CACI International delivered a first-quarter performance that surpassed Wall Street expectations, as the company benefited from increased demand in defense, intelligence, and IT modernization solutions. Management highlighted that robust customer activity in key national security areas underpinned the quarter, pointing to resilient demand for software-defined capabilities and successful execution on large contract awards. CEO John Mengucci attributed the strong results to “investing ahead of need” and aligning the company’s portfolio with evolving government priorities, especially around software-driven modernization. The company’s backlog growth and high book-to-bill ratio reflected ongoing momentum in securing new work, while the operational focus on agile software development was cited as a differentiator in winning recent programs.
Is now the time to buy CACI? Find out in our full research report (it’s free).
CACI (CACI) Q1 CY2025 Highlights:
- Revenue: $2.17 billion vs analyst estimates of $2.13 billion (11.8% year-on-year growth, 1.5% beat)
- Adjusted EPS: $6.23 vs analyst estimates of $5.60 (11.3% beat)
- Adjusted EBITDA: $253.5 million vs analyst estimates of $233.5 million (11.7% margin, 8.6% beat)
- The company slightly lifted its revenue guidance for the full year to $8.6 billion at the midpoint from $8.55 billion
- Management slightly raised its full-year Adjusted EPS guidance to $24.56 at the midpoint
- Operating Margin: 9.1%, in line with the same quarter last year
- Backlog: $31.4 billion at quarter end, up 9.8% year on year
- Market Capitalization: $10 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions CACI’s Q1 Earnings Call
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Scott Mikus (Melius Research) asked about changes in customer behavior since the administration change; CEO John Mengucci replied that contract growth has remained steady and RFP activity signals continued award flow.
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Joshua Korn (Barclays) inquired about the impact of Department of Government Efficiency (DOGE) reviews; Mengucci emphasized only minimal disruption and highlighted CACI’s alignment with efficiency goals.
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Tobey Sommer (Truist Securities) probed on areas of greatest funding opportunity; Mengucci identified electronic warfare, border security, and IT modernization as primary growth avenues.
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Sheila Kahyaoglu (Jefferies) questioned how administrative slowdowns affect contract flow; CFO Jeff MacLauchlan acknowledged mild delays in administrative processes, but said disruptions remain manageable.
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Mariana Perez Mora (Bank of America) explored the M&A landscape and seller appetite; Mengucci and MacLauchlan explained that deal flow remains opportunistic, with seller valuations still a constraint in the current environment.
Catalysts in Upcoming Quarters
In the coming quarters, our team will monitor (1) the pace and success of new contract awards from CACI’s large pipeline, (2) the integration results and operational benefits from recent acquisitions like Azure Summit, and (3) progress on scaling optical communications terminal production and other high-growth technology programs. Policy developments and budget appropriations in defense and homeland security will also be key signposts for ongoing demand.
CACI currently trades at $452.66, up from $423.79 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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