CACI International Inc (NYSE:CACI) is a leading provider of expertise and differentiated technology solutions that address the greatest challenges in national security and government modernization. With a strong track record of performance, the company is well-positioned to capitalize on favorable industry trends and deliver long-term shareholder value.
Financials
In the fiscal year ended June 30, 2023, CACI reported annual revenue of $6,702,546,000 and net income of $384,735,000. The company generated robust operating cash flow of $388,056,000 and free cash flow of $324,339,000 during the same period. These financial results demonstrate CACI's ability to consistently deliver strong financial performance and generate substantial cash flows to fund growth initiatives and return capital to shareholders.
For the third quarter of fiscal year 2024, CACI reported revenue of $1,937,456,000, representing an 11.1% increase compared to the prior year period. The company's EBITDA margin expanded to 11.3% in the quarter, reflecting the successful execution of its strategy to enhance profitability. CACI's net income for the quarter was $115,350,000, and it generated $102 million in free cash flow.
Performance Drivers
The company's performance in the third quarter was driven by strong demand across its Expertise and Technology offerings. CACI's Domestic operations, which account for the majority of its revenue, grew 10.8% year-over-year, while its International operations saw a 19.5% increase. The growth was broad-based, with the Department of Defense, Federal Civilian Agencies, and Commercial and Other segments all contributing to the top-line expansion.
Guidance Update
CACI's robust third quarter results have prompted the company to raise its full-year fiscal 2024 guidance. The company now expects revenue to be in the range of $7.5 billion to $7.6 billion, representing growth of 11.9% to 13.4% for the year. CACI also increased its adjusted earnings per share guidance to between $20.13 and $20.58 per share.
Business Overview
The company's strong performance is underpinned by its strategic focus on key national security and IT modernization priorities, as well as its ability to leverage software-based technologies to rapidly address critical customer needs. CACI's investments in differentiated capabilities, such as its expertise in the electromagnetic spectrum and network modernization solutions, have positioned the company as a trusted partner for its government and enterprise customers.
CACI's backlog, a key indicator of future revenue visibility, reached a record $28.6 billion as of March 31, 2023, representing an increase of 13.0% compared to the prior year period. The company's trailing 12-month book-to-bill ratio of 1.5 times further demonstrates its ability to win new business and secure long-term contracts.
The company's capital deployment strategy, which balances investments in organic growth, strategic acquisitions, and shareholder returns, has also contributed to its success. CACI's strong balance sheet and access to capital provide the flexibility to pursue value-enhancing opportunities while maintaining financial discipline.
Outlook
Looking ahead, CACI is well-positioned to capitalize on the favorable industry trends, including increased government spending on national security and IT modernization initiatives. The company's focus on software-based solutions, expertise in critical domains, and strong customer relationships position it as a preferred partner for its government and commercial customers.
Conclusion
Overall, CACI's robust financial performance, strategic positioning, and disciplined execution make it an attractive investment opportunity in the government services and technology sector. The company's commitment to long-term value creation through its focus on free cash flow per share and its ability to adapt to evolving market dynamics suggest a promising outlook for CACI's future growth and shareholder returns.