CACI International Inc Q1 FY2026 earnings call

• CACI's strong first quarter results included $143 million free cash flow, 11% revenue growth, and 11.7% EBITDA margin. • Won $5 billion in contract awards with a book-to-bill of 2.2x for the quarter. • Business remains resilient during federal government shutdown due to national security focus. • Highlights in various areas: Counter-UAS with Merlin system, Counter-Space with TIGS and RMT awards, network modernization with Air Force task orders, and digital application modernization with BEAGEL and JTMS awards. • Reaffirmed full year fiscal '26 guidance and 3-year financial targets.

CACI's first quarter results showed strong financial performance. They generated revenue of nearly $2.3 billion, a 11.2% year-over-year growth (5.5% organic). EBITDA margin was 11.7%, up 120 basis points year-over-year. Free cash flow was $143 million. They won $5 billion of contract awards, resulting in a book-to-bill of 2.2x for the quarter and 1.3x on a trailing 12-month basis. Backlog was $34 billion, increasing 4% from the previous year and representing nearly 4 years of annual revenue. Funded backlog grew nearly 26% year-over-year.

• Reaffirmed fiscal '26 guidance: revenue between $9.2 billion and $9.4 billion, EBITDA margin in the mid-11% range, adjusted net income between $605 million and $625 million, and free cash flow of at least $710 million. • Expect EBITDA margin in the second quarter to be about 11%. • Strong first quarter performance derisked the EBITDA margin step-up from first half to second half.

• Potential impact of government shutdown on operations, though business is resilient. • Possible price competition and protests from competitors as seen in the marketplace.

Q: Perhaps we could shed some light on early expectations for the FY '27 request.

A: John Mengucci stated CACI is focused on critical national security priorities, has a large backlog with long-duration contracts, and is well-positioned to grow regardless of top-line budget numbers.

Q: Very nice result. John, CACI was ahead of the game when it came to investing in Counter-UAS solutions...

A: John Mengucci discussed CACI's long history in Counter-UAS, Merlin system's capabilities (up to 75 km detection, software-defined), and being battle-hardened with hundreds of confirmed kills.

Q: The government shutdown. It appears some awards, especially funded were accelerated ahead of the shutdown. So should that mitigate some of the near-term impact? And is there some sort of length of the shutdown that presents a risk to guidance?

A: Jeffrey MacLauchlan said being better positioned with funded programs, and guidance is reaffirmed as shutdown impact is well-covered within the guidance range; John Mengucci added business is resilient with significant national security work and backlog to make up any short-term impact over the full year