CACI INTERNATIONAL INC /DE/

CACI International Inc operates in the national security sector, providing Expertise and Technology to customers in the intelligence, defense, and federal civilian sectors, both domestically and internationally. The demand for its offerings is largely driven by the evolving national security and geopolitical environment, the increasingly complex network, systems, and information environments in which governments and businesses operate, and the ongoing need to stay current with emerging technology. The company's customers are primarily agencies and departments of the U.S. government as well as foreign governments and commercial enterprises.

CACI operates in a highly competitive industry that includes many firms, some of which are larger in size and have greater financial resources. Non-traditional players have entered the market and have established positions related to such areas as cloud computing, cyber, satellite operations, and business systems. CACI knows of no single competitor that is dominant in its fields of technology. The company has a relatively small share of the addressable market for its Expertise and Technology and intends to achieve growth and increase market share both organically and through strategic acquisitions. For fiscal 2025, the top ten revenue-producing contracts accounted for 46.4% ¹ of revenues, or $4.0 billion ².

CACI generates revenue by delivering Expertise and Technology to customers, primarily through contracts with the U.S. government. The company's revenue is derived from three basic contract types: cost-plus-fee, fixed-price, and time-and-materials contracts. For fiscal 2025, 60.5% ³ of revenues were from cost-plus-fee contracts, 26.3% ⁴ from fixed-price contracts, and 13.2% ⁵ from time-and-materials contracts. The company's customers are primarily agencies and departments of the U.S. government, with revenues from federal government contracts accounting for 95.7% ⁶ of total revenues in fiscal 2025.

CACI's Domestic Operations provide Expertise and Technology across seven market areas: C3I, Cyber, Digital Solutions, Enterprise IT, Mission and Engineering Support, Space, and Spectrum Superiority. Domestic Operations represented 97.0% ⁷ of total revenues for fiscal 2025. The company's International Operations are conducted primarily through operating subsidiaries in Europe, CACI Limited and CACI BV, and provide a diverse mix of IT services and proprietary data and software products, serving commercial and government customers throughout the U.K., continental Europe, and around the world. International Operations represented 3.0% ⁸ of total revenues for fiscal 2025.

CACI's Technology offerings include agile software development using open modern architectures and DevSecOps; advanced data platforms and applications augmented by Artificial Intelligence (AI), Enterprise Resource Planning (ERP) systems, Electromagnetic Spectrum (EMS) capabilities, photonics and network modernization. The company's Expertise includes talent with skills such as software development, data and business analysis, operations support, naval architecture, engineering, life cycle support, intelligence and special operations support, and network exploitation analysis. For fiscal 2025, Technology revenues were $4,777,983 thousand ⁹ and Expertise revenues were $3,849,841 thousand ¹⁰.

During fiscal 2025, the Company completed three acquisitions that expanded its software-defined offerings, specialized technologies, and customer presence. On October 1, 2024, CACI acquired Applied Insight for purchase consideration of $314.2 million ¹¹, net of cash acquired. On October 30, 2024, CACI acquired Azure Summit Technology, LLC for purchase consideration of $1,310.2 million ¹², net of cash acquired. On April 3, 2025, CACI Limited acquired Identity E2E Limited for purchase consideration of $58.9 million ¹³, net of cash acquired. On June 2, 2025, CACI issued 6.375% ¹⁴ fixed-rate unsecured senior notes with an aggregate principal amount of $1,000.0 million ¹⁵ (the 2033 Notes). During fiscal 2025, CACI repurchased 0.4 million ¹⁶ shares of its outstanding common stock on the open market at an average share price of $344.35 ¹⁷.

For fiscal 2025, total revenues were $8,627,824 thousand ¹⁸, compared to $7,659,832 thousand ¹⁹ in fiscal 2024, an increase of 12.6% ²⁰. Net income was $499,830 thousand ²¹ compared to $419,924 thousand ²² in the prior year, an increase of 19.0% ²³. Diluted earnings per share were $22.32 ²⁴ versus $18.60 ²⁵ in fiscal 2024. Income from operations was $764,185 thousand ²⁶ compared to $649,708 thousand ²⁷ in the prior year, an increase of 17.6% ²⁸.

CACI intends to achieve growth and increase market share both organically and through strategic acquisitions. The company believes that the total addressable market for its offerings is sufficient to support its plans and is expected to continue to grow over the next several years. Management believes that trends such as a stable-to-higher U.S. government budget environment, particularly in national security-related areas, increased focus on cyber, space, and the electromagnetic spectrum, and increased investments in advanced technologies like AI will influence U.S. government spending in its addressable market.

The company continues to align its capabilities with well-funded budget priorities and take steps to maintain a competitive cost structure. Management believes the company is well positioned to continue to win new business in its large addressable market. The company differentiates itself through its investments, including its strategic mergers and acquisition program, allowing it to enhance current capabilities and create new customer access points.The company's operational outlook includes recruiting, hiring, training, and retaining a world class workforce to execute on its growing backlog. As of June 30, 2025, the company employed approximately 25,000 ²⁹ talented full and part-time employees. The company continues to invest in leadership education, career resources for employees, comprehensive onboarding, and formal and informal communications.

Capital expenditures were $65,603 thousand ³⁰ in fiscal 2025. The company repurchased 0.4 million ³¹ shares of its outstanding common stock on the open market at an average share price of $344.35 ³² during fiscal 2025. The total remaining authorization for future common share repurchases under the 2023 Repurchase Program was $187.3 million ³³ as of June 30, 2025. The company has never paid a cash dividend and its present policy is to retain earnings to provide funds for the operation and expansion of its business.

The company faces headwinds from the federal government's appropriation process. On March 15, 2025, President Trump signed a continuing resolution (CR) that extended government funding through September 30, 2025, the remainder of GFY25, which is the first time the DoD has been funded by a full-year CR. Depending on their scope, duration, and other factors, CRs can negatively impact the company's business due to delays in new program starts, delays in contract award decisions, and other factors. The company also faces risks from changes in federal government budgetary priorities, the competitive bidding process, and the need to maintain security clearances.

The company faces constraints from the competitive environment for skilled personnel, as competition for skilled personnel is intense and technology companies often experience high attrition. There is a shortage of people capable of filling these positions and they are likely to remain a limited resource for the foreseeable future. The company also faces risks from global inflationary pressures, which could raise the costs associated with providing services and diminish its ability to compete for new contracts.

The company generates substantially all of its revenues from contracts with the federal government, with revenues from federal government contracts accounting for 95.7% ³⁴ of total revenues in fiscal 2025, and 75.4% ³⁵ from DoD contracts specifically. A significant decline in government expenditures or a shift of expenditures away from programs that the company supports could materially and adversely affect its business. The company's federal government contracts may be terminated by the government at any time, and if lost contracts are not replaced, operating results may differ materially. The company generated 26.3% ³⁶ of total revenues from fixed-price contracts in fiscal 2025, which require accurate cost estimation; any increased or unexpected costs could make these contracts less profitable or unprofitable. As of June 30, 2025, goodwill accounts for $5,021,805 thousand ³⁷ of total assets, and a decrease in expected reporting unit cash flows or changes in market conditions may indicate potential impairment, requiring a write-down that would reduce operating income.

Management's message emphasizes the company's position as a leading provider of distinctive Expertise and differentiated Technology to customers in support of national security. Key strategic priorities include continuing to grow organic revenues across the large, addressable market; delivering strong profitability and robust cash flow; differentiating through investments including the strategic mergers and acquisition program; recruiting, hiring, training, and retaining a world class workforce; and continuing an unwavering commitment to customers while supporting communities. Management believes the company is well positioned to continue to win new business in its large addressable market, citing a stable-to-higher U.S. government budget environment, particularly in national security-related areas, and increased focus on cyber, space, and the electromagnetic spectrum.