CACI Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: Approximately $2.3 billion, up 11.2% year-over-year (5.5% organic growth).

EBITDA Margin: 11.7%, a 120 basis point increase from the previous year.

Adjusted Diluted EPS: $6.85, representing a 16% increase year-over-year.

Free Cash Flow: $143 million, driven by strong profitability and effective working capital management.

Book-to-Bill Ratio: 2.2x for the quarter, with a trailing 12-month ratio of 1.3x.

Backlog: Record backlog of $34 billion, a 4% increase year-over-year, with funded backlog growing nearly 26%.

2Strategic Updates and Business Highlights

CACI secured $5 billion in contract awards during the quarter, with over half attributed to new business.

Continued focus on national security priorities, with resilience noted despite the federal government shutdown.

Significant investments in Counter-UAS technology, including the development of the Merlin system, which has shown superior performance in government demonstrations.

Expansion in Counter-Space capabilities, highlighted by a $240 million award for the Tactical Integrated Ground Support program.

Ongoing network modernization efforts, including task orders from the Air Force worth approximately $400 million.

Successful execution of the BEAGLE program for Customs and Border Protection, leading to further contract expansions.

3Forward Guidance and Outlook

CACI reaffirmed its fiscal 2026 guidance, expecting revenue between $9.2 billion and $9.4 billion, with EBITDA margins in the mid-11% range and free cash flow of at least $710 million.

Anticipated EBITDA margin for Q2 expected to be around 11%.

The company expressed confidence in achieving its three-year financial targets, supported by a strong pipeline of bids and a healthy backlog.

4Bad News, Challenges, or Points of Concern

The federal government shutdown has caused some administrative sluggishness, impacting cash collections and causing minor revenue disruptions, though these are expected to be manageable.

The potential for a slowdown in bookings in the upcoming quarters due to the shutdown, although CACI has a strong backlog to mitigate this risk.

Increased competition in the market, with some concerns about pricing pressures, although CACI has positioned itself to avoid price shootouts by focusing on differentiated technology offerings.

5Notable Q&A Insights

Management addressed concerns regarding future defense budgets, indicating strong bipartisan support for national security funding and a favorable market position for CACI.

The company noted a shift in government purchasing practices towards more agile and commercial-like procurement methods, which CACI is well-positioned to leverage.

Discussions highlighted the importance of Counter-UAS technology in the evolving defense landscape, with expectations for significant growth driven by emerging threats.

Management acknowledged the impact of the shutdown on operations but emphasized a strong ability to recover and maintain guidance due to the essential nature of much of their work. Overall, CACI reported a strong start to fiscal 2026, with solid financial performance, strategic advancements in technology, and a positive outlook despite some challenges related to the government shutdown and competitive pressures.