CACI International Inc Q3 2025 Earnings Call Transcript

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

Question: Scott Mikus - Melius Research - Analyst : Very nice numbers. Quick question on contract growth. Just wondering how that trended since the change in administration? You're finding any changes in customer behavior? Are they maybe not spending to the ceiling on some of their contracts or some of the task orders from IDIQ is coming out more slowly than you would have anticipated?

Question: Scott Mikus - Melius Research - Analyst : Okay. And then I know that you're not guiding to FY26 now, but I was just curious how much revenue is already in that backlog? And are there any sort of major recompetes that we should be aware of for the next, say, 12 to 18 months?

Question: Joshua Korn - Barclays - Analyst : This is Josh Korn on for David. Nice results. Wanted to ask sort of an industry question about the DoD memo about in-sourcing or updating acquisition for tech. I guess you mentioned you haven't seen any major negative impacts from those. But just positively or negatively, how that could play

Question: Joshua Korn - Barclays - Analyst : Great. Thank you. Very helpful. I'll stick to one.

Question: Colin Canfield - Cantor Fitzgerald - Analyst : Can you maybe talk to the budget cadence contemplated in your Investor Day targets, not necessarily the top-line DoD budgets or getting into FY26 guidance by any stretch, but maybe just how you think about kind of the outweigh mechanics and where expertise and technology are kind of more sensitized to typically, we think of expertise as more O&M and technology is more R&D, but any color there would be super helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 12:00PM, CACI.N - Q3 2025 CACI International Inc Earnings Call

Question: Colin Canfield - Cantor Fitzgerald - Analyst : Got it. And then maybe on the supplemental, is there a way to think about kind of how fast do you think those monies can get started and whether that supplemental is balanced more towards what I call as an O&M style cadence or more of an R&D style cadence on the outlays?

Question: Colin Canfield - Cantor Fitzgerald - Analyst : Thanks, all.

Question: Tobey Sommer - Truist Securities - Analyst : You mentioned the $1 trillion DoD budget and border security. Are there specific areas of incremental funding that represents sort of the biggest and best opportunities for the firm going forward that you could highlight for us?

Question: Tobey Sommer - Truist Securities - Analyst : Thank you. For my follow up, I was hoping you could update us on the development and ramp of production for -- in your optical communications business and maybe remind us of the leverage in that units as you start to ramp production? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 12:00PM, CACI.N - Q3 2025 CACI International Inc Earnings Call

Question: Sheila Kahyaoglu - Jefferies - Analyst : Thank you for the time. I appreciate the DOGE comments. So maybe one big picture question, and it's clear that CACI's portfolio is positioned well with only $1 million impact. Another competitor yesterday made some comments about the perils of just divesting government employees and how that potentially could impact contracts or the pipeline conversion. John, how are you thinking about that? And how are you working with the government to maybe better educate them on the process?

Question: Sheila Kahyaoglu - Jefferies - Analyst : And maybe if I could just ask one on program specifics with spectral. Can you maybe just give us an update on Azure and how the integration process is going? I know you discussed some capability enhancements. But if you could just provide an update there in the next milestone?

Question: Gavin Parsons - UBS - Analyst : John, I just wanted to follow through on what you were just talking about on the slowdown. Is there a common theme? I mean is that the department level, the contracting officer level? Is there a turnover at your customer? Is there any common theme in that slowdown?

Question: Gavin Parsons - UBS - Analyst :

Question: Gavin Parsons - UBS - Analyst : Okay. That's helpful. The $17 billion pipeline, I think that's a record. Is there a mathematical way to extrapolate that to a book-to-bill because you

Question: Jan-Frans Engelbrecht - Robert W. Baird & Co., Inc. - Analyst : Congrats on the another (inaudible) set of results. So I think we've talked about this topic today, but it might be a bit more specific question. Just tied to the ongoing GSA review. And as it relates to the cost savings initiative, and we know that CACI has obviously been excluded from this top 10 list of contractors that's been making the headlines since sort of late February. But are you informally sort of part of that process with the GSA in terms of that review? And can you just share anything that you've learned, I guess, over the past two months. As part of that review, what they're looking at? And then just obviously contrast that with your strong positioning that you're seeing on your contracts?

Question: Jan-Frans Engelbrecht - Robert W. Baird & Co., Inc. - Analyst : Great, John. Just a quick follow up. Just within counter unmanned, it seems like you're well positioned, and that's going to be a focus area under this administration. So could you just talk about CACI's positioning within the counter unmanned market today? And then just some potential near-term opportunities we've seen about the Army TIC 2.0 contract. I think that's about $1 billion of funding through '27. And there's some counter unmanned systems in there. There's some EW systems. I think there's 250 that they're looking for. Is that anything that sort of -- that you're aligned with or could you just talk about the counter unmanned market for CACI?

Question: Seth Seifman - JPMorgan - Analyst : So for first question I wanted to ask, and I apologize I might be betraying my lack of technical expertise when I ask this question. But when you talk about the software memo and ways that the government is buying software. And I think that memo has come up a lot in the trade press. When you think about how you go to market and how it changes your relationship if it does at all with hardware providers, does that create more opportunities for partnerships. Does it mean you have to spend less time thinking about what you're going to do with hardware providers because software will be more at the center? Or is it just kind of not really relevant?

Question: Seth Seifman - JPMorgan - Analyst : Great. That's very helpful. Just as a follow up, just a little more detailed question. In terms of the difference this quarter between gross and net bookings, if you can address kind of what that difference was? It's obviously a little bit of a sensitive environment out there with regard to changes in bookings. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 24, 2025 / 12:00PM, CACI.N - Q3 2025 CACI International Inc Earnings Call

Question: Seth Seifman - JPMorgan - Analyst : Okay. Very good. Thanks very much.

Question: Mariana Perez Mora - Bank of America - Analyst : So my question is about M&A. On this more uncertain environment, how strong is the pipeline of opportunities. Number one, are these like target companies willing to sell or they want to wait until they have a little bit of more clarity of where things are going? And the second one is -- so for an agility become more apparent for some players that were not like focusing on that over the last couple of years. Have you seen an increased appetite for bidders on those targets?