CACI International Inc Q4 2025 Earnings Call Transcript

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

Question: Colin Canfield - Cantor Fitzgerald LP - Analyst : On the guidance outlook, it sounds like you're assuming DR in terms of the kind of midpoint of the guidance. So if we assume that the Senate moves quick, like they are, and we get a budget in place faster. Is it fair to assume that you could hit the top end of that organic growth guidance? And then as we think about next year, what are the sort of milestones and timing of those milestones that you need to see to sign on for increased Investor Day growth targets?

Question: Colin Canfield - Cantor Fitzgerald LP - Analyst : Got it. And then if you think about the implied margin progression investor day targets, I think folks are probably assuming the 10 to 20 bps a year of expansion onward to that mid 11%. But obviously, the delta this year is probably more like 30-ish bps. So not to track up all history, but as we think about kind of the pathway of this company to mid-teens margins, how do we think about kind of the long-term potential there? And where do you think about the levers between expertise and technology to get to those types of longer-term margins.

Question: Colin Canfield - Cantor Fitzgerald LP - Analyst : I think it's fair. You're probably going to wait till later in the year to follow up on kind of the algorithm on longer-term mid-teens potential. But I appreciate the color as always.

Question: Gavin Parsons - UBS AG - Analyst : John, I think you mentioned maybe fewer contracting officers. I was hoping you can just talk a bit about the award environment and if things are generally still moving more slowly than usual. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 12:00PM, CACI.N - Q4 2025 CACI International Inc Earnings Call

Question: Gavin Parsons - UBS AG - Analyst : I appreciate the color. And obviously, you pointed out that it's lumpy, but given you had 2 quarters now of a record pipeline. Any thoughts on what

Question: Peter Arment - Robert W. Baird & Co Inc - Analyst : Yeah, thanks. Good morning, John, you've always talked to us about investing in ahead of needs. Can you maybe give us a little update on what's going on in space, optical terminals. I think there's just been so much talk around Golden Dome and other areas with FDA, and you guys have been investing there a lot. Maybe if you could just give us an update there. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 12:00PM, CACI.N - Q4 2025 CACI International Inc Earnings Call

Question: Peter Arment - Robert W. Baird & Co Inc - Analyst : I appreciate that color. And then just as a quick follow-on. We've seen some changes with some of the government-wide IT acquisition contracts transitioning to individual agencies from to the GSA. Just any impact the way to you guys? I know that you're certainly more in the higher end of things in IT and maybe that doesn't impact you. But just any color there would be helpful.

Question: Seth Seifman - JPMorgan Chase & Co - Analyst : Okay, thanks very much and, good morning. First, wanted to ask just about the cadence of revenue and growth through the year. It looks like the organic growth will start out kind of low and then move to above the midpoint in the second half of the year? Or are there particular items that you're looking at that will accelerate the organic growth in the second half? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 12:00PM, CACI.N - Q4 2025 CACI International Inc Earnings Call

Question: Seth Seifman - JPMorgan Chase & Co - Analyst : Okay. Okay. Excellent. And then maybe, John, you talked a little bit earlier about work with the Army and the MGC 2 initiative that's underway. Do you see that as providing any specific opportunities for the companies or any risks?

Question: David Strauss - Barclays Services Corp - Analyst : Thanks John, the 20% or so of your business that Fed , can you just remind us your exposure there and what you're seeing in terms of the budget outlook.

Question: David Strauss - Barclays Services Corp - Analyst : Okay. That's great color. And in terms of the cash flow outlook, when does the tax benefit that you're calling out, the $40 million, when do you expect that to hit in the year? And then Section 174 benefit, does that stay with you beyond fiscal '26.

Question: Tobey Sommer - Truist Securities, Inc. - Analyst : I wanted to get your perspective on our pipeline and backlog from through a prism in which maybe you could characterize how much of it is new work to the market as opposed to new work to CACI only? And also the extent to which your initiative to kind of move towards outcome-based pricing where you're sort of spearheading something is represented within both of those buckets? Thank you.

Question: Louie DiPalma - William Blair Capital Partners - Analyst : John, you discussed how the Army plans to deploy a mounted variant of TLS Manpack as opposed to the current dismounted version that's being deal to the brigades. Is it the mounted development and rollout included in the recent $400 million contract modification that you announced? And should we be on the lookout for another upsizing beyond the current $500 million contract? And related to this, how many vehicles is Manpack applicable for?

Question: Mariana Perez Mora - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Good morning. So my question is going to be about -- and I know it's probably too early, but your fiscal '27 outlook that you gave like nine months ago. If I look at EBITDA margin, you are at the percent a year earlier. You do have some tax benefits, both from like Section 174, but also from this like new ongoing benefit that you're going to have from like the taxes and the revenue growth is quite in line or even like exceeding your expectations. If I do that math, free cash flow should be like the cumulative free cash flow for the 3 years should be more like $1.8 million versus the $1.6 billion brake level that you gave us not so long ago. How are you thinking about that?