SAIC(US:SAIC)2025-12-04 11:55Financial Performance - Revenues for the third quarter of fiscal year 2026 were $1.87 billion, a decrease of 6% compared to $1.98 billion in the same period last year[4]. - Net income for the quarter was $78 million, down 26% from $106 million year-over-year[4]. - Adjusted EBITDA was $185 million, representing 9.9% of revenues, a slight decrease from 10.0% in the prior year[4][8]. - Revenues for the three months ended October 31, 2025, were $1,866 million, a decrease of 5.6% compared to $1,976 million for the same period in the prior year[25]. - Net income for the three months ended October 31, 2025, was $78 million, down from $106 million in the same period last year, representing a decline of 26.4%[25]. - Adjusted operating income for the Defense and Intelligence segment decreased to $118 million, down 20.3% from $148 million in the prior year[31]. - The Civilian segment's revenues decreased by 7.4% to $427 million for the three months ended October 31, 2025, compared to $461 million in the prior year[34]. - For the nine months ended October 31, 2025, revenues totaled $5,512 million, a decrease from $5,641 million in the same period of 2024[40]. - Operating income for the nine months ended October 31, 2025, was $388 million, down from $425 million in the same period of 2024[40]. Earnings Per Share - Diluted earnings per share for the quarter were $1.69, down from $2.13 in the prior year[4][8]. - The company reported a diluted earnings per share of $1.69 for the three months ended October 31, 2025, down from $2.13 in the same period last year, a decline of 20.7%[25]. - Adjusted diluted EPS for the nine months ended October 31, 2025, was $8.12, compared to $6.56 for the same period in 2024[49]. Guidance and Projections - Fiscal year 2026 revenue guidance was increased to $7.275 billion - $7.325 billion, up from the previous range of $7.250 billion - $7.325 billion[20]. - The company expects net cash provided by operating activities to exceed $585 million for FY26[52]. - Expenditures for property, plant, and equipment are projected to be approximately $35 million for FY26[52]. - The company anticipates free cash flow to exceed $550 million for FY26[52]. Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended October 31, 2025, totaled $351 million, compared to $379 million for the same period last year, reflecting a decrease of 7.4%[29]. - Free cash flow for the three months ended October 31, 2025, was $135 million, a significant increase from $9 million in the same period of 2024[52]. - For the nine months ended October 31, 2025, free cash flow totaled $241 million, compared to $263 million for the same period in 2024[52]. - Net cash provided by operating activities for the three months ended October 31, 2025, was $129 million, down from $143 million in the same period of 2024[52]. - Expenditures for property, plant, and equipment for the nine months ended October 31, 2025, were $24 million, compared to $21 million in the same period of 2024[52]. Acquisitions and Investments - The company deployed $120 million in capital during the quarter, including $94 million for share repurchases[10]. - SAIC acquired SilverEdge Government Solutions for a preliminary purchase price of $203 million, enhancing its mission-focused technology solutions[18]. - The company incurred $203 million in cash paid for acquisitions during the nine months ended October 31, 2025[29]. Backlog and Bookings - The company reported net bookings of $2.2 billion for the quarter, resulting in a book-to-bill ratio of 1.2[5][12]. - The estimated backlog at the end of the quarter was approximately $23.8 billion, with $3.8 billion funded[12]. - Total backlog as of October 31, 2025, was $23,788 million, an increase from $21,857 million as of January 31, 2025[37]. - Funded backlog for Defense and Intelligence contracts was $2,696 million, up from $2,599 million in January 2025, indicating a growth of 3.7%[37]. Dividends - The company declared a cash dividend of $0.37 per share, payable on January 28, 2026[11]. Other Financial Metrics - Adjusted operating income for the nine months ended October 31, 2025, was $523 million, slightly down from $529 million in the same period of 2024[40]. - Adjusted operating income for the three months ended October 31, 2025, was $183 million, representing 9.8% of revenues, compared to $195 million and 9.9% in the prior year[40]. - Adjusted EBITDA for the three months ended October 31, 2025, was $185 million, or 9.9% of revenues, compared to $197 million and 10.0% in the prior year[43]. - The company believes free cash flow is a useful measure for assessing cash flow trends and comparing with peer companies[52].