Q1 2026 Science Applications International Corp Earnings Call Transcript
Key Points
- SAIC reported revenue growth of approximately 2% in the first quarter, driven by the ramp-up of new and existing programs.
- The company secured net bookings of $2.4 billion, resulting in a book-to-bill ratio of 1.3, indicating strong business development efforts.
- SAIC was awarded a new cost-plus program role in Q1 as part of a $55 million contract with the Space Development Agency, highlighting its expertise in mission integration and digital engineering.
- The company has a robust pipeline with proposals totaling $7 billion submitted in the first quarter, and expects to reach $28 billion to $30 billion for the full year.
- SAIC's civilian segment, representing over 70% of total revenue, is well-supported by budget allocations, particularly in areas like the Department of Transportation and Department of Homeland Security.
- SAIC experienced procurement delays and award timelines moving to the right due to higher turnover rates among customers.
- Free cash flow was negative $44 million in the first quarter, impacted by the timing of receivables on two programs.
- Adjusted EBITDA margin was 8.4%, affected by seasonality of investments and higher costs on a fixed price program in the space business.
- The company faces potential challenges with the Army's budget outlook, which may be more constrained compared to other branches.
- SAIC's trailing 12-month book-to-bill ratio was 0.8, indicating a need for improvement to meet growth targets.
Good day and thank you for standing by. Welcome to the SAIC fiscal year 2026 quarter one earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would not like to hand the conference over to your speaker today, Joseph DeNardi, Senior Vice President, Investor Relations and Treasurer. Please go ahead.
Good morning, and thank you for joining SAIC's first-quarter fiscal year 2026 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 first quarter of fiscal year 2026 that ended May 2, 2025. Please note that we may make forward-looking statements on today's call that are subject to known and unknown risks and uncertainties that
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