Financial Data and Key Metrics Changes - The company reported revenue of $2.2 billion for the second quarter, reflecting a year-over-year growth of 5.7%, with 4.5% being organic growth [26] - EBITDA margin increased to 11.8%, a rise of 70 basis points year-over-year [26] - Free cash flow for the quarter was $138 million, driven by strong profitability and effective working capital management [26][28] - Adjusted diluted earnings per share reached $6.81, marking a 14% increase compared to the previous year [27] Business Line Data and Key Metrics Changes - The technology segment has grown to represent nearly 60% of total revenue, with significant contributions from electronic warfare and agile software development [9][13] - Electronic warfare alone generated approximately $2 billion in revenue, showcasing the company's leadership in this area [13] - The company won $1.4 billion in awards during the quarter, resulting in a book-to-bill ratio of 0.65 for the quarter and 1.3 on a trailing 12-month basis [12] Market Data and Key Metrics Changes - 90% of the company's revenue is derived from national security customers, with increasing visibility into funding streams from reconciliation funds [22][23] - The backlog increased by 3% year-over-year to $33 billion, with a funded backlog growth of 7% [34] - The company expects 95% of its revenue for fiscal year 2026 to come from existing programs, indicating strong operational performance [35] Company Strategy and Development Direction - The company emphasizes a strategy focused on expanding national security capabilities and investing ahead of customer needs [7][8] - Recent acquisitions, including ARKA, are part of a strategy to enhance technology-driven growth and expand into critical markets like space [13][39] - The company aims to maintain a flexible capital deployment strategy to support long-term growth and shareholder value [30][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic operating environment and achieve long-term shareholder value [11][39] - The macro environment remains constructive, with good demand signals from customers despite some unevenness post-government shutdown [22] - The company raised its fiscal 2026 guidance, expecting revenue growth of 8%-10% and free cash flow of at least $725 million [23][31] Other Important Information - The company is strategically positioned to benefit from ongoing acquisition reforms and the shift towards firm-fixed-price contracts [72] - The acquisition of ARKA is expected to increase leverage to 4.3 times net debt to trailing 12-month EBITDA, but management is confident in returning to lower leverage levels post-acquisition [28][30] - The company is actively engaging in the counter-UAS market, which is expected to see significant growth due to increased funding and demand [90][92] Q&A Session Summary Question: Impact of higher U.S. military OPTEMPO on CACI - Management indicated that the current OPTEMPO is favorable for CACI, as it aligns with the demand for mission technology and software-defined solutions [45][46] Question: Pipeline and bid conversion expectations - Management acknowledged a slower ramp-up post-shutdown but expressed confidence in filling the pipeline and returning to pace [49][50] Question: Update on recent protest win - The JTMS protest was denied, allowing the company to ramp up on the program, which is expected to contribute to growth in 2027 and 2028 [58][59] Question: Reconciliation funding impact - Management noted that reconciliation funds are starting to flow, positively impacting border security programs and other areas [62][65] Question: Federal Acquisition Regulation reform - Management stated that the company is well-aligned with acquisition reforms and is positioned to support the government's shift towards more commercial models [68][72] Question: Scalability of ARCA acquisition - The acquisition of ARCA is expected to enhance the company's capabilities in intelligence services and align with long-term growth funding streams [78][82] Question: Addressable market from reconciliation bill - Management highlighted that reconciliation funding will significantly expand the addressable market, particularly in electronic warfare and counter-UAS [89][90] Question: Defense spending growth in 2027 - Management expressed cautious optimism regarding defense spending growth, emphasizing the company's strong market position regardless of budget fluctuations [114][116] Question: Margins and indirect costs - Management attributed strong margins to favorable technology mix and effective management of indirect costs during growth [126][129] Question: Pentagon's reaction to acquisition scale - Management indicated that there have been no barriers to smart acquisitions that support national security, and the company remains focused on driving shareholder value [131][132]

Financial Data and Key Metrics Changes - CACI reported revenue of $2.2 billion for Q2 2026, reflecting a year-over-year growth of 5.7%, with organic growth of 4.5% [15] - EBITDA margin increased by 70 basis points year-over-year to 11.8% [15] - Adjusted diluted earnings per share rose by 14% to $6.81 compared to the previous year [15] - Free cash flow for the quarter was $138 million, driven by strong profitability and effective working capital management [15] Business Line Data and Key Metrics Changes - The technology segment has grown to represent nearly 60% of total revenue, with significant contributions from electronic warfare and agile software development [5][7] - Electronic warfare alone generated approximately $2 billion in revenue [7] - The company won $1.4 billion in awards during the quarter, resulting in a book-to-bill ratio of 0.65 for the quarter and 1.3 on a trailing 12-month basis [6][19] Market Data and Key Metrics Changes - 90% of CACI's revenue comes from national security customers, with a backlog of $33 billion, which increased by 3% year-over-year [12][19] - Funded backlog grew by 7% over the same period [19] - The company expects 95% of its revenue for FY 2026 to come from existing programs, with 3% from recompetes and 2% from new business [19] Company Strategy and Development Direction - CACI's strategy focuses on expanding national security capabilities and investing in technology to meet customer needs [4][5] - The company aims to differentiate itself through software-defined technology and agile development methodologies [11][22] - The recent acquisition of ARCA is part of CACI's strategy to enhance its technology portfolio and position in the space market [13][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic operating environment and drive long-term shareholder value [6][23] - The company raised its fiscal 2026 guidance, expecting revenue growth of 8%-10% and free cash flow of at least $725 million [12][18] - Management noted that reconciliation funds are beginning to flow, positively impacting border security programs and other areas [42] Other Important Information - CACI's leverage at the end of Q2 was 2.4 times net debt to trailing 12-month EBITDA, expected to rise to 4.3 times post-ARCA acquisition [16][17] - The company has a strong track record of quickly deleveraging after acquisitions [17] Q&A Session Summary Question: What does higher U.S. military op tempo mean for CACI? - Management indicated that the current operational tempo is favorable for CACI, as it aligns with the demand for mission technology that traditional companies may not provide [27][28] Question: How is the pipeline of submitted bids expected to flow? - Management acknowledged that the protracted government shutdown affected the pace of acquisition processes but noted that the pipeline is filling back up [32] Question: Can you provide an update on the recent protest win? - Management confirmed that the JTMS protest was denied, allowing the company to ramp up on the program, which is expected to benefit growth in 2027 and 2028 [40] Question: How does reconciliation funding impact CACI? - Management stated that reconciliation funding is expected to positively impact various programs, including border security and modernization efforts [42] Question: What is the status of the Federal Acquisition Regulation reform? - Management noted that CACI is aligned with the ongoing acquisition reform and is well-positioned to support the government's shift towards more commercial models [48] Question: How does CACI view the competitive landscape with L3Harris? - Management emphasized that CACI continues to see strong demand for its technology and is focused on delivering value, regardless of competitors' actions [66] Question: What is the outlook for defense spending growth in 2027? - Management expressed caution regarding the fiscal year 2027 budget but remains confident in CACI's growth potential within its $300 billion total addressable market [75] Question: What are the drivers behind the strong margins this quarter? - Management attributed the strong margins to favorable technology revenue acceleration and effective management of indirect costs [86]

CACI International Conference Summary Company Overview - **Company**: CACI International (NYSE:CACI) - **Date**: December 02, 2025 - **Speaker**: Jeff McLaughlin, CFO Key Industry Insights - **Government Acquisition Reform**: The new administration's focus on acquisition reform is seen as a positive development for CACI, allowing the company to align with government expectations for contractors to invest in solutions ahead of need [2][3][4] - **Market Segmentation**: The shift in acquisition strategies may lead to market segmentation, affecting traditional defense primes differently than smaller contractors [5] - **Reconciliation Funding**: CACI anticipates opportunities from approximately $170 billion in reconciliation funding for the Department of Homeland Security (DHS), particularly related to border security initiatives [9][10] Financial Performance and Growth - **Revenue Impact from Government Shutdown**: Minimal disruption was reported during the government shutdown, with an expected revenue impact of single-digit millions per week, which is anticipated to be recovered within the year [11] - **Growth Rate**: CACI is on track for high single-digit growth, with the business running well and accelerating [12] - **Intelligence Business Growth**: The decision to separate the intelligence business from civil agencies is aimed at better reflecting the company's focus on national security, with about 90% of revenue derived from this sector [14][15] Strategic Initiatives - **Outcome-Based Solutions**: CACI has successfully implemented outcome-based solutions, such as the BEAGLE project for Customs and Border Protection, which has improved efficiency and client satisfaction [7][8] - **Investment in Technology**: The company is focusing on software development and technology that can be applied across various defense systems, enhancing competitive barriers [19][28] - **M&A Focus**: CACI is looking to pursue acquisitions that fill existing gaps and enhance capabilities, particularly in areas related to intelligence collection and processing [30][31] Margins and Cash Flow - **IRAD Investment**: Increased investment in Internal Research and Development (IRAD) is expected to yield higher margins, as the government is more receptive to commercially developed solutions [24][25] - **Free Cash Flow Goals**: CACI aims to achieve free cash flow greater than one times net income, with a target of generating $1.6 billion in free cash flow without assuming cash deployment benefits [32] International Opportunities - **International Sales Strategy**: CACI plans to leverage U.S. government sales and value-added resellers for international opportunities, particularly in Europe, while ensuring compliance with local regulations [22][23] Conclusion - CACI is positioned well to capitalize on evolving government procurement strategies and increased funding opportunities, with a strong focus on technology and national security solutions. The company is optimistic about its growth trajectory and the potential for enhanced margins through strategic investments and acquisitions [33]

Financial Data and Key Metrics Changes - The third quarter of 2025 marked the strongest performance in the past two years, with gross revenue reaching $2 million, of which 12% was derived from subscription-based sales, indicating a significant improvement in core fundamentals [3][4] - The shift towards recurring and integrated systems revenue is driving margin expansion and positioning the company for profitability [9] Business Line Data and Key Metrics Changes - The adoption of BolaWrap is increasing, with a reported 92% field success rate and zero reported deaths or serious injuries, showcasing its effectiveness compared to traditional tools like Tasers and pepper spray [5][6] - The company has expanded its product family to include Wrap Vision and Wrap Reality, enhancing its offerings beyond just hardware sales to a multi-year subscription model [8][9] Market Data and Key Metrics Changes - The U.S. law enforcement market consists of approximately 18,000 agencies and about 1 million officers, presenting a substantial opportunity for growth [10] - The counter-UAS market, which the company is targeting with its Merlin and Panda programs, is projected to exceed $15 billion globally by 2030 [10][11] Company Strategy and Development Direction - The company is transitioning from a device manufacturer to a provider of non-lethal response subscription solutions, focusing on training, policy alignment, and integrated systems [3][6] - The establishment of Wrap Federal aims to expand into defense and homeland security markets, aligning with federal procurement standards [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing adoption of non-lethal tools, driven by tighter policies and increasing demand for safer law enforcement practices [4][21] - The company is optimistic about its future capital needs and plans to approach capital markets for potential public secondary offerings [15] Other Important Information - The company opened a new manufacturing and training facility in Norton, Virginia, to support its Made in America production strategy and enhance R&D capabilities [12][13] - The focus on integrated training and policy discussions is seen as crucial for the successful deployment of non-lethal tools [34] Q&A Session Summary Question: Future capital needs and public secondary offerings - Management indicated that they see the potential to tap into capital markets and will continue to evaluate financial options [15] Question: Difference between non-lethal and less-lethal - The company clarified that its device is classified as non-lethal, distinguishing it from other less-lethal products in the market [16][17] Question: Confidence in adoption and movement away from other tools - Management cited documented deployment data showing significant adoption of BolaWrap, with usage outpacing traditional tools like Tasers [21][22] Question: Updates on the potential Chile deal - The company is actively engaging with Chile and anticipates real business opportunities in the near future [32][33] Question: Plans to obtain sales and sales force description - The company has ramped up its sales and marketing team significantly, indicating a strong push to capitalize on current market opportunities [45][46]

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 software-defined technology deliveries [16] - Free cash flow for the quarter was $143 million, supported by strong profitability and effective working capital management [16][18] Business Line Data and Key Metrics Changes - The company won $5 billion in contract awards during the quarter, resulting in a book-to-bill ratio of 2.2 times for the quarter and 1.3 times on a trailing 12-month basis [5][18] - The funded backlog grew nearly 26% year-over-year, indicating strong demand and preparation for essential programs amid the government shutdown [20] - CACI's revenue from federal civilian agencies increased by 17% year-over-year, primarily driven by organic growth [44] Market Data and Key Metrics Changes - The macro environment remains resilient despite a federal government shutdown, with most of CACI's work funded and deemed essential [6][7] - The company anticipates that over 92% of its revenue for fiscal year 2026 will come from existing programs, with less than 4% from recompetes and new business [20] Company Strategy and Development Direction - CACI is focused on critical national security priorities, with a strategic portfolio that is 90% aligned with national security [29] - 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 growth 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, citing strong demand signals and a healthy funding environment for national security [5][23] - The company is well-positioned to navigate potential impacts from the government shutdown, with a significant backlog and essential work that is funded [61][62] - Management noted that the hiring environment remains strong, with a high volume of applicants and ongoing recruitment efforts [62] Other Important Information - CACI's record backlog of $34 billion represents nearly four years of annual revenue, reflecting strong performance in the marketplace [18][20] - The company is expanding its use of AI tools to enhance the speed and scalability of its agile software development processes [14] Q&A Session Summary Question: Expectations for FY2027 budget requests - Management indicated that bipartisan support for national security priorities suggests continued funding growth, despite potential concerns about budget cuts [29][30] Question: Changes in contracting approaches for counter-UAS and electronic warfare - Management noted a shift towards more agile contracting methods, with increased use of Other Transaction Authorities (OTAs) and commercial-like purchasing processes [32][33] Question: Impact of the government shutdown on business - Management acknowledged slight disruptions in cash collections and revenue but emphasized that these are manageable and will be made up over the year [91][62] Question: Competitive pricing environment - Management stated that pricing has not been a significant issue, as the company has focused on delivering value and higher margins through strategic investments [92][93] Question: Update on acquisition integration - Management confirmed that the integration of recent acquisitions is largely complete and meeting expectations, contributing positively to the company's strategic goals [97][98]

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 [23] - EBITDA margin increased to 11.7%, a year-over-year increase of 120 basis points, driven by strong program execution and higher margin software deliveries [23] - Free cash flow for the quarter was $143 million, supported by strong profitability and effective working capital management [24] Business Line Data and Key Metrics Changes - The company 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 twelve-month basis [7] - Over half of the contract awards were for new business, indicating strong demand and successful business development efforts [7] - The revenue from intelligence community customers is now disclosed separately, aligning with the company's national security focus [23] Market Data and Key Metrics Changes - CACI's record backlog reached $34 billion, a 4% increase from the previous year, representing nearly four years of annual revenue [26] - Funded backlog grew nearly 26% year-over-year, reflecting customers preparing essential programs amid the government shutdown [26] Company Strategy and Development Direction - CACI is focused on critical national security priorities, with a strategic portfolio that is 90% aligned with national security [36] - The company is investing in software-defined technology and agile software development processes to enhance efficiency and effectiveness in delivering solutions [20][30] - CACI aims to leverage its differentiated capabilities in counter UAS, counter space, network modernization, and digital application modernization to drive growth [10][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance despite the federal government shutdown, citing the resilience of their business model [9][10] - The company anticipates continued demand for its services, particularly in areas like modernization and border security, as well as intelligence programs [9] - Management reaffirmed fiscal year 2026 guidance, expecting revenue between $9.2 billion and $9.4 billion, with an EBITDA margin in the mid-eleven percent range [25] Other Important Information - CACI's hiring environment remains strong, with a high volume of applicants and ongoing recruitment efforts despite the government shutdown [75] - The company is expanding its use of AI tools to enhance the speed and efficiency of its software development processes [20] Q&A Session Summary Question: Expectations for FY 2027 budget - Management highlighted that bipartisan support for national security priorities suggests continued funding growth, despite potential budget cuts [36] Question: Changes in contract awarding processes - Management noted a shift towards more agile purchasing methods, with increased use of Other Transaction Authorities (OTAs) [41][42] Question: Impact of government shutdown on business - Management acknowledged slight disruptions in cash collections and revenue but emphasized that these are manageable and expected to recover [105][106] Question: Price competition in the market - Management stated that they have not seen significant price competition affecting their bids, as they have positioned themselves away from price-based competition [108] Question: Update on acquisition integration - Management confirmed that the integration of recent acquisitions is largely complete and meeting expectations [113]