CACI(CACI) - 2025 Q4 - Annual Results

Financial Performance Overview 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 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] - 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] Full Fiscal Year 2025 Results 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] - 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] Contract Awards and Backlog 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] - For the full fiscal year, contract awards were $9.6 billion, with a book-to-bill ratio of 1.1x[1] 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 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] Operational and Corporate Highlights 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 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] - 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] - Won a seven-year task order worth an estimated $437 million to continue assisting U.S. Africa Command (USAFRICOM) in countering emerging threats[7] Corporate Achievements and Governance 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] - 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] - 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] Detailed Financial Statements 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 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 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 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 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 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 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 |