SAIC Announces Fourth Quarter and Full Fiscal Year 2025 Results
Q4 FY25 revenues of $1.84 billion, 5.8% organic growth(1); FY25 revenues of $7.48 billion, 3.1% organic growth(1); organic growth adjusted for divestitures
Q4 FY25 net income of $98 million, adjusted EBITDA(1) of $177 million or 9.6% of revenue; FY25 net income of $362 million, adjusted EBITDA(1) of $710 million or 9.5% of revenue
Q4 FY25 diluted earnings per share of $2.00, adjusted diluted earnings per share(1) of $2.57; FY25 diluted earnings per share of $7.17, adjusted diluted earnings per share(1) of $9.13
Q4 FY25 cash flows provided by operating activities of $115 million, free cash flow(1) and transaction-adjusted free cash flow(1) of $236 million; FY25 cash flows provided by operating activities of $494 million, free cash flow(1) of $499 million, transaction-adjusted free cash flow(1) of $507 million
Q4 FY25 net bookings of $1.3 billion; book-to-bill ratio of 0.7; trailing twelve months book-to-bill ratio of 0.9
FY26 guidance introduced above prior targets for revenues, adjusted EBITDA(1), adjusted EBITDA margin(1), and adjusted diluted EPS(1)
RESTON, Va., March 17, 2025 (GLOBE NEWSWIRE) -- Science Applications International Corporation (NASDAQ:SAIC), a premier Fortune 500® technology integrator driving our nation's digital transformation across the defense, space, civilian, and intelligence markets, today announced results for the fourth quarter and full fiscal year ended January 31, 2025.
"I am proud of the results we delivered in the quarter with revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow ahead of guidance," said Toni Townes-Whitley, SAIC Chief Executive Officer. "Subsequent to quarter close, we received a $1.8 billion award for our largest recompete win in recent years, the System Software Lifecycle Engineering program. This important win along with a backlog of submitted bids valued at approximately $20 billion reflect the momentum we are building inside the company. I want to thank the team for a strong finish to the year and for their commitment and dedication to our customers' mission during these uncertain times."
Fourth Quarter and Full Fiscal Year 2025: Summary Operating Results
Three Months Ended
Year Ended
January 31,2025
Percentchange
February 2,2024
January 31,2025
Percentchange
February 2,2024
(in millions, except per share amounts)
Revenues
$
1,838
6
%
$
1,737
$
7,479
,
%
$
7,444
Operating income
138
75
%
79
563
(24
)%
741
Operating income as a percentage of revenues
7.5
%
300 bps
4.5
%
7.5
%
-250 bps
10.0
%
Adjusted operating income(1)
176
42
%
124
705
7
%
659
Adjusted operating income as a percentage of revenues
9.6
%
250 bps
7.1
%
9.4
%
50 bps
8.9
%
Net income
98
151
%
39
362
(24
)%
477
EBITDA(1)
175
48
%
118
708
(21
)%
891
EBITDA as a percentage of revenues
9.5
%
270 bps
6.8
%
9.5
%
-250 bps
12.0
%
Adjusted EBITDA(1)
177
39
%
127
710
6
%
668
Adjusted EBITDA as a percentage of revenues
9.6
%
230 bps
7.3
%
9.5
%
50 bps
9.0
%
Diluted earnings per share
$
2.00
170
%
$
0.74
$
7.17
(19
)%
$
8.88
Adjusted diluted earnings per share(1)
$
2.57
80
%
$
1.43
$
9.13
16
%
$
7.88
Net cash provided by operating activities
$
115
83
%
$
63
$
494
25
%
$
396
Free cash flow(1)
$
236
143
%
$
97
$
499
21
%
$
414
Transaction-adjusted free cash flow(1)
$
236
98
%
$
119
$
507
4
%
$
486
(1) Non-GAAP measure, see Schedule 6 for information about this measure.
The Company utilizes a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks. Fiscal years 2025 and 2024 both consisted of 52 weeks.
Fourth Quarter Summary Results
Revenues for the quarter increased $101 million compared to the prior year quarter primarily due to ramp up in volume on new and existing contracts, partially offset by contract completions.
Operating income as a percentage of revenues increased to 7.5% for the quarter as compared to 4.5% in the comparable prior year period primarily due to improved profitability across our contract portfolio, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.
Adjusted EBITDA(1) as a percentage of revenues for the quarter was 9.6%, compared to 7.3% for the prior year quarter primarily due to improved profitability across our contract portfolio, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.
Diluted earnings per share for the quarter was $2.00 compared to $0.74 in the prior year quarter. Adjusted diluted earnings per share(1) was $2.57 for the quarter compared to $1.43 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 49.0 million shares from 52.7 million during the prior year quarter.
(1) Non-GAAP measure, see Schedule 6 for information about this measure.
Fiscal Year 2025 Summary Results
Revenues for the fiscal year increased $35 million compared to the prior year primarily due to ramp up in volume in existing and new contracts. This was partially offset by the sale of the Supply Chain Business ($188 million) in the prior year, and contract completions. Adjusting for the impact of the divestiture, revenues grew approximately 3.1%.
Operating income as a percentage of revenues for the fiscal year decreased compared to the prior year primarily due to a $233 million gain recognized from the sale of the Supply Chain Business and a $7 million gain recognized from the deconsolidation of FSA in the prior year. This was partially offset by improved profitability across our contract portfolio, the resolution of the Assault Amphibious Vehicle ("AAV") contract termination, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.
Adjusted EBITDA(1) as a percentage of revenues for the fiscal year increased compared to the prior year. The increase was driven by improved profitability across our contract portfolio, the resolution of the AAV contract termination, lower incentive-based compensation expense, and lower stock-based compensation related to the restructuring and executive transition.
Diluted earnings per share for the year was $7.17 compared to $8.88 in the prior year. Adjusted diluted earnings per share(1) was $9.13 for the year compared to $7.88 in the prior year. The weighted-average diluted shares outstanding during the year decreased to 50.5 million shares from 53.7 million shares during the prior year.
(1) Non-GAAP measure, see Schedule 6 for information about this measure.
Cash Generation and Capital Deployment
Total cash flows provided by operating activities for the fourth quarter were $115 million, an increase of $52 million compared to the prior year quarter, primarily due to lower tax payments in the current quarter, timing of vendor payments, and other changes in working capital, partially offset by higher cash outflows from the usage of the Master Accounts Receivable Purchase Agreement ("MARPA Facility") with MUFG bank, LTD.
Total cash flows provided by operating activities for the year were $494 million, an increase of $98 million from the prior year, primarily due to higher tax payments in fiscal 2024 from the sale of the Supply Chain Business and other changes in working capital, partially offset by higher incentive-based compensation payments in the current year.
During the quarter, SAIC deployed $163 million of capital, consisting of $130 million of share repurchases in accordance with established repurchase plans, $18 million in cash dividends to shareholders, and $15 million of capital expenditures. For the year, SAIC deployed $638 million of capital, consisting of share repurchases of $527 million (approximately 4.2 million shares) in accordance with established repurchase plans, cash dividends of $75 million to shareholders, and $36 million of capital expenditures.
Quarterly Dividend Declared
As previously announced, subsequent to fiscal year-end, the Company's Board of Directors ("Board of Directors") declared a cash dividend of $0.37 per share of the Company's common stock payable on April 25, 2025 to stockholders of record on April 11, 2025. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.
Backlog and Contract Awards
Net bookings for the quarter were approximately $1.3 billion, which reflects a book-to-bill ratio of approximately 0.7. Net bookings for the year were approximately $6.6 billion, which reflects a book-to-bill ratio of approximately 0.9.
SAIC's estimated backlog at the end of fiscal year 2025 was approximately $21.9 billion of which $3.4 billion was funded.
SAIC was awarded the following contracts during the quarter:
Notable New Awards:
Department of Defense: During the quarter, SAIC was awarded the Defense Readiness Reporting System ("DRRS") Sustainment task order under the recently awarded Personnel and Readiness Infrastructure Support Management ("PRISM") Multiple Award Task Order Contract ("MATOC") vehicle to support the Department of Defense ("DoD") and its need to obtain critical services in a shorter time frame. The $187 million task order has a 3-year period of performance (one-year base, plus two, one-year options), tasking SAIC with modernizing DRRS to create a predictive, proactive readiness management tool for the DoD.
Notable Recompete Awards:
U.S. Space and Intelligence Community: During the quarter, SAIC was awarded approximately $480 million of contract awards by space and intelligence organizations. These awards represent a combination of new business and recompetes.
Notable Awards Subsequent to Period End (not included in current quarter bookings):
U.S. Army Combat Capabilities Development Command (CCDC) Aviation and Missile Center (AvMC): Subsequent to the end of the quarter, SAIC was awarded the System Software Lifecycle Engineering contract, a five-year (one year base, plus four, one-year option periods) $1.8 billion contract to continue mission engineering, integration, software development, and other life cycle support to CCDC-AvMC. Under the five-year award, SAIC will continue to develop and integrate advanced technologies throughout the software life cycle, including software development and maintenance.
Fiscal Year 2026 Guidance
The Company's outlook for fiscal year 2026 is being provided. The table below summarizes fiscal year 2026 guidance and represents our views as of March 17, 2025.
CURRENT Fiscal Year
PRIOR Fiscal Year
2026 Guidance
2026 Targets
Revenue
$7.60B - $7.75B
$7.55B - $7.75B
Adjusted EBITDA(1)
$715M - $735M
~$720M
Adjusted EBITDA Margin %(1)
9.4% - 9.6%
9.3% - 9.5%
Adjusted Diluted EPS(1)
$9.10 - $9.30
$8.90 - $9.10
Free Cash Flow(1)
$510M - $530M
$510M - $530M
(1) Non-GAAP measure, see Schedule 6 for information about this measure.
Webcast Information
SAIC management will discuss operations and financial results in an earnings conference call beginning at 10 a.m. Eastern time on March 17, 2025. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (investors.saic.com). We will be providing webcast access only, "dial-in" access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.
About SAIC
SAIC is a premier Fortune 500® technology integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.
We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
Contacts
Investor Relations: Joe DeNardi,
Media: Kara Ross,
GAAP to Non-GAAP Guidance Reconciliation
The Company does not provide a reconciliation of forward-looking adjusted diluted EPS to GAAP diluted EPS or adjusted EBITDA margin to GAAP net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate net income may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS or GAAP net income with reasonable certainty. The variability of the above charges may have an unpredictable and potentially significant impact on our future GAAP financial results.
Forward-Looking Statements
Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance," and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC's website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC's expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
Schedule 1:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATIONCONDENSED AND CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
Three Months Ended
Year Ended
January 31,2025
February 2,2024
January 31,2025
February 2,2024
(in millions, except per share amounts)
Revenues
$
1,838
$
1,737
$
7,479
$
7,444
Cost of revenues
1,606
1,545
6,587
6,572
Selling, general and administrative expenses
94
114
339
373
(Gain) loss on divestitures, net of transaction costs
,
—
,
(240
)
Other operating (income) expense
,
(1
)
(10
)
(2
)
Operating income
138
79
563
741
Interest expense, net
29
32
126
120
Other (income) expense, net
2
(1
)
9
1
Income before income taxes
107
48
428
620
Provision for income taxes
(9
)
(9
)
(66
)
(143
)
Net income
$
98
$
39
$
362
$
477
Weighted-average number of shares outstanding:
Basic
48.6
52.0
50.1
53.1
Diluted
49.0
52.7
50.5
53.7
Earnings per share:
Basic
$
2.02
$
0.75
$
7.23
$
8.98
Diluted
$
2.00
$
0.74
$
7.17
$
8.88
Schedule 2:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATIONCONDENSED AND CONSOLIDATED BALANCE SHEETS(Unaudited)
January 31,2025
February 2,2024
(in millions)
ASSETS
Current assets:
Cash and cash equivalents
$
56
$
94
Receivables, net
1,000
914
Prepaid expenses and other current assets
98
123
Total current assets
1,154
1,131
Goodwill
2,851
2,851
Intangible assets, net
779
894
Property, plant, and equipment, net
104
91
Operating lease right of use assets
164
152
Other assets
194
195
Total assets
$
5,246
$
5,314
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
744
$
711
Accrued payroll and employee benefits
339
370
Debt, current portion
313
77
Total current liabilities
1,396
1,158
Debt, net of current portion
1,907
2,022
Operating lease liabilities
173
147
Deferred income taxes
24
28
Other long-term liabilities
169
174
Equity:
Total stockholders' equity
1,577
1,785
Total liabilities and stockholders' equity
$
5,246
$
5,314
Schedule 3:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATIONCONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Three Months Ended
Year Ended
January 31,2025
February 2,2024
January 31,2025
February 2,2024
(in millions)
Cash flows from operating activities:
Net income
$
98
$
39
$
362
$
477
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
36
36
140
142
Deferred income taxes
12
16
(3
)
(17
)
Stock-based compensation expense
15
26
53
68
Gain on divestitures
,
—
,
(247
)
Other
2
(2
)
(7
)
(6
)
Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of the acquisitions and divestitures:
Receivables
22
96
(86
)
(46
)
Prepaid expenses and other current assets
(7
)
(56
)
24
(43
)
Other assets
(9
)
(19
)
