SAIC(SAIC) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 FY2025 were $1.98 billion, representing a 4.3% increase year-over-year[2] - Net income for the quarter was $106 million, with diluted earnings per share of $2.13, up 21% from $1.76 in the prior year[4] - Adjusted EBITDA was $197 million, accounting for 10.0% of revenues, an increase from 9.4% in the same period last year[4] - Total revenues for the quarter increased to $1,976 million, up 4.3% from $1,895 million in the same period last year[26] - Total operating income for the quarter was $160 million, compared to $143 million in the same period last year, reflecting a 11.9% increase[26] - Adjusted operating margin for the total increased to 9.9%, up from 9.4% in the prior year[28] - Net income for the three months ended November 3, 2023, was $93 million, compared to $106 million for the same period in 2024, reflecting a decrease of 12.3%[39] - Adjusted diluted earnings per share for the three months ended November 1, 2024, was $2.61, compared to $2.13 for the same period last year, reflecting a 22.5% increase[49] - Net income for the three months ended November 1, 2024, was $130 million, up from $106 million, representing a 22.6% year-over-year growth[49] - Diluted EPS for the three months ended November 3, 2023, was $2.27, up from $1.76, indicating a 28.9% increase year-over-year[50] - For the nine months ended November 1, 2024, adjusted diluted EPS was $6.56, compared to $5.17 for the same period last year, reflecting a 27% increase[53] Cash Flow and Expenditures - Cash flows from operating activities increased by $42 million to $143 million compared to the prior year[6] - Free cash flow for the quarter was $9 million, a decrease of 91% from $97 million in the prior year[4] - Cash and cash equivalents at the end of the period were $54 million, down from $320 million at the beginning of the period[25] - The company reported a net cash used in financing activities of $146 million, compared to $132 million in the same quarter last year[25] - The company expects net cash provided by operating activities to be between $520 million and $540 million for the upcoming period[56] - Total expenditures for property, plant, and equipment are projected to be approximately $30 million[56] - The company reported a net cash provided by operating activities of $379 million for the nine months ended November 1, 2024, compared to $333 million in the prior year[56] - Transaction-adjusted free cash flow for the nine months ended November 1, 2024, was $271 million, down from $367 million in the previous year[56] Backlog and Bookings - Net bookings for the quarter totaled approximately $1.5 billion, resulting in a book-to-bill ratio of 0.7[10] - The estimated backlog at the end of the quarter was approximately $22.4 billion, with $4.5 billion funded[10] - Total backlog as of November 1, 2024, is estimated at $22,387 million, with funded backlog at $4,466 million and negotiated unfunded backlog at $17,921 million[37] - The company reported a total backlog of $22,763 million as of February 2, 2024, with funded backlog at $3,539 million and negotiated unfunded backlog at $19,224 million[37] Segment Performance - Defense and Intelligence segment revenues rose by $36 million or 2% compared to the prior year, driven by ramp-up in volume on existing and new contracts[31] - Civilian segment revenues increased by $45 million or 11% year-over-year, primarily due to ramp-up in volume on existing contracts[33] Guidance and Shareholder Actions - The company increased its FY2025 revenue guidance to $7.425 billion - $7.475 billion and adjusted diluted EPS guidance to $8.50 - $8.65[16] - A $1.2 billion share repurchase program was authorized, representing 20% of the company's market value[2] Other Financial Metrics - Free cash flow for the three months ended November 1, 2024, was $9 million, a significant decrease from $97 million in the prior year[56] - Adjusted EBITDA for the nine months ended November 3, 2023, was $541 million, representing an adjusted EBITDA margin of 9.5%[39] - Adjusted operating income for the three months ended November 3, 2023, was $178 million, with a non-GAAP operating margin of 9.4%[42] - The company incurred restructuring and impairment costs of $2 million for the three months ended November 3, 2023[42] - The company reported a net loss on divestitures of $240 million for the nine months ended November 3, 2023[42]