Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved revenue growth of 16% on an underlying basis, with an EBITDA margin of 11.2% and free cash flow of $442 million, reflecting a 16% increase in free cash flow per share [9][24][26] - In Q4, revenue reached $2.3 billion, representing a 13% year-over-year growth, with an EBITDA margin of 11.5% [22][24] - Adjusted diluted earnings per share for Q4 were $8.4, a 27% increase from the previous year [22] Business Line Data and Key Metrics Changes - The company won $10 billion in contract awards for the year, resulting in a book-to-bill ratio of 1.1x [10][32] - The company reported 10% organic growth for the full year, driven by strong customer demand for its differentiated technology [24][26] Market Data and Key Metrics Changes - The company generates 90% of its revenue from national security customers, benefiting from government funding initiatives such as the One Big Beautiful Bill Act, which allocates over $150 billion for defense [18][32] - The company has a healthy pipeline with $16 billion in bids under evaluation, 80% of which are for new business [34] Company Strategy and Development Direction - The company has positioned itself in well-funded areas aligned with national security priorities, focusing on software-based capabilities and modernization [11][19] - The company anticipates revenue growth of nearly 8% for fiscal year 2026, with an EBITDA margin in the mid-11% range and free cash flow per share growth of over 60% [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting strong customer demand and a robust pipeline of opportunities [17][19] - The company is closely monitoring the fiscal year 2026 budget process, indicating comfort in operating under a continuing resolution if necessary [18][19] Other Important Information - The company completed three strategic acquisitions and repurchased $150 million of shares during the year [28] - The company has a modest leverage ratio of 2.9x net debt to trailing twelve-month EBITDA, providing significant optionality for future capital deployment [28] Q&A Session Summary Question: Concerns about the competitive landscape and pipeline - Management clarified that the majority of their $16 billion pipeline consists of new work to CACI, with over half being new customer work, indicating a focus on value bids rather than traditional government services [41][44] Question: Impact of ceiling reduction on iTask program - Management confirmed that the ceiling reduction from $5.7 billion to $5 billion does not impact revenue or margins, and the program continues to execute well [47][49] Question: Budget outlook and potential for organic growth - Management indicated that a quicker budget process could lead to achieving the higher end of organic growth guidance, emphasizing a robust process for setting guidance [54][56] Question: Award environment and contracting officer availability - Management noted some modest impacts on award decisions but emphasized their ability to operate effectively in the current environment, with expectations of extended current work due to tighter procurement bandwidth [68][70] Question: Updates on space optical terminals and Golden Dome initiative - Management reported strong demand for their technology and ongoing success in the space optical terminal market, with investments on track despite some production delays [78][80] Question: Federal civilian exposure and budget outlook - Management stated that only 6% of revenue comes from federal civilian work, with a strategic focus on defense and intelligence sectors, minimizing exposure to federal civilian budget fluctuations [92][94]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved revenue growth of 16% on an underlying basis, with an EBITDA margin of 11.2% and free cash flow of $442 million, reflecting a growth of over 16% per share [8][25][30] - In the fourth quarter, revenue reached $2.3 billion, representing a 13% year-over-year growth, with an EBITDA margin of 11.5% [23][25] - Adjusted diluted earnings per share for the fourth quarter were $8.4, a 27% increase from the previous year [23] Business Line Data and Key Metrics Changes - The company won $10 billion in contract awards for the fiscal year, resulting in a book-to-bill ratio of 1.1x [8][33] - The fiscal year 2025 saw a 10% organic growth in revenue, driven by strong customer demand for differentiated technology and expertise [25][30] Market Data and Key Metrics Changes - The company generates 90% of its revenue from national security customers, benefiting from favorable government funding trends, including $150 billion allocated for defense [18][30] - The company has a healthy pipeline with $16 billion in bids under evaluation, 80% of which are for new business [33] Company Strategy and Development Direction - The company has positioned itself in well-funded areas aligned with national security priorities, focusing on software-based capabilities and modernization [10][17] - The strategy emphasizes bidding on high-value opportunities rather than competing aggressively on price, with a focus on differentiated capabilities [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2026 guidance, expecting revenue growth of nearly 8% and free cash flow per share growth of over 60% [20][30] - The company is closely monitoring the government fiscal year 2026 budget process, indicating resilience in operating under a continuing resolution [19][60] Other Important Information - The company completed three strategic acquisitions and repurchased $150 million of shares during the year [29] - The effective tax rate in the fourth quarter benefited from a $28 million tax resolution, which will positively impact future tax liabilities [23][27] Q&A Session Summary Question: Concerns about the competitive landscape and takeaway work - Management clarified that the majority of their pipeline consists of new work, with a focus on differentiated solutions rather than traditional government services [41][44] Question: Impact of ceiling reduction on iTask program - Management confirmed that the ceiling reduction does not affect revenue, margins, or guidance, and the program continues to execute well [48][50] Question: Outlook on federal civilian budget exposure - The company has minimal exposure to federal civilian work, focusing primarily on defense and intelligence sectors, which are more stable [98][100] Question: Software acquisition directive and its implications - Management views the software acquisition directive positively, anticipating increased opportunities for software solutions in government contracts [109][111] Question: Pipeline characterization and outcome-based pricing - Management indicated that their pipeline includes both new work to the market and new work to CACI, emphasizing their focus on delivering better solutions than competitors [116][118]

CACI International Inc Q4 FY25 Earnings Conference Call August 7, 2025 EXPERTISE and TECHNOLOGY 1 | CACI Proprietary Information EXPERTISE and TECHNOLOGY for National Security for National Security Forward-looking statements 2 | CACI Proprietary Information On today's call John Mengucci President and Chief Executive Officer Jeff MacLauchlan Chief Financial Officer and Treasurer 3 | CACI Proprietary Information Honoring the Legacy of Mike Daniels There are statements made herein that do not address historica ...

Financial Data and Key Metrics Changes - CACI reported revenue growth of 12% for Q3 2025, with total revenue reaching $2.2 billion, of which 5.6% was organic growth [9][32] - EBITDA margin improved to 11.7%, reflecting a year-over-year increase of 40 basis points [32] - Free cash flow for the quarter was $188 million, showing strong sequential and year-over-year increases [35][40] - Adjusted diluted earnings per share increased by 9% year-over-year to $6.23 [33] Business Line Data and Key Metrics Changes - The company won $2.5 billion in awards during the quarter, resulting in a book-to-bill ratio of 1.2 times for the quarter and 1.5 times on a trailing twelve-month basis [9][42] - The backlog increased by 10% year-over-year to $31 billion, representing nearly four years of annual revenue [42] Market Data and Key Metrics Changes - CACI continues to see strong demand signals from customers, driven by geopolitical realities and a supportive funding environment for national security spending [12][17] - The company has a pipeline of $17 billion in bids under evaluation, with nearly 80% being for new business [44] Company Strategy and Development Direction - CACI's strategy focuses on software-defined capabilities, aligning with the new administration's priorities for national security [13][18] - The company is positioned to benefit from increased defense budgets and bipartisan support for national security initiatives [30][80] - CACI has raised its fiscal year 2025 guidance for revenue, adjusted EPS, and free cash flow due to strong business performance [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving three-year financial targets and highlighted a constructive funding environment with healthy budgets [11][30] - The company anticipates continued demand for its services, particularly in areas like electronic warfare and border security [88][92] Other Important Information - CACI initiated an open market share repurchase program, buying back 436,000 shares at an average price of about $344 per share [35][36] - The company has completed 12 acquisitions since FY21, demonstrating a flexible and opportunistic capital deployment approach [36][37] Q&A Session Summary Question: How has contract growth trended since the change in administration? - Management noted no significant slowdown in on-contract growth and highlighted a strong level of RFPs being responded to [54][56] Question: How much revenue is already in the backlog for FY '26? - Management indicated that no single program accounts for more than 5% of revenue and described FY '26 as a moderate recompete year [57][58] Question: What are the implications of the DOD memo about insourcing or updating acquisition for tech? - Management sees the executive orders as a net positive for CACI, aligning with their software-defined capabilities strategy [61][64] Question: Can you discuss the budget cadence and outlay mechanics? - Management emphasized the positive impact of the full-year continuing resolution, allowing for new starts and greater funding flexibility [75][80] Question: What specific areas of incremental funding represent the biggest opportunities? - Management highlighted electronic warfare, border security, and DOD IT modernization as key areas for future growth [88][92] Question: How is the integration process going for the Azure Summit acquisition? - Management reported that the integration is progressing well, enhancing capabilities and aligning with customer needs [113][114]