CACI International (CACI) investor relations material

Portfolio transformation and business focus

• Shifted from traditional government services to a technology-driven, defense tech-oriented portfolio since 2019, with 60-70% of business now in defense tech, including electronic warfare, space, and network modernization.

• 90% of revenue comes from national security agencies, with less than 10% from federal civilian sectors.

• Emphasis on software-defined technology and rapid, mission-driven innovation, leveraging a workforce with significant veteran representation.

• Half of the technology business operates under commercial-based FAR Part 12 terms, enabling faster delivery and more flexible customer engagement.

• Investments and acquisitions are focused on technology and software-defined solutions to maintain agility and address evolving national security needs.

AI, software, and operational strategy

• AI is integrated to accelerate software development, improve margins, and deliver capabilities faster without being revenue dilutive.

• Software-defined systems allow for rapid updates and adaptability in conflict scenarios, supporting real-time mission needs.

• The company avoids a license-based software model, instead offering ongoing customization and mission-specific enhancements.

• Operational support includes 1,400 personnel deployed globally, providing direct mission insight and customer proximity.

Financial performance, pipeline, and margin outlook

• Maintains strong free cash flow, revenue growth, and margin expansion, outperforming both government services and defense peers.

• Book-to-bill ratios have been below one, but guidance continues to be raised, with multi-year contracts providing revenue visibility.

• Bid pipeline for the next 180 days is at $22 billion, with $4 billion awaiting decision, indicating a potential awards tailwind as government acquisition normalizes.

• Recent multi-billion dollar program wins (EITaaS, Spectral, NASA NCAPS, JTMS) are ramping up, contributing to near-term growth.

• Margin improvement is driven by portfolio mix, technology focus, and accretive acquisitions, with continued modest improvement expected.