CACI INTERNATIONAL INC /DE/

CACI International Inc is a leading provider of differentiated Technology and distinctive Expertise to customers in support of national security in the intelligence, defense, and federal civilian sectors, both domestically and internationally. The company was founded in 1962 as a simulation technology company and has grown into a holding company whose operations are conducted through subsidiaries primarily located in the U.S. and Europe. The demand for CACI's Technology and Expertise is largely driven by the evolving national security and geopolitical environment, the increasingly complex network, systems, and information environments in which governments and businesses operate, and the ongoing need to stay current with emerging technology. The industry is highly competitive, with many competitors, some of which are larger in size and have greater financial resources than CACI, and non-traditional players have entered the market in areas such as cloud computing, cyber, satellite operations, and business systems. CACI has a relatively small share of the addressable market for its Technology and Expertise and intends to achieve growth and increase market share both organically and through strategic acquisitions.

CACI operates in a highly competitive industry that includes many competitors, some of which are larger in size and have greater financial resources than the company. The company knows of no single competitor that is dominant in its fields of technology. CACI's competitive advantages include its proven Technology and Expertise, a strong record of program delivery, and strategic business relationships with a number of companies across the industry that have business objectives compatible with its own. The company's strengths and strategy involve primarily offering its entire range of Technology and Expertise to defense, intelligence, and civilian agencies of the U.S. government, and it must maintain expert knowledge of agency policies, operations, and challenges to effectively perform on existing contracts and secure new ones. For fiscal 2026, the top ten revenue-producing contracts, many of which consist of multiple task orders, accounted for 22.5% of revenues, or $2.2 billion.

CACI generates revenue by providing Technology and Expertise to customers, primarily agencies and departments of the U.S. government, as well as foreign governments and commercial enterprises. The company's revenue is generated under three basic contract types: cost-plus-fee contracts, which provide for reimbursement of allowable direct and allocable indirect expenses plus an additional negotiated fee; fixed-price contracts, which provide for a fixed price for specified Technology and Expertise; and time-and-materials contracts, which provide for a fixed hourly rate for defined contractual labor categories with reimbursement of billable material and other direct costs. For fiscal 2026, 56.0% of revenues were generated under cost-plus-fee contracts, 30.4% under fixed-price contracts, and 13.6% under time-and-materials contracts. The company's customers are primarily agencies and departments of the U.S. government, with revenues from federal government contracts accounting for 95.6% of total revenues in fiscal 2026.

CACI's Domestic Operations provide Technology and Expertise in seven market areas: C3I, which delivers multi-domain command, control, communications, and intelligence technology and networks; Cyber, which provides full-spectrum cyber capabilities to help customers prepare, defend, and sustain their enterprise and mission against cyber threats; Digital Solutions, which modernizes enterprise and agency-unique applications, enterprise infrastructure, and business processes; Enterprise IT, which designs, implements, protects, and manages secure enterprise IT solutions for approximately 50 federal agencies; Mission and Engineering Support, which includes platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation services, and logistics engineering; Space, which provides space domain awareness, sensing, intelligence production, and decision support capabilities; and Spectrum Superiority, which involves the design and development of software-defined, hardware-enabled technologies across the radio-frequency spectrum. Domestic Operations represented 96.8% of total revenues for fiscal 2026. International Operations are conducted primarily through operating subsidiaries in Europe, CACI Limited and CACI BV, and provide a diverse mix of IT services and proprietary data and software products, serving commercial and government customers throughout the U.K., continental Europe, and around the world. International Operations represented 3.2% of total revenues for fiscal 2026.

CACI's revenues by customer type for fiscal 2026 were as follows: Department of War (DoW) revenues were $5,133,759 thousand, representing 53.6% of total revenues; Intelligence Community (IC) revenues were $2,351,801 thousand, representing 24.6% of total revenues; Federal civilian agencies revenues were $1,660,934 thousand, representing 17.4% of total revenues; and Commercial and other revenues were $421,285 thousand, representing 4.4% of total revenues. The company's technology offerings include agile software development using open modern architectures and DevSecOps, advanced data platforms, applications, and analytics augmented by Artificial Intelligence, Enterprise Resource Planning systems, electromagnetic spectrum capabilities, space-based sensors and ground site processors, photonics, and network modernization. CACI invests ahead of customer need with research and development to create unique and differentiated technology addressing critical national security needs. The company's expertise includes talent with skills such as software development, data and business analysis, operations support, naval architecture, engineering, life cycle support, intelligence and special operations support, and network exploitation analysis.

During the past three fiscal years, CACI completed a total of eight acquisitions. During fiscal 2026, the company completed two acquisitions that enhanced its ability to deliver advanced technology for national security customers in the space domain and to provide specialist data and cloud migration services to government clients. During fiscal 2025, the company completed three acquisitions that expanded its software-defined offerings, specialized technologies, and customer presence. During fiscal 2024, the company completed three acquisitions that enhance its capabilities and customer relationships. As of June 30, 2026, the company had $1,340.0 million of undrawn capacity under its Revolving Facility. During the three months ended June 30, 2026, the company purchased 7,486 shares of its common stock at an average price paid per share of $583.45 as part of publicly announced programs.

For fiscal 2026, CACI reported total revenues of $9,567,779 thousand, an increase of 10.9% compared to $8,627,824 thousand in fiscal 2025. The increase in revenues was primarily attributable to organic growth of 7.2%, including new contract awards and growth on existing programs. Net income for fiscal 2026 was $535,808 thousand, compared to $499,830 thousand in fiscal 2025, an increase of 7.2%. Income from operations was $919,815 thousand in fiscal 2026, compared to $764,185 thousand in fiscal 2025, an increase of 20.4%. Net cash provided by operating activities was $886,710 thousand in fiscal 2026, compared to $547,009 thousand in fiscal 2025.

CACI's growth strategy includes continuing to grow organic revenues across its large, addressable market. The company believes that the total addressable market for its offerings is sufficient to support its plans and is expected to continue to grow over the next several years. Key trends that CACI believes will influence U.S. government spending in its addressable market include a stable-to-higher U.S. government budget environment, particularly in national security-related areas; increased focus on cyber, space, and the electromagnetic spectrum as key domains for national security; increasing focus on application of technologies to defend the homeland, such as counter missile and drone defense; increased investments in advanced technologies, particularly software-based technologies, including AI; increased spend on network and application modernization and enhancements to cyber security posture; increasing focus on near-peer competitors and other nation state threats; continued focus on counterterrorism, counterintelligence, and counter proliferation; and increased demand for innovation and speed of delivery.

CACI's growth strategy also includes differentiating itself through its investments, including its strategic mergers and acquisition program, allowing it to enhance its current capabilities and create new customer access points. The company intends to continue development of strategic business relationships wherever they support its growth objectives. CACI also seeks to recruit, hire, train, and retain a world class workforce to execute on its growing backlog. The company continues to align its capabilities with well-funded budget priorities and take steps to maintain a competitive cost structure in line with its expectations of future business opportunities.

CACI's earnings and margins may vary based on the mix of its contracts and programs, as profit margins vary among cost reimbursable, time-and-materials, and fixed-price contracts. The company's effective income tax rate was 23.9% for fiscal 2026, compared to 17.4% for fiscal 2025. The effective tax rates for fiscal 2026 and 2025 were primarily driven by state income taxes offset by R&D tax credits, and the fiscal 2025 rate benefited from a reduction in unrecognized tax benefits following resolution of a federal income tax audit.

As of June 30, 2026, CACI employed approximately 27,000 talented full and part-time employees. The company continues to invest in areas that produce high employee engagement, including leadership education, career resources for employees, comprehensive onboarding for new employees, and formal and informal communications. CACI has a multilevel approach to developing its leaders, with cohort-style programs for first-line, mid-level, and executive leaders. The company also has a robust talent planning approach to identify potential future leaders, conduct rigorous assessments, and create actionable development plans.

CACI's capital allocation strategy includes investing in research and development to create unique and differentiated technology. The company's present policy is to retain earnings to provide funds for the operation and expansion of its business, and it does not intend to pay any cash dividends at this time. As of June 30, 2026, the company had $1,340.0 million of undrawn capacity under its Revolving Facility. The company may in the future seek to borrow additional amounts under existing or new debt instruments.

CACI faces headwinds from the U.S. federal government's budgeting process, including the use of continuing resolutions, delays or reductions in appropriations, or a federal government shutdown, which may prevent the company from performing on existing contracts, delay its ability to begin work on new awards, or require it to use its own funds to meet customers' desired delivery schedules. The company also faces risks from changes in federal government spending levels or budgetary priorities, as a significant decline in expenditures for programs in its addressable markets, or a reallocation of funds toward missions or capabilities it does not directly support, could cause federal agencies to decrease purchases under existing contracts, terminate contracts for convenience, or choose not to exercise options.

CACI faces constraints from the highly competitive market for skilled personnel, as competition for skilled personnel is intense and technology companies often experience high attrition among their skilled employees. The company also faces risks from the competitive bidding process, including expending substantial cost and managerial time and effort to prepare bids for contracts it may not win, and the potential for competitors to protest major contract awards, which can result in significant expenses and delays.

CACI generates substantially all of its revenues from contracts with the federal government, with revenues from federal government contracts accounting for 95.6% ¹ of total revenues in fiscal 2026. Specifically, 53.6% ² of total revenues in fiscal 2026 came from the Department of War and 24.6% ³ from the Intelligence Community. A significant decline in federal spending or a change in budgetary priorities could materially and adversely affect the company's business. The company's contracts with the federal government contain termination rights, including termination for convenience, which could result in the company recovering only its incurred or committed costs, settlement expenses, and profit on work completed prior to termination. CACI also faces risks from the competitive bidding process, as its contracts and task orders are typically awarded through competitive bidding, and the company may be unable to consistently win new awards. The company's business may suffer if it or its employees are unable to obtain the security clearances needed to perform services for customers, as many federal government contracts require security clearances that can be difficult and time-consuming to obtain. As of June 30, 2026, the company had total backlog of $32.0 billion ⁴, but there is no assurance that all funded or potential contract value will result in revenues being recognized.

Management's message emphasizes CACI's position as a leading provider of Technology and Expertise to customers in support of national security, and the company's key initiatives include continuing to grow organic revenues across its large, addressable market; delivering strong profitability and robust cash flow; differentiating itself through investments, including its strategic mergers and acquisition program; recruiting, hiring, training, and retaining a world class workforce; and continuing its unwavering commitment to its customers while supporting the communities in which it works and lives. Management believes the company is well positioned to continue to win new business in its large addressable market, given the budgetary environment and the company's alignment of capabilities with well-funded budget priorities. The company's strategic priorities for the period ahead include continuing to grow organic revenues, delivering strong profitability and robust cash flow, and executing on its strategic mergers and acquisition program.