In This Article:
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Fourth Quarter Revenue: $1.84 billion, a 6% increase year-over-year.
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Full Year Revenue: $7.48 billion, representing 2.1% organic growth.
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Fourth Quarter Adjusted EBITDA: $177 million, with a margin of 9.6%.
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Full Year Adjusted EBITDA: $710 million, with a margin of 9.5%.
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Fourth Quarter Adjusted Diluted EPS: $2.57.
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Full Year Adjusted Diluted EPS: $9.13.
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Fourth Quarter Free Cash Flow: $236 million.
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Full Year Free Cash Flow: $507 million, translating to over $10 per share.
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Net Bookings: $1.3 billion in Q4 and $6.6 billion for FY25, with a book-to-bill ratio of 0.9.
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FY26 Revenue Guidance: $7.6 billion to $7.75 billion, approximately 3% organic growth at the midpoint.
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FY26 EBITDA Margin Guidance: 9.4% to 9.6%.
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FY26 Adjusted Diluted EPS Guidance: $9.10 to $9.30.
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FY26 Free Cash Flow Guidance: $510 million to $530 million, approximately $11 per share.
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Share Repurchase Plan: $350 million to $400 million in FY26 and FY27.
Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SAIC reported a 6% year-over-year increase in fourth-quarter revenue, driven by new program wins and on-contract growth.
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The company achieved a full-year revenue of $7.48 billion, representing 2.1% organic growth, which was at the high end of their guidance.
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SAIC's adjusted EBITDA margin for the full year was 9.5%, exceeding guidance by 20 basis points due to strong program performance.
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The company delivered free cash flow of $507 million for the year, translating to over $10 per share, with a target of $11 per share in fiscal year '26.
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SAIC's commercial operating sector revenue increased significantly from less than $1 million in fiscal year '22 to approximately $45 million in fiscal year '25, with a goal of $100 million by fiscal year '28.
Negative Points
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SAIC's book-to-bill ratio was 0.9 for fiscal year '25, indicating challenges in securing new contracts relative to revenue.
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The company faces a roughly $200 million headwind related to low-margin Air Force Cloud One compute and store revenue, which they chose not to bid on.
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SAIC is experiencing procurement delays, which could impact the timing of bookings and revenue recognition.
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The company is preparing for potential revenue pressures due to government efficiency initiatives, which could affect their financial performance.
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SAIC's recompete win rates are not yet at the desired high 80% to 90% range, indicating room for improvement in retaining existing contracts.