CACI International Inc at Cantor Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Of course. So I assume all the investors have read the forward-looking statements, we'll get right into the questions. So just first and foremost as we think about the latest government efficiency impacts in the business, how are those impacts tracking in the quarter and how has that impact varied by CACI's and market?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Brilliant. And if we think about the moving pieces within this year's, guidance outlook, if you can maybe talk us through kind of what are the swing factors, the sensitivities, the big moving pieces that you're assuming. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:40PM, CACI.N - CACI International Inc at Cantor Global Technology Conference

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. You mentioned before just no disruption in terms of your longer term targets. If you could maybe just for the investors in the room as well as on the webcast refresh us on what the long term targets are. Thanks.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Right. Turning over to company exposure, if we want to maybe talk a little bit about kind of the buzzier topics, maybe update us on the size of your space business today, how large the relative revenues across geospatial analytics, satellite manufacturing, and satellite communications, and then maybe talk about some other stuff too.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Sure. Maybe digging into that a little bit. I think the dynamics that have been occurring within the space supply chain have been challenging, and I think that a lot of people have kind of worked to gain confidence that things like LYNX can scale. So maybe if you just want to talk about kind of digging a little bit deeper into that, kind of how you think about scaling that business and the level of kind of manufacturing supply chain pull ahead and the like.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. And then maybe if you can provide a similar context around the level of kind of direct energy exposure, CUAS for people in the audience that's counter on crude air systems. That would be just kind of helpful in thinking about where you think the real growth shoots are in that business.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. Okay. Turning over to maybe the margin side of the house as you think about companies' cost, cost loss exposure, can you maybe just size, what your latest cost plus exposure is and how the team thinks about its ability to do more fixed price work.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. And just tying that theme together, if we maybe think about how investors think about. So I think one of the things that folks have been kind of concerned is cost-plus conversion to fixed price and the ability of management teams to kind of manage that risk. If you can maybe just talk about kind of how you think about the comparison of CACI business to like a commercial IT business and why that comparison doesn't necessarily hold?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. And maybe kind of digging into that a little bit further. If you can just kind of -- you know what we have, Jason, if you can maybe talk about kind of the evolution of open architecture systems, where we're at now, where we used to be and where we're going?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Sure. And maybe in the vein of that question, we'll do one more on the subject and move on. But focusing on kind of the level of competition within the space. I think the previous iteration of tech coming from Washington was something the mid-2010s and the kind of outcome there being largely beneficiary for the [GovIT] names, right? We were able to kind of benefit from better productivity, better efficiency and assigning the right head count to it. So within that vein, if you could kind of maybe talk about how much of this time is different versus this time is just good for CACI?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. Maybe switching over to government budgets. If you can just provide the latest on what we're hearing with respect to DC and government budgets and then breaking that out by '25 and '26.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Sure. And again, maybe something that investors probably don't appreciate as much in CACI's resilience. But if you just kind of speak to your past experience navigating shutdowns? And what kind of lessons you learned from the past? And if this time is any different, it seems like we're not going to get one this time around, but it's always a tool in the toolbox.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Correct. Right. Maybe going back to that TAM number you provided and talking to the underlying budgets, if we look at FY '25 request as maybe the proxy, but commanded control budget is up roughly 40%. Intel growing well, IT growing well. So maybe talk about kind of where you expect to be most sensitized to and where you expect to be the fastest growth?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : And just maybe for the clarification of folks on the webcast, the supplemental you're considering is in addition to the base budget. And so the way you want to think about that is if we have an $800 billion or $900 billion defense budget that $100 billion goes on top of that, right?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : So maybe triangulating on that. What have you kind of heard in terms of the duration of spend. I think we go back to the Infrastructure Act is kind of the big other supplements, obviously your other supplemental is related to war fighting. But what is the sort of duration that we've heard on that $300 million?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. So a pretty substantial growth rate off of the base, I would say.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Yeah. Got it. Versus market expectations of cuts. So we'll see how that shakes out. As you consider kind of capital deployment, how do you think about kind of visibility around government budgets and efficiency efforts and how that interacts with shareholder returns?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Appreciating there's maybe less of a full pipe in terms of near-term capital deployment. But maybe if we turn it over to Jason and get him involved. What are some of the capabilities that you want the most? And how often is Jeff saying no, because of price?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. Got it. And then turning back over to Jeff. As we think about return hurdles, what are some of the metrics that you contemplate with M&A? And how do you think of kind of the cash dynamics of technology versus expertise, acquisitions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 5:40PM, CACI.N - CACI International Inc at Cantor Global Technology Conference

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Got it. And then digging into that statement a little bit, as we think about kind of your risk adjustment process, maybe high-level conceptualize kind of what are the 3 points to 5 points that you look for or run the ground as you risk adjust an acquisition? I know we focus more on kind of the conceptual financial but actual operational risk.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : And maybe just staying on it while we have it up here. Any sort of dynamics around kind of deal structuring that you want to call out, earnouts and the like that you like to use? How do you think about kind of keeping folks on and keeping them motivated or keeping them incentivized?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Sure. Going back to your repurchase matrix. If you can just kind of talk about how we think about that rubric in greater detail and then kind of the level of how you think about debt versus equity financing within the business. I think multiples come up. So obviously, equity less relevant, but interest rates are high and that can be expensive and there's always kind of ways to structure it.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : That's my style.

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Sure. Circling back on that a little bit. As we think about kind of the -- like the dynamics within your -- I guess, we'll say like your visibility versus scale and like your ability to need scale. I know you -- CACI has never been that's needed scale before. And if you go back to kind of the genesis of the scale conversation, you can make that argument that it's had positive and negative outcomes. So maybe talk about kind of how much are you hearing the need for scale nowadays and how does that kind of reflect on your M&A strategy?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Sure. That's good. That's brilliant. I think that's good. Well, in the last 60 seconds, is there anything -- 70 seconds. Is there anything that you feel that we've missed or that we should follow up on?

Question: Todd Canfield - Cantor Fitzgerald - Analyst : Great. Well, thank you for joining. Thank you. Jeff and Jason.