CACI(US:CACI)2025-12-02 16:32CACI 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]