CACI International (CACI) 24 Oct 242025 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the CACI International Fiscal 2025 First Quarter Conference Call. Today's call is being recorded. [Operator Instructions] At this time, all lines are in a listen-only mode. Later, we will announce the opportunity for questions, and instructions will be given at that time. [Operator Instructions] At this time, I'd like to turn the conference call over to George Price, Senior Vice President, Investor Relations. sir. ahead, go Please

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

move are to We slides, presentation so Slide providing X. let's

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

Our safe as in measures. would These to discussion in point -- this part as financial and harbor part presentation considered isolation of or out of non-GAAP for that accordance measures also with should like our substitute of on will I exhibit be any include should incorporated call. any prepared is statement be performance as transcript a GAAP. not included this

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

year George, our results Jeff Thanks, morning, you fiscal Thank joining as to Chief Financial this our good MacLauchlan, discuss guidance. quarter first well everyone. us as With 'XX updated our is fiscal for me and 'XX morning Officer.

Let's go to please. Slide X,

free XX.X% solid fiscal delivered revenue We and start flow. growth 'XX. Our EBITDA quarter to a XX%, margin represent first of great results of cash

which quarter a X.Xx XX-month and basis. In trailing addition, over of book-to-bill X.Xx on we won the for billion represents $X.X a awards,

were of nearly a to to record CACI. our First and quarter awards follow-up work strong awards quarter this new were XX% for a QX

provide second and Summit the agreements and guidance, we Summit quarter, also addition to while strategic financial earlier closed Insight. Insight our to executed remains month. Azure will Both the FY Applied and raise Insight 'XX our performance shortly. X close Azure of for strong organic us during quarter track quarter, Applied Jeff our Applied During purchase the this acquisitions: first on enables technology details

to free strategy growth business opportunistic need thanks and CACI to investing our flow flexible our and execution, ahead to be share well positioned our shareholder continues of capital deployment. per drive value, strong our of exceptional development and long-term function, cash and

X, Slide please.

billion $X.X business quarter Our performance. awards represents of another of strong development

this on Let the me focus were awarded fighter. war wins briefly the implementation the separate and to and the Navy a contracts expertise X quarter. highlight to accelerating provide capabilities of of couple U.S. engineering with We technology new

valued deployment intelligence, artificial arm in sensors. Corps at with the new up $XXX Navy command and the support and development across and control and the to their of task order platforms NavalX, First, cyber innovation areas such technologies Marine million X-year of and the to U.S. as

Second, up a accelerate add order, Warfare technology readiness, with million fleet $XXX support Warfare the and to X-year implementation value cyber Undersea new resiliency task Undersea enhanced for systems. to Naval will Center, of

Slide X, please.

and and business our differentiated past address strategy, were builds of long-term sustainable security elements won. and enduring need bid record Strong contracts and execution and importance track advantage. other a invest those the the superior track of by capabilities, of strong focus is success competitive awards on with of of strategy driven which after our execution Our critical ahead duration create is more together differentiation performance, enduring programs. larger, our less win national priorities, longer to Equally of record

on executing Let programs. at how CACI a our scale is few consistently of me examples just large share

complex First, history. Personnel largest the system, is the which Pay IPPS-Army, most in PeopleSoft Army's referred and Integrated as is to implementation and

entire online over had army integrated day. and first than users IPPS-Army across recognized for supports users per XXX,XXX live, system million provides the the service. the the model and the agile within distinct program has is going time, Since X HR as more capabilities

to EITaaS, as as a program Force, scale. Air IT Enterprise the known with Service Next, continues

system Our tracking milestone supporting nearly new users exceeding of been deployed XXX,XXX management to old the system, IT we over and and by this service year. seamlessly users over XX% the their has contract to XXX,XXX calendar by are end now replace

extremely importantly, the most that feedback positive are And customer value, speed delivering. responsiveness has we and been the on the

ramping secure, milestones GENMOD. including awards, network In SIPRMOD CACI but addition, deploying Army is vulnerabilities, underway, AI. CCI faster, With largest on began up critical and executing modernization They And is we've and government. met only designing finally, customer our enablers reduce we cyber not programs JADCX NCAPS enhance in agile and on are ECSX, the efficiency development Army the now software priorities more executing recently all recent NASA contract. software-defined U.S. DIA networks. of like work and and our this also X

opportunities see increasingly to continue healthy methodologies. We adopts government the as a of pipeline additional agile

software-defined RF meet ahead a technology. to in capabilities Slide decade with today critical the seeing has -- we're ago. we X, also invest demand please. geopolitical our to over I'm CACI our began the pleased of needs the for current right environment increasing customers' because

First, CACI to completed national to design on that Navy's the our and program our to major shifted spectral goal development capabilities strategy. is a the integration. critical is This and possible. bring program and faster for security our making has enhanced to country's milestone the Navy phase is fleet has successfully The

IDIQ TLS against our program deliveries previously for million $XXX on the the Army, we Manpack this begin announced quarter. Next, will

dominate U.S. is spectrum direction battlefield, one today's system allows attack where detection, on stages of the enables electronic the still soldiers reminder, technology dismounted TLS signal the investment. increasingly a As the and modernization electromagnetic on army and to and domain CACI's early in the move. conduct while finding critical and Manpack the to

also technology address the previously not can that was individual Our a threats, counter-UAS at capability soldier level. available

to speed increasingly in from in as CACI wide software-defined customers strategy are most are customers. agility by 'XX demand their differentiated We competitors. FY expect and our apart critical range our these orders our we a address of focusing setting Through missions to additional capabilities on of and critical technology, high delivering

Slide X, please.

to and on and other at repayment where share strategy time. on based repurchases, the opportunistic flexible see debt continue We dynamics capital the we actions we execute M&A, deployment evaluate

Our in acquisitions. and on recently M&A performance. on focuses fantastic past front, filling customer announced And X gaps our we presence our this program capabilities,

Azure have accretive announced First, talented strong EBITDA agreement in exceptionally September, workforce. Summit Strategically, had And per free alignment Financially, be will they complementary cultural Azure on adjusted RF EPS first an a to bringing presence. expand and flow to margin, year. technology focused and customer the engineering established in purchase and of with the we our cash high-performance technology CACI's definitive provider they and innovative, Summit. a electromagnetic Summit share spectrum. Azure CACI and is

company In efficient intelligence this customer the intelligence and tools community. Applied that acquisition gaps addition, our completed enable faster, capabilities more community classified Applied and Insight, migration, fills of the earlier provide around and environments. development. contracts customers a technology by particularly Insight presence cloud to migration enhancing have month, and in and within utilizes machine we that learning cloud technology AI repeatable also cloud They existing particularly with AI, several

Azure the accretive to they Summit. are year, like first in similarly financially, CACI And

X, Slide please.

the fiscal year closely. government continue 'XX monitor We process to budget

do addressed fiscal which We influence though material We've December deliveries. Government of of timing quarter-to-quarter like year not our last As most typically technology a see number CRs XX. impact for for believe within of prepared years, through 'XX guidance the shorter-cycle software-defined which scenarios, from under Continuing can they range. most a are a began Resolution, we revenue sometimes our

capabilities an the elevated healthy We pacing CACI threat with dynamics, with continue is geopolitical of areas our bipartisan, to enduring remains bias. are security upward deep, the see customer environment well global and demand in being streams. of and driven positioned adversaries. National funding by demand resilient budgets

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

The turn the which quarter, morning, balance that made acquisitions we Please you, In revenue everyone. to Good our growth, generated 'XX. nearly first was XX.X% XX. $X.X was X.X% generated by fiscal we John. of billion, Slide X in Thank of representing the organic.

basis primarily higher offset Adjusted year and tax a than operating which was share First lower quarter with increase business along share than a provision. Greater of a higher and per of income XXX XX.X% count $X.XX ago. year-over-year interest by represent EBITDA points margins expense driven XX% mix were lower of earnings diluted timing. more income a

cash quarter accounts strong our of was our some we purchase was profitability cash last in days quarter. a discussed QX's the receivable continue cash sales with low by capital. $XX was DSO working facility capital million, we as XX slight partially First reflecting record collections, $XX quarter line Days excluding or offset manage to uptick and for million flow, outstanding of of factors expectations. operating the flow working from Free efficiently

please. XX, Slide

Summit Azure Applied indicated. Insight subsequent to during we the we closed quarter, as track conclusion discussed, quarter, we of to John the remain and close on acquisition, the As the previously first on

will completion leverage Our be X.Xx. transactions pro the forma following both of

allow we've delever shareholder manner flow As long-term cash past, business to always, long-term the healthy target in and in us and opportunistic positioned our as the in flexible demonstrated well to to means per we of drive flow continue that, This quickly to range. capital deploying remain value. a cash growth free share our characteristics

balance This well as please. Insight. is the an organic million ongoing raising $XX guidance the business raising from due pleased on the fiscal performance and of our Applied inclusion XX, We're as 'XX is the Applied This driven acquisition to billion while guidance. to of billion. basis. of Insight. is the our completed We're $X.X momentum our increase represents to revenue underlying of business, Slide be organic XX.X% of $X.X to recently the X.X% between growth increase by of this be

our fiscal strength of end sales the communicated, Insight. be expect range to now the high business, the organic of of 'XX of XXs driven EBITDA the visibility technology margin upper we inclusion some toward increased we addition, In Applied and previously the of software-defined by

least FY revenue adjusted million presentation million the outlook, income our result increased between finally, adjusted with increasing share. be organic EBITDA our of $XXX in details net contribution well $XXX increasing and assist updated flow And per of Insight net to of guidance to million, a our an have of guidance our your you cash at as that free expense. to intended additional guidance EPS higher $XXX Please we're $XX.XX interest in to to due modeling. we're as increase $XX.XX Applied been As note growth included updated 'XX accordingly our with and also between margin be income

Additionally, as guidance Azure has normal included previously in Summit during cadence will once our closed. it mentioned, our be

occur work the will process most continue customary than rather and later. quarter, through confident remain closing to it during the second We sooner likely

Slide please. XX,

our strong forward performance XX trailing in months of book-to-bill marketplace. the to ratio indicators, X.Xx Turning reflects

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

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

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

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

and quarter delivered summary, bring first and capital flexible CACI. and to opportunistic manner capabilities outstanding additive In deployed results presence to we in customer a

We turn win share growth, to over that, high-value long-term flow shareholder I'll execute with back increased free value. that additional And call enduring cash and continue work supports John. to and the per

Jeff. Thank you,

year 'XX. has fiscal Slide a to Overall, Let's been this XX. to great go our start

are up past few continue successfully programs. with we've our strong ramp from over on-contract strong the won performance growth along We and strategy existing awards years, to as execute large our delivering we

and We Insight. access customer our capabilities, talent added to Applied employee our have of with acquisition differentiated

to result, fiscal to in pleased we our be guidance. a a 'XX As are raise position

addition, Summit to closing CACI In acquisition well. and we them welcoming look the shortly as to Azure forward

the confident well generate share right shareholder free long-term right in our drive and to remain cash are positioned in ability We with value. flow per additional markets growth, and increase the capabilities

X. financial our during Stock I Day our in November more Exchange look at business, our forward the detail Investor discussing York our longer-term outlook strategy New and to on

driven open always on And CACI nation. you everyone every I our To With call Mandeep to questions. and is what continue innovation by do let's commitment. CACI. your success the of employees' that day our support our their thank our case, and each you day the for company I'm proud talent, shareholders, As for our and is through of team, for the to

Thank you.

question-and-answer session. the that limit today's will now For begin we question We and to [Operator ask yourself please Instructions] you one one [Operator session, followup. Instructions].

Melius comes question Scott the first of Our Research. from Mikus line with

their with X we ask, to wanted production communications to optical be of some I Tranche contractors had the a Jeff, Development saw for Agency's John, satellites. numbers. Mynaric Space supplying terminals. Great issues supposed They're number

So And any on could opportunity their X opportunity to the customers Tranche is beyond? reached an this of out I Trans just more either be an gain have X Or was and this wondering, share for to you? satellite?

proven, around topic, there. we operational last saying too thanks. Look, the deployed, not optical that's -- have with from that but we're and tested demand I is share success and though comment and X primes What the into quarters, I'm say as we're that great have not we're in details today. I to communication seeing and where go on other would going Scott, over going orbits. will [electronics], provider been many terminal various that vendor the prime. Yes, strong with in area our of to at we I'm both is technology other had discussions government

As mature, that's OEM number the of where our That's primes many and with words. customers' primes of technology most words. words shared we our the not our is our a major

come we're designed do and because They manufactured. we're and the And us lowest the U.S. risk. to mature most

still we that last deliveries did do on Xx track we're Xx So number of to to year.

guidance shared bid. additional we're think entertaining call. still during I that I our And

well So profitable discussions keep have to there's keep and long is else a ear very eye ahead. going very and make that the an an customer there's road sure everybody at and Scott, to us. need end obvious, It's as the And -- where we sizable on we're served. is for

like open could a seems up ask about Summit. doors new Okay. It And Azure for to CACI. of lot you wanted I then

could So sales this pathway foreign and up are exportable other military open any for CACI? products a for

you be platforms our talking everything Summit, in Azure Five all we shared very and Yes, what in number software-based The think U.S. we're And to RF -- Scott. Look, we've to a about similar tech products be deliver clearly They're Look, will countries Eyes is. about been to should applicable Switchblade international today. of that they our products. involved the other that government inventory. very serve plan we've immediately they also in

So software tech, Scott, we kit take our rack that where and how well the signal capability to put it more there, into do customers. processing path provide to partnerships can defined really, their our is U.S. get we international running much and

look other but and sell our products. And European at then the Five step Eyes, how and not NATO Switchblade forward countries The is there, selling to of we be only Eastern Tech, also course, RF

really And of So with acquisition. drove drove it of it's gaps was really slowly, domestic the what to mission-focused that as Scott. the for one the both number of expansion then technologists very and Summit that set top-notch a -- reasons that the but are we coming It market. in well fills. engineering there working the large is Azure they some aggressively international us Thanks, and market

comes Baird. question from next with Jan Our the Engelbrecht of line

any that justification 'XX at And expand content transaction you that essentially spectral documents looks fiscal And made the spectral congrats you'll George, wanted and comments Jeff a it of Azure to item on just that John, potential contract the just you update there. can some from call your with revisit Navy. have Summit I strong future of closes? just looking like of for was the on position on the the after the and results. line doubles 'XX. to government set I business sort

wanted So looks it your thoughts attractive, get there. to but just

Jan, thanks. Yes,

at Summit they're has the work C increment So F. if on you today, look that Azure [indiscernible]

of all surface is So next on below picture U.S. suite Navy the that ships. deck single the as stage that

Azure [indiscernible]. a the doing X a to signals. for an next been Spectral just won lot So subcontractor is built back and that Spectral. is And learning more modification in. the goes program exquisite the beginning And years. And from delivery. of next on gets of a up that production prime a and many run AI that's production they're X to a years able kit. prime then that to major machine process top they as us couple job where of on comes We've they the to are doing That run

a the from Azure deck combination Summit. known what surface from those I and up next years of as and micro below components, signals if counter with UAS, level, like, it's going is zoomed the for -- So ships and come the to XX it at intel, CACI now macro

pleased Navy. now. from production into moving very We'll We're with getting and successful another work then and we've on the done just States in development and XX further that viable the United Spectral. a were the to minimally We with XX integration demonstration the months into stage, test the implementation, be product

any just of changes terms called next Perfect. know That's couple is Summit of quick programs of fixed in new next the maybe a mix? large Azure helpful. price out contract in pricing then the rest there that mix? previously And cost X the really fixed I terms you about more quarters of we just mix a or any over or Is probably follow-up. that prices, backlog meaningful in the should which acquisitions versus the think plus close should or CACI, year but

Jan, to I sold all software-based -- very than is. is fact manner our other in technology mean, Yes, the other of Azure a similar that

kind that revenue of level tech up. come they fixed mostly extent on price So move the EITaaS with -- are will to comes of did We some program. material sales into direct a phase the their

see you you So what's look where a release, driving material behind Jeff, bit that. see? that's anything time but little could you'll is if the higher,

to will we particularly you expect. it. And content that the No, got EITaaS ramp, T&M continue

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

morning, everyone. Good

of And that I year. into really and But can is kind we we don't that is pipeline about some continuing that opportunities used I longer resolution you election, end noise about of businesses going time And around the if impact like consumer is have like start resolution longer year? my like think you know, think recently of like question businesses? to or awarded fast resolutions? like or those awarding -- the a the how more kind into everyone How how the continuing that new a the caps are calendar So were to new prepared goes around probably affect, continuing the election. how the of the should to like even think to awards exposed the of next solution of of

John. is you. this Mariana, Thank

hear election and think the So I where of go defense has after election, budgets long a for as do that a sort been we've the when country always and bipartisan efforts. fact I been as

been remarks So way through impact cycle order-based to because budget purchase our safe the tried there surprised than our other as I've longer on [CR] to focus I say that really past. on. How that's of sort of prepared an share focused it I noise year what is election product shorter we're in that software [CRs]. our in Look, impacts it that it's my I business, last can work some awards. and think is

Now where at look our that in customers regard. a gone have having let's said take that,

manner. As can larger in buying IDIQs we as where orders announced last call, of software firm to sell buys fixed on they do quarter place larger bulk put traditionally larger during we scale available that our became purchase were a that price technology that technology scale, customers on guidance our funding

same programs buying of in software the way kinds building it's example Where signal new to program. those A funded. we're all that to do Manpack, put things, any has the the structures not TLS and quickly have framework a concerned up the But place collection where like right? customer perfect dismounted allows [indiscernible] be common And soldiers and would

very, the billion -- of of steep during additional States community billion a underscore and where on my market will level, company remarks, but the about Defense. So about prepared me as additional talk or this government, $X with manner in very not I'd a the not, look intelligence talk in macro are United we in civilian At heard areas throughout it the like we're Department an budget addressable the by bold; area, deep federal impacted awards; volume those where $XXX you for the goes. to

and growth market a during portion opportunity the over, rich. deepen very said support address So funding, over in can of large enough and is funding our to we tremendous more very, there's still I've streams It's future for a than growth. weren't

going we budget are mark either a coming the it's presence potential I national of security whether be what it's And color. I Hopefully, heard, So the you into presidents some around. to could forward, additional we'll points intended. drop don't a move the that lot priorities see whether but the from new gives pun some think position, fine, of quarter budget, it going no

bit little on M&A. a then And

any like how should the you'd Or or think any that? like you actually with And do particular is that be environment, you to If deals like you that have discuss can like in attractive the like how customers, if areas could competitive -- you we exposed penetrate software think about some there especially are deals products your solutions? pipeline? to use

the Yes. capability the strategy to pipeline. and strong add John to bit. But little we a continue will really a want gaps see to

We opportunities robust lot set we're that opportunities and have on. of a working of

to valuation year And say committed is experience. acquirers. going We expected little with for somewhat bit our I'm which to have contract we disciplined patient we're and remaining that mechanically, mentioned multiples to or so a recent consistent a very

we lot to evaluation good, spent see -- capital We in a our the particular we we're have pipeline places. We've sure of a do right energy rigorous so. applying making rich, criteria. But very robust continue capabilities. precious a about And

But we're on no down the technology I our space, just lower lightning the side, footstop I'll right. been are the is words look time even being is Yes. And M&A covering but that expertise Jeff I not I down next highly rest and out really always X on to us. area. moving cyber be have and many And changes technology assured, or We've know the talked at those Applied the we're cloud been XXX We at in down. think at and businesses, very called modernization. very, more able other to of sort our area around we've EW IT at We're it much a of mentioned, company. It's of when back experienced and sort on looking. doing Azure there I over applications the predictable. SIGINT It very Summit months. the sort Insight an look what at there. over IT few it we of and I comes last for XX sort focused do that and last going SIGINT works for level. coming. looked acquisitive to anything using been mean those of look you drives clearly, speed risk the in disciplined cyber everything targets about patient modernization covering asking EW. Look, X decades, when years, We and is and well

thanks So the Mariana, for questions.

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

looked recently? I'm it you've hoping maybe can provide Sid, historically? maybe different what your specifically rate bit out driving can if like Tobey. call a little details any anything that seen has be might on for is And you win on This than what you

fan losing of on not are customers. losing we current focused we trying current incredibly Look, going to some not of how we don't just to a But a book into there. talk like with get win a of When we where about, sort our win rates. about fan Yes. rates, We're I'm business. of off to recompete talk right? place We're provide clarity start

traditionally we very -- XX%. and focused very, are are than recompete all we greater are So those on rates,

dollars actually a our So percentage leak of next year's by losing we recompetes. growth smaller

that's at fact, we we better matter at values a In if the often what -- win not recompetes do case. our on than more rates, larger

we side, that of are technology performing business all we we there. because of exquisitely well out book not we find other but business only win bring have, book people's the traditionally On the we

any over the we've and always in the we rate one We're been the -- of the overall I years, quite driving Investor to business at On in at years. this say sort XX% successful last nuts across why be to or X win frankly, XX% say has side, X Day, bolts ratios measure different. chase, going to new X we and be above of X north successful by our but talk book-to-bill that to works we're to and or around of why last everything

we We have have -- a win different this less and bid strategy more.

briefing successful and we about electronic today, duration We'll how all more also longer to we're hungry here's programs. what be Jerry but drives and look to share on the behind we focus -- strategically are are have markets And give why sort looking what's giving to grow we're how say drives how What like to our we'll show happens at modernization there. be into how -- we're talking here's we're captures. that of of able how individual is with focused, about shareholders and I larger we that pipeline XX that Spectral, talk we We grow network warfare, be that you all detailed really know Parker things when and going future. in is how to talking be we'll about

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

that the any being flat Was was from like to year-over-year? I margin think $XXX quarter. XX%, revenue also there year, last materials contributed this and was revenue X million margin gross there XX% gross and margin in the was it materials

broadly. but amount, better mix it we execute It's broadly as programs, to attributable more small sort level not very more part about of of talked EBITDA a technology margin was areas some at the materially. that probably was that margin and There talked we when routine Yes. of we the larger a about

a but counter of to a strategy of question, side UAS on And business, on different and is Great. the the the geopolitical related more of Okay. ton has the innovation conflicts this there do focused UAS and more interceptors a side, intelligence mitigation have system? and lasers the to you need you with side been feel high-powered of more a counter on have been traditionally microwaves, -- end-to-end signals

Louie, thanks. Yes.

and things dangerous be groups to and have handle in the we've frequency group important is X, going ones. you for real the are And are very carry in a people in check counter the much and UAS read those more out -- XX more long group payload, methods the as day, They are Those way of what's everything equally X nature. is X all yes, time. involved many at can using watched the Those in that threats radio procedures what's guided that we are over be the So been -- -- drones the and reliable Many as have groups news are read business exquisite hours. They other end there X. every most those really to they're hard are and able that been change the tactics so and X, frequencies to larger then launch drones spectrum. wireless. to and to

Some to everybody to point -- of or going to dark sort drones a begin satellite. I It them. require needs use coordinates link loaded not. to Even are need be at

around the I going seeing across very the in would on, government the conflicts at and much listen we're levels very, So I federal we're around watch all what engaged what's and of very imagine, senior you globe.

is $XX. destruction look focus that understand We globe, call, we counter that site going. this we've speak that you company we everywhere we in not all when about provider. decades. the on exquisite in having heard That's used UAS don't speak What which what's back. most the someone system about fixed that because that Group where else's that's that, which about Manpackable, the to the So at about rest from for earlier We're we're a X having to a large-scale business involved X around assure mobile said exquisite delivering drones going is why at about buy to talk for state-of-the-art can't not years we're is question it. been be levels you many to That capabilities,

drone. $X,XXX There's defeat models And missile solutions list models. different long We've commander's combatant and and day, stamp needing the At kills. that investigated today those less of business a the customers to different less there. out come lot are there $X approval a of use million frankly, of end with a a of to our a out business confirmed

can't company. but a just specific growth in So have US. we comment believe our long-term I and on about county to I talk market, path We go how we any ourselves

a and you pipeline program. But that I more are for the Navy the expected to Spectral, there the are be other suggested for have follow-on opportunities platforms you in you the And lot the already there for for large counter-UAS, other is more but there Navy involved? for opportunities Manpack think within orders

Yes.

unique that and when and on we fact acquisition, both other opportunities, look is year's I'll they're not think a pipeline, Summit [indiscernible] share we but that growth have a multiyear this Azure makes the that pipeline the us airborne the only in the Day, thing why I hear common last what at share at extremely platforms baseline. you Investor you'll

the of put about about talk unique and time at the and of is something the every speed other speed that, time. one can signals we the And learn that into drones we why that and So fleet. systems we can power gets flight everybody's which speed match nobody deliver

of by about some you'll more additional our there's quarter, Investor Day I'd I'm that that next by work in up. coming I cover think at -- pipeline there. yes, even out the hear awards. detail But would So almost I again, plenty assume assured in better

of question comes Conor from next the with Jefferies. Our Walters line

the I a into wanted performance to more. margins strong bit first in dig quarter. little your The

the it the basis points be could remainder through the commentary the derisked quarter, certainly second rate kind XX, year-over-year. XX Your the half ramp on it second but of suggests year, run of down that

that's really conservatism out takes puts or call and other want Just if you there? curious any to

the than or couple first seen with higher been in of although disparity pronounced. the the for years has first There's we has quarter. continuing rather, the the and same the year, second half flat margins this relatively see that a become we've last quarter-to-quarter that pattern where condition half, Yes. quarter our less Thanks first here second question. And

a balance insight. we That's of not you But half half for first we the -- then second hopefully, is gives first step still and have where year, the some today half. from a the second second So that first probably quarter flattish is to the stronger of half. the somewhat the than that are helpful up half but

I maybe to color. cash. just No, that's into And dig that great. appreciate

around talked about year. capital there the last how implied headwind $XXX million quarter, think working I of -- of was kind for we an

around any bridge performance? if other Just versus curious provide color if you year process? thought that's 'XX still we fiscal could the this how latest your to And

-- growing this industrial in, We the in growing all still have mean demand. And growth, volume, again But -- acquisition. had. factored for I customary in if are think of guide. continue by see of and our to some do way work see that's have kind the But you'll working portfolio, the require any and we that some capital has working a certainly, will in of process business course, we about where to business amount historically business of of not Azure changing nature following the this capital-light that places a the that and we inventory capital the standard. you

factor our in So that guidance. is cash a

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

David. Korn Josh on actually for is This

ask wanted to Just about the guide. revenue

growth X XX% greater purchases. the now So with materials quarters we've of more had straight or

is the what, year So guidance the the range? of if to anything, decelerating into get over balance

David, our a talk we We contemplate on did time control. doing try as Look, original to during of spent updated scenario. we guidance when low this to guidance different really can and we we love this fair Yes, focus quarter and amount in a what end with guidance. high-end 'XX number Look, we scenarios, of the about a last thanks.

executing confidently we're think I strategy. our

see volume of trends the we billion that truly us at guide. budget sort other see uncertainty this an a if look clearly geopolitical macro of or So of $X.X goalpost right-hand we that awards, first anything of software-defined there's towards If for are those of extended we some that's if awards pick Tech year, sort delay goalpost. CR box upper some then additional side earlier, up, that any that if enters did the left during which On quarter, question the markers. we can in, check in the sort

XX year. into remind, fiscal days the we're So I

So we're at the end of the first quarter.

So at guidance. those are just some macrodynamics as look we

don't that. a I add to I lot Yes, have think to

you left. a summarized by what eye game we the And seen scenarios lot do it the We're we've our of on. I of keep most it's far and monitor mean we year. I here that in encouraged in so we we're early think think well. pretty the the that first encompass quarter,

conference our concludes to now session. the remarks. John That Q&A back over will I turn closing Mengucci for

to Thanks, of for participation. on to like you Mandeep, the and help Price Really have your are dialed day. potential questions, I today's follow-up webcast Please will and in many our today's Jim have This your and after their MacLauchlan, you to thank or listen who call. all everyone you for George call. Sullivan, available you thank best families. great a concludes my and all, healthy Jeff stay and Thank would call.

This call. conference concludes today's

disconnect. now You may