Science Applications International Corporation

Speaker's remarks, there will be a question and answer session. To ask a question during this time, simply press star and the number one on your telephone keypad. If you would like to withdraw your question, just press star one again. I would now like to turn the conference over to Joe DiNardi, Vice President of Investor Relations and Strategic Ventures. Please go ahead.

Good morning, and thank you for joining SAIC's second quarter fiscal year 2024 earnings call. My name is Joe DiNardi, Vice President of Investor Relations and Strategic Ventures, and joining me today to discuss our business and financial results are Nazik Keen, our Chief Executive Officer, and Prabhu Natarajan, our Chief Financial Officer. Today we will discuss our results for the second quarter of fiscal year 2024 that ended August 4th, 2023. Earlier this morning, we issued our earnings release, which can be found at investors.saic.com, where you will also find supplemental financial presentation slides to be utilized in conjunction with today's call and a copy of management's prepared remarks. These documents, in addition to our Form 10-Q to be filed later today, should be utilized in evaluating our results and outlook, along with information provided on today's call. Please note that we may make forward-looking statements on today's call that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from statements made on this call. I refer you to our SEC filings for discussion of these risks, including the risk factors section of our annual report on Form 10-K. In addition, the statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but we specifically disclaim any obligation to do so. In addition, we will discuss non-GAAP financial measures and other metrics, which we believe provide useful information for investors, and both our press release and supplemental financial presentation slides include reconciliations to the most comparable GAAP measures. The non-GAAP measures should be considered in addition to, and not a substitute for, financial measures in accordance with GAAP. It is now my pleasure to introduce our CEO, Nazik Keen.

Thank you, Joe, and good morning to those joining our call. Earlier today, we reported another quarter of strong financial results with revenue growth of over 8% and adjusted EBITDA margins of 9.8%. an increase of 70 basis points year-over-year, both of which speak to our ability to deliver solid organic growth at improving margins going forward. Before we discuss our financial results, I would like to once again recognize members of the SAIC team who continue to have an outsized impact on their communities. September is Hunger Action Month at SAIC, where we look to do our part to help end hunger through our partnership with Feeding America. This campaign is one of our largest at SAIC, having raised over $350,000 in 2022 and $2.2 million over the past decade. This translates to providing 22 million meals to those in need. Our goal is to set a new company record in 2023 with employee and SAIC matching contributions, resulting in another 3.6 million meals being provided to people facing hunger in the United States. I want to personally thank Maria Bishop, Jeff Raver, and Jennifer Love-Bruce for their leadership in this important mission. Now on to a review of our financial results and our outlook. SAIC delivered strong financial results in our second quarter, reflecting solid program execution, continued progress driving on-contract growth, and the ramp-up of new business. Looking back over these past few years, I'm incredibly proud of the progress we've shown on better leveraging our talented people, building on our excellent brand, and innovating on our industry-leading solutions to drive profitable organic growth. Our updated fiscal year 24 guidance calls for SAIC's best year of organic revenue growth and highest EBITDA margin since the separation, demonstrating our ability to convert a strong pipeline of opportunities into value for shareholders and opportunities for our employees. Our strong start in fiscal year 24 positions us well to deliver on the multi-year targets we outlined at our investor day. Importantly, we will accomplish this while increasing margins and return on invested capital, staying true to our asset light business model and returning substantial cash to shareholders. Going forward, we believe that over the long term, We can sustain and improve upon the gains in relative performance we have shown while adhering to a business model and financial strategy that is working. Portfolio actions we have taken in recent years, including the acquisitions of Unisys Federal, Coverse, and Half Acre, and the divestiture of our logistics and supply chain management business, will contribute to our ability to deliver sustained, profitable growth in line with or better than the markets. Following Prabhu's discussion on our financial results and increased guidance, I will briefly discuss my upcoming transition. Over to you, Prabhu.