Company Overview - CACI is a national security company based in Northern Virginia with over 60 years of history and has been publicly held for about 50 years [1] - 90% of CACI's revenues come from the national security sector of the U.S. government budget, with 60% of its offerings in technology and 40% in expertise [1] - The company has grown to a size of $9.4 billion and employs 27,000 people [1] Business Strategy - CACI measures its success through free cash flow per share growth, which guides all investment decisions [1] - The company employs a flexible and opportunistic capital deployment strategy to manage its operations [1]

Financial Data and Key Metrics Changes - For the full year 2025, corporate adjusted EBITDA was $297.6 million, and adjusted FFO per share was $1.08, with free cash flow per share at $0.69, reflecting a 6% increase over 2024 and a 22% increase since 2023 [4] - Full year comparable total RevPAR grew by 1.2%, while comparable hotel adjusted EBITDA increased by 1.1% [4] - In the fourth quarter, corporate adjusted EBITDA was $71.9 million, and adjusted FFO per share was $0.27, with comparable RevPAR declining by 30 basis points [4][5] Business Line Data and Key Metrics Changes - Business transient revenue grew by 2.5%, while group revenue declined by 1% and leisure transient revenue decreased by 2.5% [5] - Out-of-room revenue per occupied room at resorts increased nearly 7%, marking the strongest quarterly growth of the year [6] - Food and beverage revenues increased by 1.4%, with margins expanding by 120 basis points due to a modest increase in labor costs [6][9] Market Data and Key Metrics Changes - The urban portfolio, accounting for 62% of annual EBITDA, delivered 0.3% RevPAR growth in the fourth quarter [7] - The strongest RevPAR growth among urban hotels was achieved by specific properties, including Hotel Emblem San Francisco and Denver Courtyard, which posted double-digit gains [7] - Resort RevPAR declined by 1.8%, while total RevPAR increased by 1.1% [7] Company Strategy and Development Direction - The company aims to drive outsized free cash flow per share growth, with a disciplined capital allocation strategy [18][19] - A five-year capital expenditure program is planned, equating to 7%-9% of total revenues, focusing on stability and appropriate investment levels [20][22] - The company is likely to be a net seller of hotels in 2026, with ongoing discussions about potential property dispositions [27] Management's Comments on Operating Environment and Future Outlook - The company expects 2026 RevPAR growth of 1%-3% and total RevPAR growth to be 25 basis points higher [14] - Management is optimistic about the trajectory of resorts and anticipates benefits from upcoming events like the FIFA World Cup and the 250th anniversary of the United States [29][30] - The affluent consumer segment is expected to continue spending, supporting the company's higher-end portfolio [100] Other Important Information - The company redeemed its Series A redeemable preferred shares, which will generate a $0.03 tailwind to FFO per share in 2026 [10][11] - The company paid a common dividend of $0.08 per share in each quarter of 2025, with expectations to increase it to $0.09 per share in 2026 [12] Q&A Session Summary Question: Thoughts on labor and benefits pace in 2026 - Management expects labor costs to increase around 3% in 2026, influenced by contract renewals in New York [38] Question: Insights on first quarter RevPAR - The first quarter is anticipated to be the toughest, with group pace weighted towards growth in the second and fourth quarters [42] Question: Impact of Westin Seaport franchise expiration - Management is pleased with interest from multiple brands regarding the franchise expiration and is working towards finalizing a deal [46] Question: Out-of-room spend performance - Management is cautiously optimistic about continuing to improve out-of-room spend, with a focus on group booking trends [52] Question: Transaction market outlook - The company is more inclined to be sellers at this time, as shares appear to be a better investment than current acquisition options [66]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported corporate Adjusted EBITDA of $297.6 million and Adjusted FFO per share of $1.08, with free cash flow per share increasing by 6% over 2024 and 22% since 2023 [4] - In the fourth quarter, corporate Adjusted EBITDA was $71.9 million, and Adjusted FFO per share was $0.27, with comparable RevPAR declining by 30 basis points [4][5] - Full year comparable total RevPAR grew by 1.2%, while comparable hotel Adjusted EBITDA grew by 1.1% [4] Business Line Data and Key Metrics Changes - Business transient revenue grew by 2.5%, while group revenue declined by 1% and leisure transient revenue declined by 2.5% [5] - Out-of-room revenue per occupied room at resorts increased nearly 7%, marking the strongest quarterly growth of the year [6] - Food and beverage revenues increased by 1.4%, with margins expanding by 120 basis points [6][9] Market Data and Key Metrics Changes - The urban portfolio, which accounts for 62% of annual EBITDA, delivered 0.3% RevPAR growth in the fourth quarter [7] - The strongest RevPAR growth among urban hotels was achieved by specific properties, including Hotel Emblem San Francisco and Denver Courtyard, which posted double-digit gains [7] - Resort RevPAR declined by 1.8%, while total RevPAR increased by 1.1% [7] Company Strategy and Development Direction - The company aims to drive outsized free cash flow per share growth, with a disciplined capital allocation strategy [18][19] - A five-year capital expenditure program is planned, equating to 7%-9% of total revenues, which is lower than the peer average [20] - The company is focusing on renovations that enhance competitive positioning while maintaining earnings disruptions to about $2 million-$4 million per year [22] Management's Comments on Operating Environment and Future Outlook - The company expects 2026 RevPAR growth of 1%-3% and total RevPAR growth 25 basis points higher [14] - Management is optimistic about the trajectory of resorts and anticipates benefits from upcoming events like the FIFA World Cup and the 250th anniversary of the United States [28][30] - The company believes that affluent consumers will continue to spend, despite economic headwinds [99] Other Important Information - The company redeemed its Series A redeemable preferred shares, which will generate a $0.03 tailwind to FFO per share in 2026 [10][11] - The company plans to declare quarterly dividends of $0.09 per share in 2026, with potential for a fourth quarter sub-dividend [12] Q&A Session Summary Question: Thoughts on labor and benefits pace in 2026 - Management expects labor costs to increase around 3% in 2026, influenced by contract renewals in New York [38] Question: Insights on first quarter RevPAR - The first quarter is expected to be the toughest, with group pace weighted towards growth in the second and fourth quarters [42] Question: Impact of Westin Seaport franchise expiration - Management is pleased with interest from multiple brands and is working towards finalizing a deal [46] Question: RevPAR lift from World Cup demand - About 20 basis points of RevPAR growth is embedded in the guidance from World Cup demand [48] Question: Out-of-room spend performance - Management is cautiously optimistic about continuing to improve out-of-room spend, with a focus on group bookings [52] Question: CapEx plans for 2026 - Management is focused on smarter CapEx and operational improvements, with specific projects planned for 2026 [59] Question: Transaction market outlook - The company is more inclined to be sellers at this time, as shares appear to be a better investment than current acquisition options [66] Question: Preferred shares payoff impact - The payoff of preferred shares is expected to clean up the balance sheet and provide a $0.03 tailwind to FFO per share [71]

Financial Data and Key Metrics Changes - For the full year 2025, corporate adjusted EBITDA was $297.6 million, and adjusted FFO per share was $1.08, with free cash flow per share at $0.69, reflecting a 6% increase over 2024 and a 22% increase since 2023 [3] - Full year comparable total RevPAR grew by 1.2%, while comparable hotel adjusted EBITDA increased by 1.1% [3] - In Q4 2025, corporate adjusted EBITDA was $71.9 million, and adjusted FFO per share was $0.27, with comparable RevPAR declining by 30 basis points [3][4] Business Line Data and Key Metrics Changes - Business transient revenue grew by 2.5%, while group revenue declined by 1% and leisure transient revenue decreased by 2.5% [4] - Out-of-room revenue per occupied room at resorts increased nearly 7%, marking the strongest quarterly growth of the year [5] - Food and beverage revenues rose by 1.4%, with margins expanding by 120 basis points due to a modest increase in labor costs [5][6] Market Data and Key Metrics Changes - The urban portfolio, accounting for 62% of annual EBITDA, delivered 0.3% RevPAR growth in Q4, with notable performance from specific hotels [6] - Resort RevPAR declined by 1.8%, while total RevPAR increased by 1.1% [6] - The company expects to enter 2026 with $149 million of group room revenue on the books, the same as 2025, which was a peak year [9] Company Strategy and Development Direction - The company aims to drive outsized free cash flow per share growth, with a disciplined capital allocation strategy [17][18] - A five-year capital expenditure program is planned, equating to 7%-9% of total revenues, which is lower than the peer average [19] - The company is likely to be a net seller of hotels in 2026, focusing on transactions that advance its strategy to increase free cash flow per share [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of resorts, citing the lowest year-over-year RevPAR decline in Q4 among all quarters [7] - The company anticipates benefiting from favorable year-over-year comparisons following the federal government shutdown and expects improved group business conversion [26] - The higher-end portfolio is expected to continue benefiting from affluent consumer spending patterns, with early signs of strong demand for spring break and upcoming events [27][28] Other Important Information - The company redeemed its Series A redeemable preferred shares, which is expected to generate a $0.03 tailwind to FFO per share in 2026 [9][10] - The company plans to declare quarterly dividends of $0.09 per share in 2026, with potential for a fourth-quarter sub-dividend [11] Q&A Session Summary Question: Thoughts on labor and benefits pace in 2026 - Management expects labor costs to increase around 3% in 2026, influenced by contract renewals in New York [36] Question: Insights on first quarter RevPAR - The first quarter is expected to be the toughest comparison of the year, with group pace weighted towards growth in the second and fourth quarters [39] Question: Impact of Westin Seaport franchise expiration - Management is pleased with interest from multiple brands regarding the Westin Seaport and is working towards finalizing a deal [43] Question: RevPAR lift from World Cup demand - Approximately 20 basis points of RevPAR growth is embedded in the 2026 guidance from World Cup demand, with early signs of rate strength [45] Question: Out-of-room spend performance - Management is cautiously optimistic about continuing to improve out-of-room spend, with a 10% increase in leads and tentatives for group bookings compared to last year [52] Question: CapEx plans for 2026 - Management indicated that CapEx will focus on value engineering and appropriate expenditures for each hotel, with larger successes expected in CapEx [56] Question: State of business transient travel - Management believes affluent consumers will continue to spend, while visibility on lower-level consumer trends is less clear [97]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record operational metrics, including the highest oil production of 188.6 thousand barrels per day and total production of 401.5 thousand barrels of oil equivalent per day [5][4] - Free cash flow per share increased by 18% year-over-year to $1.94 per share, with adjusted operating cash flow of $884 million and adjusted free cash flow of $403 million [4][7] - The company reduced debt by over $600 million, enhancing netbacks through marketing optimization [9] Business Line Data and Key Metrics Changes - The D&C cost per foot was reduced to $700, resulting in cash CapEx of $481 million for Q4 and $1.97 billion for the year [5][6] - The company reported Q4 LOE of $5.26 per BOE, cash G&A of $0.80 per BOE, and GP&T of $1.18 per BOE, supporting strong margins [6] Market Data and Key Metrics Changes - The company expects to sell approximately 400 million cubic feet per day out of the basin in 2026, increasing to roughly 700 million cubic feet per day in 2027 and beyond [10] - Gas realizations are expected to improve, with a projected $0.50 premium to Waha in 2025, compared to a $0.40 discount in the previous year [10] Company Strategy and Development Direction - The focus for 2026 remains on maximizing shareholder value through disciplined execution of a capital-efficient Delaware Basin program [4] - The company plans to spend $1.85 billion on CapEx for 2026, with production expected to average 415,000 BOE per day, a 5% increase from 2025 [14][13] - The company aims to maintain a competitive advantage through its acquisition strategy, having completed approximately $1.1 billion in acquisitions during 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue generating free cash flow per share growth despite commodity price volatility, with a CAGR of approximately 30% from 2023 to 2025 [17] - The management team acknowledged the potential challenges in the gas market but emphasized the company's insulation from Waha volatility due to improved gas marketing strategies [82][81] Other Important Information - The company is increasing its 2026 quarterly base dividend to $0.16 per share, reflecting a 7% increase and a 40% CAGR since inception in 2022 [7] - The company has a strong pipeline of acquisition opportunities, with expectations of larger packages becoming available in the market [56] Q&A Session Summary Question: Strategy on Free Cash Flow Growth - The company has focused on organic and inorganic free cash flow growth, contrasting with peers that are reducing volumes to increase free cash flow [20][21] Question: Capital Allocation Plans - The company plans to allocate capital to opportunities that drive the greatest long-term returns, prioritizing base dividends and considering acquisitions and debt reduction [24][25] Question: Ground Game and M&A Activity - The company remains confident in its ground game and acquisition strategy, noting that many deals are less sensitive to market pricing fluctuations [29][30] Question: Cost Reductions and Future Potential - The company has made significant progress in reducing D&C costs and sees potential for further reductions through improved drilling efficiencies [50][51] Question: Gas Market Outlook - Management expects challenges in the gas market in 2026 but believes the company is well-positioned to manage through volatility [81][82]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record operational metrics, including the highest oil production of 188.6 thousand barrels per day and total production of 401.5 thousand barrels of oil equivalent per day [4] - Free cash flow per share increased by 18% year-over-year to $1.94 per share, alongside significant debt reduction of over $600 million [3][7] - Adjusted operating cash flow reached $884 million, with adjusted free cash flow at $403 million [5] Business Line Data and Key Metrics Changes - The company reduced drilling and completion (D&C) costs per foot to $700, resulting in cash capital expenditures of $481 million for the quarter and $1.97 billion for the year [4] - The company reported leading cash costs with Q4 lease operating expenses (LOE) at $5.26 per BOE, cash G&A at $0.80 per BOE, and GP&T at $1.18 per BOE [4] Market Data and Key Metrics Changes - The company expects to sell approximately 400 million cubic feet per day of gas in 2026, increasing to roughly 700 million cubic feet per day in 2027 and beyond, significantly reducing Waha exposure to about 10% of total gas volumes in 2026 [9] - Gas realizations are expected to improve, with a projected $0.50 premium to Waha prices in 2025, compared to a $0.40 discount in the previous year [9] Company Strategy and Development Direction - The company aims to maximize shareholder value through disciplined execution of its capital-efficient Delaware Basin program, with a focus on free cash flow per share growth [3][12] - The 2026 plan anticipates total production averaging 415,000 BOE per day, with oil production averaging 189,000 barrels per day, while spending $1.85 billion in CapEx, which is $120 million lower than 2025 [13][12] - The company continues to pursue acquisitions, having completed approximately $1.1 billion in acquisitions during 2025, adding about 250 locations and 13,000 BOE per day within existing operating areas [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue generating free cash flow per share growth despite commodity price volatility, emphasizing the importance of operational efficiency [16][18] - The company is cautious about growth in 2026, focusing on maintaining production levels while monitoring macroeconomic conditions and oil prices [40][92] Other Important Information - The company has increased its quarterly base dividend to $0.16 per share, reflecting a 7% increase and a 40% CAGR since inception in 2022 [5] - The company is exploring potential ancillary businesses related to its surface acreage, including power generation and lithium extraction, although these initiatives are not expected to be immediate [31][75] Q&A Session Summary Question: Strategy on Free Cash Flow Growth - Management highlighted that their strategy focuses on organic and inorganic free cash flow growth, contrasting with peers who may focus on reducing production to enhance cash flow [20][21] Question: Capital Allocation Plans - The company plans to allocate capital to opportunities that drive long-term returns, prioritizing base dividends, attractive acquisitions, and maintaining cash reserves [23][25] Question: Ground Game and M&A Activity - Management expressed confidence in continuing their ground game and M&A strategy, noting that they have been able to secure deals less sensitive to market fluctuations [30][54] Question: Cost Reductions and Future Potential - Management indicated that there is still potential to further reduce D&C costs, focusing on improving drilling efficiency and completion techniques [48][50] Question: Gas Market Outlook - Management anticipates challenges in the gas market in 2026 but believes they are well-positioned to mitigate risks through improved gas marketing strategies [80][84] Question: Growth Potential in 2027 - Management indicated that growth in 2027 will depend on macroeconomic conditions and oil prices, with a historical growth rate of around 10% per year being achievable under favorable conditions [92]