CACI International (CACI) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 11.2% year-over-year to $2.06 billion, with 9.9% organic growth and strong profitability, supporting continued investment and capital deployment.

• Net income rose 39.7% to $120.2 million, with adjusted diluted EPS up 36% to $5.93 and reported EPS up 41.8% to $5.33.

• $3.3 billion in contract awards, with a 1.6x book-to-bill ratio and record backlog of $32.4 billion, up 21.3% year-over-year.

• Closed the Applied Insight acquisition and signed an agreement to acquire Azure Summit Technology, both expected to be accretive to EBITDA margin, EPS, and free cash flow per share.

• Raised FY25 guidance for revenue, EBITDA margin, adjusted net income, EPS, and free cash flow, reflecting strong organic performance and acquisitions.

Financial highlights

• Operating income increased 30.9% to $179.8 million, with EBITDA margin up 110 basis points year-over-year to 10.5% and EBITDA of $215.9 million (+23.9% YoY).

• Adjusted diluted EPS rose 36% to $5.93, driven by higher operating income, lower interest expense, and a lower share count.

• Free cash flow for the quarter was $49 million, with DSO at 47 days.

• Cash and cash equivalents increased to $440.7 million from $133.9 million sequentially.

• Total debt increased to $1.82 billion, with $710 million drawn on the revolver.

Outlook and guidance

• FY25 revenue guidance raised to $8.1–$8.3 billion, reflecting 8.6%–11.3% growth; adjusted net income guidance increased to $515–$535 million; adjusted diluted EPS to $22.89–$23.78.

• Free cash flow guidance raised to at least $435 million; EBITDA margin expected at the upper end of the high tens range.

• Guidance includes Applied Insight acquisition but excludes pending Azure Summit Technology acquisition.

• Capital expenditures projected at ~$80 million; tax rate 24%–25%.

• Approximately 42% of $11.8 billion in remaining performance obligations expected to be recognized as revenue over the next 12 months.