Aidan Daly
CACI International reported its first quarter results that showed a strong start to fiscal year 2025. The company said Wednesday that in the three months ending Sept. 30, 2024, total revenues rose 11.2% to $2.056 billion compared to Q1 fiscal 2024, while net income jumped 39.7% year-over-year to $120.2 million. Also, the professional and IT services firm secured over $3.3 billion in awards and ended the quarter with a $32.4 billion backlog.
Commenting on his company’s performance, John Mengucci, president and CEO of CACI and a 2024 Wash100, said, “In the first quarter, CACI delivered exceptional financial results across the board with revenue growth of 11%, healthy profitability and cash flow, and strong awards and backlog.”
“Our continued momentum allows us to raise our fiscal year 2025 guidance. CACI is well positioned to continue driving long-term value for our customers and our shareholders,” Mengucci added.
Key Metrics
In addition to the top and bottom-line growth, EBITDA increased 23.9% year-over-year to $215.9 million and free cash flow reached $49.4 million. The $32.4 billion backlog at the quarter’s end represents a 21.3% increase from a year ago. Regarding the customer group, the Department of Defense contributed $1.53 billion or 74.6% of total revenue, and federal civilian agencies accounted for 21.4% or $439.37 million in absolute amounts.
New Business
According to CACI, almost 75% of the $3.3 billion contract awards are new business to the company, not including the ceiling values of multi-award, indefinite-delivery/indefinite-quantity contracts.
Among the notable IDIQ contracts is the five-year task order valued at up to $805 million with the U.S. Navy to provide engineering services under the DOD Information Analysis Center’s multiple-award contract vehicle. CACI secured other five-year task orders with the U.S. Navy Naval Undersea Warfare Center and the U.S. Central Command. The company will also provide expertise to the U.S. military.
Strategic Acquisitions
Mengucci noted CACI’s flexible and opportunistic approach to capital deployment with the strategic acquisitions of Azure Summit Technology and Applied Insight. CACI announced the completed acquisition of Applied Insight on Oct. 1. The company delivers cloud migration, adoption and transformation capabilities, and has intimate customer relationships across the DOD and intelligence community.
The acquisition of Azure is pending but is expected to close by the 2nd quarter of fiscal year 2025.
“Our continued momentum allows us to raise our fiscal year 2025 guidance. CACI is well positioned to continue driving long-term value for our customers and our shareholders,” Mengucci said.
Financial guidance
CACI revised its fiscal year 2025 guidance, starting with increased revenue from $7.9 billion and $8.1 billion to $8.1 billion to $8.3 billion. The company expects to end the year with an adjusted net income between $515 million and $535 million and a free cash flow of at least $435 million. Mengucci said the new guidance reflects increased organic growth, including the contribution of Applied Insight.
