SAIC Announces Third Quarter of Fiscal Year 2025 Results

Core Insights - Science Applications International Corporation (SAIC) reported revenues of $1.98 billion for the third quarter, reflecting a 4.3% growth compared to the previous year [1][3] - The company achieved a net income of $106 million and an adjusted EBITDA of $197 million, which is 10.0% of revenues [1][5] - SAIC's diluted earnings per share increased to $2.13, up 21% from $1.76 in the prior year [1][6] - The company has increased its Fiscal Year 2025 guidance for revenue and adjusted diluted EPS, now expecting revenue between $7.425 billion and $7.475 billion [1][18] Financial Performance - Revenues increased by $81 million or 4% year-over-year, driven by higher volumes on existing and new contracts [3][31] - Operating income rose to $160 million, a 12% increase from the previous year, with an operating margin of 8.1% [2][30] - Adjusted operating income was $195 million, representing a 10% increase, with an adjusted operating margin of 9.9% [2][30] - Net cash provided by operating activities was $143 million, a 42% increase compared to the prior year [9][29] Cash Generation and Capital Deployment - SAIC deployed $142 million in capital during the quarter, including $115 million for share repurchases and $18 million in cash dividends [10][11] - The Board of Directors authorized a $1.2 billion share repurchase program, representing 20% of the company's market value [1][11] - A cash dividend of $0.37 per share was declared, payable on January 24, 2025 [12] Backlog and Contract Awards - Net bookings for the quarter were approximately $1.5 billion, resulting in a book-to-bill ratio of 0.7 [1][13] - The estimated backlog at the end of the quarter was approximately $22.4 billion, with $4.5 billion funded [1][13] - Notable contract awards included a $229 million contract from the U.S. Department of Defense and a $118 million task order from the Department of Transportation [14][15] Strategic Partnerships and Future Outlook - SAIC announced an expanded strategic partnership with Wind River to enhance technology integration for government customers [17] - The company expects to exceed $25 billion in submissions for the year, up from a prior target of $22 billion, indicating a positive outlook for growth [2][18]