Science Applications International (SAIC) 5 Dec 242025 Q3 Earnings call transcript

Good day, and welcome to SAIC's Third Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] As a reminder, this call may be recorded. I would now like to turn the call over to Joseph DeNardi, Senior Vice President, Investor Relations, Treasurer. Please go ahead.

Good morning, and thank you for joining SAIC's Third Quarter Fiscal Year 2025 Earnings Call. DeNardi, President Joe and Investor is Treasurer. name Senior of Vice Relations My today business XXXX Prabu discuss are joining quarter discuss to And me the for our November Financial we our third X, Executive our results Chief fiscal Toni Chief and ended Officer; our and year Natarajan, of Officer. Today, will that Townes-Whitley, results financial XXXX. actual to uncertainties that on from on today's are cause subject statements that materially may and call risks forward-looking known to make we unknown statements Please this note and differ call. results could that made I a Risk refer risks, on you Factors to of the our XX-K. SEC report filings including annual Form discussion for section our of these

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

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

incoming government. on operating on across risks review update our our third, our opportunities remarks an federal perspective driving the will My execution of of efficiency call. in focus quarter; and focus the on the areas: and strategy; Joe, enterprise everyone you, greater X first, to potential and the from Thank a morning good the our administration's on on growth second, performance third

now the of quarter, discuss of more, last better in target win with is quarter. Overall, our we're the remarks. On pleased quarter, more, compared strategy improved and third $XXX EBITDA our from reflect reflects approximately With billion. third first business of organic to on million in strong and for across increases $X.XX quarter tax growth we strategy. Prabu rate part bid transitions. of in financial growth prepared across highlighted an us XX% in the in XX% bid solid revenue reported We strong collections continued Adjusted to greater to and of allowed to our performance updated per our of expect what quarter, offset from portfolio. Adjusted I'm of and progress contract Our solid the softer in and margin his from X-point delivered seeing business expect diluted year full billion in of of more new which we growth derisk the we than headwind approximately bids phase. third through year submit midpoint against additional on-contract as an program $X we slightly full prior our long-term X.X% detail $XX an results $XX in the now and quarter quarter, billion will revenue guidance. payroll somewhat our flow the revenue third share progress typically produce benefited due the Free we profitability to challenge cycle and ahead prior growth the cash quarter. $XX million was performance enterprise second than earnings which guidance performance our effective submitted X%, very

year now, both 'XX. fiscal years. and 'XX We for continue We in expect in submits in increasing a 'XX this are of momentum pipeline to our submits $XX see fact, to targets over year billion in and fiscal

trailing to billion nearly increased the in the quarter. on from billion of XX-month $XX in a second backlog $XX and Our basis third increased bids submitted quarter

book-to-bill months $X.X fiscal year of quarter trailing of by visibility XX we continue half to into first moderating reaching 'XX. While our the X.X target have in the our bookings resulted of X.X, billion good to our in

Slide Importantly, IT growth well most as aligned on you becoming see and and with planned quality is and mission submits vectors, X, can more enterprise notably the of our pipeline IT. improving as our

the regarding and recent first efficiency, the of government Now has the let Department the plans of incoming emergence investment me community. the from this within acknowledge uncertainty administration created

over a incoming administration, on governmental commentary privatization recent Given and of deregulation, government incentive-based emphasis and on emphasizing from program efficiency, certain eliminations. the renewed contracts we focused fixed cost expect plus functions, increasing

the push While particular certain markets. our [indiscernible] lower which under is we for efficiency in could revenue across government, result scrutiny by in our current for broader with immaterial, funding preparing a agencies are of

we that by caused in across board this resulted to and Act those spending such to important in from it's differentiate the agency as arbitrary downturns the environment which However, believe Control cuts sequestration, budgets. Budget prior

well customers administration's be commercial of sequestration. We We deployment have positioned government we because wide than the through very the channels technology our and technology, currently at that approach expect driving differentiation of the available invested efficiency are scale via marketplaces. incoming we're a and commercial what drove focus to for in on transition to offerings and different believe a deployed variety

enabling but and mentioned pressures and profile a having more this environment from is relevant as-a-service given position doing the of of fixed-price the priority, financial potential this us less a perspective. efficiency our well a an and portion where I is solutions. enterprise capabilities current an better Mission previously, our in with and strategy margin IT and with Enterprise IT In a to scale mission believe budgetary revenue and strategic and also mission while IT As weather standpoint drive coming portfolio represent enterprise shift will we in IT from and improved pipeline expect greater acceleration years. We to

the adjust durability, to the areas model to expertise and business believe us We The our agility As model potentially respond our focus Slide to softer maximize administration the and revenue X, well and us and government investment our respond affords. We to value implemented and well to strategy we adoption of reallocate our over market. and operating and budget environment. will shown incoming business absolutely intend to model from value on position while new believe year technology. to cost our enterprise priorities we've with past in allow a with cash earnings the position through our proposition long-term to customers which capabilities, that manage delivering partner investments drive us to more changes transformation quickly structure flow key

customers this better, Our focused investments efficiently. their strategy solutions making capabilities on missions are and we're our faster perform enable and that the more and to year

more and with cloud a deliver services system the or we which customers. capability field Control, also lead CBCX of Joint The possible command the Command capability this technology Cloud-based annual program program past providers multinational companies For is rapid technology prime example, to program mission [ for commercial Indopac's best the Shield SAIC and called network integrator exercise to effective Most SAIC from Defense, available the to ], and mission to where program, where its on integrated success. This conducted partner war Air the commercial record Force on transitioning this technology support in integrator our example multi-domain CBCX drive successful programs to This decades. is distills data sensors Similarly, from Force's CX Secretary into game solution. kill development with a a was chain. of SAIC a in the efficient of single the and integrates user June. CX is effective and and over XXX an proven program time into quickly of the has on Office killchain modernization Air is recently, best viewed Fires partnered control formal most based as as leverages that record as long-range program interface a the an one Valiant

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some these expect standpoint, on of prioritizing purpose we adoption to operate of planning programs is customer efficiently enable to customers The and funding longer use year strengthen of from but a term. I'll cost this the call SAIC's work be over help positions Prabu. through accelerate types executing closing, for our SAIC our wanted provide more we believe strategy under enduring. In team that to delivering demand offset both to place to significant As now are an to to will dedication for result, this details clear and the turn value potential navigate very pressures the effectively elsewhere. Prabu I administration technology. I would nearer-term how that have proposition we is us a scenario the market and want efficiency, thank commitment in and and for done uncertainty our customers. well the our their and to We at

new a everyone guidance, and with highlight Toni, illustrative capital for billion today focus improved our this the good guidance business. improvement representing our billion the $X.XXX largely of and our to discuss my organic commitments. remarks prior focus planning by year deliver the I'll you, deployment, I'll approved of our revenue of The some on due to updated earnings flow approximately are conclude $X.XXX scenario share year. XXXX fiscal to of revenue view Board. On Thank guidance. our a to including authorization an cash to durability to and trends I'll morning X% we range our call. repurchase then growth increasing on billion, on-contract $X.X versus approach to on is

by 'XX As and in next to submitted we FY as the business is range a new pursuits, revenue end to range our which X% have being improving expectation the are to first of revenue this convert in said year. into growth X% slower for of year, half year, the we year see growth the continue previously, the of X%,

next as on to on our business be programs inflect year. we new growth will focus anticipate Our from existing to continue even contract driving growth

diluted We are now due guidance renewed modestly share lower our tax and on the approximately preparations and by cash incoming lower from like and reiterating per largely free for our increasing efficiency and $X.XX, adjusted X administration. count. I adjusted to our earnings would focus a rate effective discuss guidance prior a EBITDA share flow Slide to for

to materialize. to positions for We it changes company market capitalize do and the to shareholders on for as thing better the opportunities the are they because prudent potential preparing is

customers As we intensity, The only contribute and designed which cost very through are cash X, X capital of or environments. To discretionary we on a flow appropriate a be ability all level how adapt have our us. we to and produce for on point, indication front cycles. different provide to various will believe this is investments broader highly Slide to on illustrate agile no investment the earnings could current structure, our that and we the and and we at opportunities flexible with perspective seen a to our and investors clear, indirect revenue we of budget occur, durable scenarios market from low Slide variable of have have scenarios in remain these be illustrative of

the the type and efforts efficiency cost-plus Additionally, strong for work, is savings for believe contract away if delivering transition of to the returns customer margins administration's element track increasing ability shareholders. from of fixed-price and a record of this contracts indicates our our deliver an usage healthy on we

portfolios. fact, billion we our year margins work, engineering IT next service billion and the submit $XX and professional in of is In higher X/X to enterprise than more to produces than which mission $XX plan

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holding opportunistic $XXX coming being market in $XXX capability-focused target continue capacity with million option years, We annually of repurchases conditions to around million maintaining of at the and the M&A X.X. for while based on to leverage

Lastly, incentive with is as long-term value shareholder focus at you area compensation an all know, SAIC. of aligning

value maximize we metrics We our our for team's which creating will that our compensation to are focus continue on to strategy long-term ensure the shareholders. evaluate targets establish

will As executing turn in remaining of our Toni customers, front for employees our shareholders. I navigate the indicated, we are delivering the for uncertainty on for preparing over our and while investing in Q&A. to focused call us now

Matt [Operator Fargo. Instructions] with from Wells Akers Our first question comes

ask to out press resolution wanted the I called release. about the in contract -- AAV you

So curious what if just of size impact that the quarter? you could this was

to than Prabu X% about $XX $XX was million Less of revenue for here. million, quarter, Matt, million the $XX revenue. -- it

And it. like of you're X% the it looks on about 'XX midpoint Got kind guidance, Okay. at then the here. expecting

to kind think I you. next closer to number sort I back that big you just as digits of how long holding you're that's upside you're recompetes about that about don't a of of go recompete something else maybe see year you've thinking year? kind as mid-single that talked the of guess against potential or as anything sort risk next

think that north I then over fiscal we would more 'XX of north book-to-bill trend looking 'XX, of we've communicated by HX. to year by and think book-to-bill the first a Toni. Listen, few Matt, mid-single we always the get towards on X.X digit quarters half last that it's of

look seen historic as If win submitted rates. of our we as well at what bids, backlog have as you

we the next next but some equation I growth going the of this that, think something into still headwinds, that all recompetes 'XX. year. with half what that we've X%. drives I metrics talked year but have think south got We're with about we don't X% not have from is support significant see -- by into for we of mid-single-digit to will And came headwinds year Mat FY we and second that of

data other here. Matt, one point

X% include the recompete which of One, the be away into expect from a and we to On a just headwinds that but store if Cloud from year, you heading transition headwind, headwinds not but over of not walking incremental and X% could a compute that little next X% an be does course, headwind, will. recompete to part

headwind over obviously, better is, lot where this still is said, recompete as the little So were year. X% we a where a Toni last which is than time

David Barclays. from comes question next Strauss Our with

is This for Josh Korn on David.

in year I win deck target. the the so still recompete the slide noticed below is noticed So rate deck, slide in this

progress the ask you're the just wanted to towards I on steps win where So is making to target rate you're any taking the and improve? recompetes,

that have in throughout terms into overhang the with a recompete we Toni. win Yes. lose of that we Josh, rate, had affects call. Thanks lingering larger number of us for on effect the in in rate, win joining that the that Look, recompetes an win came deals, the year this a when they year terms dollar amount, rate.

As responded year. next we going next to something year, into closer impact recompetes the just of last we're X.X% a with to going question, the we into believe,

the we terms year. we we feel number and are next about fiscal as have in of submissions affected a working where quality we into put key a this new the success couple We year, can a process this better We've business place that higher still recompetes that into centralized year. going through development identified are better, And see, of some we bid. early see and

can flows is the new can the ebbs factor, we higher yield? on Josh, what in communicated and And rate perspective what of what would XX% XX% a And data that then new XX%, blend. say on submit industry, to for between we win that. think other on blended have levels frankly, win our is you $XX kind front, higher we've recompete run recompetes win business And billion, is been between together. win the normal which is XX%, being recompete point different to be XX%. also the normally focus that and rate what candidly, that rate one below And -- at that, recompetes we reason submissions we've at than that of is communicated of past than and the north submit FY than 'XX is we win new math the a XX% see And updated the for would blended we've less or there the rates the target and which be our been in rate about volume is

think well. color as helps the we that's you So about way Hopefully, that it.

Our Seifman from JPMorgan. question next comes Seth with

guess about What's amount I plus the I you if of more work. could SAIC, think price. the guess as the helpful Wanted And where off And peers, starting of for decent sector to of of price shift there's are customer a of the cost maybe help think plus? to that to a mentioned work ask, seems shift plus it benefits types of well? in the environment. certain I contracts. like sizable this you people what about why fixed be work has that's ability amount this cost fixed idea having terms like -- all this it still cost in really is to the in environment in

start, to I'll and that. follow to up Going

I'll that Seth. with one, start

government our as big noted, call of had a from success think organization inherently more roughly in total generating picture, I the our And blend cost offering for as is price is as the for efficient companies mix. SAIC. is the returns of plus, it as the good around think vast like to majority, X/X of part plus we've cost I well fixed you service let's even transitioning

I'll And takeaway primes. particular, into the was programs in of one have fixed GMS out, a so of which track is we and price, a record program cost-plus call converting a from

now in cost-plus of business And a bit XX a Navy program. that years full of plus as Mark is as in began then, We production fixed are fixed a delivering on cost obviously, our price fair inside offerings construct. ago priced a program

offer customers. of of software to inside that fixed are efficiency delivering our priced of a our also sprints -- we So number have that program. cost-plus track And we record the

So have it. track doing a record we of

the I customers to curves multiyear think tech allows fixed offer to basis priced of a our offering on the offering it us ahead a as a integrator. Toni? as to solution get cost best-of-breed systems-agnostic

And to would that. so add I just I guess

in at the you price of the environment. measuring we enterprise a If services fixed the A -- shift IT. from our more civilian look and professional fixed is move part a of of into our strategy actually from as our plus engineering is and strategy, are component we overall portion mission cost business portfolio It to good price.

And so business that how we've accretive already we can seen be. know and

we enterprise mission to IT environment, and to we do IT fixed know has few to both and of been next have growth over the planning in been strategy. a sort the that strategy so change to in manage how was prior price any as what administration. That and And years, the core indicated

with think I So only categories. to you it if commercial you better not top price cost the start is is more that also more at we're and of be components it learning plus, into accretive categories and solutions more introduce line, and how government. price how fixed work fixed for the the But embed labor do embed to

maybe some in as in Great. that then placed timing an about of a as terms the And we agencies? book-to-bill administration folks new friction does in to getting get the with the target do, will out timing awards if just anything perspective, Great. pushed posing doesn't risk company potentially to reaching regard X.X as from helpful. contract some of involved transition independently, follow-up, think or That's very should a X.X, of

We're a rapidity -- the more and areas that that's both and process the fair there some some in little maybe in would there's some say think tentativeness a watching acquisition We I directions see question. others. market. I Seth, happen. are in direction

slowing pushed say would dollars might where there well be being both it directions, a down. goes I as as So in are

those So against net other. each somewhat

we planned more maybe well We've as we'll look that you critical land at and think we're where sort $X.X in at already our a year. indicated still I as value submitting. have the We've with submits protest. When are in won significantly as metrics QX this be we that we of got over significant submitting billion awards. for about add backlog the to pending award

out close we'll be So in the submitting year. QX to

think the year of being 'XX. half us for I able that well in all hit bodes our of fiscal first to

Our with next question comes from Citi. Jason Gursky

business. mix question quick you on the a Just the of for

and overall being federal that as though Intel community DoD. You've XX%. there got looks at curious a X% of to DoD kind intelligence percentage communities of a government. It and I'm agencies business different explicitly about is within as your within some focused the within the talks chunk just small you slide business, the of like DoD, that is about exposure characterize at whether would more pretty

further bit looks there, business on. you've got a flavor of you what potential holistically that us give of your advantages like some a Just and vector little that's for and whether intelligence believe growth you

Fair Yes. question, Jason.

business are yes, within frankly, whether the our is, I do nearly our Force Intel is of in bucket. have the I as Intel all think groups, to think that being are that you that there it's DoD or that up link fairly characteristics elements Army actually short purely the answer elements Intel, in Air and showing X% characterize Intel there that could business extends

think example of one is CBC broader data growth called Force the an an us Intel and across CX has is systems it of forces Obviously, getting has Air we out. vectors JF for applicability. kind program, the system the integrator market being X been a of but I

also at overlapping. through of making level. that investments the that's our enterprise So investments there's thinking way bringing together across Toni? the shares not ways a the where enterprise work the And we're the the me, one fair And factory, we're of we're in the but amount areas just commonality. about this is mission is to

Force right all and in there is really, Air behind, those. combatant when about force, No, supporting Intel are will, tucked our commands, into quite business is you now I efforts which ways, many right. think absolutely think joint that's if And frankly, even of we our joint

sort think that in DoD of comingled agencies military that I that the number. may X%, thing within be versus Intel so Intel slightly named that, discrete the business And a is the it's fair say Intel to

Right.

year figured. remarks just And this parts if I wonder kind of discussed much beginning various suggests what targeting some just of the help necessarily pipeline higher bids better that more maybe and at number the XX idea at then us prepared call bids questions, here the from put of bids you've and next, submitting I that originally were the this That's these you've amount in quantum and back targets. look the level through the a you is than of pressure answers of to step months or this be you on the doesn't that in why revenue you'll upward some what but curious got maybe over -- it, I'm had understand than just your growth Okay. we expected. could what that

So maybe per why of kind of out you're over won't growth the se next we if few better more submitting years? see just you bids,

Well, correlate I X that say that I'd would things first. on

You know process. the acquisition timeline of the

and the protest bid bids actually a is we that of convert when submitting revenue. terms up to generally year this that awarded, So is shows in in environment fiscal when subsequent more to

year of actual see start see see So inflecting submission fiscal that you what you to next towards to we're half of this second year. the the that the revenue is impact

in to awards So ahead backlog of building terms shown as have of we've that get the in of it data. we pending

recompete in challenges loss of to have also a or offset transition. We terms program any

the the number than But always the in the did are fiscal challenges. approach year we we believe better addressed we're in appropriately. We to a business of parts having government. at a recompete so end 'XX, of coming or offset trying year into net of of in other 'XX losses will against changes acquisition position the out the we day, And fiscal in

towards of what a that. actually we're conversion and us focusing of 'XX rate. into that we submission we're not growth of is half moving number -- We're the that sort with of to to second a believe engine well-oiled ahead we've 'XX revenue this and says it's our aligned on getting from execution So and that significant margin the pace, pleased and and

I data add growth other to point would only we the about Jason, is FY -- a And guiding rate 'XX. are in X%

organically. grow expecting our X.X% the 'XX And at rate. fiscal we grew last are So we this to business year in mid-single-digit

digits. So inflection there's growing got 'XX. structurally mid-single out to the of by the headwinds nothing that what about way, and the at business We've is from end driving X% get growth of prevents our of some to that's this FY

I think volumes are there. the So submit

win us are I think the for would not to no holds, is But and one not be consistently, to for reason calories. add rate there think is I in said -- blended then we grow. other the vitamins, if able looking we've theory, I thing this

rate away is which say, on that can is converting year at making more last delivered EBITDA walking vitamins. kind we're in-store growth contract, bet are the dollars And predominantly, we itself Cloud believe that actually frankly, deliver the would compute accretive program a from trying is that calories, One to we ourselves into So a of and cash. demonstrating really margins. through the I grow than repurchase we that EBITDA It's because we inherently signal dollars

Rumohr Cowen. question with TD Cai next from comes von Our

quite my clearly which SX some contract and annual large So recompetes took update understanding over the revenues. when give those state department Could I the was then is decisions? they're together, of X all on of have you coming you that expect status X% of us Vanguard recompetes you up and

are department side. start We just on there the let's evolved, state

right to That and move you on our to perspective, are from tracking continues We deliver continually one program. well continue that as know. we

for change customer or but a an that the signal and So no have acquisition meet new any can we're to perspective. expectation doing the -- all we from do exceed milestone we

a 'XX. strong that so our program fully ability of performance what through type work. as And and we expect fiscal we're counting that, on Again, year that to continue our delivery right indicator move recapture of will is to great

into are there. see pretty of Second, effort. think carefully next feel [indiscernible] has but is the that award could and good stand we the it's potential the that but about on point, possibly, is. a signals that The what -- fiscal we the pretty tip again, team really end year getting you working this -- what good We that of and is close as see a SX that name watching year been I see where at We effort. we year the fiscal fiscal it as

I because mentioned I about if it bigger? X% mean, you That's large, that is And numbers, the large you're all you pieces. it, a this mean year. win bidding very

one last is. And Okay.

Go ahead. Go ahead.

different I sure, is SXi want different X Cai, of a make number No, just to -- programs.

The you we want by different I a there, All very recompete procurements sure of but the the close fiscal in, has to understand first program close. to year. expect from which it program, that come make first X up large end there will is this absolutely, are

first first Prabu, Cai, is to the one the And expected $X here, when north of billion awarded. is be one,

Got it.

the you And then where with One you others last Cloud and update that on relevant? Okay. Can protests your be business, would that us any are might protest. impact one is

as that the protests, as of work billion I on Cai, So reprocurement think we've is won $X.X noted, case we or protest that be. currently there's in about may

new procurements to in get And cautiously were we will some either our couple programs incremental adjudication front. open think the X to are And start went are run We that's of be takeaways. would in protests protest optimistic adjudicated, that next all on one revenue, that's X% favor, run and out. or it, picture, as the way they both now have those an we we expecting rate rate revenue quarters really about big that the right from

that lost we adjudication currently that so. not we've we're are waiting that for or We protested anything

with question Our Jefferies. Ellen Page next from comes

that think at in about margins, of bps Civil Federal And what at it X and trajectory margins in quarter. quarter? about the line like do XX drove quarter-over-quarter segments? with contracted Civil How it looks Intel the Defense in contraction the and looks across more the we Looking

start You I'll want and finish? to

I'll start, Toni.

very you this question. question. bit. a civilian are I'm This Ellen, is listening fair we for leaders thank that hopeful our question internally to the particular a tackle

predominantly I out, at be I think probably be -- XXX the expectation and over margins and we is items next other of signaling what to we Civil want handful but company last to way nonrecurring expect that, we circa that civilian there bps first last year. uncharitable fixed reflecting on business primarily margins of we end margins. in improve become we hope here year to we'll of, our given from the this it, expand T&M what is be describe an been boosted on nonrecurring be outcomes the we've also say, is is that year, We've business. that XX% signaled we a the civilian year. and the good From expect margins, start and work, maybe would we for And In to clearly trough to that from business more segment obviously, to accretive trough to onetime that going the by our that price those few expect absence would words, years. our margins XXX that nonrecurring and to a benefited expect

So that's what I would say.

And seeing I reflective from civilian we're coming submissions pipeline, out civilian terms submissions that's of our think accretive more the business. of in of

forward from moving on low our business. our that that XX% and up we're expectation point, from further that and So the civilian that supports is

just the and obviously would Defense reason I benefited so was the settlement much that Ellen, that Intel. in they quarter AAV converge Yes. --

thinking on just the are for potentially your on And next baking fiscal year? you 'XX you expectations. helpful. that ability how about more to in push -- That's are budget what And difficult a environment? contract growth in

had growth, on grown year. next have we year have of on-contract and indicated, if growth on-contract for some similar expectations, terms we've you as and this excellent in X%, year. Prabu Well, this will, an X% year

the part solutions in areas some has into been to to own programs things in in commercial holistic in been embed of commercial able bring And been our more we've the able That of technology, our more our and pivot but that our where contracts, being much has current needs in more price to obviously starting meet to some fixed introduce a capability cost-plus. so more the lift labor-based just disrupting as pipeline well as not contracts to we're only way. see X to customer of strategy ability our the of

have so unique some depending on extent And possibly growth next rely this at least year expect and lift where that we fully on-contract on we the to year. opportunities to we same see

with comes Securities. next Sommer Truist Tobey question Our from

how for just might profile of This quantify be could think potentially how from business margins we growth Curious in margin your the if new about is potentially you today your in Flex? Sid and Toby. as backlog that reported than different on should layering

first. start I'll Yes, that with one

of think recompete also couple up XX consistently I bid between emphasis that thresholds. We've to and the on our up And we've margin cost operating rails ensuring getting our points we've right would on is years, plus terms of call over I on students the picture from I'm going big hurdle internal say, type, And own type. TNM. the every last of are more expected lot basis that message every moving depending contract contract for their performance price fixed moved a in put cycle. and XXX

moving ran sort in programs are it shared calls, come of blend reflect is that can through. prior of, the base of the margins higher general, civil and X%. if in of blended as will, One we're earnings itself we've a submissions operating have the you on is starting way where, to So at to margin seeing backlog together, we if you common you about and see think sort segment defense between we

we the to is year, but the the course dollar that XX, to of objective company the we're in balancing several growth XX, move next investments drive the over against bps ensure making over can EBITDA XX Our years.

calibrate trying XX%, a couldn't we're the as the it's from balance. business business. to investing to reason in well I capabilities we So think bit little more a returns of generating but No as get between

And I selection, deal no. the to also talks as selection. Yes, rates, bid think that Prabu about hurdle goes

rate are expectations no can't to to as our execution bid. hurdle met conscious decisions making margin was where that that and against we make necessary on bid what if well we're and monitored incentivize to get sure So and

I so forward. going our increase of in the revenue P&L would speaks a us that the And our only think nature in but discipline that it's see not of that to expected all that of follow accretive the slight submissions, probably helps

exception not taking to not we're hesitating And are appropriate. cash terms and that conditions

to So with want now. contract -- drive for our of the can we value the uncertain can I years, view right next We and end-to-end the just creation of it's kind that's make in where especially think shareholders, -- right live for this sure it's X environment. focus an an is we

session. There are This further question-and-answer conclude the no questions. does

disconnect. may have day. now You great Everyone, a