CACI(CACI) - 2026 Q1 - Quarterly Results

Executive Summary First Quarter Financial Highlights CACI reported a strong fiscal Q1 2026 with double-digit revenue growth and increased profitability, driven by organic growth and effective working capital management, showing significant year-over-year improvements in key metrics. | Metric | Value | YoY Change | | :-------------------------------- | :---------- | :--------- | | Revenues | $2.3 billion | 11.2% | | Net income | $124.8 million | - | | Diluted EPS | $5.63 | 5.6% | | Adjusted net income | $151.7 million | 13.5% | | Adjusted diluted EPS | $6.85 | 15.5% | | EBITDA | $268.6 million | - | | EBITDA margin | 11.7% | - | | Contract awards | $5.0 billion | - | | Book-to-bill | 2.2x | - | CEO Statement CEO John Mengucci highlighted CACI's exceptional start to FY2026, emphasizing robust financial results, significant contract awards, and growth in backlog, reinforcing confidence in achieving future commitments and shareholder value. - CACI delivered strong financial results, including robust free cash flow driven by double-digit revenue growth and strong profitability[2] - Contract awards of $5 billion and growth in total and funded backlog demonstrate focus on critical national security priorities[2] - Performance, continued investments, healthy pipeline, and strong customer demand signals provide confidence in delivering FY2026 commitments and achieving three-year financial targets[2] First Quarter Results Overview Financial Performance CACI's Q1 FY2026 saw significant revenue growth of 11.2% driven by 5.5% organic growth, leading to an 18.0% increase in income from operations, with diluted and adjusted diluted EPS also rising due to higher operating income and share repurchases, despite increased interest and tax expenses. | Metric | 9/30/2025 (in millions) | 9/30/2024 (in millions) | % Change | | :------------------------------------- | :---------------------- | :---------------------- | :------- | | Revenues | $2,287.6 | $2,056.9 | 11.2% | | Income from operations | $212.3 | $179.8 | 18.0% | | Net income | $124.8 | $120.2 | 3.9% | | Adjusted net income (non-GAAP) | $151.7 | $133.6 | 13.5% | | Diluted earnings per share | $5.63 | $5.33 | 5.6% | | Adjusted diluted earnings per share (non-GAAP) | $6.85 | $5.93 | 15.5% | | EBITDA (non-GAAP) | $268.6 | $215.9 | 24.4% | | Net cash provided by operating activities excluding MARPA (non-GAAP) | $160.0 | $60.9 | 162.8% | | Free cash flow (non-GAAP) | $143.0 | $49.4 | 189.4% | | Days sales outstanding (DSO) | 56 | 47 | - | - Revenue increase driven by 5.5% organic growth[5] - Growth in diluted and adjusted diluted EPS driven by higher income from operations and share repurchases, partially offset by higher interest expense and tax provision[5] - Increase in cash from operations (excluding MARPA) driven by higher net income and strong working capital management[5] Contract Awards and Backlog CACI secured $5.0 billion in contract awards during Q1 FY2026, with 60% new business and a 2.2x book-to-bill ratio, driving total backlog up 4.6% to $33.9 billion and funded backlog up 25.6% to $5.4 billion. - Contract awards in the first quarter totaled $5.0 billion, with approximately 60% for new business to CACI[6] - Total backlog as of September 30, 2025, was $33.9 billion, an increase of 4.6% from $32.4 billion a year ago[7] - Funded backlog as of September 30, 2025, was $5.4 billion, an increase of 25.6% from $4.3 billion a year ago[7] Operational Highlights CACI secured multiple significant task orders totaling over $2.3 billion from DoD, IC, and CBP for advanced communications, software-defined technology, and IT modernization, while also showcasing C-UAS and Beast+ technologies in government demonstrations. - CACI was awarded a five-year task order valued at up to $548 million for test and evaluation of emerging communications and electromagnetic spectrum technologies for a Department of Defense (DoD) customer[9] - CACI was awarded a 10-year IDIQ contract valued at up to $423 million to continue providing capability development and software-defined technology to an Intelligence Community (IC) customer[9] - CACI successfully displayed its industry-leading, commercially-developed long-range C-UAS technology that detects and defeats unmanned systems[9] - CACI showcased its Beast+ technology, a software-defined wearable EW and SIGINT sensor, during two recent U.S. Army demonstrations, delivering an AI-enabled common operating system[9] Fiscal Year 2026 Guidance CACI reaffirmed its FY2026 guidance, projecting revenues of $9.2-$9.4 billion, adjusted net income of $605-$625 million, adjusted diluted EPS of $27.13-$28.03, and free cash flow of at least $710 million, including tax benefits. | Metric | Current Guidance (FY26) | Prior Guidance (FY26) | | :------------------------------------- | :---------------------- | :---------------------- | | Revenues | $9,200 - $9,400 million | $9,200 - $9,400 million | | Adjusted net income (non-GAAP) | $605 - $625 million | $605 - $625 million | | Adjusted diluted earnings per share (non-GAAP) | $27.13 - $28.03 | $27.13 - $28.03 | | Diluted weighted average shares | 22.3 million | 22.3 million | | Free cash flow (non-GAAP) | at least $710 million | at least $710 million | - Fiscal year 2026 free cash flow guidance assumes approximately $50 million in tax benefit related to the modification of Section 174 and an approximately $40 million cash tax refund[12] Company Information Conference Call Information CACI scheduled a conference call for 8:00 AM ET on Thursday, October 23, 2025, to discuss Q1 results and operating trends, with a webcast and replay available on its investor relations website. - Conference call scheduled for 8:00 AM ET on Thursday, October 23, 2025, to discuss first quarter results and operating trends[13] - Webcast and replay available on CACI's investor relations website at **http://investor.caci.com/events/default.aspx**[13](index=13&type=chunk) About CACI CACI International Inc, a national security company with 25,000 employees, delivers differentiated technology and expertise to accelerate innovation and eliminate threats, recognized as a Fortune World's Most Admired Company and included in key market indices. - CACI International Inc is a national security company with 25,000 talented employees[15] - Ensures customer success by delivering differentiated technology and distinctive expertise to accelerate innovation, drive speed and efficiency, and rapidly anticipate and eliminate threats[15] - Recognized as a Fortune World's Most Admired Company and members of the Fortune 500™, Russell 1000 Index, and S&P MidCap 400 Index[15] Forward-Looking Statements & Risk Factors The report contains forward-looking statements subject to various risk factors, including reliance on U.S. government contracts, funding delays, legislative changes, economic uncertainty, government audits, competitive pressures, and the ability to meet contractual obligations, which could cause actual results to differ materially. - Statements made herein that do not address historical facts could be interpreted as forward-looking statements, subject to risk factors[16] - Risk factors include reliance on U.S. government contracts, delays or reductions in appropriations, legislative changes, and legal, regulatory, and political changes[16] - Other risks include government audits, competitive factors, failure to achieve contract awards, economic conditions, ability to meet contractual obligations, and effects of health epidemics[16] Corporate Contacts Provides contact information for CACI's Corporate Communications and Media, and Investor Relations departments. - Corporate Communications and Media contact: Lauren Presti, Executive Director, (703) 434-5037, lauren.presti@caci.com[17] - Investor Relations contact: George Price, Senior Vice President, (703) 841-7818, george.price@caci.com[17] Consolidated Financial Statements (Unaudited) Consolidated Statements of Operations CACI's consolidated statements of operations show Q1 FY2026 revenue increased by 11.2% to $2.288 billion, with income from operations growing 18.0% and net income rising 3.9% to $124.8 million, despite increased interest and depreciation/amortization expenses. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | % Change | | :-------------------------------- | :-------- | :-------- | :------- | | Revenues | $2,287,623 | $2,056,889 | 11.2% | | Total costs of revenues | $2,075,348 | $1,877,048 | 10.6% | | Income from operations | $212,275 | $179,841 | 18.0% | | Interest expense and other, net | $46,173 | $23,970 | 92.6% | | Income before income taxes | $166,102 | $155,871 | 6.6% | | Income taxes | $41,292 | $35,694 | 15.7% | | Net income | $124,810 | $120,177 | 3.9% | | Diluted earnings per share | $5.63 | $5.33 | 5.6% | Consolidated Balance Sheets As of September 30, 2025, CACI's total assets slightly increased to $8.705 billion, driven by higher current assets like cash and accounts receivable, while long-term debt decreased and total shareholders' equity grew to $4.025 billion. | Metric (in thousands) | 9/30/2025 | 6/30/2025 | | :-------------------------------- | :-------- | :-------- | | Total assets | $8,704,955 | $8,647,598 | | Total current assets | $1,854,839 | $1,779,945 | | Goodwill | $5,018,687 | $5,021,805 | | Total liabilities | $4,679,456 | $4,753,653 | | Total shareholders' equity | $4,025,499 | $3,893,945 | | Long-term debt, net of current portion | $2,708,701 | $2,849,190 | Consolidated Statements of Cash Flows For Q1 FY2026, net cash provided by operating activities significantly increased to $171.065 million from $34.661 million, largely offset by financing activities, resulting in a net change in cash and cash equivalents of $26.839 million. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $171,065 | $34,661 | | Net cash used in investing activities | $(1,214) | $(11,727) | | Net cash (used in) provided by financing activities | $(142,238) | $279,356 | | Net change in cash and cash equivalents | $26,839 | $306,745 | | Cash and cash equivalents, end of period | $133,020 | $440,706 | Detailed Revenue and Contract Analysis (Unaudited) Revenues by Customer Type In Q1 FY2026, the Department of Defense remained CACI's largest customer, contributing 51.5% of revenues with an 8.5% increase, while the Intelligence Community, Federal civilian agencies, and commercial sectors also showed strong growth. | Customer Type | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Department of Defense | $1,179,626 | 51.5% | $1,087,288 | 52.9% | $92,338 | 8.5% | | Intelligence Community | $596,429 | 26.1% | $534,343 | 26.0% | $62,086 | 11.6% | | Federal civilian agencies | $411,730 | 18.0% | $352,219 | 17.1% | $59,511 | 16.9% | | Commercial and other | $99,838 | 4.4% | $83,039 | 4.0% | $16,799 | 20.2% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | Revenues by Contract Type Cost-plus-fee contracts remained the dominant revenue source at 60.5% with 8.0% growth, while fixed-price contracts saw the highest growth at 28.7% to 26.7% of total revenues, and time-and-materials contracts slightly decreased. | Contract Type | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Cost-plus-fee | $1,382,630 | 60.5% | $1,280,010 | 62.2% | $102,620 | 8.0% | | Fixed-price | $611,493 | 26.7% | $475,256 | 23.1% | $136,237 | 28.7% | | Time-and-materials | $293,500 | 12.8% | $301,623 | 14.7% | $(8,123) | (2.7)% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | Revenues by Prime or Subcontractor CACI primarily operates as a prime contractor, generating 90.8% of Q1 FY2026 revenues with a 10.4% increase, while subcontractor revenues also grew significantly by 19.4% to contribute 9.2%. | Role | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Prime contractor | $2,076,899 | 90.8% | $1,880,419 | 91.4% | $196,480 | 10.4% | | Subcontractor | $210,724 | 9.2% | $176,470 | 8.6% | $34,254 | 19.4% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | Revenues by Expertise or Technology In Q1 FY2026, CACI's technology-driven revenues significantly outpaced expertise-based revenues, growing 21.7% to 56.9% of total revenues, while expertise revenues remained stable with a slight 0.1% decrease. | Category | 9/30/2025 (in thousands) | % of Total (2025) | 9/30/2024 (in thousands) | % of Total (2024) | $ Change | % Change | | :-------------------- | :----------------------- | :---------------- | :----------------------- | :---------------- | :------- | :------- | | Expertise | $986,891 | 43.1% | $988,265 | 48.0% | $(1,374) | (0.1)% | | Technology | $1,300,732 | 56.9% | $1,068,624 | 52.0% | $232,108 | 21.7% | | Total | $2,287,623 | 100.0% | $2,056,889 | 100.0% | $230,734 | 11.2% | Contract Awards (Detailed) CACI's contract awards for the three months ended September 30, 2025, surged by 49.7% year-over-year to nearly $5.0 billion, indicating strong business momentum and successful bidding. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | $ Change | % Change | | :-------------------- | :-------- | :-------- | :------- | :------- | | Contract Awards | $4,998,684 | $3,339,635 | $1,659,049 | 49.7% | Non-GAAP Financial Measures Reconciliations (Unaudited) Adjusted Net Income and Diluted EPS Reconciliation CACI provides adjusted net income and adjusted diluted EPS as non-GAAP measures, excluding intangible amortization and its tax impact, to offer a clearer view of ongoing operating performance, with Q1 FY2026 adjusted net income up 13.5% and adjusted diluted EPS up 15.5%. | Metric (in thousands, except per share data) | 9/30/2025 | 9/30/2024 | % Change | | :------------------------------------------- | :-------- | :-------- | :------- | | Net income, as reported | $124,810 | $120,177 | 3.9% | | Intangible amortization expense | $36,033 | $18,007 | 100.1% | | Tax effect of intangible amortization | $(9,104) | $(4,550) | 100.1% | | Adjusted net income | $151,739 | $133,634 | 13.5% | | Diluted EPS, as reported | $5.63 | $5.33 | 5.6% | | Intangible amortization expense (per share) | $1.63 | $0.80 | 103.8% | | Tax effect of intangible amortization (per share) | $(0.41) | $(0.20) | 105.0% | | Adjusted diluted EPS | $6.85 | $5.93 | 15.5% | FY26 Current Guidance Range | Metric (in millions, except per share data) | Low End | High End | | :------------------------------------------- | :------ | :------- | | Net income, as reported | $499 | $519 | | Intangible amortization expense | $142 | $142 | | Tax effect of intangible amortization | $(36) | $(36) | | Adjusted net income | $605 | $625 | | Diluted EPS, as reported | $22.38 | $23.27 | | Intangible amortization expense (per share) | $6.37 | $6.37 | | Tax effect of intangible amortization (per share) | $(1.61) | $(1.61) | | Adjusted diluted EPS | $27.13 | $28.03 | - Adjusted net income and adjusted diluted EPS are non-GAAP measures excluding intangible amortization expense and related tax impact, used to assess ongoing operating performance and compare results to peers[35] EBITDA Reconciliation CACI uses EBITDA as a non-GAAP measure to evaluate ongoing operating performance by eliminating non-cash items, with Q1 FY2026 EBITDA increasing 24.4% to $268.6 million and an EBITDA margin of 11.7%. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | % Change | | :-------------------------------- | :-------- | :-------- | :------- | | Net income | $124,810 | $120,177 | 3.9% | | Plus: Income taxes | $41,292 | $35,694 | 15.7% | | Plus: Interest income and expense, net | $46,173 | $23,970 | 92.6% | | Plus: Depreciation and amortization expense | $56,338 | $36,050 | 56.3% | | EBITDA | $268,613 | $215,891 | 24.4% | | Revenues, as reported | $2,287,623 | $2,056,889 | 11.2% | | EBITDA margin | 11.7% | 10.5% | - | - EBITDA is a non-GAAP measure used to evaluate and compare ongoing operating performance by eliminating non-cash items such as depreciation and amortization[38] Free Cash Flow Reconciliation CACI defines free cash flow as net cash provided by operating activities excluding MARPA, less capital expenditures, using this non-GAAP liquidity measure to show a significant 189.4% increase to $143.0 million in Q1 FY2026. | Metric (in thousands) | 9/30/2025 | 9/30/2024 | | :------------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $171,065 | $34,661 | | Cash used in (provided by) MARPA | $(11,091) | $26,210 | | Net cash provided by operating activities excluding MARPA | $159,974 | $60,871 | | Capital expenditures | $(17,014) | $(11,476) | | Free cash flow | $142,960 | $49,395 | FY26 Guidance | Metric (in millions) | Current Guidance | Prior Guidance | | :------------------------------------------- | :--------------- | :------------- | | Net cash provided by operating activities | $795 | $795 | | Cash used in (provided by) MARPA | — | — | | Net cash provided by operating activities excluding MARPA | $795 | $795 | | Capital expenditures | $(85) | $(85) | | Free cash flow | $710 | $710 | - Free cash flow is a non-GAAP liquidity measure used to assess the ability to generate cash from business operations and plan for future operating and capital actions[41]