CACI International Inc

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International First Quarter Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded. At this time, all lines are in a listen-only mode. Later, we will announce the opportunity for questions and instructions will be given at that time. If you should need us during the call, please press star zero and someone will help 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, Tina, 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 fact 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 safe harbor statement is included on this exhibit and should be incorporated as 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 Mingucci, President and Chief Executive Officer of CECI International. John.

Thanks, Georgia. Good morning, everyone. Thank you for joining us to discuss our first quarter fiscal year 26 results. With me this morning is Jeff McLaughlin, our Chief Financial Officer. Slide four, please. CACI's strong first quarter results are a great start to our fiscal year 2026. We delivered free cash flow of $143 million, driven by revenue growth of 11%, an EBITDA margin of 11.7%. We also won $5 billion of contract awards, which represents a book-to-bill of 2.2 times for the quarter and 1.3 times on a trailing 12-month basis. Over half of our awards were for new business to CACI. We also continued our excellent track record of winning re-competes and securing sole source extensions. Our first quarter performance gives us increased confidence in achieving both our full-year guidance, which we are reaffirming, at our three-year financial targets. Jeff will provide additional details shortly. Slide five, please. Turning to the macro environment, the federal government continues limited operations under a shutdown. However, our business remains resilient given our national security focus with most of our work funded and deemed essential. Looking beyond the shutdown, we continue to see enduring needs, good demand signals from our customers, and prospects for a healthy funding environment for national security priorities. In addition, we are starting to see early indications of how reconciliation funds available to DOD and DHS may be used. For DHS, the focus is likely to include modernization and border security, which we expect will benefit programs like GIGL and drive demand for economy OAS technology. For DOD, in addition to areas we have previously discussed, We also expect reconciliation funds, including those for Golden Dome, will benefit some of our intelligence programs as we focus on left of launch situational awareness. Our ability to reaffirm our guidance and deliver on our commitments, even in the face of a government shutdown, demonstrates the resilience of our business and is a result of deliberate choices and investments we have made over many years. Our actions have positioned CACI for success in any environment, including this one. Slide six, please. Let me discuss some examples of awards, program performance, and investments that highlight our competitive differentiation in several areas. First, Encounter UAS, escalating drone threats and increasing incursions globally are driving strong demand for our capabilities, including from our international partners. In fact, during the first quarter, we received a follow-on order from the Canadian government for additional MANPAC software-defined counter UAS systems. This follows the initial order we received in fiscal 24, as well as an order for vehicle-mounted counter UAS systems we received from Canada last quarter. But the threat is no longer just abroad. It is here at home as well. And the administration has made it clear that the defense of the homeland is the top national security priority. That's why CACI has been investing ahead of need to develop Merlin, our latest counter UAS detected defeat system. Merlin's counter UAS capabilities are extremely differentiated and particularly well suited for defending the homeland for many reasons. It is based on technology that has been operationally proven across the globe for years, focused on real missions, real threats, and delivering real kills with non kinetic capabilities that include low to no collateral damage defeat modes with a detection range of up to 75 kilometers and providing industry-leading wireless capabilities that address counter-UAS threats utilizing cellular networks. Our MERLIN system has outperformed competitors in several government-sponsored demonstrations against a wide range of UAS systems utilizing our software-defined technology, tipping and cueing a third-party kinetic system to defeat a drone, and also integrated with ANVRL's LABS platform, which was recently selected as the Army's counter UAS fire control system. These results are what is driving strong customer interest both in the U.S. and abroad. A second area is counter space. Modernizing our nation's capabilities is crucial to address peer threats in the increasingly contested space domain. We are seeing increasing customer interest and demand for CACI's capabilities. This includes a $240 million award in the first quarter to sustain and modernize the Tactical Integrated Ground Suite, or TIGS, counter space program for the Army. Additionally, a few days after quarter end, we received an initial production order from the U.S. Space Force for a Remote Modular Terminal, or RMT. RMT is a broadband counter satellite electronic warfare system that leverages our existing counter UAS software to provide our customers with enhanced counter space capabilities. Both TIGS and RMT are great examples of how we can leverage our differentiated, software-defined technology and our strong past performance to help warfighters execute critical missions across the entire electromagnetic spectrum. Slide seven, please. Third is network modernization, a foundational dependency for many critical national security priorities. Without modernized networks, DoD priorities like NGC2 and JADC2 either won't be as effective or just won't be possible. Given this reality and the administration's focus on modernization across the government, we continue to see good demand and a strong pipeline of network modernization opportunities. For example, the Air Force recently awarded CECI task orders number two and number three on the Base Infrastructure Modernization Program, previously known as ITAS Wave 2. CECI will modernize networks for the U.S. Indo-Pacific Command and the U.S. Space Force, ensuring more efficient and more secure network operations. Together, these task orders represent approximately $400 million of awards this quarter. Additionally, we continue to execute our existing network modernization programs. On our SuperMod program, we received NSA authorization for use of our software-defined CSFC technology, allowing for the processing of classified data through our framework. This accelerates our ability to test and field devices on the network and positions us to make the network operational in 2026. The final area is digital application modernization. Our customers were seeking greater efficiency, effectiveness, and speed of delivery as they modernize software applications. CACI continues to lead the industry with our use of commercial Agile software development processes and DevSecOps. For example, our Beagle program for Customs and Border Protection is one of the largest Agile software development programs in the federal government. Our exceptional performance on this program recently yielded us our second one-year contract extension a strong indication of the value we deliver to CBP, and a further indication of how well positioned CACI is with our customer base. The combination of our leading agile development capabilities and strong past performance has enabled us to win the $1.6 billion JTMS award this quarter. The Joint Transportation Management System is Transcom's enterprise modernization initiative to unify end-to-end transportation and financial processes across the DoD on a commercial software platform. CACI will leverage our agile software development and AI capabilities combined with SAP's S4 HANA off-the-shelf commercial platform to significantly improve visibility, collaboration, and auditability for the command. It's yet another example of the federal government selecting CACI to modernize its scale to enable mission success while generating long-term value for the government and taxpayers. It is also important to note that as we continue to win in the marketplace, we also continue to invest ahead of customer need and our industry-leading Agile capabilities to ensure that CACI remains well positioned to win and execute these critical modernization initiatives. We are now expanding our use of AI tools to increase the speed, efficiency, and scalability of our Agile software development processes and continuing to innovate to stay at the forefront of utilizing commercial software development tools and processes to address critical national security priorities faster and more efficiently. These are just a few examples of the many successes we are seeing at CECI, thanks to our focus on critical national security priorities, software-defined technology, commitment to investing ahead of customer need, and unwavering focus on superior execution. With that, I'll turn the call over to Jeff. Thank you, John. Good morning, everyone. Please turn to slide eight.