Science Applications International (SAIC) Investor presentation summary

Financial performance and guidance

• Fiscal 2026 revenue reached approximately $7.26B, slightly below guidance due to procurement delays and external disruptions.

• Adjusted EBITDA for FY26 was about $705M, exceeding prior guidance, with a margin of 9.7%.

• Free cash flow for FY26 surpassed expectations, driven by working capital improvements and reduced cash taxes.

• FY27 revenue guidance lowered to $7.0B–$7.2B, reflecting headwinds from recompete losses and market disruptions.

• FY27 adjusted EBITDA margin guidance increased to 9.9%–10.1%, supported by cost efficiency and favorable mix.

Strategic initiatives and portfolio alignment

• Portfolio realignment focuses on Mission IT & Engineering, with reduced exposure to commoditized large EIT.

• Large EIT share of revenue expected to drop from ~17% in FY25 to ~10% in FY27.

• Emphasis on EIT projects with higher transformation potential and execution upside.

• Enterprise business process transformation initiative launched to boost investment capacity, margins, and eliminate redundancies.

• Strong historical win rates and growth in targeted markets support investment focus.

Capital allocation and operational priorities

• Capital deployment remains focused on maximizing long-term returns.

• Continued execution of cost efficiency efforts to drive margin improvement.

• Working capital improvements and legislative changes expected to support free cash flow in FY27.

• No change to capital allocation strategy despite revised revenue outlook.

• Business development and enterprise optimization initiatives prioritized for growth and margin enhancement.