SAIC(SAIC) - 2026 Q1 - Quarterly Results

Financial Performance - Revenues for the first quarter of fiscal year 2026 were $1.88 billion, representing a 2$1.85 billion in the same period last year[5]. - Net income decreased to $68 million, down 12$77 million in the prior year quarter[6]. - Adjusted EBITDA was $157 million, accounting for 8.4$1.92, unchanged from the prior year[8]. - Net income for the three months ended May 2, 2025, was $68 million, a decrease of 11.7$77 million in the same period of 2024[28]. - Operating income decreased to $121 million, down 7.6$131 million in the prior year, with an overall operating margin of 6.4% compared to 7.1%[30]. - Income before income taxes for the three months ended May 2, 2025, was $86 million, down from$95 million in the same period in 2024, a decrease of 9.5%[43]. - The company incurred restructuring and impairment costs of $3 million for the three months ended May 2, 2025, compared to$2 million in the same period in 2024[43]. Cash Flow and Dividends - Free cash flow for the quarter was $(44) million, a significant decrease from$13 million in the prior year[6]. - The company expects net cash provided by operating activities for FY26 to be between $545 million and$565 million, with free cash flow projected to be between $510 million and$530 million[46]. - The company declared a cash dividend of $0.37 per share, payable on July 25, 2025[11]. Bookings and Backlog - Net bookings for the quarter were approximately$2.4 billion, resulting in a book-to-bill ratio of 1.3[12]. - The estimated backlog at the end of the quarter was approximately $22.3 billion, with$3.3 billion funded[12]. - Funded backlog as of May 2, 2025, was $3,265 million, a decrease from$3,444 million as of January 31, 2025[34]. - Total backlog increased to $22,343 million, up from$21,857 million in the previous quarter, indicating growth in future revenue potential[34]. Segment Performance - The Defense and Intelligence segment reported revenues of $1,433 million, a slight decrease of 0.2$1,436 million year-over-year[30]. - Civilian segment revenues increased by $33 million, or 8$1.8 billion contract for the U.S. Army Combat Capabilities Development Command during the quarter[13]. - Principal payments on borrowings increased significantly to $689 million from$310 million, reflecting a strategic shift in financing activities[28]. - Corporate operating loss increased to $17 million, up from$10 million in the prior year, attributed to higher selling, general, and administrative expenses[32]. Expenditures and Provisions - Expenditures for property, plant, and equipment for the three months ended May 2, 2025, were $8 million, up from$6 million in the same period in 2024[46]. - The company reported a provision for income taxes of $18 million for both the three months ended May 2, 2025, and May 3, 2024[43]. - The recovery of acquisition and integration costs and restructuring and impairment costs contributed to the adjusted diluted earnings per share calculation[43]. Guidance - Management reaffirmed fiscal year 2026 guidance, projecting revenues between$7.60 billion and $7.75 billion[18].