CACI(US:CACI)2025-10-23 17:25Revenue and Growth - Revenues for the three months ended September 30, 2025, were $2,287,623, representing an increase of 11.2% compared to $2,056,889 in 2024[68] - The Department of Defense (DoD) revenues increased by 8.5% to $1,179,626, while Intelligence Community (IC) revenues rose by 11.6% to $596,429[69] - The total backlog as of September 30, 2025, was $33.9 billion, an increase of 4.6% from $32.4 billion a year ago, with a funded backlog of $5.4 billion[75] Cost Efficiency - Direct costs as a percentage of revenue decreased from 68.8% in 2024 to 67.6% in 2025, indicating improved cost efficiency[70] - Indirect costs and selling expenses were 20.7% of revenue in 2025, slightly down from 20.8% in 2024, driven by cost efficiencies[71] Net Income and Taxation - Net income for the three months ended September 30, 2025, was $124,810, reflecting a 3.9% increase from $120,177 in 2024[68] - The effective income tax rate increased to 24.9% in 2025 from 22.9% in 2024, primarily due to state income taxes and research and development tax credits[74] Market Position and Outlook - The company anticipates continued bipartisan support for defense and national security spending, particularly in the current global threat environment[60] - The company is well-positioned to win new business in its addressable market, which is expected to grow due to increased government spending in national security areas[66] Liquidity and Cash Flow - The company’s liquidity is supported by cash and cash equivalents, operations-generated cash, and a revolving credit facility allowing borrowings of up to $1,975 million[77] - The Company has a $3,200.0 million senior secured credit facility, including a $1,225.0 million term loan facility, with no outstanding borrowings under the Revolving Facility as of September 30, 2025[78] - Net cash provided by operating activities increased by $136.4 million to $171,065 thousand for the three months ended September 30, 2025, compared to $34,661 thousand for the same period in 2024[79] - Net cash used in investing activities decreased by $10.5 million to $(1,214) thousand for the three months ended September 30, 2025, primarily due to refunds from acquisitions[80] - Net cash used in financing activities decreased by $421.6 million to $(142,238) thousand for the three months ended September 30, 2025, mainly due to a decrease in net borrowings[80] International Operations - Approximately 3.4% of the Company's total revenues during the three months ended September 30, 2025, were generated from International Operations, compared to 2.9% in 2024[86] Interest Rate Management - The Company has entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $900.0 million to manage interest rate fluctuations[85] - With every one percent fluctuation in the applicable interest rate, interest expense on the Company's variable rate debt would have fluctuated by approximately $2.5 million for the three months ended September 30, 2025[85] Currency Holdings - As of September 30, 2025, the Company held approximately $70.2 million in pounds sterling and euros, which are generally available to fund ordinary business operations[86] Financial Policies - The Company believes that internally generated funds, available bank borrowings, and cash and cash equivalents will provide the necessary liquidity for ongoing operations over the next twelve months[81] - There have been no significant changes to the Company's critical accounting policies as disclosed in the Annual Report for the year ended June 30, 2025[83]