CACI International Inc at Citi Global Industrial Tech and Mobility Conference Transcript

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

Question: Jason Gursky - Citi - Analyst : I think the best place to start and where I've been starting with all these conversations the transition that we have going on in D.C. You've got a new administration in town. This one seems at least from our perspective, maybe it to be a little bit different than what we've seen in the past. But I just want to get your sense of is this truly different? Are you getting the sense that it's truly different and how the company is reacting to that?

Question: Jason Gursky - Citi - Analyst : You brought up the word efficiency a few times in your opening remarks there. So I want to double-click on that just for a second and try to get -- bring it down to the industry level. There's efficiency, I suspect, that will be on the customer side of things, right? And what they can do to manage themselves more efficiently and layers of bureaucracy inside the building. But from your perspective, what does that mean for the industrial base? Obviously, you run your company, hopefully as lean as you possibly can. But in your relationship with the customer, what does efficiency mean when it goes from the building down to you? What are they going to be looking for from you?

Question: Jason Gursky - Citi - Analyst : Yes. So that's what -- those are the reforms that they might be able to make. If they were -- if we were to have your customers sitting here, what might they say about the industrial base? And how could they -- the industrial base be more efficient in --

Question: Jason Gursky - Citi - Analyst : Okay. Great. I appreciate that. If I do a tour around the world and talk about your business in various geographies and the missions that you're supporting in different geographies. Maybe starting with Europe that was in the news quite a bit over this past long weekend. I'm kind of characterizing it as perhaps the United States is beginning to deemphasize Europe and turning attention more wholesomely to the homeland as well as the Indo-Pacific command. So why don't we first talk about what's going on in Europe? What are you doing to support your domestic customer in Europe today? Is there any risk to that business? And then on the flip side, if we deemphasize that Europeans ramping up spending, is there an opportunity for you to do more work to support our allied patients in Europe?

Question: Jason Gursky - Citi - Analyst : Do you need to, in a way, kind of become a domestic provider in Europe or at least from the customers' eyes, become more of a domestic provider? Because I know the Europeans are importing quite a bit today. I think they'd like to stand up an industrial base.

Question: Jason Gursky - Citi - Analyst : In a place like Europe, I know you're suggesting it's pretty de minimis today. But do you have like a business development team in the region? Is it more you're following your customer and the lead of the FMS?

Question: Jason Gursky - Citi - Analyst : Okay. Let's bring it back to this side of the Atlantic and talk a little bit about homeland. So that's another thing that kind of came out here over the last week, less than a week, I guess, is that we're really going to emphasize the homeland. And that, of course, starts with the border that gets brought up quite a bit, I think. And then you mentioned it earlier, Iron Dome. So as you think about -- we've got maritime borders, we've got land borders. We've got, I guess, sky we're going to be protecting. Just talk a little bit about what you all are doing today and whether you begin to see budgets flowing in those directions, whether that's -- you will benefit from monies that flow in that direction.

Question: Jason Gursky - Citi - Analyst : Right. For all those that live in New Jersey, I think you should definitely lose some sleep tonight based on what I just heard. Let's talk a little bit about countermeasures on UAVs. You brought it up a number of times here. So you seem to be open to talking. I think there's maybe some fair amount of confusion in the investment world because we're all relatively lay people when it comes to this kind of technology. And we hear sound bites all over the place, right? The future of warfare is drone, hard stuff, like manned aircraft are the thing that -- they're going the way of the. So I love -- I would love to get your thoughts on the countermeasures that are available to us today and whether from your perspective, the future of war is necessarily drone. We do have countermeasures are we going to be fighting all of our battles with drones or not if we have these effective countermeasures?

Question: Jason Gursky - Citi - Analyst : Yes. So that's a great segue into the next region of the world, which is the INDOPACOM, which is where we feel the pacing threat is. So it sounds like in Europe, there's some growth opportunity, particularly on the Eastern flank here quite a bit to help protect the homeland, Iron Dome borders, UAVs. Let's go to Asia Pacific now and talk a little bit about what you're doing to support your customer there.

Question: Jason Gursky - Citi - Analyst : Right, right. Okay. Great. I will open up the floor -- open up the floor in just a minute. I want to get one more question in, and then we'll go to the floor, and I'll come back one last question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 18, 2025 / 9:20PM, CACI.N - CACI International Inc at Citi Global Industrial Tech and Mobility Conference I think we have enough time to do all that. We have 9 minutes. The ecosystem that we have in the industry, we've got a venture capitalist that decided that defense is cool, and there have been a lot of companies that have received some decent funding. We've got some companies are having some commercial success, right, winning some decent sized contracts. Just kind of curious how you view the ecosystem and the evolution of it and whether some of these VC-backed companies represent potential competition, partners, potential acquisition targets. I'm just kind of curious how you're viewing this evolving system and your capital deployment decisions that go along with that.

Question: Jason Gursky - Citi - Analyst : Perfect answer. Is it okay that I go to the floor?

Question: Jason Gursky - Citi - Analyst : One over there. Unidentified Participant Really interesting conversation so far. So two quick questions. One, I'd like to go back to Europe for just a moment. And to your comment about the signal versus noise. It would seem to me that the signal is over the coming years, European defense spending is probably going up.

Question: Jason Gursky - Citi - Analyst : Yes. One last question. We have one over here. Unidentified Participant Okay. Great. So switching from the DOGE to just federal government spending generally, which seems to be a different issue. If we went into the -- to an environment like we saw in the last few years, Obama's term, 2010 to 2012, would you still be as confident that your business would not be impacted?

Question: Jason Gursky - Citi - Analyst : Okay. Last one really quick. You mentioned the eight years ago and the things that you did. Let's talk about the next 10, and this is kind of like your opportunity to give the investment thesis, drop off the stage kind of thing here. But what are the next 10 -- what are you doing now to position the company for the next 10 years? What gets you excited here? Or guys that are looking to invest for a five-year time horizon?

Question: Jason Gursky - Citi - Analyst : Awesome. Thank you all, particularly those sticking around in the audience for joining us today. Really appreciate it.