CACI International Surpasses Q3 Earnings & Revenue Estimates

CACI International Inc. CACI reported overwhelming results for the third quarter of fiscal 2025, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and marked significant year-over-year improvements.

CACI reported third-quarter non-GAAP earnings of $6.23 per share, which beat the Zacks Consensus Estimate by 12.7%. The bottom line increased 8.5% on a year-over-year basis, primarily driven by higher revenues, partially offset by increased costs and higher interest expenses.

CACI surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, the average surprise being 14.1%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

In the third quarter of fiscal 2025, CACI reported revenues of $2.17 billion, which surpassed the consensus mark by 1.8%. The top line increased 11.8% from the prior-year quarter, primarily driven by 5.6% organic growth.

CACI’s Q3 Details

In the third quarter of fiscal 2025, contract awards totaled $2.5 billion, with more than 60% for new business. Awards exclude ceiling values of multi-award, indefinite delivery and indefinite quantity contracts.

Total backlog as of March 31, 2025, was $31.4 billion, up 9.8% from $28.6 billion reported a year ago. Funded backlog was $4.2 billion, up 31.3% from $3.2 billion reported a year ago. Our estimates for total backlog and funded backlog were pegged at $32.2 billion and $4 billion, respectively.

In terms of the customer mix, the Department of Defense contributed 76.3% to total revenues in the reported quarter. Federal Civilian Agencies made up 19.9%, while Commercial and other customers accounted for 3.8%. Our estimates for the Department of Defense, Federal Civilian Agencies, and Commercial and Other customers’ contributions toward total revenues were pegged at 75%, 20.4% and 4.6%, respectively.

The Prime Contractor and Subcontractor accounted for 90.3% and 9.7% of total revenues, respectively. Our model estimates for the Prime Contractor and Subcontractor’s contributions toward total revenues were pinned at 89.9% and 10.1%, respectively.

In terms of contract type, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 60.7%, 26.5% and 12.8%, respectively, to total revenues. Our model estimates for cost-plus-fee-type, fixed-price, and time and material-type contracts’ contributions toward total revenues were pegged at 60.1%, 27.8% and 12.1%, respectively.

Expertise and Technology accounted for 44.9% and 55.1% of total revenues, respectively. Our estimates for Expertise and Technology’s contributions toward total revenues were pegged at 46.1% and 53.9%, respectively.

The operating income for the quarter amounted to $196.4 million, up 8.3% year over year. The operating margin contracted 30 basis points (bps) to 9.1%.

Adjusted EBITDA increased 16.3% year over year to $253.5 million, while adjusted EBITDA margin expanded 40 bps to 11.7%.

CACI’s Balance Sheet & Cash Flow

As of March 31, 2025, CACI had cash and cash equivalents of $223.9 million compared with the previous quarter’s $175.7 million.

The total long-term (net of the current portion) debt was $3.04 billion, up from $2.98 billion as of Dec. 31, 2024.

The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $204.2 million in the third quarter of fiscal 2025, up 79.7% from the year-ago quarter. The company generated free cash flow of $187.9 million, up from $101.9 million in the year-ago quarter.

CACI Raises FY25 Guidance

Buoyed by stronger-than-expected third-quarter performance, CACI raised its guidance for fiscal 2025. The company now anticipates revenues between $8.55 billion and $8.65 billion ($8.60 billion at midpoint), up from the earlier guidance of $8.45-$8.65 billion ($8.55 billion at midpoint). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $8.62 billion, suggesting an increase of 12.5% year over year.

Adjusted net income for fiscal 2025 is projected in the band of $543-$557 million, up from the earlier guidance of $537-$557 million. The company now estimates non-GAAP earnings per share in the range of $24.24-$24.87, up from the previous guidance of $23.87-$24.76. The consensus mark for the bottom line is pinned at $23.94 per share, indicating a year-over-year increase of 13.73%.

Free cash flow is now anticipated to be at least $465 million compared with the previous guidance of $450 million.

CACI’s Zacks Rank & Stocks to Consider

Currently, CACI carries a Zacks Rank #3 (Hold).

Broadcom AVGO, Credo Technology CRDO and Cirrus Logic CRUS are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Broadcom and Credo Technology sport a Zacks Rank #1 (Strong Buy) each, and Cirrus Logic carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2025 earnings has been revised upward by 4 cents to $6.60 per share in the past 30 days, suggesting an increase of 35.5% from fiscal 2024’s reported figure. Broadcom shares have rallied 36.7% over the past year.

The Zacks Consensus Estimate for Credo Technology’s fiscal 2025 earnings has moved upward by 13 cents to 63 cents per share in the past 60 days, reflecting robust 600% year-over-year growth. Credo Technology shares have risen 27.8% in the trailing 12 months.

The Zacks Consensus Estimate for Cirrus Logic’s fiscal 2026 earnings has been revised upward by 3 cents to $6.82 per share over the past 60 days, and suggests a year-over-year decline of 2.9%. Cirrus Logic shares have risen 1.7% over the past year.

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