Q4 2025 Science Applications International Corp Earnings Call Transcript
Key Points
- SAIC reported a 6% year-over-year increase in fourth-quarter revenue, driven by new program wins and on-contract growth.
- The company achieved a full-year revenue of $7.48 billion, representing 2.1% organic growth, which was at the high end of their guidance.
- SAIC's adjusted EBITDA margin for the full year was 9.5%, exceeding guidance by 20 basis points due to strong program performance.
- The company delivered free cash flow of $507 million for the year, translating to over $10 per share, with a target of $11 per share in fiscal year '26.
- SAIC's commercial operating sector revenue increased significantly from less than $1 million in fiscal year '22 to approximately $45 million in fiscal year '25, with a goal of $100 million by fiscal year '28.
- SAIC's book-to-bill ratio was 0.9 for fiscal year '25, indicating challenges in securing new contracts relative to revenue.
- The company faces a roughly $200 million headwind related to low-margin Air Force Cloud One compute and store revenue, which they chose not to bid on.
- SAIC is experiencing procurement delays, which could impact the timing of bookings and revenue recognition.
- The company is preparing for potential revenue pressures due to government efficiency initiatives, which could affect their financial performance.
- SAIC's recompete win rates are not yet at the desired high 80% to 90% range, indicating room for improvement in retaining existing contracts.
Good day, and thank you for standby. Welcome to the SAIC FY 2025 Q4 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Joe DeNardi, Senior Vice President, Investor Relations, and Treasurer. Please go ahead.
Good morning, and thank you for joining SAIC's fourth 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 Natrajan, our Chief Financial Officer.
Today, we will discuss our results fourth quarter of fiscal year 2025 that ended January 31, 2025. Please note that we may make forward-looking statements on this call that are subject to known and unknown risks and uncertainties, that could cause actual results to differ materially from
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