Q2 2025 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$421.64Last close (Jan 23, 2025)
Post-Earnings Price$421.89Open (Jan 24, 2025)
Price Change
$0.25(+0.06%)
- CACI is a leading provider of Counter-UAS systems, with almost 5,000 solution sets and sensors deployed worldwide. The growing domestic and international demand for Counter-UAS technologies presents a significant growth opportunity for the company.
- CACI's open-architecture, software-based Spectral system for the Navy has significant expansion potential across other Navy platforms and government agencies, representing a 5- to 10-year franchise opportunity.
- 85% to 90% of CACI's revenue is derived from outcome-based, technology-driven solutions, positioning the company favorably in an environment focused on efficiency and results, and ensuring continued growth in high-demand sectors.
- Potential delays in contract awards due to administration transition: Analysts expressed concerns about a possible slowdown in the contract award adjudication pace over the next couple of quarters due to the administration transition and staff changes at DoD agencies. While management does not foresee major delays, they acknowledged that there are distractions among federal employees, which could impact contract awards and revenue growth.
- Margin volatility and limited near-term improvement: The company acknowledged that margins have been somewhat volatile due to customer buying patterns and timing-related issues. Management emphasized that while they see upside potential to margins over the long term, they are not willing to compromise investments for short-term gains. This suggests that margin expansion may be limited in the near term, potentially impacting profitability.
- Focus on deleveraging may limit capital deployment opportunities: Management indicated that they remain focused on deleveraging in the near term and are less likely to engage in share buybacks or pursue further M&A until they reach their target leverage range. This focus on reducing debt could limit the company's ability to capitalize on growth opportunities or return capital to shareholders in the near future.
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Revenue | Q2 2025 | Expected to be between $8.1 billion and $8.3 billion for FY 2025 | $2,099.809 million | Beat |