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CACI INTERNATIONAL INC /DE/ (CACI)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue was $2.304B (+13.0% YoY), GAAP diluted EPS $7.14 (+19.4% YoY), and adjusted diluted EPS $8.40 (+27.1% YoY), supported by 5.3% organic growth and lower tax provision; EBITDA margin held at 11.5% .
  • Results were above Wall Street consensus: EPS beat by ~$1.82 vs Primary EPS consensus mean $6.58*, and revenue slightly above $2.295B*; CFO noted that even excluding a $28M tax benefit tied to an IRS R&D audit resolution, they exceeded consensus .
  • FY2026 guidance introduced: revenue $9.2–$9.4B, adjusted diluted EPS $27.13–$28.03, and FCF ≥$710M (includes ~$50M Section 174 tax benefit and ~$40M refund), implying ~8% revenue growth at midpoint and >60% FCF/share growth .
  • Backlog steady at $31.4B (funded backlog +11% YoY to $4.2B); Q4 contract awards $2.64B (>40% new business), underpinning visibility and long-term cash generation (TTM book-to-bill ~1.1x) .

Values with asterisk (*) retrieved from S&P Global.

What Went Well and What Went Wrong

  • What Went Well

    • Strong Q4 topline and profitability: revenue +13.0% YoY to $2.304B; adjusted diluted EPS +27.1% YoY to $8.40; EBITDA +12.6% YoY to $264.5M, showing resilience and operating execution .
    • Pipeline and awards: $2.64B Q4 awards (>40% new business), FY2025 awards $9.64B, with weighted average duration >5 years; backlog >$31B provides ~3.5 years of revenue visibility .
    • Strategic positioning and software-defined initiatives: CEO highlighted alignment with evolving defense priorities (speed, lethality, modernization) and leadership in TLS Manpack, C-UAS, enterprise software consolidation, and NASA MCAPS (“we are extremely well aligned…we don’t need to transform”) .

  • What Went Wrong

    • DSO increased to 56 days (vs 46), with Azure terms/milestones acting as a ~4-day headwind; management expects terms to normalize over time .
    • Contract awards down YoY (Q4 and FY): Q4 $2.64B vs $5.42B (-51.3%), FY $9.64B vs $14.19B (-32.1%) due to lumpy award timing; management emphasizes focus on value bids rather than volume .
    • Interest expense and amortization elevated (interest +88% YoY in Q4; amortization +56% YoY), partly reflecting acquisitions and debt stack changes (including a $1.0B 6.5% senior notes issuance) .

Financial Results

MetricQ2 FY2025 (12/31/2024)Q3 FY2025 (3/31/2025)Q4 FY2025 (6/30/2025)
Revenue ($USD Billions)$2.100 $2.167 $2.304
GAAP Diluted EPS ($)$4.88 $5.00 $7.14
Adjusted Diluted EPS ($)$5.95 $6.23 $8.40
EBITDA ($USD Millions)$232.9 $253.5 $264.5
EBITDA Margin (%)11.1% 11.7% 11.5%
Income from Operations ($USD Millions)$181.3 $196.4 $206.7

Q4 YoY comparison (FY2025 vs FY2024):

MetricQ4 FY2024Q4 FY2025YoY Change
Revenue ($USD Billions)$2.038 $2.304 +13.0%
GAAP Diluted EPS ($)$5.98 $7.14 +19.4%
Adjusted Diluted EPS ($)$6.61 $8.40 +27.1%
EBITDA ($USD Millions)$234.9 $264.5 +12.6%
EBITDA Margin (%)11.5% 11.5% Flat

Consensus vs Actual (Q4 FY2025 and FY2025):

MetricConsensus*ActualSurprise
Q4 FY2025 Primary EPS ($)6.58*8.40 +1.82 (Beat)
Q4 FY2025 Revenue ($USD Billions)2.295*2.304 +0.009 (Beat)
Q4 FY2025 EBITDA ($USD Millions)261.6*264.5 +2.9 (Beat)
FY2025 Primary EPS ($)24.62*26.48 +1.86 (Beat)
FY2025 Revenue ($USD Billions)8.615*8.628 +0.013 (Beat)
FY2025 EBITDA ($USD Millions)961.5*966.8 +5.3 (Beat)

Values with asterisk (*) retrieved from S&P Global.

Segment and mix (Q4 FY2025):

BreakdownQ4 FY2025Q4 FY2024Change
DoD Revenue ($USD Millions; % of total)$1,742.3; 75.6% $1,532.3; 75.2% +$210.0; +0.4ppt
Federal Civilian ($USD Millions; % of total)$447.5; 19.4% $409.8; 20.1% +$37.7; -0.7ppt
Commercial/Other ($USD Millions; % of total)$114.4; 5.0% $96.2; 4.7% +$18.2; +0.3ppt
Cost-Plus ($USD Millions; % of total)$1,384.0; 60.1% $1,243.6; 61.0% +$140.4; -0.9ppt
Fixed-Price ($USD Millions; % of total)$620.0; 26.9% $548.6; 26.9% +$71.5; flat mix
T&M ($USD Millions; % of total)$300.1; 13.0% $246.2; 12.1% +$54.0; +0.9ppt
Technology ($USD Millions; % of total)$1,341.5; 58.2% $1,125.9; 55.2% +$215.6; +3.0ppt
Expertise ($USD Millions; % of total)$962.6; 41.8% $912.4; 44.8% +$50.2; -3.0ppt

KPIs and cash metrics:

KPIQ4 FY2025Q4 FY2024FY2025
DSO (days)56 46 N/A
Contract Awards ($USD Billions)$2.64 $5.42 $9.64
Backlog ($USD Billions)$31.4 $31.6 N/A
Funded Backlog ($USD Billions)$4.2 $3.8 N/A
Free Cash Flow ($USD Millions)$139.1 $134.6 $442.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY2025$8.45–$8.65 (Jan 22) $8.55–$8.65 (Apr 23) Raised (lower bound up)
Adjusted Diluted EPS ($)FY2025$23.87–$24.76 (Jan 22) $24.24–$24.87 (Apr 23) Raised (midpoint up)
Free Cash Flow ($USD Millions)FY2025≥$450 (Jan 22) ≥$465 (Apr 23) Raised
Revenue ($USD Billions)FY2026N/A$9.2–$9.4 New
Adjusted Net Income ($USD Millions)FY2026N/A$605–$625 New
Adjusted Diluted EPS ($)FY2026N/A$27.13–$28.03 New
Free Cash Flow ($USD Millions)FY2026N/A≥$710 (incl. ~$50M Sec. 174 benefit and ~$40M refund) New

Notes: FY2026 guidance assumes tax-related benefits (~$50M Section 174 and ~$40M cash refund) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 FY2025)Trend
Software-defined tech leadership (TLS Manpack, C-UAS)Q3: $400M mod to raise TLS Manpack to ~$500M; awards across EW/SIGINT; strong technology mix (54–55% YTD) . Q2: Azure Summit and Applied Insight acquisitions broaden RF and cloud; tech mix 53.9% .CEO details TLS Manpack as primary SIGINT/EW for brigade combat teams; mounted variant roadmap; Canada C‑UAS vehicle systems; strong demand in border and Golden Dome .Strengthening (broader adoption; expanded variants).
Enterprise software modernizationQ3: Digital finance modernization award (IC); multiple IT/EW modernizations . Q2: Strategy focused on software and consolidation; Investor Day targets .Army memo drives consolidation of ~50→1 system; positioned to consolidate +40 more systems; NASA MCAPS supports ~900 applications/platforms .Accelerating (policy tailwinds, scale projects).
Macro/budget/CR dynamicsQ3/Q2: Backlog + funded backlog up; visibility improved .One Big Beautiful Bill Act funding (> $150B defense; $25B Golden Dome; ~$170B border); management comfortable operating under CR; timing affects short-cycle tech .Constructive macro; timing variability persists.
Awards, backlog, pipelineQ3: $2.47B awards; backlog $31.4B; funded backlog +31% YoY . Q2: backlog $31.8B .TTM book-to-bill ~1.1x; $31B+ backlog (~3.5 years); $16B bids under evaluation (80% new); $11B to submit next two quarters (75% new) .Healthy and diversified; emphasis on “bid less, win more” .
Space optical terminals / photonicsQ3: Advanced optical systems awards and Edison Award recognition .Progress through supply chain/manufacturing ramps; EST Phase 2 selection; addressable market $200–$300M/year; investments shifting from “invest more” to “deliver more” .Improving production cadence; pipeline expanding.
Tax/regulatory (IRS audit, Section 174)Q3: Guidance included Section 174 implications; FY25 FCF ≥$465 .$28M tax benefit in Q4 from IRS R&D credit resolution; $40M refund expected in 2H FY26; Section 174 ~$50M benefit FY26 and similar next year, then taper .Favorable tailwinds to EPS/FCF in near term.

Management Commentary

  • “CACI’s exceptional performance to close out fiscal year 2025 highlights not only the strength of our business, but also its resilience… With more than $31 billion of backlog and continued healthy pipeline metrics, CACI remains extremely well positioned to deliver strong financial performance again in FY26” — John Mengucci, CEO .
  • “EBITDA margin was 11.5% in the quarter… effective tax rate reflects a $28M tax benefit… even without this tax benefit, we exceeded consensus estimates” — Jeff MacLauchlan, CFO .
  • “We are a leader in the use of software… TLS Manpack integrates SIGINT/EW… ceiling increase to $500M supports the Army’s decision to deploy our technology as the primary SIGINT EW system for all brigade combat teams” — CEO .
  • “We expect revenue between $9.2B and $9.4B… adjusted diluted EPS $27.13–$28.03… free cash flow of at least $710M” — CFO .

Q&A Highlights

  • Pipeline composition and “takeaway” vs new programs: Majority of bids/new work geared to differentiated solutions; strategy to “bid less and win more”; ~11% of FY26 revenue plan from recompetes, with potential for option extensions given contracting bandwidth constraints .
  • iTASK ceiling reduction: Air Force reduced program ceiling from $5.7B to $5.0B; management sees no impact to backlog, revenue, margins, guidance, or three-year targets; views it as banking efficiency gains .
  • Budget/CR sensitivity: If slower funding/long CR, results skew lower-end; faster passage moves towards high-end; focus on controllables, negligible impact from recent shutdown episodes .
  • Margin cadence: Rhythm of slightly lower margins H1, higher in H2; revenue more evenly distributed; cash flow back-end loaded due to structural outflows; path to mid-11% margins intact .
  • Space optical terminals: EST Phase 2 selection; addressing supply chain/manufacturing to ramp volumes; U.S.-designed/manufactured; broad participation across Tranches .
  • Tax benefits timing: $40M refund expected in 2H FY26 (likely Q3 or Q4); Section 174 ~$50M FY26, similar next year, total ~$200M+ over several years .

Estimates Context

PeriodMetricConsensus*Actual/GuideOutcome
Q4 FY2025Primary EPS ($)6.58*8.40 (adjusted diluted EPS) Beat
Q4 FY2025Revenue ($USD Billions)2.295*2.304 Beat
Q4 FY2025EBITDA ($USD Millions)261.6*264.5 Beat
FY2025Primary EPS ($)24.62*26.48 Beat
FY2025Revenue ($USD Billions)8.615*8.628 Beat
FY2026Primary EPS ($)28.23*Guide: $27.13–$28.03 (adjusted) In range vs adjusted guide

Values with asterisk (*) retrieved from S&P Global. CFO stated Q4 results beat consensus even excluding the $28M tax benefit .

Key Takeaways for Investors

  • Quality beat with strong underlying drivers: Revenue and EPS both above consensus, supported by technology-led growth and mix shift toward fixed-price/T&M and technology content; margin profile steady at 11.5% despite higher interest/amortization .
  • FY2026 guide credible and cash-focused: Midpoint revenue growth ~8%, adjusted EPS $27–$28, and ≥$710M FCF (100%+ conversion midpoint-adjusted), aided by tax tailwinds; FCF per share guided >60% growth .
  • Visibility remains high: $31B+ backlog (~3.5 years), funded backlog +11% YoY, and robust pipeline ($16B under evaluation; $11B to submit), heavily skewed to new work .
  • Strategic differentiation: Software-defined capabilities (TLS Manpack, C‑UAS), enterprise consolidation, and NASA MCAPS establish durable competitive advantages aligned with macro priorities (Golden Dome, border, modernization) .
  • Near-term modeling nuances: Expect H1 margin/cash flow cadence to be lighter, H2 stronger; watch DSO normalization (Azure terms) and timing/lumpiness of awards under CR dynamics .
  • Non-GAAP adjustments matter: Intangible amortization and tax effects materially bridge GAAP to adjusted figures; management provided reconciliations and guidance assumptions (25.3% tax rate for non-GAAP adjustments) .
  • Trading implications: The combination of an EPS beat, firm FY2026 FCF guide, and narrative on differentiated software-defined tech are positive sentiment drivers; monitor execution on manufacturing ramps (Photonics) and award timing under CR as potential volatility catalysts .

Appendices and Additional Data

  • Q4 notable awards: INSCOM up to $855M; IC task order up to $616M; USAFRICOM ~$437M; OUSD(C) up to $85M; AFMC up to $62M .
  • C‑UAS Canada Phase 2: ~$124M program for vehicle-mounted systems with 10-year support .
  • Balance sheet: Total assets $8.648B; LT debt $2.849B; equity $3.894B at 6/30/2025 .
  • Cash flows FY2025: CFOA $547.0M; FCF $442.5M .

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