On April 23, 2025, CACI International Inc (CACI, Financial) released its 8-K filing for the fiscal third quarter ended March 31, 2025. The company reported revenues of $2.2 billion, marking an 11.8% increase year-over-year, surpassing the analyst estimate of $2.132 billion. CACI International Inc is a prominent provider of information solutions and services, primarily catering to U.S. government agencies and departments. The company supports national security missions and government modernization through its expertise in software development, data analysis, IT operations, and more.
Performance Highlights and Challenges
CACI International Inc's performance in the third quarter was driven by a combination of organic growth and strategic acquisitions completed over the past year. The company's income from operations rose by 8.3% to $196.4 million, reflecting higher revenues and gross profit. However, net income decreased by 3.0% to $111.9 million, and diluted earnings per share (EPS) fell by 2.5% to $5.00, above the estimated EPS of $4.37. This decline was attributed to increased intangible amortization, interest expenses, and a higher tax provision.
Financial Achievements and Industry Impact
The company's adjusted net income increased by 8.0% to $139.3 million, and adjusted diluted EPS rose by 8.5% to $6.23, exceeding the analyst estimate. CACI's EBITDA reached $253.5 million, with an EBITDA margin of 11.7%, up 40 basis points year-over-year. These achievements underscore CACI's successful strategy and execution in delivering value to its government customers, which is crucial in the competitive software industry.
Key Financial Metrics and Analysis
From the income statement, CACI's revenue growth was accompanied by a 12.2% increase in total costs of revenues, primarily due to higher direct and indirect costs. The balance sheet showed total assets of $8.58 billion, with significant increases in goodwill and intangible assets, reflecting recent acquisitions. The company's cash flow statement highlighted a substantial increase in net cash provided by operating activities, up 79.7% to $204.2 million, driven by effective working capital management.
“Our third quarter results are a continuation of the exceptional performance that CACI has been reliably delivering. Our double-digit revenue growth, increased profitability, strong cash flow, and growing backlog underscore our successful strategy, differentiated software-based approach, and superior execution for our customers,” said John Mengucci, CACI President and Chief Executive Officer.
Contract Awards and Future Outlook
CACI secured $2.5 billion in contract awards during the quarter, with a book-to-bill ratio of 1.2x, indicating strong demand for its services. Notable awards included a $434 million task order for digital financial management solutions and a $400 million contract modification for mission-essential systems. The company's total backlog increased by 9.8% to $31.4 billion, with a funded backlog of $4.2 billion, up 31.3% year-over-year.
Looking ahead, CACI raised its fiscal year 2025 guidance, with expected revenues between $8.55 billion and $8.65 billion, and adjusted diluted EPS ranging from $24.24 to $24.87. This upward revision reflects the company's confidence in its strategic direction and ability to deliver long-term value to shareholders.
Explore the complete 8-K earnings release (here) from CACI International Inc for further details.
