Executive Summary

Strong Q2: revenue $2.10B (+14.5% YoY), EBITDA margin 11.1% (+180 bps YoY), adjusted EPS $5.95 (+36.5% YoY); sequential revenue grew modestly while GAAP EPS declined on higher interest/taxes and mix .
Guidance raised again: FY25 revenue to $8.45–$8.65B, adjusted EPS to $23.87–$24.76, and FCF to at least $450M; EBITDA margin guided for “low 11%” range (CFO), implying sustained profitability mix despite Q3 timing headwinds .
Backlog/visibility solid: TTM book-to-bill ~1.7x; backlog ~$32B (~4 years of revenue); ~95% of FY25 revenue expected from existing programs, supporting estimate stability and cash flow compounding .
Potential stock catalysts: continued margin execution into Q4 (strongest margin quarter), integration synergies (Azure Summit, Applied Insight), and accelerating software-defined tech deliveries; quarterly award lumpiness is a tactical watch item .

What Went Well and What Went Wrong

What Went Well
- Double-digit top-line and outsized profit growth: revenue $2.10B (+14.5% YoY), EBITDA $232.9M (+36.2% YoY), EBITDA margin 11.1% (+180 bps), adjusted EPS $5.95 (+36.5% YoY) .
- Strategy execution and guidance raise: “again able to raise our fiscal year 2025 guidance,” underscoring momentum and confidence in three-year targets (CEO) .
- M&A integration/synergies: Azure Summit won a ~$300M Navy award pre-close (included in backlog), integrations “on track,” validating RF/EW/SIGINT thesis (CEO) .
What Went Wrong
- Quarter awards lumpy: Q2 awards $1.17B (−47% YoY) off a tough comp; management framed award timing but emphasized TTM 1.7x B2B .
- Cash flow below prior-year quarter: operating cash flow ex-MARPA $76.0M (−8.7% YoY); FCF $66.1M (−2.6% YoY), driven primarily by working capital timing .
- Sequential EPS dip on GAAP basis: diluted EPS fell to $4.88 from $5.33 in Q1; CFO highlighted mix/timing (pulled-forward higher-margin deliveries into Q2; lower-margin materials shifted to Q3) .

Financial Results

Overall performance vs prior periods and (if available) estimates

Metric	Q4 FY2024	Q1 FY2025	Q2 FY2025	Consensus (Q2)
Revenue ($USD Millions)	$2,038.3	$2,056.9	$2,099.8	N/A – S&P Global consensus unavailable at analysis time
Income from Operations ($M)	$197.8	$179.8	$181.3	N/A
Net Income ($M)	$134.7	$120.2	$109.9	N/A
Diluted EPS ($)	$5.98	$5.33	$4.88	N/A
Adjusted Diluted EPS ($)	$6.61	$5.93	$5.95	N/A
EBITDA ($M)	$234.9	$215.9	$232.9	N/A
EBITDA Margin (%)	11.5%	10.5%	11.1%	N/A
Operating Cash Flow ex-MARPA ($M)	$157.2	$60.9	$76.0	N/A
Free Cash Flow ($M)	$134.6	$49.4	$66.1	N/A
DSO (days)	46	47	53	N/A

Segment and mix

Revenues by Expertise vs Technology (Q2 YoY)

Category	Q2 FY2024 ($M)	Q2 FY2025 ($M)	YoY
Expertise	$849.5	$925.9	+9.0%
Technology	$984.4	$1,173.9	+19.3%
Total	$1,833.9	$2,099.8	+14.5%

Revenues by Customer (Q2 YoY mix)

Customer	Q2 FY2024 ($M, %)	Q2 FY2025 ($M, %)	YoY
Department of Defense	$1,358.5 (74.0%)	$1,578.7 (75.1%)	+16.2%
Federal Civilian	$389.9 (21.3%)	$433.7 (20.7%)	+11.2%
Commercial & Other	$85.5 (4.7%)	$87.4 (4.2%)	+2.2%
Total	$1,833.9 (100%)	$2,099.8 (100%)	+14.5%

Revenues by Contract Type (Q2 YoY)

Type	Q2 FY2024 ($M, %)	Q2 FY2025 ($M, %)	YoY
Cost-plus-fee	$1,102.5 (60.1%)	$1,240.2 (59.1%)	+12.5%
Fixed-price	$519.5 (28.3%)	$602.9 (28.7%)	+16.0%
Time & Materials	$211.9 (11.6%)	$256.7 (12.2%)	+21.2%
Total	$1,833.9 (100%)	$2,099.8 (100%)	+14.5%

KPIs and backlog/awards

KPI	Q2 FY2024	Q2 FY2025
Contract Awards ($M)	$2,199.7	$1,169.0
Backlog – Total ($B)	$26.9	$31.8
Backlog – Funded ($B)	$3.7	$4.1
TTM Book-to-Bill (x)	—	~1.7x
Net Debt / TTM EBITDA (pro forma)	—	~2.9x

Other notable Q2 items

Completed acquisitions of Azure Summit and Applied Insight; Azure expands SIGINT/EW/ISR reach; Applied Insight deepens cloud/AICapabilities .
$290M NGA award for AI/geospatial expertise announced during Q2 timeframe (Dec) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	FY2025	$8.37 – $8.57	$8.45 – $8.65	Raised
Adjusted Net Income ($M)	FY2025	$523 – $543	$537 – $557	Raised
Adjusted Diluted EPS ($)	FY2025	$23.24 – $24.13	$23.87 – $24.76	Raised
Free Cash Flow ($M)	FY2025	≥$445	≥$450	Raised
Diluted Wtd Avg Shares (M)	FY2025	22.5	22.5	Maintained
EBITDA Margin (qualitative)	FY2025	“upper end of high 10s” (Q1)	“low 11% range” (CFO)	Raised tone

Note: Q1 initial FY25 guide was $8.1–$8.3B revenue, $22.89–$23.78 adjusted EPS, ≥$435M FCF before subsequent increases .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY24 and Q1 FY25)	Current Period (Q2 FY25)	Trend
Software-defined tech mix and margins	Q4: EBITDA margin 11.5%; strong tech growth; record awards/backlog . Q1: EBITDA margin 10.5%; emphasis on Agile at-scale, network modernization, optical comms; tech deliveries can be CR/timing-sensitive .	EBITDA margin 11.1% benefited from timing (pull-forward deliveries, push some materials to Q3); full-year margin view intact (low 11%) .	Improving margin mix; timing creates Q3 dip, Q4 strongest .
Mission software/Agile at scale (BEAGLE, NCAPS, FADE)	Q1: 3 largest Agile programs in U.S. gov; BEAGLE/NCAPS ramp .	Reinforced leadership in software + DevSecOps; “software is our superpower” and outcome-based delivery .	Sustained leadership; expanding scope.
Network modernization (EITaaS, CSFC)	Q1: EITaaS surpassing milestones; ramp to >600k users CY24 .	~700k users supported now; on path to ~900k this year; efficiency benefits to warfighting roles .	Scaling rapidly.
Spectral (Navy SIGINT/EW) and Azure synergies	Q1: MVP complete; path to production reference in CY25; Azure priming C-Increment F .	Program “progressing very well”; Spectral-enabling kits to accelerate deployment; Azure won ~$319M mod; multi-platform potential .	Acceleration and platform expansion.
DOGE (efficiency initiative) policy backdrop	Q1: Preparedness for CRs and policy shifts .	CACI “purpose-built” for DOGE objectives; outcome-based/fixed-price favorable .	Supportive macro narrative.
Awards/Backlog/Visibility	Q4: TTM B2B ~1.9x; backlog ~$32B . Q1: TTM B2B 1.8x; backlog $32.4B; strong pipeline .	TTM B2B ~1.7x; backlog ~$32B; ~95% FY25 revenue from existing programs .	High visibility; slight B2B normalization.
Capital deployment & leverage	Q1: Pro forma leverage 3.2x; delever quickly .	Net debt/EBITDA ~2.9x; target 2.5–3x; flexibility for M&A/buybacks as leverage dips .	Delevering underway.
Counter-UAS & AI/ML	Q1: Emphasis on RF tech and C-UAS pipeline .	Domestic C-UAS opportunity highlighted; ~5,000 solution sets/sensors globally; NGA AI/geospatial award (Dec) .	Demand rising with threat environment.

Management Commentary

“Our second quarter reflected another exceptional period for CACI… With the momentum we see in our business, we are again able to raise our fiscal year 2025 guidance” — John Mengucci, CEO .
“EBITDA margin… above our mid-10s expectation, primarily due to some software-defined technology deliveries pulled forward into the second quarter as well as some lower margin material purchases pushed into the third quarter” — Jeff MacLauchlan, CFO .
“Azure Summit… received a significant award just prior to closing, a $300 million award… While this award was not included in our reported awards number, it is reflected in our backlog” — CEO .
“Our backlog of $32 billion increased 18% from a year ago and represents just under 4 years of annual revenue” — CFO .
“Outcome-based… firm fixed price is a positive for us… majority of our software-defined technology is delivered by our commercial businesses… behind our margin increases” — CEO .

Q&A Highlights

Policy/DOGE implications: Management sees DOGE as supportive for modernization, outcome-based contracting, and potential outsourcing; minimal exposure to at-risk civilian agencies (~6% of revenue) with portions (e.g., NASA, DOJ) seen as lower risk .
Margins cadence: Expect slight sequential Q3 margin contraction from 11.1% on timing, with Q4 strongest; full-year margin still “low 11%” range .
M&A/valuation and leverage: Multiples moderating; focus on delevering to mid-2s to 3.0x then remaining flexible/opportunistic (M&A, buybacks, debt paydown) .
Spectral/Azure synergy: MVP complete; Spectral-enabling kits to accelerate deployment; $319M Azure mod validates thesis; multi-platform applicability (surface, ground, air) .
Counter-UAS opportunity: Leading provider; ~5,000 solution sets/sensors deployed globally; calls for cohesive domestic strategy; view growth runway as substantial .

Estimates Context

Consensus EPS and revenue (S&P Global) for Q2 FY25 were not retrievable at analysis time due to data access limits; we therefore mark the “Consensus” column as N/A and do not present beat/miss deltas. We recommend refreshing S&P Global consensus to quantify beats/misses once available.

Key Takeaways for Investors

Mix-led profitability: YoY revenue +14.5% with EBITDA margin +180 bps to 11.1% reflects higher software-defined tech mix; timing suggests modest Q3 dip then strongest Q4 margin .
Guidance momentum: Third upward reset since initial FY25 guide underscores confidence; watch for continued conversion of pipeline to awards and Q4 execution .
Visibility/defensibility: Backlog ~$32B and ~95% FY25 revenue from existing programs de-risk delivery; trailing B2B of ~1.7x supports multi-quarter growth trajectory .
Strategic M&A bearing fruit: Azure and Applied Insight integrations “on track”; Azure’s ~$300M win and Spectral progress highlight synergy and acceleration potential .
Cash and leverage: Q2 FCF $66M; FY25 FCF raised to ≥$450M; leverage ~2.9x pro forma with intention to delever, preserving capital allocation flexibility .
Execution watch items: Quarterly award lumpiness (Q2 awards −47% YoY), DSO uptick to 53 days, and working capital needs tied to growing tech portfolio .
Thematic exposure: DOGE/outcome-based contracting, AI/ML-enabled mission solutions (e.g., NGA award), network modernization (EITaaS), and RF/SIGINT/EW (Spectral) position CACI for sustained medium-term growth .

Citations: Press release/8-K and schedules ; Q2 earnings call transcript ; Q1 FY25 8-K and call ; Q4 FY24 8-K ; other press releases (NGA award, Azure Summit) .

CACI INTERNATIONAL INC /DE/ (CACI)·Q2 2025 Earnings Summary