SAIC's Q2 FY 2025 Performance Overview
Science Applications International Corporation (SAIC) has released its financial results for the second quarter of fiscal year 2025, reporting revenues of $1.82 billion. This figure reflects an impressive 2% organic growth. The company also reported a net income of $81 million, along with an adjusted EBITDA of $170 million, which represents 9.4% of total revenues. Additionally, SAIC's diluted earnings per share were recorded at $1.58, while the adjusted diluted earnings per share stood at $2.05.
Insights from the CEO
SAIC's CEO, Toni Townes-Whitley, shared her thoughts on the company's performance, expressing her satisfaction with the results from the second quarter. She emphasized the strong achievements in various programs and the impressive cash generation. Townes-Whitley stated, "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."
Key Financial Highlights
Here are the key financial highlights for the second quarter:
- Revenues rose by $34 million, or 2%, compared to the same quarter last year.
- Operating income for the quarter was $134 million, equating to 7.4% of revenue.
- Adjusted operating income experienced a slight decline to $164 million, or 9.0% of revenue.
- Cash flows from operations were reported at $138 million, driven by effective working capital management.
- During this period, the company generated free cash flow of $241 million.
Dividends and Shareholder Returns
After the conclusion of the quarter, SAIC's Board of Directors declared a cash dividend of $0.37 per share. This dividend is set to be paid on October 25, 2024, to shareholders on record as of October 11, 2024. This action underscores SAIC's commitment to providing value to its shareholders through consistent dividend payments and share buybacks.
Contract Wins and Backlog Update
SAIC reported net bookings of approximately $1.2 billion, resulting in a book-to-bill ratio of 0.6, with a trailing twelve months book-to-bill ratio of 1.1. By the end of the quarter, SAIC's estimated backlog reached about $22.9 billion, with around $4.2 billion classified as funded.
Recent Contract Wins
This quarter, SAIC secured notable contracts, including a $134 million task order from the U.S. Treasury for cloud services. The company also received significant recompete awards, such as a $206 million contract from the Department of Veterans Affairs and multiple contracts totaling $58 million from the U.S. Navy.
Fiscal Year 2025 Outlook
SAIC has raised its Adjusted Diluted EPS guidance for fiscal year 2025 to a range of $8.10 to $8.30, reflecting confidence in its strategic direction and operational execution. The company continues to reaffirm its overall financial guidance for fiscal year 2025, aiming for revenues between $7.35 billion and $7.50 billion, with 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.
