CACI International (CACI) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue grew 14.5% year-over-year to $2.1 billion, with 8.1% organic growth and strong profitability, supporting continued investment and capital deployment.

• Net income rose 31% to $109.9 million; adjusted net income up 37.5% to $134.2 million; adjusted diluted EPS increased 36% to $5.95.

• Completed acquisitions of Azure Summit and Applied Insight, expanding technology and mission capabilities.

• Backlog reached $32 billion, up 18% year-over-year, with a trailing 12-month book-to-bill of 1.7x and strong pipeline visibility.

• Focused on national security, with ~90% of revenue from DoD, intelligence, and DHS, and minimal exposure to civilian agencies.

Financial highlights

• Q2 revenue was $2.1 billion, up 14.5% year-over-year; organic growth was 8.1%.

• EBITDA margin improved to 11.1% from 9.3% year-over-year; EBITDA up 36.2% to $232.9 million.

• Adjusted diluted EPS rose 36% to $5.95; diluted EPS was $4.88, up 30.5% year-over-year.

• Free cash flow for Q2 was $66 million; operating cash flow for six months was $160.7 million.

• Net debt to trailing 12-month EBITDA at 2.9x post-acquisitions; long-term debt increased to $2.99 billion.

Outlook and guidance

• FY25 revenue guidance raised to $8.45–$8.65 billion, representing 13–16% growth (7–10% organic, excluding $200M non-recurring revenue).

• Adjusted net income guidance increased to $537–$557 million; adjusted diluted EPS to $23.87–$24.76.

• Free cash flow guidance raised to at least $450 million.

• Expect 95% of FY25 revenue from existing programs, 3% from repeats, 2% from new business.

• Capital expenditures projected at ~$85 million; tax rate ~24%; net interest expense ~$165 million.