SAIC Reports Strong Q2 Results with Increased Earnings Guidance
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SAIC Delivers Impressive Financial Results for Q2 FY2025
Science Applications International Corporation (NASDAQ: SAIC) has reported significant achievements in its financial performance for the second quarter of fiscal year 2025. The company announced revenues amounting to $1.82 billion, reflecting an organic growth of 2% over the same period last year. This growth is attributed to an upsurge in project volume driven by existing and new contracts, despite challenges posed by contract completions.
Key Financial Highlights
SAIC's financial overview for the second quarter is underscored by the following achievements:
- Net income reached $81 million with an adjusted EBITDA of $170 million, translating to 9.4% of total revenues.
- The diluted earnings per share (EPS) stood at $1.58, while the adjusted diluted EPS was $2.05, maintaining consistent performance compared to previous periods.
- Operating income showed a notable change as a percentage of revenue, attributed to prior year gains from business divestitures.
- Operating cash flows for the quarter were robust at $138 million, leading to a free cash flow of $241 million, indicating a strong cash generation capability.
- Net bookings were approximately $1.2 billion, illustrating a book-to-bill ratio of 0.6, coupled with a trailing twelve months book-to-bill ratio of 1.1, showcasing the strength of SAIC's contract portfolio.
Strategic Growth Initiatives and Future Prospects
In a statement, SAIC’s CEO Toni Townes-Whitley expressed confidence in the company’s operational momentum, highlighting a growing pipeline of qualified opportunities. "We envision an acceleration in our growth strategy moving into fiscal year 2026, fueled by a robust number of high-quality submissions that will further enhance our book-to-bill ratios," she affirmed.
The guidance for FY2025 has been reevaluated, with adjusted diluted EPS increased to a range of $8.10 to $8.30, reaffirming all other fiscal performance metrics. This adjustment reflects the company's solid strategic position and commitment to delivering value to shareholders.
Cash Deployment and Shareholder Returns
During this quarter, SAIC proactively deployed a total of $226 million, comprising share repurchases, dividends, and reinvestments into the business, thereby enhancing shareholder value. A cash dividend of $0.37 per share is planned to be paid to stockholders on record, underlining the Company's dedication to maintaining a consistent return of capital to its investors.
Notable Awards and Contracts
SAIC's strategic initiatives have led to significant contract acquisitions, including:
- A $134 million award from the U.S. Treasury for cloud services, showcasing SAIC’s capability in developing modern IT solutions.
- Contracts worth $206 million from the Department of Veterans Affairs focusing on IT services critical for operational stability.
- Support contracts from the U.S. Navy amounting to $58 million centered on mission-critical technology solutions.
- In total, SAIC secured approximately $250 million in contract awards across its defense and space sectors.
Conclusion
With these strong second quarter results and a promising outlook, SAIC is well-positioned to continue its growth trajectory. The company's commitment to innovation, coupled with strategic investments, ensures its ongoing contribution to advancing technology across various markets.
Frequently Asked Questions
What were SAIC's revenues for the second quarter of FY2025?
SAIC reported revenues of $1.82 billion for the second quarter of fiscal year 2025.
How much was the net income reported by SAIC?
The company reported a net income of $81 million for the second quarter.
What is the adjusted diluted earnings per share for SAIC?
SAIC's adjusted diluted earnings per share for the quarter were $2.05.
What guidance has SAIC provided for FY2025?
SAIC increased its adjusted diluted EPS guidance for FY2025 to a range of $8.10 to $8.30.
What major contracts did SAIC win this quarter?
SAIC secured significant contracts including a $134 million award from the U.S. Treasury and a $206 million recompete from the Department of Veterans Affairs.
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