Peter J. Arment

Peter J. Arment requested an update on the recently won JTMS protest, including timing and any additional color, and asked about the impact of reconciliation funding, particularly for Golden Dome, on the second half of the current fiscal year and the setup for FY27.

Answer

CEO John S. Mengucci confirmed the JTMS protest denial, noting ramp-up is underway for the 10-year, $1.6 billion task order-based technology program, which will benefit growth in FY27/28 and Q4 revenue. He highlighted the use of SAP, Agile software, and consolidation of legacy systems. On reconciliation funding, CEO John S. Mengucci stated funds are positively impacting border security, counter-UAS, space programs, and DOD financial/logistics modernization, including intelligence programs related to Golden Dome, contributing to a constructive macro environment.

Peter J. Arment (Baird) asked for an update on the recently won JTMS protest, including its timing and any additional details, and subsequently inquired about the impact of reconciliation funding, particularly for Golden Dome, on CACI's performance in the second half of the current fiscal year and the setup for fiscal year 2027.

Answer

CEO John S. Mengucci confirmed the JTMS protest denial, indicating a ramp-up over an extended period, primarily benefiting growth in fiscal years 2027-2028, but also boosting Q4 revenue. He detailed the 10-year, $1.6 billion task order-based program utilizing SAP and Agile software. Regarding reconciliation funding, Mr. Mengucci noted positive impacts on border security, counter-UAS, space programs, financial/logistics modernization, and intelligence programs related to Golden Dome, confirming these outcomes are included in the updated guidance.

Peter J. Arment asked for an update on the remaining certification work for the 737 MAX 7 and 737 MAX 10 programs, particularly given the extensive testing already completed.

Answer

President and CEO Dave Calhoun explained that while significant testing hours have been accumulated on the anti-ice design, the remaining work involves making hardware and software modifications to test aircraft and then proceeding with the FAA certification process for these updates. He confirmed that the anti-ice issue remains on the critical path for both 737 MAX 7 and 737 MAX 10 certifications, which are still anticipated in 2026.