q2 FY2025 were $1.82 billion, reflecting a 2$81 million, while adjusted EBITDA was $170 million, representing 9.4$1.58, down 65% from $4.56 in the prior year quarter; adjusted diluted EPS remained at$2.05[3]. - Operating income as a percentage of revenues decreased to 7.4% from 20.3% in the prior year, primarily due to contract completions[3]. - The company reported a net income of $81 million for the three months ended August 2, 2024, down from$247 million in the same period last year[17]. - Net income for the three months ended August 2, 2024, was $81 million, down 67.2$247 million for the same period last year[25]. - Adjusted EBITDA for the three months ended August 2, 2024, was $170 million, representing 9.4$174 million and 9.8% of revenues for the same period last year[25]. - Total revenues for the six months ended August 2, 2024, were $3,665 million, a decrease of 3.8$3,812 million for the same period last year[25]. - Net income for the six months ended August 2, 2024, was $205 million, compared to$227 million for the same period in 2023, reflecting a decrease of approximately 9.7%[33]. - Diluted EPS for the six months ended August 2, 2024, was $3.97, down from$4.19 in the prior year, representing a decline of about 5.3%[34]. Cash Flow and Liquidity - Free cash flow increased by 67% to $241 million compared to$144 million in the prior year[2][5]. - Net cash provided by operating activities for the quarter was $138 million, compared to$150 million in the prior year[17]. - Free cash flow for the three months ended August 2, 2024, was $241 million, an increase from$144 million in the same period last year, marking a growth of approximately 67.4%[35]. - Transaction-adjusted free cash flow for the three months ended August 2, 2024, was $241 million, compared to$143 million in the prior year, indicating a rise of about 68.5%[35]. - The company expects net cash provided by operating activities to be between $520 million and$540 million for the upcoming period[36]. - Projected free cash flow is estimated to be between $490 million and$510 million, reflecting strong operational performance[36]. Backlog and Bookings - Net bookings for the quarter were approximately $1.2 billion, resulting in a book-to-bill ratio of 0.6 and a trailing twelve months book-to-bill ratio of 1.1[7]. - The estimated backlog at the end of the quarter was approximately$22.9 billion, with $4.2 billion funded[7]. - The total backlog as of August 2, 2024, was$22,899 million, consisting of $4,237 million in funded backlog and$18,662 million in negotiated unfunded backlog[23]. Segment Performance - Operating income for the Defense and Intelligence segment was $107 million, with an operating income margin of 7.6$403 million, also reflecting a 2% increase compared to the prior year[22]. Guidance and Future Outlook - The company increased its adjusted diluted EPS guidance for FY2025 to $8.10 -$8.30, reaffirming all other financial guidance[9]. - The company plans to continue focusing on cash flow trends and liquidity measures to enhance financial performance and shareholder value[35]. - The company is committed to optimizing its facilities and managing long-lived asset impairments as part of its restructuring strategy[34]. Other Financial Metrics - Cash flows from operating activities decreased by $12 million compared to the prior year, mainly due to higher cash used from the Master Accounts Receivable Purchase Agreement[5]. - Total current liabilities increased to$1,292 million from $1,158 million year-over-year[16]. - Principal payments on borrowings for the quarter amounted to$296 million, compared to $100 million in the prior year[17]. - The company experienced a decrease in cash and cash equivalents to$56 million at the end of the period, down from $361 million[17]. - Operating loss in the Corporate segment increased to$7 million, primarily due to the prior year gain from divestiture[22]. - The company incurred restructuring and impairment costs of $5 million for the three months ended August 2, 2024[31]. - The EBITDA margin for the six months ended August 2, 2024, was 9.2$35 million for the three months ended August 2, 2024, compared to $31 million for the same period last year[25]. - The company reported a loss on divestitures of$234 million for the three months ended August 4, 2023[25]. - Acquisition and integration costs for the six months ended August 2, 2024, amounted to $4 million, while restructuring and impairment costs were$6 million[33]. - The company reported a significant gain on divestitures, net of transaction costs, amounting to $240 million for the six months ended August 4, 2023[34].