CACI International (CACI) 25 Apr 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the CACI International Fiscal 2024 Third 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. ahead. go Please

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

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

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

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

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

good you us discuss 'XX for third Thanks, everyone. to Jeffrey year George, this results. quarter Chief joining fiscal morning me Financial Officer. morning, our With is and our Thank MacLauchlan,

grew Slide X, programs. XX%, by revenue with We results quarter and contributions board. technology to Move both the please. CACI third delivered across from expertise outstanding

half. of cash we significant free showed margins delivered XX.X% of last million. second consistent of our margin from And $XXX flow stronger EBITDA year, with in the expansion expectations healthy

to a XX the excellent well. billion of performance our new as represents awards About quarter were to we months of book-to-bill on our addition, and X.Xx a $X.X continue X.Xx. and In book-to-bill CACI, quarter half work for demonstrate our recompetes to award for trailing on third

aligned and results cash quarter share. are well long-term growth creation with free focuses flow which value on per third our Our model,

again are guidance. raising we performance, strong our of year our result a As full

X, please. Slide

fiscal Budget a budget our environment. on supplemental removes a me government is customers. the 'XX year for few the of and of Let and macro uncertainty element development provide thoughts an Recent passage positive and the could consistent that growth very supplemental was provide year agreement, would are technology. debt-ceiling and with of laid out the by support funding last Counter-UAS levels growth our additional what

most proposed business. have budget IT and will key not focus modernization government. The with in 'XX resolution, GFY areas expect also continuing with years, remains on impact it like And One line remain Security material National expectations. a we typically is for our which our clear, thing begin does a

As we've CACI said by many that world with times positioned see in clear to demand driven be events. is important nation's most And our a well-funded priorities. place. to continue continues align strategically signals before, enduring and the dangerous areas we world

of please. key shareholder focused, on key and A we better ago, company. It and a This resilient X become growth Slide positioned number needs; bid critical opportunistic and strategy enduring a win of larger opportunities; ahead address in IT longer-duration less, deploy manner. differentiated to and develop invest national flexible priorities to differentiated elements: even drive X, long-term undertook and and leverage security to to has software more, focus years capabilities; modernization; a for strategy value. more capital rapidly prioritize need was

for creation. which in ultimate we metric are believe long-term of value long-term shareholder particularly is growth, the elements per free driving All flow cash these on focused share,

successful X, ways. can Slide the in please. our see you of manifest strategy Today, several execution

IT national software-based modernization key are the security government agile and well positioned priorities in with federal technologies. of and software development we First, methodologies

events Every importance differentiated geolocation of and collection, the demonstrating in high in electronic national security world attack. day, intelligence, signals and the electromagnetic increasing On capabilities are are demand. front, the our spectrum

also but only not us in customers update these adapt agility to as to these our tactics. change which enables adversaries Software their and to capabilities, speed provide capabilities

On Navy the Navy because and enhance are software pace what rapidly Spectral we and allows with modify one for technologies. And upgrades, working approach, we which when, wherever to in effort to provide discussions will customers to architecture and with be by elements way to an for baseline reusing contemplated when our other and Spectral and consider made adversaries program, changing possible required a changes with open our as are our requirements. U.S. capability delivered systems of that's beginning keep and fleet-wide

other to are In countries, we our technology countries out and allies. building to NATO ability to FVEY addition, deliver our

already countries. have to these made several of We deliveries

our In fact, BEAM. we man-portable Canadian our Counter-UAS software-defined, for the government quarter, called the received during first from order technology,

technology, software-defined SIGINT collection We in our providing are missions. UAVs signal [indiscernible] to assist also

modernization the are last how discussed On IT monetization. increasing we for front, our quarter, demand capabilities addressing network

requirements. In modernization IT also addition, we and are on winning other delivering

to the For missions U.S. and visible we first development AFRICOM, work to of events. as our achievement modernization clean This IT a to financial strong list record critical also using Agile military. ability ever-increasing quarter, to example, pursue government. Corps our additional ever this opportunities and across for achieve our past our highly EUCOM enabling customers' Marine U.S. won the respond software enhances they of audit DevSecOps the the capabilities held branch performance of of modernization recently recompete supporting and our an IT and world both

please. X, Slide

duration said, through I to the bidding visibility longer larger, long-term disciplined business CACI's continuing we're opportunities. As and enhance of

with quarter awards, organization's pleased development As another I yet very had we for I'm fantastic and performance. our business mentioned,

billion several were $X.X healthy expand in to recompetes. awards Our contracts. those the in we quarter a had able of mix of cases, And

representing of remains only backlog The mentioned revenue. duration booked drove that to our like years X our doubled size $XX.X of not average X both IT third on a basis. year-to-date EUCOM the We supports earlier, I quarter a well that the well we of nearly recompete, this won into years to billion, weighted record awards billion. AFRICOM. $X annualized contract backlog above nearly Successes we and work over On this

pipeline delivery visibility provide a to that but opportunities growth be not robust wins future support we only us have well. of to in metrics growth new discriminating work to the duration for allows and current year as continue year pursue. These We the

X, Slide please.

name to Agile of mentioned need, organic ahead continue manner. I development capital that previously a and of Photonics software-defined our in Two need software to illustrate our our opportunistic a invest in deploy as electromagnetic and and we examples few. investments investing business, in flexible ahead Finally, spectrum. as just well capabilities the

seen here our pipeline M&A also this acquisitions made smaller the year, in to a expand. the U.S. may You in and as have few U.K. we've both continues

the to of the provider a application digital brings strategy and acquisition Quadrint, community. year IC specific Quadrint in our third Consistent relationships modernization, for of performance business. primarily with X. that the closed past our acquisition additive in M&A During and we the is are the intelligence quarter, accretive customer

performance. am please. very our strong with pleased XX, Overall, Slide I

are We on accelerating growth our we've growth existing larger to portfolio. won in few seeing And past awards we as over see the continue contract the ramp. years

we share a you As are full our guidance, raising will result, year and with the shortly. details Jeff

strategy. execute to summary, In continue our successfully we

exceptional increasing capabilities, investments drive Our need, line top margins differentiated free CACI per positions and share. to of strong strong business execution and development flow growth, cash ahead

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

organic. turn months. was record growth, billion, revenue of the by and balance was representing we've good In of Thank acquisitions generated the XX. Please XX.X% Slide we morning, past you, over XX.X% which The the X made everyone. quarter, XX $X.X John, over generated to third

higher expense. a than and we income, Third higher income operating in XX% and quarter along EBITDA margin share were than what line count of our year. year with sequential provision $X.XX a of higher earnings more of ago. points, have a which share increase expectations lower you a the with to is per represents XX.X%, throughout XXX Greater diluted offset basis tax Adjusted communicated interest

please. represents modest and $XXX flow provides excluding Third Xx leverage XX strong to increases. Slide flow business days, receivable, cash and quarter to the Free sequential outstanding cash debt of optionality. working and purchase characteristics good with of net our efficiently are reflecting months year-over-year we healthy capital was sales to XX facility day long-term access $XXX operating for quarter significant collections. of cash million our XX, DSO us EBITDA cash The trailing reported manage of accounts flow, million, continue capital. as We profitability our

As John and the acquisition manner quarter, and flexible growth a drive we in we capital and deploy in in share third made opportunistic flow long-term mentioned, value. to per remain an cash well to positioned free shareholder

of pleased the raise $X.X XX.X% XX, fiscal our strong to, as Slide XX.X%. please. between organic represents guidance our We're to billion year, to and XX.X% being result to for a performance. revenue XX.X% business of the growth billion. raising We're 'XX This $X.X guidance with component our again,

'XX. discussed the million in to to expectations margin are about now affirming margin. of that full Recall which be our range for first XX.X% XX year, to impact margin the $XXX year material EBITDA underlying approximately the where the We XX% excludes guidance basis FY equates we the in half previously of expect sales also points this of high

] As $XX.XX outlook, with between [ and FY a $XXX share result of be between adjusted increasing share. adjusted accordingly income $XX.XX million, narrowing of to attentive net million increase and our our $XXX revenue an stronger we're 'XX per earnings per in guidance to

maintaining million. cash our free flow guidance at finally, we're of And least $XXX

IRS related has up to million prior assumes our accepted treatment the receipt method entirely this the of will The to IRS. year tax tax change, recall You the timing $XX changes. is payment of of the method refund a

slightly expect realize cash capital higher end efficiencies In $XX outlook is largely we capital about down This able from through prior expenditures, usage in our addition, capital we're revenue our slightly free by as offset million expectation the now the our higher year. of to the working assumes flow fiscal spending. in from

details presentation you note updated modeling. additional of in guidance included that have with been to Please our your our assist

please. XX, Slide

prospects be to our continue our forward indicators, strong. Turning to

performance the Our of X.Xx place. ratio market months book-to-bill trailing reflects strong in XX

from visibility backlog metrics $XX into the over of year increased XX% record These provide business. ago long-term strength revenue. good under annual and X of Our just a of represents years billion, our

approximately come performance our to revenue confidence programs, 'XX, year we expectations on yields business. fiscal approximately and existing metrics the X% each our these Progress for in increased expect and business new from For from now development recompetes with our year. operational successful of and reflects XX%

evaluation, new billion over our $XX of are of to In have under bids for terms business we XX% of CACI. which pipeline,

XX% that in We expect for next to quarters over business. the billion new $XX X another bids submit with of

quarter, both have metrics to ability even of the healthy capabilities disciplined strategic demand, discussed. Our last we differentiated book-to-bill and while positioning, increase from X.Xx a delivering these reflects successful ratio bidding

third results. delivered In summary, we outstanding quarter

momentum for this the as guidance our year and We see our in a business, third continue full good to raising are time result, year.

and share We are high-value shareholder that supports executing work value. enduring growth, per increased and free flow additional long-term winning cash

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

Thank you, Jeff.

the to and revenue past our raise pleased Let's why earnings I'm have and would are and performance Slide margins to deliveries would our progress third that of expectations entirely larger full of through over fiscal quarter ramp profitability stronger closing, the half financial with increased half. strong first time XX, take and how our timing second and please. and expectations. would guidance. year At to go of start those we've In very the with many results drive fact discussed again growth reported higher We the the investments and we awards our this in our year quarters, the several outlined versus year. consistent the The technology ability of

a execute per successfully is focusing opportunistic and thoughtful investing cash driving It intentional in a our flexible capabilities priorities, growth, developing capital long-term on deploying and visibility, strategy to increasing and continue is of differentiated We strategy key value. And of need, manner. enduring ahead shareholder current then strategy. is flow that and it higher share a free

want our and the a lead employees' to people. and I'm is spirit to I for and for missions for every such and team, each CACI. To And commitment our thank immensely As our your CACI's success company is customers' always nation. everyone you day and by thank on you dedicated what to do to CACI capable proud to driven each of our continued support you other. innovative case, shareholders, of talent, group the

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

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

and for Very follow-up then Jeff, quarter, I've and a got And a question John. you John nice for Jeff.

you like something this XX% thinking I perspective, about know has quite we XX.X% For a in implied for well. quarter modeling yet should in margins were fiscal Or ready range the we 'XX, margin be Jeff, and the off should quarter as for the of while aren't think in fiscal good underlying quarter? our talk about did margin fourth low the third jumping point? these And strong the you to

to not about Well, 'XX. you're right. talk ready We're

half, more probably and whole. We was the about think really the to it's was manage we would the it way. enough of that think a kind year about some insight, basis fact an the and business as we second manage this think meaningful on talk really to half encourage I the you first but give to prudent year I we profile thought annual such to that that it about you year, guide

then that one fixed John, at off But price me well. give fixed business, business you. is the some don't And which with does price have I least, then, XX%. backlog this natural you I very is as XX% Let the roll try lift? any least around at At pricing the the for stale think of portion your Jeff. know of I in in if

the little item fixed have and value-added off. Well, don't you be We've equate I type high very price might some good margins margins. work. fact some on question think think low a with margins the your necessarily talked with cost very high type premise that before we I about can cost of

minutes total. think to to of going said you about I to in back kind few go what business encourage the to I'm you -- I I So think would a ought ago,

was I John, say sorry, ahead. What to -- I'm go going

Go ahead, Rob.

I inflation. was what was at Jeff, getting

the fixed that was and much priced reprice lower natural off, at for of than price, lot And And backlog are so can but that not just companies so a does in some as better rolls cost the higher pre-inflation. that fixed plus whether or And rates. you margin lift? price provide

lot, we current us. structure orders. fairly Inflation work, the cost fixed I as our on A those. great view for maintain of pricing deal is kind task Yes, turn And see. is price a quicker not of factor really major it we're really particularly of a

that's it be may as really So for others. not us a big for driver

our a repricing of constantly some quarter, out on lot that in come Rob, tech. and go right? Yes, software-based those we're same technology in the of deliveries, So software-based

keeping but of we're spending any things that to as as issues, always up those of like talking and items were of able we right? portfolio. always about that time costs, supply reprice So a When with well we're chain lot part type our inflationary

the X- range, very able sure to are also labor, probably price, get that in even industry-leading with right Our we're price being larger that right can technology over the fixed programs making a we skills we're X-year efficiency. -- and and at at talent to manage bring

builds, those technology planned the ways longer-term constantly and allow bringing faster then those software, which able margins. efficiencies to based, develop on us in to look and for better So software we're were and We're cheaper deliver to right?

X Okay. for And in quickly, the John, then, had one just did was I you U.K. you, acquisitions, the real X

to a increase in You've just the acquisition? you had exposure? that looking was Or are strictly presence along. a your U.K. technology-driven all But international

that, at I comments ourselves my We're technology countries software-based opening international building or was you you looking side, second FVEY there. our Really the in on probably more we will I the alluded to the one looking at as or broadly front. technology-driven. today. that tell NATO are we to third Canada countries a in inning out Strictly added already that delivered list. in most to

the into international expand we're software-based our our market. So of to technology to continue reach going

rest that during addressable sure One, it And talk drive call. and where it that largest those of second, the is the I'm -- our threat well, allows more we'll us technology. market for to for about is, the then

So questions. for your Rob, thanks

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

the just maybe margin theme. sticking so with John, Jeff,

the would looking what's what And lumpiness just timing? step-up was Can And the to part Photonics-related to think tech Do higher? third will think a the quarter. quarter back cadence saw of on in moderated go-forward variability sales the year first related. on through expect nice throughout view flatter? investment just margins us push on basis? the start a of Or from half the general that you your remain the margins you I walk of going to from You investments help specific you

investments Yes. this in past. about We've talked the Photonics

have programs robust sort where We volume. into of transitioning several we're more

investments the last have the to talked an associated of with we've couple some that about come of quarters. And as end,

I going our based in ahead variability some think always we to Those to lumpiness orders be of on always lead on invest and will expected margin. have are they'll commitments need. prioritized to some

John, want to do you add that? to

which Bert, Counter-UAS the EW, all Photonics all is part we of Yes, our sure. our electromagnetic right, do of of technology look, software everything sales, collection our of SIGINT Spectrum systems, in area. on systems, that a

those with by are Most not are cycle, they one a Rob's started really turn those and work. variable -- highly of are off are -- long-term sales driven questions, They right? As being sort book I have of backlog.

for we will, really a ups full focused long and believe margin. on which at downs I time, is So look we're year margins, quarterly on the why

expertise, quarter-to-quarter quite mass And your So why technology and is is delivering And some deliver predictable a quarter-to-quarter. variability not XX-XX technology. actually the sector margins when that It volume does way it's to it you out technology, because roll in same are that endpoint. is bring company the are where we at pure a does that? deliver you as expertise, to as the of

present our thing important So lot we 'XX to I think that, a as about will talk a recognize. guidance, Bert, we it's very but

higher-margin margin be volatile just not to on but because So positive beat, it how talk for will that beat, about in. work very that's more us uncommon let's beat comes

on are to look, creation is, important margins model. value our of I that say thing that second a part really The want

long margin. our that But have down. on it's to on. we've do natural drive about It's the to term, that investments ramped actually be it point future intention. going achieve we're not now Jeff to talked growth. short a to And focused investments We're not going focus. So etch one has our Photonics what been going quarter-to-quarter

We margin, share deployment, flow a love it because It in brings also it approach per and value-creating in a of long-term brings also capital that brings growth. in free organic need. cash in ahead investing prudent view longer-term to brings

this be So more long the over we like experienced all then would side, and on margins, to term, out of growth not is those going which it's see things to the what And is organic have soup. visibility what but year-over-year. go into come increasing ever we

additional color. provides hopefully, some So that

EW, That does. follow-up, on a you've some recent across we contract all areas you just as just Counter-UAS, would tech what's had think of of top at but the mean I success, You items, contract Security, had do these guess recent next of curious about just I as you And growth SIGINT if Network have the rank Photonics, of you've a lot specifically drivers to over really if that? I'm front couple the that how that success rank, these. and had years, list? to don't

in highly you tactics look a Yes, technology that. change your that only to sure. to an threats spectrum should that us market, years. make software-based who you do something your is read which volatile their stays rate. work, hourly those has positive EW, It up the up on we've technology is on with the Look, as electromagnetic harm can Folks signals been basis. in over with a been keep And the investing way certain

we out well adapt. that at exactly and look customers those tactics, in that proven are government, on of allies that threats are technology technology changed as our are where issues press XX, in all have that about and NATO of you the quickly strikes, XX need all the have fits can top drones and technology launched hours, procedures that if of drone today's We

through and to number high work will to Photonics have within Photonics hate products bottom compact line this over volume continue there get line have that the for more 'XX sooner. on say volume we're top We'll drive we we But to work hit over to I as overall, going and except of going a other, growth. as hit a into investments volume rank company able on to being But technology we XXXX. there are -- always to producibility. one the

is the Engelbrecht question of from line Baird. next with Your Jan

headroom to want done you've the just got know capital current available about repurchase of share I and deployment. on you've recent program. talk I plenty some deals

in is about also So over attractive higher free more terms cash just the and growing pipeline per right obviously, of you as think we that flow time. have but now, M&A a share priority

Yes. X.X correct. not Thanks year, make since though observation -- we've we you and of -- to would in the remind did Even I million the the repurchased opportunity list. we There expanding buy-back for the M&A quarter, question. shares. Pipeline about are reference see that some shares the you is last We quarter the comments second our

X% X So bought X in about outstanding we have last in of shares our the quarters. or

shares buy the didn't any share quarter, continuing we attentive are to both though and evaluate we're to even So in repurchases. very opportunities, we

on We're of the We're and at right? opportunistic, looking We're stock and see. things. our to dynamics offer Jan, looking look, a at mentioned. looking interest the the level, at a at be some Yes. many that M&A the flexible we range we're going price, macro at many, we're look rate, that's leverage valuation, on to going based to of things going evaluate that And pipeline, factors. you

always the options on All table. are

always few acquisitions The of thing candidates our we'd a assessment I'd only a like CACI. part the completed. as smaller number it's to we y companies a consideration in is have did timing growth we're of different future leverage deployment that we have we is heard right? a when future of So You capital M&A well, that not mention x, of make of

lot are moving of there pieces. a So

long the that question. the flow cash we we're either which those in really free line, believe shareholders focused near capital benefit to on and per share. of the actions why term, I is are deployment Bottom in going appreciate

quick just And really That's Perfect. follow-up. a helpful.

quickly, multibillion the you if of Navy if the and more Just sort each sort at sort EITaaS over some sort when from the just how that perspective, but NSA a recent top can programs, at walk look peaks on to years? line us cadence and of of of one, high next level, we could of program the revenue a couple your dollar -- maybe not of you

sure. Yes,

look, Look, -- on not we I'm to expertise continue we've ramp at ahead award, that is Intel 'XX. of know Cyber we award, So ramped the allowed which say will to a all reasonable sizable go the you We've rate name, larger large our plan. as through it.

when So the ramp get year start our 'XX. at look off to full we fiscal

So there just is are in items our a of after scope award. number later that started current that

I really So like how good feedback we from ramp that positive and one up, customer. our

On also plan. That's ahead beyond. going of our grow and in to and ramp continue EITaaS, ramped that 'XX to

that remember, all the recognized BPA, you If period. quarter that about over value a XX-year billion of $X.X was of 'XX. a first $X total billion We of in

So improved. volume. picture there, ask The work level because upfront of to that We're they lower to some take sooner incumbents, work a over did from that planning. want doing the their design small work see customer us starts over take

do So well. to we're as that able

very very, are customers So pleased.

some to what that has working surface their the seniors gem one talking has with of responsibility alongside, continually make We're hip-to-hip are extensively, shoulder-to-shoulder, in read we ] protecting what delay. like the things what technology about -- that's program. of Spectral, X-year the threats the this because a discussions follow-on, the refreshing this the there Connected who the at kind how did program the sitting a had, program we last last remarks, that first looking time with customer, to of changing, fleet. changes changing. you And prepared ramp during Navy discussions the frankly delivery fleet The some this talk a is We large today. [ we week to I from spent my refreshing we're ACAPX news right? of technology looks plan. can without That's do -- about about that real threats ahead

work future 'XX see We definitely into expansion and great there. So would 'XX.

some the you color that Jan. were So hopefully, looking provides for,

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

how pillar international should about partnerships think on X, really is and my follow-up C-UAS we in And particularly the I M&A ] C-UAS. a [ So think question the that there? gives, opportunities.

you opportunities solo, CX. in like strategic there partnering see with Capabilities of warfare in going for positioning You someone even about acquisitions doing like think electronic how or the and areas? region some do kind

of all our for right. All asking You're secrets.

today, let electromagnetic that seeing the needs dangerous -- here's it's international a everyone unpack electronic Look, me spectrum, So everything front, secret world it's in no to and warfare try that. given very equipment. on that we're

globe talking Many expanding mentioned delivered We, of to a the allies are their around about earlier, budgets. countries. as number technology I currently FVEY

"expand", the focus absolute Europe Eastern we go be to into spots. As FVEY and one our going is of into deeper NATO,

I number spend XX We our remarks forward. all but X like, we on-the-ground can [indiscernible], the of had have to with the we related to made the really commanders meetings about prepared my sales the a down buckled trips that Ukraine, have technology And the software-based days what of helps. And like. in go folks Romania comment Kyiv, team, we and during they're supplemental made Poland, seeing and what Lithuania, as they in our about it supplemental talking need frankly, we

to ], own for are [ in paced faster look lot routes those a of their they're including companies solutions to the Ukraine Eastern what addition, European In defense spending seeing.

see reach for international to company doing international-based M&A, we're don't, but us a You asked of don't able of own sales team. our and today, different have, M&A. us. sets sales about and we, all I those with needs reps That's tough that today, skill There's customer lot one a our

you AVT mentioned mention, C-UAS the acquisition, when would ]. we [ I did

indigenous in was manner what the we branch small qualify of different in Australia. because a programs within to country. capabilities us allow a to have does It We Australian AVT have go after

middle So growth. and products, there. going all of in records, those channels still of the to of and Mariana. But drive current we're a continue of programs international. of sales then in to our decisions X we're going lot We're sales other for to avenues our there lot direct areas, all A making X drive in

So do going excited by to what we transparent 'XX. very And forward, that we'll and continue talk about go there. to share as we're as be we

it in budgets is technologies like to will with like kind And your sorry versus international think the and budgets this, the but growth if fair like mostly of target expertise? international I'm that you oversimplifying portfolio

Yes.

international We the will with portfolio. address our market technology

Now tech. expertise forms same time, the and at

a information So we what countries the of lot are get other about doing.

we tech in of information at folks long get you X then field the supporting all those of and that and expertise that the go dangerous beauty And really parts look business and focuses who on support, who these the on lot of us should of order. our If side are a expertise tells target, each on wire the in where our lot is and countries, a expertise strength the delivering out and we other. what soft do of

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

I kind you kind that the of we about year. come. X% there's guys growth should of growth, think guess, how It you're doing this rate I Day, to like digits Investor of more for lot X%, John, this a still laying margin like when double did back like long-term the out you sounds I you quadrants think the kind business? think gave, a

little was I curious bit? that's a just if So accelerated

year right? a We're company Look, build-out. the the reliable growth term, are over 'XX mid-single-digit still point long in the at and we future Yes. where we're

a which margins growth sub talking too back an flow when for the flow all thing does enormous cash because, our frankly, better I right? about free than watch share, forward. okay? macro margins show going to to per end because harken be were we're free takes solid So very it much will cash time, us We don't share kind closely X, right that it at top line is amount But how of company a And to look, drive EBITDA growth long for of talked per about up changing. to level, we really want mid-single-digit a

excited about that are We talking XXs, XX, XXs. XX, come we're X, and to X, actually high XX, all high X,

where So at that how is encouraged extremely ship, which term, Day. driving from and a Investor XXXX macro were. we're level, the we're we long Matt at Frankly, also excited

and you what counterterrorism peer investments going -- growth, What's look future at we're as it's be to on, near future focused the and mission.

we that though going on talked end an in so the it or me heard an focus to of days This end. electromagnetic folks. modernization. to SIGINT, be network to XXXX into tried will Counter-UAS. that spectrum, EW, early, You've early importance We We always an say going is meeting. very after it the times, about even case, talked many We're about case was

X page -- signal everything, signal. it's a years a that Turn later,

for I'm today what it Near dangerous and are going in -- fear, but urgency drive to see. threats infancy because we out stage. and fear a to that's threats provider all peer out sell flexibility not the their trying is there and there world, increased are We're a speed Counter-UAS leading is Spectral.

started supplier And then design U.S. U.S. lot backlog. on interface, to the talked right? that to to connect, production side. We first about the in Photonics build space, the does fully to the We and a first first launch, and We're

how of we look to we there's room go nice as at So plenty really for us. forward, grow a addressable for us market

per flow focused you if on free so where a top cash started, on And we focused at growth margins, company look take share. mid-single-digit ultimately line

Jeff. Great. That's I helpful. one for And guess

million, CapEx think, the year, big implies QX. pretty $XX for a in lump Just guide the I

going Just curious through what's there?

the things projects. of and efficient program that and kind It's Matt. of kind couple our I in say it not infrastructure. physical to to footprint is strategies would are some related There there, of all some or at preponderance Yes. consolidation management more related a growth-specific of facility of

of from Sommer Truist Securities. with is next line question the Tobey Your

Tobey. is the with the than Really on growth in This I Bibb background I this DCSA. guess, better transition to down the quarters, Civil contract -- Jasper business for in quarter. think to flat Last screening nice few

driven curious, contract the comps have Civil, like rolled just from So guess, that in that off? it seems acceleration now the I what's

Yes, Go Yes. ahead. sure.

of talking move. You're those sort DoD parts Fed, and Civ how versus about

quarters our if it a that the DoD. to remember, number of all investigation you back, is, DCSA transition our reclassified and we that -- government Civ Fed, background was of a Some work, program program,

So why these you're the that majority of seeing deltas. of was some

of of 'XX happen even fourth anniversaries ramped down quarter often, our longer, impact to older losses, Some that 'XX. in second half recompete [indiscernible] doesn't TSA very though the but

to So things how like in strategy any one as isn't or our item we're bidding. a there that, difference

So some looking were that color of the provides you hopefully, for.

then that's new No, targets. Yes. helpful. mentioned pursuit the you business And

proposal from international like recently, then you risk And perspective? after any more 'XX in including fiscal bid what potentially look So curious a change there's been manage also if work? going activity how recompete does and

Yes.

development in this ] grow like, level. different Look, our at the Let me on business different very the focused that company. within really how spend take on a a the we're starts and fact sector our amortization how a step we [ up BNP where with to strategy one. starts it It we that have

needs, critical modernization developing on security national ahead priorities. of We capabilities then are and investing differentiated address customer enduring that focused

to then at narrow term that deep our approach versus business term to a is believe was we says got XX-year fastest? what times. itself technology It expertise the to of looking we term longest that's this model. plan, we and in different business work, business. where the and just low. that's grow that long days a strategy be approach right? we the lens, how with be is going statement stream, what's use And new very find win, That funding not to We're expertise. delivery XX- will grow has do and a to many to second, many, trying if I That could The way -- we're a we a And with that commodity-based how be just first, going expertise

and comes and customers More, Less nearly we we that's need to that comment. that built So what Win then it develop side, And why it. scratch a partners really inextricably So expertise to business down you understand Jasper, could be connected technology so from the would giving like right? Bid then

Win do It's More? you Less called how and focus. Bid So

lot How hey, your of going long that go retooling you be find talking on? we the who means down. long-term the are at than are with like going doesn't went, shareholders? the you and people focus that really there's price we with teams to customer which the needs, out there better starts, to looking to the preference, about to very How of there somebody BD of do shareholders model the going patient us show end align out we that you provide about? really growth? So going So of out term be the what over are a What to are we're you transparent possible then shape day, customer art who And not drive the reliable performs h*** and to invest drive things, need, ahead everybody? of

the have So company. mix we we that's the in That's recipe this have.

driving worried markets in technology really that does versus and the we're this do So fit sitting we're expertise When growth. for We will and nothing here we spend more both strategy? does, DoD. to business Fed, investments, Civ to as the in CapEx, stop in it say, and not we about, at money are Jeff in that crucial win the long-term our mentioned, IRAD BNP, just

a year, have recompetes. On contract the see you frankly, we we lot went view, this extensions. don't is, through What 'XX of of lot a

may X are said, those to years, of who customers if to years. recompete So that take and quarters it have years, came couple want during year the us last you next X X another

rate then, So drives recompete and a 'XX. lot that potentially move Jasper, And that into 'XX we work gain extensions. as a there of was did lower to we

of Your Seth next Seifman from with JPMorgan. line is question the

how 'XX long-term there growth what that prior earlier? Rocco is drive awards these we rate the is for mentioned bidding revenue on bookings about in on of bidding strong on impressive trend should another is year in Did awards? thinking future question, Seth. more drivers This strong CACI the thinking be awards? Also, And in the will the quarter? the lag above the CACI's were fiscal shift? year Building about Or

on strong but [indiscernible], are teams, how great about last first crowbar the about position get the of trying into win. win. we I of not a -- when the are But, be development is centers. part team, how to it's business They ourselves. our love do question. P&L we question, or connected, sales really more transparent at have had about to business more also really a absolutely X-person we and and the that the will competitively the spirit overly business XXXX. more X- looking Yes, the to the culture, 'XX. This driven we the deep But certainly bench of machine. It's know to They development both

the we even spent large we quarter, ] more The how an more had becoming world we [ do win working an right? awful time this customers, you is current for dangerous program, that place. was given with one ELITE of do where the lot That

So plan. that is a X-year ago

commands. and being run, those helps combatant programs do support them? we these that as do ability are unity how merge so for helps purpose, we And what That X across

that It's each as process how of a in to that detailed are people. people the very day hands do than So not involved and focused the of we it's less hands X shape. is XXX actually in every

this within to We're have we into 'XX. And this company. going mantra go

bid 'XX in entire in lineup, Our solutions FY rest of that bidding already The of will most has shortly. 'XX. that bid been here be

award and X.X. above That's we X.X get quarters, traditionally, been why we're from number we we talking and had a grow do into 'XX, long always why a So is wins when why our we've book-to-bill, over a XX-month of about X.X, spot. how book-to-bill 'XX trailing

but going kind chase no do ethos all, some a true it going drive to drop way. price of well. then to how job this It's better. strategy. what go anchor in have that to growth, we you on the get going stay So an we're idea company that not to we're doing and and we is is to that just work of promise We don't long-term and of based We're operate

from is Walters question next Your Conor of with line the Jefferies.

it's here? the earlier, in touched be great. program ramps point the Trying I half organic what low perhaps to key second are growth a trajectory all you get if the you'd share double-digit Anything you're the great range. quarter. accelerated if exiting on strong year, in here the to the of back point some from on don't would Congrats drivers you some could on to growth this gains. had Curious to you really know

X we've it's franchise on say point hitting John expectation. broad-based. would or the broad-based. or X are I we've broadly of expand all major Those this, can't really last sort our mean of of to We're a and really couple the very to it's X but on couple want talked cylinders, really likely about of of the wins had -- years. or programs this is ahead over all or pretty ramping It's kind portfolio that. on

Yes.

talking right? driving and year, ELITE EITaaS, talking about we'll beyond at you those be look this Large [ I can items. think the future of expertise During and some revenue, we'll Intel the about program, programs ], be EITaaS

not we're and one, So We're X-program in a out to not looking a stride. X-program we're our get company.

coming goes which that programs everything also that, going a at deliver have some revenue we technology say to we're this we to deliver, thing, it we right? sustainment. when actually programs of right? we are if company And there's away, Now means and But I do a have up billion, going deliver supposed to is $X deliver. sunset, positive on that are size, we And

so middle so of you can our that's 'XX our range plan, most what cases. right in probable the right? building why you the we're assess gives And What

where also in we you growth we were August, gave I'll We look say, if you to back where rate. there right? were folks, a

show lumpy, can coming government's year great there is, win you we but we're X things said in on are the And in. align, next where year. say are are we're difference too of the late to hand, those on all would fiscal come in to the and what high end things kind right times high our of we to every Respect used growth, the So know, based fiscal We in award you pretty achieved. but allow on to all when year things end. and bars, material to range. X there the us right? a to all to up times it are presented not have invite any where year that when things questions, the proves, year, drive awards you I as X were we awards the of never have goalpost high gave current say back X end but also we left going were in the you those single end actually specific maybe it's We going going to to the what go is align, that a low of quarter. And some an to as

up, why I Jeff of say, exiting, So to we're the frankly. it's August, middle that be some for stirring and it's expect about what's to can just It's going eyeball drives nice really 'XX, ending. rubric not about you good of a I be And the that guidance bottomed and flippant, got earlier that what's this always have and don't and the future. absolutely, really talk in when well we yet, we'll great get in a position really we 'XX soup we talk what today to reason

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

Navy Following up progress the in across on installations of terms surface the Spectral comments. What fleet? is the

Yes.

So we PDRs and really gone design of software phase terms. CDRs engineering through now. are We've in system a and the number using great engineering

the are program forward. we moves how at looking So

start And year. up. based goes, be year make the of end in fluid, fleet on which looking for highly be fleet. to casual that then going spiral deliveries looking product, how a level, macro That's calendar of closer ship to 'XX, we'll Navy calendar has means viable to at surface next that this to mix this to the that minimally are end of XXX to capabilities a are first a what's plus delivered At we

So of we'll view period August, have a that's much better we're development when get in now. sort to the the we period but

which been number to about start later, is and ships 'XX we now and ramp and the go of itself design beyond. We actually N will some we're that talking of phase show in develop [ as year calendar will ] deliver 'XX, product the the we've in then and clearly at end and why

that vision for software, -- you've useful of life in it of Great. entire component would is the for software the dynamic a And the last significant is the that that discussed and the threat. nature solution, ship

even the contract your decades the going as change, for to and upgrade have your is do rather the software you only software nature last envision for is X years, can for to that decades? your allows those threats change the that of And the do you that so think software requirements changing than decades so with but I the ability solution to requirements to solution in response such last

Yes. Yes, Louie.

We of gear key people because decrypt X surface architecture and can deliver okay? to with It's signature up their open companies then claim what's that want can what It's an that with to actually so it. the finding the effect is architecture they're ships. signals that. open So we to you whatever of is, apply different kind come it, that points Many solution. other who protect

highly owns. based counter-UAS can open that. the DoD and at on of lot yes, the into go We're have that based as on lot capable threat changes than community. having Two, future. software a history. fact the a out we long company us a we one, line architecture, makes you the talks So make around work all We software-based created A is with GOTS more that and based over it levels for to couple of a start that, that decades. intelligence government the them We of of adding the the we're on continually

out, fleet a of tear take X given on can't each maintain hours the more as was, put counter the where hardware you as surface solutions the can put in, matter hardware change, in, threat the they year, those all changes, crypt, or collect when point, able do racks is [ versus old ports, ship style your those threats the a we're of witnessed, X threat to into ]. So we've to within a

company. threats a is our exactly to It are as we to continue We our look be, making to software-based customers So wanted superpower. we superpower where those change.

drone many of several obviously involved the of you on sensors their software with program? hardware Are you the recently, Is In programs. program And in topic algorithmic JADCX they side? the warfare. how data talking programs Solutions and JADCX you've discussed the same of Defense provide of across about version intelligent warfare. Bloomberg, has first have this . that been Department signals, different types involved many CACI on in official and a Agile past, both with analytics software Factory role on And Great. on their

of we're in a right. absolutely Every starts OV-X involved. of we ] lot better. belief, get involved level, there's every cross of blocks Navy and to JADCX have But yes, Yes. service a our to as are DCGS, understand DCGS, it's massively lot to I will sensor, DoD would shooter DCGS out, [indiscernible] library. into this There is whether model. it it put say build lot the large Air are Soft, folks DCGS, that a and about know all [ get in involved building everything the to we the Force, that then where the

Force. past, over other formal an exploit how seen DCGS We we ships team flying signature that Air example, do in a surface have and a you that really of is on those sensors in commander. X components, the that threat works may the Spectral Omaha then and do quickly in pull lot that JADCX provide this have bring like to and how in ship from

what more DoD eventually that added, So side of much all block level building we'll get blocks yes, I'm connected so delivers. in into technology very our JADCX. things a on the fact, component we're And today, certain be key as building

no are now for Mengucci questions. turn conference John I There will closing to the further remarks. back

Sullivan concludes stay that questions for we'd Thanks, James Dennis, George and thank to my call. know your webcast dialed many families. the MacLauchlan, our and thank follow-up today's Price We call. help and on you in and to for your who listened call. Look, like you have participation. everyone available to you of their or and will Jeff Please are today's after best healthy That

thank This you now all concludes participating, may disconnect. you today's conference for call. We and