Financial Data and Key Metrics Changes - CACI reported revenue of nearly $2.3 billion, representing an 11.2% year-over-year growth, with 5.5% being organic growth [16] - EBITDA margin increased to 11.7%, a year-over-year increase of 120 basis points, driven by strong program execution and higher-margin technology deliveries [16] - Free cash flow for the quarter was $143 million, supported by strong profitability and effective working capital management [16][17] - Adjusted diluted earnings per share were $6.85, reflecting a 16% increase compared to the previous year [16] Business Line Data and Key Metrics Changes - CACI won $5 billion in contract awards during the quarter, resulting in a book-to-bill ratio of 2.2x for the quarter and 1.3x on a trailing 12-month basis [5][18] - The company’s record backlog reached $34 billion, a 4% increase year-over-year, representing nearly four years of annual revenue [19] - Funded backlog grew nearly 26% year-over-year, indicating strong demand and preparation for essential programs [19] Market Data and Key Metrics Changes - The federal government is operating under a limited shutdown, but CACI's business remains resilient due to its focus on national security, with most work funded and deemed essential [6][7] - The company anticipates that reconciliation funds for the Department of Defense (DOD) and Department of Homeland Security (DHS) will drive demand for modernization and security programs [6] Company Strategy and Development Direction - CACI is focused on critical national security priorities, with 90% of its portfolio aligned with these areas, ensuring deep and enduring funding streams [30][23] - The company is investing in software-defined technology and agile software development processes to enhance efficiency and effectiveness in delivering solutions [12][14] - CACI aims to leverage its differentiated capabilities in counter-UAS, counter-space, and network modernization to capture significant market opportunities [9][11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance and three-year financial targets despite the government shutdown [5][23] - The company is well-positioned to grow regardless of potential fluctuations in defense budgets, supported by a strong backlog and long-duration contracts [30][23] - Management highlighted the importance of agility in government contracting, noting a shift towards more commercial-like purchasing methods [32][33] Other Important Information - CACI's exceptional performance in the first quarter has helped de-risk the EBITDA margin step-up from the first half to the second half of the fiscal year [18] - The company is expanding its use of AI tools to enhance the speed and scalability of its software development processes [14] Q&A Session Summary Question: Expectations for FY 2027 request - Management indicated that bipartisan support for national security priorities suggests continued growth in defense budgets, despite potential fluctuations [29] Question: Changes in contracting approaches - Management noted that the U.S. government is increasingly adopting agile contracting methods, allowing for more commercial-like purchasing [32][33] Question: Impact of the government shutdown - Management acknowledged slight disruptions in cash collections and revenue but emphasized that these are manageable and will not significantly affect overall guidance [91] Question: Price competition in the industry - Management stated that they have not seen significant price competition affecting their business, as they have positioned themselves away from price-based competition [92] Question: Update on acquisition integration - Management confirmed that the integration of recent acquisitions is largely complete and meeting expectations [98]