SAIC - Earnings call transcript Q2 2025 | Science Applications International Corporation

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Operator

Good day, and thank you for standing by. Welcome to the SAIC Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I'd now like to hand the conference over to your first speaker today, Joseph DeNardi, Senior Vice President of Investor Relations, Treasurer. ahead. go Please

Joseph DeNardi

joining thank Chief Year and DeNardi, joining Second our are Officer. Treasurer. SAIC's Vice business Financial discuss Good financial Chief Officer; and Earnings you and Call. Fiscal results And and Relations XXXX of Townes-Whitley, Joe today My Quarter to President our our morning, Toni Investor for me Executive name Senior Natarajan, is Prabu

August our should outlook, at year along X, and evaluating utilized copy our call. discuss for second documents, XXXX results prepared and to of Form conjunction we that fiscal our find can be ended you Earlier our be results provided management's Today, release, information to we will These XX-Q later filed slides also utilized issued XXXX. quarter the financial today's be to morning, in investors.saic.com this which in of presentation today, will call supplemental earnings today's be where on a remarks. with addition with in found

that this to note for risks, differ are Form statements risks discussion on unknown and could report make we refer I the made uncertainties including forward-looking filings Factors that that on known XX-K. to statements on from actual our and Risk results annual subject materially cause our today's to these SEC of call. you call may a Please of section

obligation events so. may in update specifically views In addition, to any our the subsequent point at the statements as cause statements but the some and represent our change. do we today, elect forward-looking We views disclaim to future, may to of

The metrics, GAAP. press reconciliations measures a useful for will should not with considered supplemental presentation release discuss addition investors accordance most measures. non-GAAP and in be non-GAAP include other which believe measures we provide in our and we information the GAAP slides for In to and substitute financial comparable both financial to financial measures addition, and

CEO, our to pleasure my now Toni introduce Townes-Whitley. is It

Toni Townes-Whitley

Thank which SAIC to from everyone on support X Rocket you, call, in morning Huntsville. deep of Joe, has in over our involvement. today the doing decades offices community with and we're roots and good our City

We largest here our Alabama we'll employer high X,XXX held third leaders We calling our than and and and employees home. Commerce are meeting Chamber school other amazing of Board the recently be an School be proud needs to into with Board to members fill to can the that more critical Cyber of youth taking us and workforce the and the is future we Alabama STEM in to foster now vitally skills important and Engineering. future. Technology our It education our for support, develop ensure visit

Missile leaders. key and we and technology problems also to space help military some Army hardest sites most support missile mission-critical of field of we warfighters mission-critical Defense provide in our solve capabilities to strive to our the them and We'll Agency, systems support where ensure we U.S. operations defense and visit the their In country's sectors. leading-edge the customer and

and live-virtual us exceed am will customer's Our and to ongoing requirements. our I'm of which workforce committed constructive expertise proud and modeling engineering, in work see skill training extremely includes our this simulation, initiatives, and match and upskilling to digital and grow

then our capital second quarter greater on deployment outlook by on enterprise today discuss detail. of of in remarks My updated quick will a plans review the strategy. and update our growth focus our execution an performance, will followed Prabu

offset growth approximately in strategic wins second transitions. and organic solid with by all We contract Overall, from financial revenue we've X-point growth and metrics an quarter reported business as from made quarter. I'm partially were the increases of X% progress pleased key performance on-contract on our year-over-year headwind the new

we thresholds solid the next of program margin improved over an revised and put in trajectory focus shot margin million selection, several a $XXX reflect expect continue X.X% of we improved Due and to EBITDA place, years. Adjusted bid performance. on to

year-over-year per share XX.X% Adjusted our share X% approximately earnings weighted in tax benefited of diluted reduction count. $X.XX rate from an average a and effective of

million cash representing free on efficiency continued team. very strong tackling and quarter good focus flow year of was flow Second of due a XX% our to cash from half guidance. $XXX first and capital $XXX to the brings This full blocking working million, free over

of half and Prabu by the have describe as to our sustain still meet later, inside guidance into we momentum will I'm and front shown in of the the revenue focus performance in for some challenge us While the see second I in company our FY quarter second encouraged 'XX year, the FY 'XX.

growth provide vectors. an align development enterprise designed centralized our strategy growth update business now optimize model We organization, our investment enterprise on and operating and execution. our with implemented flattened to our pipeline planning I'll

against for performance, initially tune shareholders. our development business unlock Bid We will The we higher-margin to indicators believe more Better, our continue Win Bid progress portfolio, More, culture, improved across execution translate and pivots; which Simply that value earliest be all of faster-growing into efficient put, SAIC. the go-to-market, brand. significant more of More. and a is will outcome long-term strategy The X expect differentiated, strategy we will

a total level growth increasing Bid More, of the aligned submissions aspirations. is more with our The step, to first value significantly

of of see full and for year. 'XX, volume as improved submissions billion billion to fiscal year target the compared our exceeding of submit ability $XX by year. $XX.X evidenced the the good billion we have continue full first year We $XX the to into in progress for half

X share. shift our opportunity outsized towards strength the growth to that vectors, margin where and objectives see pipeline vectors more align the accretive. Strategically, strategic Civilian value gain is within programs Better, we pipeline the key IT, we with These to our drive Bid X and growth the in market and bid step, financial our to higher market and of leverage are Enterprise second Mission will objectives. in financial processes with our growth aligning The

growth is aligned More, more backlog Win and and step, bookings growth revenue our eventually third with target. long-term driving The

and We to rate the increasing of our quality XX% recompete strong this our by win business will volume sustaining range bid new accomplish our performance. returning and submissions,

will In how long terms it we results. take see before start of to

end for the Our quarters to expectation X to revenue continue fiscal X our a impact following This a associated aligning with the year next towards into inflection book-to-bill translate improve fiscal of organic to revenue of of X% to longer-term quarters the X.Xx particular with should first bookings over of half growth by is later. 'XX X year the X 'XX. with with target

to and the thank Thanks look team company further their execution to the to towards on for want they progress our efforts, the stronger strategy. enthusiasm forward. I forward way of on SAIC updates the a at I SAIC bring going future. are to for building sharing our well and we focus the our

I'll now Prabu. over turn the call to

Prabu Natarajan

a quarter, morning resulted call. of year-to-date to total XX-month in of approximately X.Xx business contract now for X.Xx I Toni, plans. our approximately Net capital of in year the provide to review you, the bids quarter results, in those of trailing good book-to-bill a $XX.X the value value and and development $X.X basis. billion submitted on outlook billion billion. bringing $X.X submitted We deployment bookings a updated will joining our Thank our the fiscal and

outcomes organization momentum for submissions with exceed FY capture on The in to $XX our business metrics place over business are have in by and me and and our year we development track remain the we FY encouraged initial will we beyond further able this target are our few the increased seeing billion of velocity 'XX We and and confidence to development growth 'XX estimates. improve within put next years. processes that give our be

repurchases million We pace $XXX to the and of planned reflecting million $XXX sufficient prior including track that. opportunistic achieve the in remain for target our $XXX million of returned to for share $XXX repurchases quarter, to maintaining of on approximately intend of repurchases, the this end increase We We on in while our shareholders exceed to M&A. a capacity million year. in high top

our I'll the an on now for provide update outlook year.

flow. for and reaffirming are revenue, EBITDA adjusted our prior free We guidance cash

lower diluted for a share of offsetting earnings modestly by our and guidance a count higher increasing $X.XX to expense. rate share are $X.XX We to tax interest per range $X.XX, due adjusted to and

Our headwind revenue a to an pressures. range in in our improvement assume organic second recompete X% first pro compared this reflects X.X% of from continues an to growth approximately half growth X.X% forma to guidance, At results. implies which the midpoint, half

on-contract be growth. primarily We improvement new from by expect and driven on won previously the business volume the momentum continued in to ramp-up further

the quarter, revenue growth likely provided as Consistent Slide and midpoint XQ guidance and higher we X, the of than see expectation more last lower revenue the we communicated with end. XQ end based for our what on our as to on

of in EBITDA in adjusted million We prior $XXX to X.X% are to X.X%. margin range our for range $XXX and million guidance reaffirming a of a

million reaffirming sustain are flow $XXX our cash We strong built we and to free expect of million to quarter. the a guidance second very during momentum $XXX

deployment capital shareholder on long-term strategy focused Our value. maximizing remains

growth We have what is produce we excess are flow valuations. that in market confidence executing by cash the free of will implied strategy current

to for and view remain this we our program. on our see to our Given M&A opportunity existing and significant the drive we capital repurchase to high threshold deployment expect business, targeted remain improvement from

returns. sheet However, should businesses meet our we company add flexibility balance an opportunity sufficient to for our threshold to differentiated retain risk-adjusted

our delivering strategy value team's coming performance for and In drive begin sustainable to forward. closing, in progress growth the I executing years. our am shareholders will The making stronger the we proud on on into going and converting is clear of are financial focus

call over I'll turn the begin now Q&A. to

Operator

[Operator Instructions].

Wells of Our Matt line Akers comes Fargo. the of first question from

Matthew Akers

of new I And are curious what should out getting X.Xx wanted watch work confidence gives there? specifically, to kind new any about opportunities to to the for? there you big if comment just we ask about [indiscernible] that book-to-bill get

Toni Townes-Whitley

for couple just kind indicators There us more it's you've Yes. call. us Thank Matt, comfortable that are you around you book-to-bill Thank expectation. the a is get on submission One for seen. that the of question. Toni. the as joining rate, of

was now against feel $XX.X year fully are submissions We about to at full that. We strong surpass expectation last expect and billion our on billion our year. $XX year this billion $XX

also we're of size billion We're -- about submitted have and with a submitting we $XX we bids see qualified this the pipeline, qualified Second, pending sitting point, that at increasing pipeline larger award. quarter-over-quarter. of

being those being, And so X/X and third the definitely, recompetes. of

this, to submitted, we've at into we've look X.Xx that range a you of the of months. velocity, our of indicators that next what north when the pipe, got the strongly all shape the the we in X.Xx so feel of XX book-to-bill And drive

Matthew Akers

just in it. you from opening one I I bit Got civilian called of And budget maybe in I versus also who you area. civilian on that consideration? wins depending way I of a maybe think other Is a remarks, of is, get defense November, defense? And people little nondefense. guess the the focus out the how questions versus shifts think think versus a the one

Toni Townes-Whitley

lot. you thank that. that we question No, for a Look, Yes. get

we our fairly accretive our If called only but you as have civilian that's a vectors. also growth look for not X We to out X market our one be of find portfolio, addressable that us, large to portfolio. at

But others, are we feel civilian at of agencies if Department perspective. look major a from Department positioned where any Department, Homeland in Security, like Transportation, we agencies, from the and we're of inoculated State swing you post-November partisan like VA

going We those of funded across many, many And in mission-critical positioned had support forward. for tends bipartisan and sort agencies are IT, in enterprise, and IT we're which that that be have have both to generally agencies, years.

terms support in for faces. we be the given national the there So geopolitical global pretty the look, feel security, environment, spending, country that defense that strong defense political there'll believe of we challenges and

integrating and I areas more argue, to We across positioned. that be, we're technology, innovation, that's would are national of more also happen where defense

regards, be outcome. So progress like forward and our the balanced grow enough in continue feel stable is independent to and we able to both of portfolio move to and

defense we think flat. to think, I is mean, spending, call. be everyone's going made that I Look,

in you And portfolio. thoughts again, might shared becomes on with so like Prabu, any feel But have a the we our it differentiators that? gain. right we're positioned

Prabu Natarajan

as space. are levels we say only we the add, underrepresented that continues at share new I business civilian towards of that would our share as would to the pipeline, look in even are it area. that Matt, market Yes, reflect therefore, to in market space. would in add of looking somewhat the a civilian percent And I to higher we thing be

So that's a share. gain why optimistic that there's real market to opportunity cautiously we're

Operator

of Jason line Our next question from comes the of Citi. Gursky

Jason Gursky

kind quick that you've that's bids question in chasing of of of the around is sense wrestled give what all on what the past? on. a going And on whether it at of you're risk the that kind you're chasing if I'm execution contract wondering this Just can is the bidding the with different a like? what And you kind types activity look any point? than just

Toni Townes-Whitley

about our our So bidding growth of bid, are look, our vectors. sort into increasing we our we and think when bid tracking profile,

bidding So we more civilian. into are

have. the We cloud IT own with are end-to-end all the than into its risks we that risk bidding of IT, in of to mission-critical its terms own And more sort way its mission has each enterprise enterprise IT, IT those operations enterprise of through has own characteristic portfolio. from go at which level an and

into said some fixed price we contract and deals. of that And backlog our part than portfolio, to that price engagements. another in We more are was fixed our have pivot bidding bidding fixed-price current the area is more we more move we're

what's the fixed up our what's in and difference we backlog are between on pipeline bid so points on our about in And XX price.

mentioned also bidding, factors, also in I into we're of we're areas the differentiation. growth as Overall, bidding

So our we're across of well we as an the use that data differentiators. increase AI, secure data we with platform. some cloud digital those doing see secure platform, operational bids of are with engineering, work the factory the tracking differentiators use uptick of as in And the in

margin complexion leverage in differentiation. So a we has when of areas -- what's ourselves years that bidding bidding be bidding door than in bid the ourselves strategically, in about bidding, the accretively, going we higher we and what think more been of margin our our see seen bid more we've prior out which price our

So regard, fixed feel and obviously, I in price. that like,

that in well, to like them. regard, still So bodes future you I win the feel have

acknowledge we're to this we So have let's feel bidding more, win. just -- bidding still we're better, but better, we

mentioned We with have risk. expectations to tightening our We're also managers. our program execution our We with model, execution enterprise execute. operating

Prabu, assurance adding and thoughts it and quality we And and bids, refining to more our work. executing any are really metrics relates there? more particularly review as so more monitoring these mission-critical

Prabu Natarajan

Jason, perfect. debriefs as add on the and do I years, of would wins over Toni, losses, cost know that that course the was short tend we we just that on we've average, is do to few fine on the on only technical the last fallen our thing we and differentiation.

putting that enterprise the to. directly solution a together, to operating are can to technical is execute working So get part of model ensure teams the with proposition the capture architects we that we crisply

work the We've price executed margins. work fixed at is with good. history good Our actually pretty actually

margins most of the portfolio example, for price work. double-digit to we're that And work. happens see, fixed be comfortably civilian in T&M So on and EBITDA as you can there the

of, anticipating to can say I'd get we let's actually how in a that start to on use cost-conscious, a then place So gives and way right that little that getting get comfort do to. the program us solution to in we focus it's be we actually these more let's thresholds are that not executing the

the would and say most means So shots -- I think that work not of we a rash. for want good execute sake growth to muscles being chasing thing the the important is around But lot effectively. take growth. just to of not required We're going I

Jason. it's As calories. we've not vitamins, before, said on calls Thanks

Jason Gursky

Right.

number develop trying you of curious to are fixed-price these leading solve kind forward? you you've technologies solutions Okay. of and how to great with much And ahead mature you the just touch industry of years. just the double-click the follow-up price quick a if fixed of do that on bids are The firm such that got firm been mind, to over firm think how chasing. you some fixed-price some story development a bids the work last don't of you're hasn't that that the across you're I'm a still on

Toni Townes-Whitley

Jason, our When factories had would why differentiation face. fixed to a track look been don't the as where statement. we meeting fair the coming up made differentiation that the we, customer expectation. price though in I financial have I disastrous it's think of meeting our record investments, we've portfolio, frankly, probably got that at organizations profile, some with able said programs that delivering solid estimates lead has quite we we've build of of have to sort with many the fixed-price capability, We complete out

deliver all ensuring led that capital and secure human generally fixed-price we We're engagement and our We're this into of capabilities operational leading our around multi-cloud. program with how we managers leading with space. have right meaning introducing the and data engagements controls digital platforms our solutions answer, frankly, our engineering We're tightening when time. individuals with have price new And quite leading monitor AI fixed capabilities. it over who we're we're the

not we're customer But the we've fixed feeling got quite attention to our of increasing portfolio. meet concerned So to course, right a overly of execution bit now, about price expectation. day-to-day

Operator

next Our from Seth question of JPMorgan. the line Seifman of comes

Seth Seifman

-- goal ask, being on probably very would what to you higher? 'XX? the you this fiscal to it looking in why bids a so it for why reason on I opportunity to so that. and a submitted in much mean submitted year. to second set you much exceeding wanted the guess here the half would like bids particular much for have mentioned what the doing the bids reason submitted there Is 'XX there probably see in a And half lower? you're with led right you're I I first par seem on is pace seem way particular the fiscal in you're being

Toni Townes-Whitley

though. forecast, that appreciate we Well,

quite protocols, first what's was the if set our the why function. to kind of been dropping bids. I that happened and first expectations get a in terms centralizing underpin development and acknowledgment into standard growth were that going last me Part on and needed to bid When Seth, that the we how process frankly, X is say bid ourselves. of and has that we years, of to reverse are Let setting submitted we business the over we in, that came focus we for velocity of the

And And to of full allowed allocate in And towards those of again, rate our conversion that unqualified changing team bids. submission bids. a to much reviewing was executive our quite a we allocation a a measure number the argue from doing bids of bids role have weekly increasing the the that, a and so qualified bids setting that process our quality That's us attention, good bid the and of to quick the terms in needed determination take the bid the improved looks terms bids those of resource across frankly, towards thresholds more ELT, many whether of the would enterprise centralization I in on what basis in the resources our talent dynamically an a look of all our some like. qualified, at of our bid. more improved

pleased question pace. are our absolutely great When look progress. that a There's with the we on we at we are year, no

bids We the bids cusp year. are have move of and few the that as quarter, fiscal every on bids out, that cusp, right our key are on we that you have large know, a

the sort to those of in who've to been to to us know the number bids, pull for you that them you to while that you so amount, start get fiscal that year. And that fourth of to in almost industry quarter really sure into make have start handicap a can the when cost

overstate us We exceeding change it. through. 'XX? got sight. good feel -- of that? see Right do no, about feel about it. that it. I about I I good now, line we're good we halfway feel we do We've We Absolutely. So Do

mean 'XX. of a go got bids pending, that well, next for fiscal quite year excited we're that and we what about we've into year they're As might as bit submitted

Seth Seifman

Okay.

to and in handicapped see you the targets there beyond book-to-bill is following up, around fairly book-to-bill likely of to CR Okay. what kinds and book-to-bill. Or taking next you've of think of all the and us step Excellent. of those those front of maybe then like what's just an your the to degree do in you kind have the And election for protest an When you outlook awards and kind of bids about that terms outlook? items? contracts, all still often for around in feel well most risk we

Toni Townes-Whitley

add that, to going Prabu speak to I'm color. Seth, I'll and any let

Prabu Natarajan

the our the calibrate I are the think look, many on year adjudication. think around so and expectations things Seth, our that awaiting the as based about right is we including bids things, for volume to backlog book-to-bill you where We of mentioned. now like

in expectations in material a I think think of about have moving volume of up. our I way is correctly the outsized it. a out negative X to year book-to-bill X.Xx, a volume place things or our not out, would comfortably that's sitting to So keep where the there that's pipeline we're hopefully, thinking is for the that Thankfully, the book-to-bill, enough think, to impact X get Toni, as I and expectation pointed we north we're

of you've add in of One enough to submitted the And way increasing you point of question one words, improve can pipeline go get of emotion is consistency is got replicate the there's which I of backlog multiple It and to benefit benefits bids you of the candidly, backlog of at that's kinds the years? after. was not actually the in a the you've going that enough pipeline becomes submitted perpetuity. of you In in rich and qualified bids. having richest the things that of, got over a volume a other

just a absolute the backlog think versus of I increasing So the there. quality in more the in on the pipeline, focus there's volume what's of

Operator

question from Next line the Stifel. Subin of of comes Bert

Bert Subin

you've year, some that new in that break Seth's X% organic, versus other ramping what down out components the to being I Can so And of headwinds. you guess, growth pretty on just from to in coming X% like headwinds, but Maybe to the a there. I would driving on-contract awards quarter second is called you X% normally maybe it's items? are is good. have organic, start, that maybe look fiscal guess mean organic, I at points we really probably this maybe just recompete if at X questions like following up

Toni Townes-Whitley

Yes.

to side, we've or have So, in see QX earlier as forward even and we civilian of that existing look programs, seen with that won we is Bert, One, at business we and year ramping an of our looking Cloud the with got just our Force extension seen million, in been $XXX prior there. T-cloud Air right, at probably our think, recruited which on One HX, I the you've our business, the year AOC recently Cloud

So we the that Army combination of we've businesses year sort to have us growth then as the that civilian of occurring but particularly those ramps indicated. close our only have help growth And there. long the happening. provided occurring, we and our that's a are in second contract we not and uplift some significant the is on-contract anticipate on It's what quarter,

We risk. is going start there's even of is of that a what in to to aware that we a probably new and but year to combat still the end will even business win that have our bit ramp add still There's this be of have command towards relief risk. little

a pushing still a and everybody Congress environment existing is ramping deck lot there's customers. and happening lot for with our we'll on politically, happening, mentioned obviously, throughout going a we And growth contracts, into field headwind hands all in you to in the have so. your are -- know with with. that that an full ramping dealing ease year will that We it that it's fiscal really an have X-points X-point We that have we that 'XX, but lot happening HX, where

can but revenue are be here, how still we we to positive think about trying that within thoughtful the we stay about growth we're fairly guidance that offered. we have So

Prabu Natarajan

That's the won earlier half to we to second the more only little year. the this would you, is thing I And Thank ramp in a Toni. is relative Bert, expected program half. in first add a DTAMM

in So And will course, that of growth in our Command Air this this any just driver ramp program in half program half that year. business, in of for material second the Toni to the sense. of second T-Cloud referred to Combat has not year. expected is and us that also ramped the Force be a

some contract got grow or in either we we're we some of There focused that here. on are we've things that are growth So good on momentum are backlog, good to already just winning, expect and off not things drivers. growth

Bert Subin

Toni when into quarter and with follow-up. Prabu, organic, context The up was certainly you O&M the just put recompete particularly better. that only it being And then outlays X% positive. the looks X% X of and

can what X% As current to up you've early give in the viewpoint, seeing? I you're indications XX% you of to any we think July. quarter, sort given but X% about know the were outlays

have maybe a election significant potential the We going into flush year. an for budget

I'm on-contract there there? out perspective, opportunities you maybe an are think more curious, So just from do

Prabu Natarajan

the Bert, I'll take question that first part here. of

of you're terms in So outlays, think I exactly right.

of we think outlays, We I normal. pickup bit a do are as frame. see define a the one we to to might in expecting little normal be that outlays think in started the time maybe July

growth months. revenue views X to higher of X in about maybe translates at to levels internal that Our sort typically of

making starting was the sort out benefit, for year outlay that's But some normal. see that last we this but supportive, in as year focus work. happening that of the a the to year bidding So -- will we more to sure feels overall, next obviously, on we or kinds And do of that close expect right why not our expect again, year fantastic and little anytime outlays, year, environment we're we're of a remain bullish there's, soon. about the

Toni Townes-Whitley

the what lag. timing. QX, you indicated not think probably by one-for-one heard you're outlay has you that's it's a looking think I about at X-month just environment a if There's Bert, that QX And slightly increasing a

higher than QX suggests that You in a our QX. can QX see guidance growth

So outlay we're of the environment aware call. we in think reflected the is

Operator

Sommer line Truist. of the question next Tobey of Our from comes

Jack Wilson

the of Air on growth were Wilson of click specifically? Can Jack of is on the for sort sort those just mentioned, This work that work Force for bigger and Tobey. double contracts we GMASS some trajectory the

Prabu Natarajan

first I'll at I'll Sure. do Sure. it. stab a take that, Jack.

this think program It's DTAMM works I way year. directives. on was a roughly program, earlier the $XXX program million technical a to the is

plan call out as that of a takes sit our business. with customer little with we time to the sort them. we bit in PDLs the of So them ramp And and year

to ramp are We little said that ramp. so and with growth next T-cloud program to year. well X.X% the ago, second some year. in a of year X% we obviously obviously, on big us up to to between expected was get total And year maybe X% company win to half will the T-Cloud the expected revenue a a for is of this over

a in or call let's a to is and growth QX million about, new then that the it, hopefully so that's That's So one and takeaway the in frame. a $XX time expected Air one driver win starting Force. year, add

little but So we that's of we'll other, sample certainly that provide X just more things or X a out. called a the

Jack Wilson

a as of a franchise in of and the this to margins? terms quick how sort you Can Space whole maybe And as just company compares rest of follow-up. growth speak Okay. to the

Prabu Natarajan

Sure.

So margin know, That at restricted got a think, a we've as really as good I of is cash us. ] CEDA-work is producing customers. a of a space good [ chunk you as for generator solidly many portfolio that the good well

go of have and that CEDA. the win portfolio a an there software of capability from of of [ the last BMCX, there an is that the SDA. which in GMASS for is executing course, win. said our is like interesting. out year another program we DTAMM about won and that [ nice a that really non market doing on that, takeaway example that of space team ] [ CEDA-work real-time think was a Obviously, important that job continuing the we that the we publicly is then, ] primes, to positioning. we've talked CEDA is towards another So was program really can one that And team take is was development some outside So the I expertise Having we inflect ] build one

balance. a good So is there

and I is think business is we are business. here. as objective our we're non-CEDA a the developing business we between CEDA but go developing really non-CEDA, and CEDA a high-quality

Toni Townes-Whitley

time. but more portfolio be believe a our would heavy, will, critical mission is will if the I part non-CEDA tech we moving within you more over space, is of important and that's into IT, shift and more be to business And say mission tech-enabled that accretive IT what the

Operator

question von comes the from of Cowen. line of next Rumohr Our Cai TD

Cai Von Rumohr

much. Yes. Thanks so

months that you does about So defining XX are what as win the And quarter. is second the assume X.Xx in rate? secondly, trailing that then your or that book-to-bill, --

Prabu Natarajan

first of rate, win it think think terms the it is, than that the said implies months. I rates it is this before, question, trailing part XX%, comfortably Cai, for is assumes I So higher in publicly business it we've win of what And higher. XX and

our recompetes And where be to new sort normal the it high And to industry, I XX%, our industry approximately rate for what's it expect expecting is business. we to of let's call business new back so on are we -- get the win think XX%.

we're So that's what assuming.

about At little the into headwind this recompete X%. over point, is going next that's only NCAPS. a And year known

I the when a goes recompete year, is have think And before what on of terms we've with the so and we we're call, headwinds, we into what to getting that's X% but maybe demonstrated so of organic recompetes, the even earlier what's bid to in Cai. on question X% or year we're mid-single assuming a show that what last to on that lot assumed, expecting end headwind organic with of the growth tends X% Obviously, growth Bert's to that up then be and X.X% math. digits, X%

Cai Von Rumohr

recompete evolved. potential you because of the that that terms importantly, of mentioned, bigger recompete, in I the status recompete? don't that's SX, very also know is contract. and And is your I mean, whether What What of status that was

Toni Townes-Whitley

have repeat you I the of of Cai, the part the question part Evolve, ask question. to may to I your So heard first on second

first The on the question part Evolve. of

that's that our current contract know, and an performance customer set. pleased procurement, about with with we're you that ongoing super As

followed award fiscal next we any or even that period year and possibly to until beginning year maybe an late probably 'XX. would revenue there expect it will protest right, activity be 'XX year of continues that not impact move by any fiscal that have As change early extended

to on if So continues that we're performance move focusing our right, that on contract.

of that's contracts. consolidation know, a you As many

and on recompete we're there. that we positioned but hearing don't risk So pleased overall, the customer impact with a think there's there, 'XX we're But obviously immediately. from very performance we're what upside there's on our a see having potential,

What was other? the

Cai Von Rumohr

contract. was other SX Army one The the

Toni Townes-Whitley

here to in we Yes, happen Huntsville. be sitting

there. us appropriate to it's comment So for

of thinking the to next next contracts of the frame recompete we our timing the for very the about award. XX, is the performance in cost believe, a about for very So XX this, of actual is of timing, beginning 'XX recompete of first of end on the this about months towards the customer very, our probably fiscal feel sort solid But this fiscal look, of we set. largest of in fiscal that, of date. with are now the year, it And time our feel of is solid the very, year it. We obviously, and series one we year the But terms the timing.

Prabu Natarajan

would I known last as time went hoping and job ago, [ alive. relationships XXX streak was recompete X keep is amazing the or ]. about we on it thing the and an The only add team so we're the Cai, to here, years And great AMCOM is doing

Cai Von Rumohr

to to Or at be looking compass of the separate structure And you're for OEM this terms refresh bid this my similar memory, is packages? bid bid? what's in

Toni Townes-Whitley

I think structure. very we're looking similar at a

X contracts, guide is time and that first X that January, have is February when I the up, expecting frame We said, award. we're as the of this in the shows separate

Operator

Strauss comes the line of of next David Our Barclays. from question

Joshua Korn

for is This Korn Josh on David.

margins is and sort wanted the ask the quarters last would drop trajectory Just time? to in variable the be over civilian how what those about of over X there,

Toni Townes-Whitley

Yes.

in not the programs year-over-year happened as nominal of had comparison, that put a to sort we repeatable year. of revenue of high well the our of One new our programs activity civilian as year this that -- it was ramp-up on one a context last in time, civilian So some Josh, major in of a surge revenue just expect is margin portfolio margin over a as on-contract had as where on has ramping we higher so are contract, well lower expectations the as margin We time is moving a than execution this up with on about coming the growth the up and ramp start. as tailwind HX civilian into up talk fully those we programs, started.

like And range minus event the so the we'll prior onetime range, of for in be year. feel civilian we fiscal appropriate back that

Operator

time. in Thank today's you. at participation no the am further showing Thank conclude does This for questions I conference. your you program. this

disconnect. You now may

Science Applications International (SAIC) 5 Sep 242025 Q2 Earnings call transcript