CACI International Inc

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Fourth Quarter Fiscal Year 2025 earnings conference call. Today's call is being recorded. At this time, all lines are in a listen-only mode, and later we will announce the opportunity for questions and instructions will be given at that time. If you need any assistance during this call, please press star zero and someone will assist you. At this time, I would like to turn the conference call over to George Price, Senior Vice President of Investor Relations for CACI International. Please go ahead, sir.

Thanks, Amy, and good morning, everyone. I'm George Price, Senior Vice President of Investor Relations for CACI International. Thank you for joining us this morning. We are providing presentation slides, so let's move to slide two. There will be statements in this call that do not address historical facts and as such constitute forward-looking statements under current law. These statements reflect our views as of today and are subject to important factors that could cause our actual results to differ materially from anticipated. Those factors are listed at the bottom of last night's press release and are described in the company's SEC filings. Our St. Barbara statement is included on this exhibit and should be incorporated as any part of any transcript of this call. I would also like to point out that our presentation will include discussion of non-GAAP financial measures. These should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. Let's turn to slide three, please. To open our discussion this morning, here's John Munguchi, President and Chief Executive Officer of CACI International. John. Thanks, George, and good morning, everyone.

Thank you for joining us to discuss our fourth quarter and fiscal year 25 results, as well as our fiscal 26 guidance. With me this morning is Jeff McLaughlin, our Chief Financial Officer. Slide four, please. Before we begin, I'd like to take a moment to acknowledge the recent passing of our Chairman, Mike Daniels. Mike was an exceptional leader, mentor, and friend. His vision, experience, and dedication greatly enriched CACI and the broader technology, government, and corporate communities. Mike's unique perspective in governance was based on many valuable lessons and experiences throughout his renowned professional career, his critical government advisory roles, and his humble life story. He contributed greatly to the growth and success of many organizations, including CACI, where he was a steadfast supporter of our strategy. We extend our deepest condolences to Mike's family and are grateful for his invaluable contributions to our company. Slide five, please. CACI's strong fourth quarter performance closes out another great year and underscores the strength, differentiation, and resilience of our business. For the full year of fiscal 25, we delivered revenue growth of 16% on an underlying basis, EBITDA margin 11.2%, free cash flow of $442 million, and free cash flow per share growth of over 16%. We deployed capital to acquire three strategic assets while also repurchasing $150 million of shares. We won 10 billion of contract awards, representing a book to bill of 1.1 times. As we've discussed many times, we undertook a strategy years ago to become a more focused and differentiated company that was positioned to drive long-term growth and shareholder value in any environment. Our exceptional results demonstrate the successful execution of that strategy. Slide six, please. The market trends you're increasingly seeing and hearing about today, speed, efficiency, lethality, software-based capabilities, modernization, these are all the result of the rapidly evolving environment around us. Government budgets and procurement actions are adapting to reflect this reality, but we anticipated these changes years ago and invested ahead of need accordingly. We are a leader in the use of software and investing ahead of customer need to develop and deliver high-value capabilities faster, more efficiently, and with greater flexibility. We are strategically positioned in enduring and well-funded areas that align with our nation's most important national security priorities. That is why CACI is so resilient, so well-positioned, and already able to deliver in accordance with buying methods the government has only recently started to more formally implement. Among the many examples I could share, here are four. First, the electromagnetic spectrum is a critical domain for national security and modern warfare. CACI today delivers differentiated software-defined, commercially developed, and commercially sold technology to multiple customers who demand -in-class capabilities. Our investments ahead of customer need led to the development of the TLS ManPak, which integrates signals intelligence and electronic warfare collection, processing, exploitation, and effects into a single software-defined system for the dismounted soldier. It is one of the first successful rapid-fielding mid-tier acquisitions for the Army because of CACI's ability to rapidly prototype and deliver a cutting-edge solution in record time. The recent ceiling increase to 500 million supports the Army's decision to deploy our technology as the primary SIGINT EW system for all brigade combat teams. Additionally, the Army announced plans to enhance our TLS ManPak to field a vehicle-mounted option demonstrating the versatility of our technology. Second, our software-defined Convry UAS technology is addressing the increased demand for protection against drones. We were recently awarded a contract by the Canadian government to deliver Convry UAS vehicle-mounted systems, which follows a previous award from Canada for our backpackable Convry UAS systems last year. We're also seeing an increase in demand for our technology in support of U.S. border protection, and it's a key component of Build and Don't. Our technology leverages decades of experience and actual mission results delivered by our sensors and operation globally. In addition, the significant reconciliation funding associated with this critical administration priority will enable procurements looking for proven, ready-now technology that can defend across the electromagnetic spectrum with no or low collateral defeats. CACI checks every box and more to defeat all levels of potentially threatening UASs. Next, enterprise software modernization is another area where CACI is both well aligned to administration's priorities and where we have demonstrated clear industry leadership. Recently, the Army issued a memo highlighting the imperative for significant system consolidation across the service to enhance security, reduce costs, and improve efficiency, as well as request enterprise systems to be commercial-based with limited enhancement and integrations to other systems as required. Our initial Ips Army implementation consolidated 50 legacy systems into one modern commercial-based enterprise system. Our performance on Ips Army puts CACI in a strong position to consolidate an additional 40 systems that the Army has identified. And it also positions CACI as the partner of choice for other DoD and intelligence community customers as they execute similar modernization and consolidation initiatives. Finally, in fiscal 25, we also began executing our NASA NCAPS program where we are deploying a commercial agile scale delivery model to standardize and centralize software development across NASA, enhancing efficiency, quality, and speed of delivery, a key customer and administration priority. Since November, our NCAPS team has met all key metrics related to system availability and is currently supporting nearly 900 applications and platforms. These examples of how CACI's software-based capabilities, commercial tools and processes, and investment ahead of customer need are enabling critical national security priorities to be addressed faster and more efficiently to drive reduced customer costs and propel the growth of CACI. In other words, we are extremely well aligned to the environment we see today. We don't need to transform, we're already here. Slide seven, please. Turning to the macro environment, we continue to see healthy customer demand and a strong pipeline of opportunities in our markets. Demand is being driven by today's global geopolitical realities as well as the administration's priorities, including peace through strength, securing our borders, and an increasing use of software to enhance efficiency, speed, and lethality. As I've discussed, these are all areas where CACI continues to be extremely well positioned. And this positive customer demand is now supported by the reconciliation funding contained in the One Big Beautiful Bill Act. Which provides over 150 billion for defense, of which 25 billion is to fund Golden Dome, and also provides approximately 170 billion for border security. This is a favorable development for our business which generates 90% of its revenue from national security customers, solving the toughest challenges of the DOD, the intelligence community, and the Department of Homeland Security. Looking forward, we are closely monitoring the government fiscal year 26 budget process. Should the new year start with a CR, as most years do, we are comfortable operating in that environment and typically do not see a material impact to our business. So it can sometimes influence the quarter to quarter timing of shorter cycle revenue like our software defined technology. But as you know, we are focused on the long term, we continue to see significant opportunities across our large and growing addressable market. Slide eight, please. Looking ahead, our proven strategy, differentiation, execution, and resilience set the foundation for CACI to deliver another strong year. With that in mind, in fiscal 26, we expect revenue growth of nearly 8% at the midpoint, EBITDA margin in the mid 11% range, and free cash flow per share growth of over 60%. Jeff will provide additional details on our guidance shortly. Our 26 guidance reflects our continued business momentum, our robust pipeline, and the constructive macro environment, including passage of the reconciliation fund. It is consistent with the three year financial targets we discussed at our investor day last November, which we remain highly confident in achieving. And it is aligned with our objectives of driving long term growth and free cash flow per share and shareholder value. With that, I'll turn the call over to Jeff.