CACI - Earnings call 2 2024 | CACI International Inc

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Fiscal 2024 Second Quarter Conference Call.

Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the conference call over to George Price, Senior Vice President, Investor Relations. Please go ahead.

George Price

morning, good and Sarah, everyone. Thanks, Senior I'm for of Relations President International. George Price, CACI Investor Vice Thank us for you joining this morning.

that statements We let's are constitute reflect this forward-looking be These current as our move so address call in statements to Slide statements fact providing X. There such presentation and do not slides, views law. historical under will night's Those of press filings. bottom to differ results could cause today actual the described are and are and at from release subject factors anticipated. in to of SEC listed important last factors that company's are materially the

is on as this statement harbor safe be transcript should call. exhibit incorporated Our of of any included this and part

not substitute GAAP. that prepared would presentation financial discussion with will be like for in isolation accordance include should non-GAAP considered as or performance point I in also measures a out our of These to measures.

To Slide Officer is and Mengucci, to President X, turn John? Let's our International. please. here morning, discussion John CACI Executive this Chief open of

John Mengucci

good Thanks, for year morning, second joining 'XX results. George, fiscal our discuss everyone. quarter and to us you Thank

With is MacLauchlan, Financial Jeff our Officer. morning me Chief this

to Slide please. Let's turn X,

In QX, solid cash the revenue XX% delivered flow. and free consistent EBITDA second we growth, quarter, with organic

as $X.X and book-to-bill we billion More continue to and CACI, we awards, addition, strong a of contract well. our performance X.Xx half than In won a trailing represents new for for to work which quarter the basis. both of on XX-month awards recompete were have

will see financial we our result, shortly. we raising provide the of we year than a Jeff originally year details forward, Looking as stronger half the guidance. full playing And fiscal 'XX second expected. out are

long-term focuses per cash X, flow share. and with Overall, our our well-aligned free to performance value growth creation please. Slide model, continues on be

Navy, wins, seeing we our but the 'XX share the to growth pleased Force, ahead our to continued in business in is award increasing expect growth, many across of Intel our we of Spectral future. Cyber EITaaS with support increased and our with the new and healthy per Air and are guidance, with reflected NSA. plan This flow the performance including that I'm profitability, these award fiscal programs cash free say

to strong sustaining and And market development at of the performance. a differentiated our of pipeline our organization recompetes in in as leveraging continue and by an capabilities, investing strong past need is winning business ahead level We win as new work impressive opportunities. new well executing providing

execution The our delivering strategy of results. is currently

focus by including award won $X Last value. was Just $X opportunities, strong greater a far. X of effort billion-plus additional we billion in year. to new have our year, our each largest we've This few pipeline X, a than including won several we years strategic and already ago, win total year, X,

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secure of the workloads networks, by and continued our and demand, to modernize and secure network the IT success cloud. This our need of develop enduring area migrate area an is One driven to -- modernization. is software scale,

During we DIA modernization our win our last quarter, following additional solidifying presence the across X the network second contracts, DoD, quarter. won

in classifying Technologies, technology the of The commercial out-of-the-box was securing Archon's we location. new to differentiating combination from allows CACI as of and devices technology capabilities our the existing Archon past part acquired, work. performance networks software-enabled technology market. IDT Archon's The access end-user critical this is a in in securely

CACI and addition, industry continues modernization cloud and application demonstrate In migration. digital to leadership

unclassified environments. adoption We in are both seeing customers accelerate cloud of and their classified

to first Amazon of with applications at the space, the next of strategic the Web announced in Services federal the wave recently forefront us migrating was the and cloud. Our agreement collaboration places

us value enables AWS Our to partnership customers. our deliver high leader with technology like to a

finally, development continues software government. the CACI in scale, to And is the X Agile executing lead software must-have development industry market. federal in a at the the increasingly in largest capability Agile Agile programs

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the this invest to to execute need, to critical electromagnetic differentiated In strategy, domain. customers of demonstrate capabilities spectrum, software-defined dominate our we our continue enable ahead and

every pace global a technology rapid necessitates With of we in flexible the response. day and how expanding adversary capabilities change firsthand are environment, threat and faster seeing our the more

addressing. Spectral critical this is For need precisely Navy, is the what

While technology to allows us us the our a allows and necessary It to flexibility. easily build to with deliver architectures threats adapt today's stress model speed, cannot traditional these software-defined changes, and for as readily change. adapt hardware with open agility,

In warfare. continue all we across demand signals see electronic fact, areas in of intelligence to domains and

quarter, that expect could last the to signals receive for and extremely currently defeat order in identify, mentioned was went our to dismounted We're we year and to army enable soldiers 'XX. pleased we second of detect, be the fiscal say As of evaluation of a an program interest. SIGINT/EW well, evaluating that geolocate, some technology half

from are capabilities interest addition, our function allies. we seeing UAS, also in increasing our UAS from the In as well U.S. counter software-defined as

on evolving over the the recompete to to enable work XX and necessary of X, has supported deliver I'd family and Army, with the the multi-domain technology we Similar utilize successful please. wins to threats Trojan for also operations. like open for systems address Spectral, Army's software-defined Trojan, to years. speed architectures the global will adaptability highlight our supporting Slide CACI

technology share healthy demand, communications we are we In our business, ever with demonstration of the optical optical Photonics communications Photonics, bespoke furthest in and connected Currently, demonstrating communications. to from to deliver unprecedented deep of the Mars, space is achievements. In data equivalent optical see capture a our technologies. innovation our orbit distance market transmitting to continue Earth

successfully Station, ISS to with addition, CACI razor communicated Space was has International communications international base system In ground and the board, the Laser Earth on the launched -- communication from on ILLUMA station. an hardware the system recently to

building This driven accelerated delivering have we will for and volume. technology the into also orbit. and our help lower higher we both expected, than capability is investments earth we produce and our volume, volumes terminals to cost, X, sooner innovation higher order increasing are low future our being coming R&D lower and With in underpin flow. profitability, growth, These please. technology to investments P&L through swap cash Slide

the Turning to macro environment.

continue ongoing government year customer deliberations the RFPs, money security investments of budget trending see good levels demand remains monitor to fiscal continue needs Customer activity. Congress, we modernization awards continue. remains national process in clear high, Despite to it remains closing. We and the for that 'XX and to healthy,

robust to continue enduring Slide our of need, our well-funded with as very be I pleased strategic by awards in and evidenced strong please. XX, pipeline. positioning areas

In in reflect in line half. first the performance second expectations, stronger our year half with and guidance our to our momentum summary, we're was raising 'XX fiscal

strategy our investing to executing need, developing successfully opportunities, differentiated fewer are delivering on We superior of our of performance capabilities, bidding larger customers. ahead and and

result, free and win strong deploy capital in we And performance long-term our opportunistic per to shareholder flexible to flow continue As the in drive value. share positions manner and cash marketplace. a a us to

the over to With call Jeff. that, turn I'll

Jeffrey MacLauchlan

Slide to Thank Please you, turn John. Good XX. everyone. morning,

addition last Our We with acquisitions second X expectations we to representing modest revenue in quarter you the of with discussed recent generated from are results a quarter. line the growth U.K. XX% billion, $X.XX contribution in in organic

our successfully to we continue work. As to John win mentioned, and execute enduring strategy high-value

we approximately delivering includes Second in Recall discussed XX our with of margin EBITDA quarter X that discussed the basis was previously the margin quarter with EBITDA of quarter. second X.X%, from EBITDA compared last line flattish points drag volume expectations material relatively quarter. margin first

per operating tax higher year share and earnings income, more a greater lower of than provision, diluted a Adjusted interest were lower and $X.XX was share X% expense ago. revenue by offset count. than a Higher

Second collections. capital. the solid outstanding purchase days, our quarter working as manage cash operating DSO to reflecting Free was we of new We sales for XX day XX, million, cash strong $XX flow accounts $XX Slide profitability or please. continue was excluding reported quarter. million cash a record efficiently and flow, facility receivable

of of significant capital debt with leverage trailing optionality. the healthy and We our with the flow us The XX leverage, characteristics to quarter. business, modest to ended months net prior long-term our cash flat EBITDA, quarter second provides with access X.Xx our

have remaining to million original share repurchase our $XXX continue authorization. $XXX of We approximately million

are we perspective. buyer's in a engaged an from that attractive more addition, look M&A actively In to market is beginning

long-term our we've We is share. As value discussed, focused long-term well-positioned remain Slide in drive value. please. growth a creation XX, on capital shareholder flow cash opportunistic driving to model in manner deploy per flexible and to free

We're pleased to raising 'XX guidance. our fiscal be

Let evolution guidance on context some a the me minute provide of year. our take for to the

XX% billion revenue range. to last we August, told provided that be in the margins we high with guidance we to billion, EBITDA $X.X $X When initial expected you

Additionally, than half quarterly terms would the greater the first we without of giving year that specific indicated revenue of second guidance, in be and margin. the

raised to and revenue half those an with are $XXX line expectations sales quarter, our as guidance recompete accelerating profitability, guidance billion. business momentum first of performance that we billion in our $XXX our rate new strength was In by with half well excluding revenue the million and our between for strong and in raising X sales second additional underlying the as unchanged. margin win material $X.X and $X.X material Today, the first reiterated we of awards, million

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between adjusted million we per our As $XXX income to to income million, are higher a with and adjusted net between share also increase as increasing repurchases. EPS an $XX.XX adjusted net reflecting well half guidance the $XX.XX as $XXX result, share, first in our to intended

least performance. flow earnings finally, and cash increased we're strong guidance on free continued raising working our million $XXX capital the at based to And

Our count, fiscal increased a initial results cash expectations. our lower in the combined share share increase the free flow with free in flow, benefit X% 'XX per cash versus of

year assist we million communicated diluted $XXX be approximately the To our million and XX.X interest share previously end full please. with to modeling, shares, million full range. year to count lower of now towards our $XXX be Slide to expect expense your XX,

continue strong. forward our indicators, to prospects Turning CACI's be to

of months in XX awards and of reflects trailing duration weighted years. strong half marketplace average book-to-bill a the nearly performance our first have Our X.Xx X

backlog represents of revenue. long-term These annual Our years year and almost a $XX business. provide ago metrics increased visibility our into X of billion from good X%

come to X% XX% than the revenue than from business. approximately recompetes our existing Exiting of quarter, we from less with new X% programs, from and second less expected

the is recompetes, in giving the less our and remaining year. for operational X% and increased strong these our guidance confidence development performance, us metrics yields than for the increased Today, expectations from business of year. our Progress on increase confidence in reflects

X next billion pipeline, we business, $XX new with submit of of for we terms new in are which bids of over under of our the another business. CACI. XX% have $XX to over quarters, bids In And evaluation, expect XX% for that billion

maintain bidding. strong ability we pipeline, strong healthy strategic positioning, as a Our demand, and to differentiated even successful deliver awards, disciplined capabilities reflects

and previously value. we are and summary, half and support full work In line first in and as per high-value free We're year share, expectations. quarter raising business, discussed seeing in results with long-term are second guidance, our cash flow our good we result, enduring growth, momentum and to shareholder our a winning executing delivered increasing additional

turn John. back the I'll that, With to over call

John Mengucci

you, Thank Jeff.

go please. Let's Slide to XX,

In business pleased both future we how with term closing, how I'm and for near performing, growth. are is positioning our

our our EPS, guidance adjusted to We us raise and revenue, and strategy enables free continue successfully adjusted performance for execute to cash income, 'XX flow. net fiscal our

on executing, are and shareholders. our long-term We generate continue flow per to investing, share, we confident are ability cash winning, free and commitments additional in to delivering our to remain and shareholder we our growth, our drive to are increased We are customers value. we

success and nation. proud our every driven our everyone innovation talent, our employees' our I company As for is of the case, what do is always day each To on am and you by team, commitment. the CACI and for

to shareholders, continued for I support thank of our your you CACI. And

Sarah, let's open that, With call for questions. the

Operator

from of Your Instructions] first Spingarn with question line [Operator Robert comes the Melius Research.

Robert Spingarn

underline start to thinking if though, want the other nice fiscal end the word for a to DC, are to up question, a potential, a supplemental potential in uncertainty this it hand, set how and I we ask CR? just about high-level I like were the then solid on you in you're seems budget here. year And a year. given the of off guide the So full numbers to

get So to what end need what the to -- would happen of high the happen guide? to would

John Mengucci

Yes. Rob.

Look, process. parts. appropriately you budget As of the fiscal year awful an government there's stated, moving lot we're 'XX monitoring

you August, different for know, As back all we in planned very scenarios.

low the on funding think end, I be said we would slower.

budget 'XX fiscal full a question CR, have real We year year process. of a government

shorter be and a On the budget we CR a upper would said passed. end, would be

appears So should between A full CR to remains deadline. on seeing large so, how January. Intel we're point, less and its But at based ongoing the in somewhere by there is Congress now critical March award agreement how priority in our year completely we're us, impacts come an this layout even national is likely this work, that security funded. it

a Our it's funding well-funded year EITaaS Air It's large award, at and the fiscal that priority. continues. levels support 'XX Air Force Force government and

very particularly the Spectral the program Navy, critical for is a supporting [indiscernible].

are of funding. recent process, sort starting windows, ramp up with Another through wins those [indiscernible] getting their are ample test to

budget, always, that driving as we We're focus we long-term So things growth, about can shareholder running value. when the Rob, we on talk control. business,

Facing look, in hand other the On dangerous of China. place. this, threats world is a the

can as I've there it's still be said, You've a for got a long wake-up to be time. counters was are Israel-Hamas long, call. there, -- the that going [indiscernible] always the shows Ukraine-Russia, situation

is around technology differentiated modernization and [indiscernible] of extremely aligned need, priorities, us security and that and expertise invest But strategy remember well. ahead our positions strongly and

to government. is we budget resiliency areas extremely sure pipeline obviously Our that and that jobs technology jobs not after to federal well-funded, win shared, our to go the strategy the be we the consistently was that to we our have due that expertise make happens and the of It and and mission, important are accidental.

story fiscal long when as support the does through So we you all that talking our budget about August, get next next be process this to us And we'll year. year. short, know,

Robert Spingarn

XXX, were might expect that that that? or if that a tax refund? you Section happen, repealed just quickly were Jeff. retroactive a 'XX, Well, would you On that's how receive for into basis And back on deferred a if to John. deploy color, great to Could And repo? go cash then to

Jeffrey MacLauchlan

Rob. yes, Well,

of appears here strong the implementation there still the steps As you to the while bipartisan details. in be support, unclear. know pretty is And lot that are devil a

being communicated You of negative ought think to impact about a we reversal as expires. it the when the basically as what size previously

would that earlier almost undoing really. So dollar basically be hits, those for dollar,

cash, as paradigm extra evaluating efficiently. return-based effectively have before, opportunities. or would more disciplined, into that capital, it all capital a factored rhythm we'll with deploy And we've deployment our for we [indiscernible] options. evaluating those And talked have and we get our very of of And normal as very, it framework

Operator

Bert question Stifel. comes the Subin from of next Your with line

Bert Subin

earnings, us into through current sales? . Can at we substantial question guide, If in looking pretty think I XX% about little Jeff, Does midpoint. half the of, walk in first step-up today you. And visibility historically, there's a been a the kind that is for it improvement the least those implies step-up predictable. just has imply look at back how your solid of the with good that margins, a you in less is? your technology it to

Jeffrey MacLauchlan

some give you to Yes. add this. to I you I let want and me can John but would will not a think -- that don't bit draw of color, little likely conclusion,

rest what If subtle of year may the your year's for looks like. of bit prepared to a would of question. we what talked have you your we an with far the part you the I about as couple statistics look, also into call visibility base, to very And the which shared little first attention very, strong really rest in things a remarks, the answer important been we of that's of as the revenue have all, that. at

also timing the can in could activity out, talked then you some this allude, and which is second of the have, we increased as that mix half. it. we first And But investment in a you about end see photonics But point in of. nearing see sort classic in our we're the as of backlog. bit little the We half, activities we

in you're You've looking noticed, order little bit growth if the of you'll at consequences, quarter. a notice second kind of inventory

All look couple of of the of gives the next really we sort what see quarters is setting half that which strong of second that confidence us like. up

John Mengucci

really a playing confidence around This see the that. line -- with fact how other Yes. the starts in delivered year is me out. Look, half us, Bert, confidence add in our we it half that couple bolstered let of the it expect first for work for things half large back we we momentum of our rate, And with It's programs than namely XXs. as back wins. is as the high expectations. is by at well our that August in in recent other stronger X second all August, the margin underlying seeing which of

we you income, would, not We're flow, which guidance range of raised we've confidence. in is, it raising know, free have shows it the half. keeping second for which net We're cash confidence We've the revenue. and pulled as bottom

fiscal our execution. We're strong our the to strategy. We're need. We've on a margins business. and 'XX holding awards on are investing year executing strong at We EBITDA underlying got

As can the our we I X at on our 'XX our captured year provided to why provided low guidance August, reasons the earlier could the we we at we question, X the at end guidance August, end, do end upper back Since call in look of if X upper that. why expectations. Rob of his range reasons X big of finish end we

You expect $XXX we we'd did. believe coming should additional raising that area. our is we high million all we're That that what be And track. That on is at XX% guidance.

by and shuts the fiscal and at We've got X about control. stronger the we stay tied your guide. for going be to be if focused What's the company. successful up our look, months, of completely we're We talking here the thought, than a much of we 'XX we'll happening year, year business. book sitting got ramping August government end question, Rob, can the what into not down not covered, But on for to covered probably

Bert Subin

it. Got

Okay. That's very helpful.

on investments cyber EW/SIGINT, half. Obviously, and some are Can what that to how of about talk does over Jeff Are paying are focus just of the And inning think make tech that follow-up, some off. your you Just you've you capabilities the still software made the to relative as need in you base? investments, that, in I next and the payout to bolster? you years? first then when X about there M&A development X investments in in photonics mentioned the reaching a you think we mean,

John Mengucci

Bert. Yes,

really investment, are. we unpack Technology like I Let me SIGINT/EW, that. where

it's we have invested larger and paying when the to, expected off. We tranche already

going into base share. our You're to nice provide that free a growing cash to per area, for the that are flow margins now is continue high seeing plus XX strong growth revenue

relative the of company. size it's overall stuff, On the photonic to look, the modestly

As as from both strong share, we've been deployed, We're primes. proven, we're and discussing, and remarks for demand we're satellite prepared various orbits. our our there's we're operational, tested and government

over of a As bespoke some government to between of lot art algorithms, CACI sending That's connect to those millions of and get dollars are my the out there, all miles. different remarks stated investment from points high-tech solutions Mars laser how prepared signals Earth X signals to of

All lower-cost and all the of into spot, terminal that algorithms technology lower available market. go

If and seeing some we've which [indiscernible]. X and X, price, why roles we beta under Tranche demand, On at with X, is to we higher X look alpha. Tranche order accelerated P&L deliver look, we both of SDA contract to expected, SDA volume tied for that investments a are the we than terminals. we're currently got

X. quarter tracking We in expect awards

inning in growth. market. So We're look, probably to the we XX-year a I'd in the X- seventh say probably of of to second we're investment. inning eighth believe early it's burgeoning

exiting a years but 'XX, couple being which contributor I So into our SAP we really this of 'XX more business investment Photonics 'XX ago. mentioned, playing when much bought as and a we beyond, and as a was just thesis see meaningful

Operator

Baird. Arment Your from of the next line Peter question comes with

Peter Arment

on Yes, follow Bert's kind just John, with Jeff, questioning. Maybe circle and of George. to

to grow, on As you it -- and this the as mentioned, inning side. in you're technology continues the the sounds investment seventh like roughly mix

the should a to be pick up view term? margins As lift on starts to we technology, longer the still volume to this

Is comment just resetting? -- assets And a that color more then is be that there's or that coming would prices Any available just helpful. related getting more a potentially to environment this, made little M&A attractive. there Jeff the

John Mengucci

sort I look, flow right? that first, back many I per See, when share hear get start And free margins, cash let's Peter. my Yes, growth. has of levers, with head margins because into many,

going taking of on driving need and for is discussion, given can't to really size actually organic dot, well-funded, be it that funding budget top at think size Look, and funded, the lower first, you approach part risk to those the based will -- also matter. we're dot, to still of lower streams be I us, guarantee the growth after a gets But level, always it meter look deep long-term right? dot, we earlier the going CACI overall We as And to areas when the and revenue going narrow, defense attention. of size it well-funded. everything is that gets have our in know, expansion it yes, that at you low that we're of. Margin things has we're

focus the Our long is term.

EBITDA going unnatural arm say investments I our other subtractions, EBIT I'd no think I've There's achieve do other D&A. not short that adjustments. not plus is mentioned, also We're driving no long-term to that, additives, it. going to I'm be are that growth. no acts just future to going to

over on the revenue look both. low years, a to the push been margin plus achievement single-digit mid-single-digit growth this and So we business, company the of to that for beginning the growth last on from has work yes, it number continue large revenue will growth to side,

technology X a be these about and going once [indiscernible] every As and days. We're programs, changing large comments key M&A, Jeff to a of a are some every prepared as where around we their I'm front, we're are looking change ACAPX in once look but you watching changes always X continue lot remarks as here areas. going provide to SIGINT/EW. There at the adversary stated, some those the of watching, used to your years. adversary events behaviors. These just It's had time would be we how globe are we well, talked at to my to let quickly going massively their

then works, in that that see tech and make needs world. great EMS be Agile. changes this, software-defined that see SIGINT try the react, the how quickly That how built can let's ala may Let's

in anything what modernization, playing. team IT has technology have SIGINT/EW been positioned other in network well. on I recent love -- been that area, So core CACI sort well. and technology [indiscernible] modernization And from That's double us of is down that as recent the frankly, acquisitions hand

I'll Jeff let M&A the how about talk looking So is market today.

Jeffrey MacLauchlan

Yes.

For expectations. second little both. important your answer of and Probably the part more us valuation to short we're of a question, the tempering is seeing of bit is modulation

we're to of consequences So regulatory of constraints, little the see sort of starting valuation some bit interest more rate environment reasonable whatnot, in premises. and a themselves broader manifest

probably is That us by afford company pipeline that little more opportunities. valuation really but volume, in more terms bit also a interesting expectations could with a about in the it's some of

Operator

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

Josh Corn

for Corn David. Josh actually is This on

last ask, decline Just over growth federal in civilian. a DoD bit really and we've couple of little seen the in to strong quarters, revenues of a the

there? what the like wanted forward and So going may how pipeline ask bid that looks just look I to

Jeffrey MacLauchlan

a DCSA, Yes. The Defense OPM, It you'll long-standing ago so number is agency, Management, is driver Services a and years the franchise. of then Office to of through is our established transitioned that has a year or Contractor know of work, Agency. Personnel investigation background which for civil a administered been

have change the is driver change the not the substantive on really few So There other business. but small while it a changes, a to it's is a that. been chart,

John Mengucci

today, markets. every as actually question forward. that was through it. around fine in your that Josh, looking I'll customer single there about Think of structured where part We're out capabilities to also we add we're sort run of markets the

Army ramp-up around that X time, areas with year-to-year. things other to where DHS, works and move time around. well. We we're from modernization those based win as So quarter-quarter numbers X look are DIA in quarter, going may maybe after areas, which on to And other points, then at modernization is network in we those It's winning work, been different [indiscernible], like of move sort have period. that network

around I of work delayed X example, moves in flat, it's came as something quarter, that commercial another X work, of over early. yes, the at you so. got maybe because quarters, something over sort But sort think or look

Operator

Fargo. question of Akers next Matt the comes Your from of line Wells

Matthew Akers

you quick I ask hiring give just doing color there how of you're a wanted Any headcount. can to on on year-to-date? trend sort this

John Mengucci

Yes. a the you Look, -- guys broken It's hiring, think high. of for record. just demand talent Matt. remains

a company of well all been us, and because set entire job. talent goal of extremely It's involved each as has working. working year all our our recent across acquisition, wins, Given we're to the how an all talent is team doing outstanding We acquisition in well.

of people and people, We continue our so potential around value to is program, They're hiring. Choice, contributing are great other our to program, strive strong meet all ours. programs of X is our limitless, and #MakingMove referral great to employee Employer proposition your all

is suffice sure material say, Matt, the And numbers but is what to that are, to piece, our numbers really the flip at what saw COVID. a it's retention it side that of not we across level company prior are exceptionally below those levels, strong

it's with our of value program. We're We've engaging employees expanded and the our internship our sure diversity all and sort know working. inclusion. regularly of We're making employees,

win Work Best We our right? believes. talent program continue able part Place on to to surveys, employee interim numerous of referral pipeline, employee these awards. what And our and not talent, And drives based the CEO our are that what program, again, we're to find

Both under those the referral and just of bringing in, folks of are program XX%. numbers large

XX% the effect, brings referrals. that. gets are positive in folks. proven. through about think faster And it come of double than One company that employees people a this has us is So

retention talent, company longer the right? who's stays has to that statistically somebody that it are don't, because on the in already talent longer was materially and as stay who people those up owe that Secondly, these side, "look them." refer they somebody who some referred Assume and to company great referred who than referred they

So company, of to the the I hate right this all XX-year-old but coupled the easier it's And to customer, it well. closely easier, to That XX% of be makes has back working company choice. continue it. mission, it to very veterans, say, deeply extremely a it a involved really the employer makes to job in it mix culture us for ties in

Matthew Akers

the you sort kind us. starting like is like what 'XX fiscal that a 'XX? first I can noise Just half think half EBITDA in point versus I guess year, more that do look And could going forward, it I Is way implied? Does of frame Jeff. on about more of any of if one back the guess Does a average? the for lot more it. for Got half. then margins, margin of second there the way, this look to sort

Jeffrey MacLauchlan

I our of going you We're guidance to going that's this run point. work. kind will to Yes. 'XX that, actively front still appreciate mean, not at

there's we of down in the achieve of and a winding we we're a well. investing that the question. of mix a and that couple add mean, where lot visibility timing see to had we the I as earlier I as and areas first we some good and half, don't backlog, sort know have to milestones, there number there's into

to lot we've said think So there's what I about don't it. already to a add

Operator

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

Seth Seifman

be build kind a near of a and cash or see might you more -- M&A product bit. help about I in have one might that for almost more earnings Okay. a you wanted if and the earnings maybe to that it's investment in stuff about that to wonder the term? up companies maybe accretive things now solid -- an might talked like stream technology loosening see on ask question if little to pipeline, and the that out side? be Or capabilities, opportunities flow more you more R&D more be And

Jeffrey MacLauchlan

about filling It that fact talk across our strategy spectrum. We is the gaps. really grounded goes in and program the

It a runs a that Sometimes the know, a that's with we technology the or area the add portfolio. sometimes see spectrum. really to mature don't across It's John? gap, I a it's to board. need really an customer position

John Mengucci

No.

relationships. right? think, I actually a customer that acquisitions capability, Josh, of bolster done number is absolutely right, The relationships. We've customer

So when with our capability performance the relationships got record. Cash long-term in not [ is X have relationships those in of deeply we way some that and and is in great delivery got hand customer to SIGINT kind got we've example ] sort have, a we're and repeat to step that strong And in. mature customer a there. in bring customer companies set better They've other track match. of strong, cultures what

us efficient, we that a sort has growth. CACI of top history allows to So customer M&As take allows the long of and are driving bottom as efficiently, a that core continue what capability, plus our long pipeline focus add line more incoming successful company relationship this and to as really us -- well

Operator

Mariana Your next question America. with comes of the from Perez of Bank Mora line

Mariana Perez Mora

opportunities. pipeline like -- expected I $XX X from in bids just indicative opportunities? the to any in on raised the $XX billion I our like and/or to see they the billion When next of it to So would like dig quarters, submitted CACI be just is environment, evolving strengthening seasonal of last that strategy or a changes is Or Is new trend? significant increase that quarter. deeper

John Mengucci

Mariana, so going look I pipeline, the ones submitted. at that look under and at to eval be when are we visitor actually

mind or in end to the So more X X. X elements. total. and line. I then a to in $XX say little here with It billion And my color maybe X, up comes I'll forget one folks I'll for on down hate

right? some larger dependable you more, X-, longer duration, it first always we larger, it's choice, at Because said, win up portends which if X-year may of of have the would development have out as right? programs, bit ramp and fast there. that we're size, and the given is less machine a But bit always the business We growth here, although as rebuilt stream looking we X-, some as not likely that these then

one going be to is So sized.

So our our growth. of in and long-term long duration confidence there's And several a these provide billion dollar other opportunities in number the pipeline one across markets.

would Army Spectral or in back process going right? cloud, work today? related development, X called it we put different and Agile step we Is a to of submit perfect the right need? that Spectral that work take Navy? that win that customer software, forward? it would we differentiate, to in the sort well-funded, have awarded milestone's we Navy to all the it customer tight? and How to and too? do the milestones Are very do a a this things I of we a right we can a technology bucket network code one, Is some sort like And software would the we introduce location, our be in are modernization, example. with of second is we piece a the build that XX-year very, Is do the work get mission Trojan SIGINT is some bring in do look capability do of for it last that How to Army is, invested well, want doing call, So repeat? nice we The general bid, well? what we to have zip size, we I

of the build because years when to to the possible. show to the time execute are pipeline actually they want We it the ahead built we relationship. have invest customer is they want time So and to

So cycles. odds the and pipeline, as our ramp-up all, pipeline and things through then can't the we opportunities. the we stacking bid, make today them. into of lot certain collectively, favor our But like we're sort is win all we to that through of in those of put the of through the made up a eval, We all those,

So hopefully, you additional provides color. some that

Mariana Perez Mora

"Bid when great for -- Less, is this strategy you win target bid that you And the you time Win that's have lately? mentioned that proposals? you trending rate quite on More" you And Yes, is working do that how What are been and like want achieve now. to these color.

John Mengucci

be the market collective you in win valuable realm, Point in some sharing a get very really if we year-over-year. shares XXX%. well our And No. like rate, not Look, But it XX% percent, over take what's in in go of win, bids are of that we somebody tune They else a rigorous -- to the X and They has process. that do shape very bids up. the have data. XX-ish rates to XX%. XX% our recompete I But others. bluebird come months a really but lot been More don't in bit in want will get in our to years, pipeline. thought before through hate We into submitted we're out. methodically a number

because higher driving we think you win. it's a think much win for Again, manage chance have only ever I business things to So rate your you business, you win XXX% on can rate. been respectable of out a

pinpoint understanding technology we on that which as organization in answer of extremely X So into XX our a with but to well. made sales, of change how that, below all I'm includes business a the impressed X, do to BD tough, our our leads, and over last BD give depth look, level, to, is really the to deep, development team sales years, organization, it's the tough our question sector

Operator

the Your of Sheila from next comes with Jefferies. Kahyaoglu question line

Sheila Kahyaoglu

of Lots half. second margins half on questions first versus

how we opportunities about investments program mentioned a I could was do open what well? quite in wondering think but few Can the that about if HX, we this investment, that the up impact as times. Photonics you So you talk because could about talk maybe also like

Jeffrey MacLauchlan

think don't it's Photonics and to the number related SDA to be our business. related any family specifics, going Photonics but the of mentioned John with, programs opposed of a product I the to familiar that Solutions, you'd of products as into Photonics Bespoke generally get we're the programs a other to that

about open we're and rates that times. of I position win on the there our been we've think our pretty with a couple programs

business an accelerating just transitioning some to kind focused DARPA contracts, from portion development of where both. the producibility production, We on have we're of and

John Mengucci

a through 'XX. in combine little business, business the Sheila, mentioned SA did as that year of when as well because remember, LGS would I capabilities, fiscal Photonics Photonics the Yes, that for business extra we own investing extra, Photonics our acquisition, we with that be call our

more as it side, expected producibility second versus half. volumes half first of As we the hindsight, starting on than at we our up we investment to in now we pick more down decided look double year the saw to the in the sooner

between timely margin So one, us half. enhancements first And then was beyond. and positive two, some in producibility spent confidence just to what as We the that with that provides can in first shows second more the up that in half 'XX gives in -- us a deliver delta fashion. quarter

Sheila Kahyaoglu

contract appreciate provide And ask, million fiscal of 'XX? additional about $XXX what And I could this new that in no. announced any more, color. that you as program if there? Yes, one we you're driver that a on GENMOD maybe I could quarter. think you How growth color do doing

John Mengucci

job. of pipeline jobs. we're things modernization It's we've our lot technology mean coming lot. a got looking others at a it's I that similar it's award. unpack -- won for going we've modernization And network network fantastic it's Yes. of all of But But rates. to in as another We've a program. other in unpacking different got things they're larger

job an ramping plan. it EITaaS, would We've programs We actually there got that one, an ahead more planning But won a outstanding So done we start beyond up up at job at ramped additional going of on ramping work. job. with which team's that is that based on design, other are We've there mentioned plan. 'XX faster. when out doing it's into got of of outstanding to are unpack and and up timing upfront

many up had we events, range. is has We given we've our one scope and that really planning of look more plan Customers ahead open than by of is have. Clearly, pleased. that world nature the like the hand Spectral, pace that, adding guidance we very, meetings innovation. the architecture in start very the Navy would and impressed If design. very and up They're work believe our the the with at of ramping software-based would Customer approach. that mentioned as well. we

last, many written the of about have And you this.

growth would as Our We're exploitation. the the superior solution, delivering than large technically Intel up that's selected results. job plan. ahead expected. providing you we driving network had we superior originally getting government top ramped And even would, assume line they're We're better of and

Operator

William with Your from comes question DiPalma of the Louie Blair. line next

Louie Dipalma

X X, your if are Intelligence And wins over ECSX year. referenced large it You your award. there you include Defense the Agency past seems

over deck, past slide how a newer duration. have or the the approximately awards also X-year awards On year discussed

when to group initial you initial run think, smooth rate if were question. would is expect billion the it ramping faster you said is that's I fully John, together, contracts these just than you mega be revenue X that expectations, But the a X-year ramped? And but to runway? Spectral Yes,

Jeffrey MacLauchlan

is job relatively Intel really next they it handful I -- John vary, over of quarters. a kind would the to steady but Louie. quickly, to want run relative reach add and the this, rate mean state NSA of ramping ramp will

are because particular, of bit front really is planning. focused slower little a the EITaaS program on end the ramp and Spectral, in

planning phase. fact planning So -- that that, proceeding they obviate doesn't are phases the the are of schedule those that in ahead the still fact

if add will those so. I ECSX? ramp to FY anything want or -- well you the know into 'XX So about continue don't into to

John Mengucci

start mean, very of very set. minimis with recent out through we look, de We're that's a win. as Louie, know, working customer I No. up our get 'XX. you

one beyond. in the more 'XX So see you'll period that ramp and

Louie Dipalma

a about the should next company are X X average these so programs made SA initially than Photonics. associated as the they awards carry But a been margin like lower structure? for these increase And And lot Great. do R&D increased profile over like has ramping, margin years? with

Jeffrey MacLauchlan

it we're of production general I volume. terms course, becomes more but way. profitable, right you're production. No. on fits here. rule, producibility about And into necessarily a profitable of There also the size thinking isn't the rate, both up transitioning profitable they're in in rate as less one as ramping mean, a focused beginning and more But and all

Operator

Mengucci no the call further There John questions are at this I turn will remarks. for closing to time.

John Mengucci

on Thanks, today's Sarah, you thank help call. for and your

thank Price our dialed Sullivan, to in who has their to the today's Jim joined for will questions. and you after like participation. that listen of have George MacLauchlan, IR who are call. would follow-up many know We We webcast team or Jeff everyone available

and call. Stay have my and to you, our families. and all you Thank healthy, best great your a day. This concludes

Operator

concludes We joining. conference today's call. This thank for you

You may now disconnect your lines.

CACI International (CACI) 25 Jan 242024 Q2 Earnings call transcript