The following is a summary of the Science Applications International Corporation (SAIC) Q1 2025 Earnings Call Transcript:
Financial Performance:
Reported a modest 40 basis points of pro-forma organic growth in Q1.
First-quarter adjusted EBITDA was $166 million with a 9% margin, influenced by increased business investments.
Transaction adjusted free cash flow stood at $21 million, surpassing expectations.
Q1 revenue reached $1.85 billion, slightly impacted by a $30 million non-recurring item from the previous year.
Full-year outlook for revenue, adjusted EBITDA margin, adjusted EPS, and free cash flow remains unchanged despite a revised expectation for a flat Q2 revenue.
Opportunities:
Opportunities identified in increasing differentiation in bids and leveraging high-value contract opportunities.
Emphasized focus on aligning the bid pipeline to strategic imperatives, which is yielding a higher submit value projected at $22 billion in FY '25.
Risks:
Acknowledged revenue and margin pressures due to recompete losses and transition phases, with expectations for these challenges to moderate towards the latter half of the year.
More details: Science Applications International IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.