CACI International Inc Q1 2025 Earnings Call Transcript

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

Question: Scott Mikus - Melius Research - Analyst : Good morning and great numbers.

Question: Scott Mikus - Melius Research - Analyst : John, Jeff. I wanted to ask, we saw [ minoric]had some production issues with their optical communications terminals. They're supposed to be supplying a number of contractors for the space development agencies tranche one satellites. So I was just wondering, have any of their customers reached out to you? And could this be an opportunity to gain share either on the tranche one satellite or is this more an opportunity for tranche two and beyond?

Question: Scott Mikus - Melius Research - Analyst : Okay. And then I wanted to ask about Azure Summit. It seems like it could open up a lot of new doors for CACI. So are any of their products explorable? And could this open up a pathway for foreign military sales for CACI?

Question: Scott Mikus - Melius Research - Analyst : Perfect. Thanks for taking the questions.

Question: Jan Engelbrech - Baird - Analyst : Good morning, John, Jeff and George. Congrats on another set of strong results. I just want to revisit some of the comments you made on the business update call with Azure Summit and just your position that you'll have on the spectral contract after that transaction closes and any potential sort of future content that you can expand there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 12:00PM, CACI.N - Q1 2025 CACI International Inc Earnings Call I was just looking at the justification documents for the Navy and it looks like essentially the spectral line item doubles from government fiscal '25 to '29. So it looks attractive but just wanted to get your thoughts there.

Question: Jan Engelbrech - Baird - Analyst : Perfect. That's really helpful. And then just a quick follow-up. Is there any meaningful just changes over the next couple of quarters or maybe the next year or two in terms of the contract mix? I know you previously called out is there Summit pricing metric is probably more a fixed price versus the rest of CACI, but any large programs in backlog or new acquisitions that should close that we should think about in terms of fixed prices, the cost plus mix?

Question: Jan Engelbrech - Baird - Analyst : Thanks. I'll jump back in the. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 12:00PM, CACI.N - Q1 2025 CACI International Inc Earnings Call

Question: Mariana Perez Mora - Bank of America - Analyst : Good morning, everyone. So my question is around the election. And like I think everyone is kind of like used to consume resolution that goes into the end of the calendar year. But, if we were to think about more noise around the election, like how are you prepared to a longer continued resolution probably going like into next year? And how can that affect, I don't know, the awarding time or how fast some of the awards that you have recently awarded or even the pipeline of opportunities that is like really exposed to new businesses and consumer resolution caps kind of like the start of those new businesses? How should we think about the impact of a longer container resolutions?

Question: Mariana Perez Mora - Bank of America - Analyst : Thank you. And then a little bit on M&A. If you could discuss like how is the competitive environment, if you have any dose or attractive deals in the pipeline? And especially like do you think there are any areas that you'd like to be exposed like particular customers, some products that you can actually use to penetrate with your software solutions? Or like how should we think about that?

Question: Mariana Perez Mora - Bank of America - Analyst : Thank you.

Question: Louie DiPalma - William Blair - Analyst : Good morning, John, Jeff and George, good morning

Question: Louie DiPalma - William Blair - Analyst : Was there any revenue from like zero margin materials that contributed to the gross margin being flat year-over-year? I think last year, there was $100 million in materials revenue and the gross margin was 31%, and it was also 31% this quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 12:00PM, CACI.N - Q1 2025 CACI International Inc Earnings Call

Question: Louie DiPalma - William Blair - Analyst : Okay. Great. And on the counter UAS side of the business, and this is more of a strategy question, but there has been a ton of innovation related to the different geopolitical conflicts on the mitigation side of counter UAS with high-powered microwaves, lasers and interceptors, and you have

Question: Louie DiPalma - William Blair - Analyst : Thanks. And is there a a lot more opportunities in the pipeline for counter UAS, I think you suggested that there are more follow-on orders expected for the Manpack program. But for the Navy and you already have the spectral, but are there other opportunities within the Navy for other large platforms for you to be involved? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 24, 2024 / 12:00PM, CACI.N - Q1 2025 CACI International Inc Earnings Call

Question: Louie DiPalma - William Blair - Analyst : Great. Thanks John. Thanks Jeff. And.

Question: Connor Walters - Jeffries - Analyst : Hi guys and good morning. Thanks so much for giving me questions. I wanted to dig into your margins a little bit more the strong performance in the first quarter. Your commentary on the second quarter, it certainly de-risked the ramp through the remainder of the year, but it kind of suggests that the second half run rate could be down 10, 20 basis points year-over-year. Just curious if that's really conservatism or any other puts and takes you want to call out there?

Question: Connor Walters - Jeffries - Analyst : No, that's great. I appreciate that color. And maybe just to dig into cash. I think, last quarter, we talked about how there was kind of an implied headwind of working capital around $100 million for the year. Just curious if that's still the latest thought process? And if you could provide any other color around how we bridge to this year versus your fiscal '24 performance?

Question: Connor Walters - Jeffries - Analyst : Okay, great. Thanks so much for taking my questions.