Q3 2025 Science Applications International Corp Earnings Call Transcript
Key Points
- Science Applications International Corp (SAIC) reported a third-quarter organic revenue growth of 4.3%, driven by new business and on-contract growth.
- The company increased its revenue guidance for fiscal year 2025 to a range of $7.425 billion to $7.475 billion, representing approximately 3% organic growth.
- SAIC's backlog of submitted bids increased to nearly $19 billion, showing strong momentum in their bidding process.
- The company has a new $1.2 billion share repurchase authorization, indicating confidence in its financial stability and commitment to returning value to shareholders.
- SAIC is well-positioned for potential government efficiency initiatives due to its investments in technology differentiation and commercial offerings.
- Free cash flow for the third quarter was $9 million, which was softer than typical due to an additional payroll cycle and strong collections in the second quarter.
- The company's trailing 12-month book-to-bill ratio moderated to 0.9, below the target of 1.2, indicating potential challenges in securing new contracts.
- SAIC faces potential revenue headwinds from government efficiency initiatives, which could result in lower funding in certain markets.
- Recompete win rates have been below target, affecting overall win rates and potentially impacting future revenue.
- The company is preparing for potential changes in the market due to the incoming administration's focus on efficiency, which could create uncertainty in contract awards and revenue.
Good day, and welcome to SAIC's Third Quarter Fiscal Year 2025 Earnings Call. (Operator Instructions) As a reminder, this call may be recorded. I would now like to turn the call over to Joseph DeNardi, Senior Vice President, Investor Relations, Treasurer. Please go ahead.
Good morning, and thank you for joining SAIC's Third Quarter Fiscal Year 2025 Earnings Call. My name is Joe DeNardi, Senior Vice President of Investor Relations and Treasurer. And joining me today to discuss our business and financial results are Toni Townes-Whitley, our Chief Executive Officer; and Prabu Natarajan, our Chief Financial Officer.
Today, we will discuss our results for the third quarter of fiscal year 2025 that ended November 1, 2024. 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
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