SAIC Reports Strong Earnings for Second Quarter FY 2025
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Performance Overview for SAIC in Q2 FY 2025
Science Applications International Corporation (SAIC) has announced its financial results for the second quarter of the fiscal year 2025, showcasing revenues of $1.82 billion, marking an impressive 2% organic growth. The company reported a net income of $81 million and an adjusted EBITDA of $170 million, which accounts for 9.4% of total revenues. Furthermore, SAIC's diluted earnings per share came in at $1.58, with an adjusted diluted earnings per share of $2.05.
CEO Commentary
Reflecting on the results, SAIC's CEO, Toni Townes-Whitley, expressed satisfaction with the company's second quarter performance, highlighting strong program achievements and outstanding cash generation. She noted, "Our efforts to execute our growth strategy are showing encouraging trends, with our expanded pipeline of opportunities converting to more significant submissions and improving our book-to-bill metrics. We expect this positive momentum to continue into Fiscal Year 2026, supporting our ambitious targets for 2027."
Financial Highlights
The financial highlights for the second quarter are as follows:
- Revenues increased by $34 million or 2% compared to the prior year's same quarter.
- Operating income for the quarter was $134 million, translating to 7.4% of revenue.
- Adjusted operating income saw a marginal decrease to $164 million or 9.0% of revenue.
- Cash flows from operations were reported at $138 million, driven by robust working capital management.
- The company achieved free cash flow of $241 million during this period.
Dividends and Shareholder Return
Following the quarter's close, SAIC's Board of Directors declared a cash dividend of $0.37 per share, expected to be payable on October 25, 2024, to shareholders of record as of October 11, 2024. This reinforces SAIC's commitment to returning value to its shareholders through consistent dividend payments and share buybacks.
Contract Wins and Backlog Status
SAIC reported net bookings of approximately $1.2 billion, translating into a book-to-bill ratio of 0.6 and a trailing twelve months book-to-bill ratio of 1.1. At the end of the quarter, SAIC's estimated backlog stood at about $22.9 billion, with approximately $4.2 billion classified as funded.
New Contract Wins
Among the notable awards received this quarter, SAIC was granted a $134 million task order by the U.S. Treasury for its cloud services. Additionally, SAIC secured significant recompete awards, including a $206 million contract from the Department of Veterans Affairs and multiple contracts totaling $58 million from the U.S. Navy.
Outlook for Fiscal Year 2025
SAIC is increasing its Adjusted Diluted EPS guidance for fiscal year 2025 to the range of $8.10 to $8.30, reflecting confidence in its strategic direction and operational execution. SAIC continues to reaffirm its overall financial guidance for fiscal year 2025, aiming for revenues between $7.35 billion and $7.50 billion and an adjusted EBITDA margin of approximately 9.2% to 9.4%.
Frequently Asked Questions
1. What were the total revenues reported by SAIC for Q2 FY 2025?
SAIC reported total revenues of $1.82 billion for the second quarter of fiscal year 2025, reflecting a 2% increase year-over-year.
2. How did SAIC's earnings per share change in Q2 FY 2025?
SAIC's diluted earnings per share for the quarter were reported at $1.58, compared to $4.56 in the prior year's quarter.
3. What new contracts did SAIC secure during this quarter?
SAIC secured a $134 million task order from the U.S. Treasury and other contracts with the Department of Veterans Affairs and the U.S. Navy, totaling approximately $58 million.
4. What is SAIC's adjusted EPS guidance for FY 2025?
The adjusted diluted EPS guidance for fiscal year 2025 has been revised to a range of $8.10 to $8.30.
5. How much cash flow did SAIC generate in Q2 FY 2025?
SAIC generated free cash flow of $241 million during the second quarter of fiscal year 2025.
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