SAIC(SAIC) - 2025 Q4 - Annual Results

Financial Performance - Q4 FY25 revenues reached $1.84 billion, representing a 6% increase year-over-year, while FY25 revenues totaled$ 7.48 billion, showing no significant change from FY24[4] - Q4 FY25 net income was $98 million, a 151% increase compared to the prior year, with adjusted EBITDA of$ 177 million, or 9.6% of revenue[5] - Diluted earnings per share for Q4 FY25 were $2.00, up 170% from$ 0.74 in the prior year, while adjusted diluted earnings per share were $2.57, an 80% increase from$ 1.43[5] - Adjusted EBITDA for FY25 was $710 million, or 9.5% of revenue, reflecting a 6% increase from the previous year[5] - Revenues for the three months ended January 31, 2025, were$ 1,838 million, an increase of 5.8% compared to $1,737 million for the same period in 2024[26] - Net income for the three months ended January 31, 2025, was$ 98 million, compared to $39 million for the same period in 2024, representing a 151.3% increase[26] - The company reported a total revenue of$ 7,479 million for the fiscal year ended January 31, 2025, compared to $7,444 million in the previous year, reflecting a slight increase of 0.5%[26] - Revenues in the fiscal year increased by$ 126 million or 8% compared to the prior year, primarily due to ramp up in volume on existing and new contracts[37] Cash Flow and Operating Activities - The company generated $115 million in cash flows from operating activities in Q4 FY25, an 83% increase from the prior year, and free cash flow was$ 236 million, a 143% increase[5] - Cash flows from operating activities for the year ended January 31, 2025, were $494 million, compared to$ 396 million in the previous year, an increase of 24.7%[30] - Free cash flow for the three months ended January 31, 2025, was $236 million, up from$ 97 million in the same period last year[60] - The company expects net cash provided by operating activities for FY26 to be between $545 million and$ 565 million[60] - The company anticipates free cash flow for FY26 to be between $510 million and$ 530 million[60] Backlog and Bookings - Net bookings for Q4 FY25 were approximately $1.3 billion, resulting in a book-to-bill ratio of 0.7, while total net bookings for FY25 were approximately$ 6.6 billion, with a book-to-bill ratio of 0.9[16] - The estimated backlog at the end of FY25 was approximately $21.9 billion, with$ 3.4 billion funded[16] - The estimated total backlog as of February 2, 2024, was $22,763 million, with funded backlog at$ 3,539 million and negotiated unfunded backlog at $19,224 million[41] Segment Performance - The Defense and Intelligence segment generated revenues of$ 1,360 million for the three months ended January 31, 2025, compared to $1,352 million in the same period last year, a growth of 0.6%[32] - Civilian segment revenues increased to$ 478 million for the three months ended January 31, 2025, from $385 million in the same period last year, a growth of 24.2%[32] Guidance and Future Projections - Fiscal year 2026 guidance includes projected revenues of$ 7.60 billion to $7.75 billion and adjusted EBITDA of$ 715 million to $735 million[19] Operating Income and Margins - Operating income as a percentage of revenues for Q4 FY25 increased to 7.5%, up from 4.5% in the prior year, due to improved profitability across contracts[7] - The total operating margin for the three months ended January 31, 2025, was 7.5%, compared to 4.5% for the same period in 2024[32] - Operating income for the fiscal year ended January 31, 2025, was$ 563 million, down from $741 million in the prior year, a decrease of 24.1%[26] - Adjusted operating income for the fiscal year was$ 705 million, with a margin of 9.4%[50] Other Financial Metrics - The company’s total assets as of January 31, 2025, were $5,246 million, a decrease from$ 5,314 million as of February 2, 2024[28] - Total stockholders' equity decreased to $1,577 million as of January 31, 2025, from$ 1,785 million as of February 2, 2024, a decline of 11.7%[28] - Operating loss in the fiscal year increased by $192 million compared to the prior year, primarily due to a gain on the sale of the Supply Chain Business in the prior year[38] - Adjusted operating loss in the fiscal year decreased by$ 31 million compared to the prior year, mainly due to lower incentive-based compensation expenses[39] - EBITDA for the fourth quarter was $175 million, representing 9.5% of revenues, compared to$ 118 million or 6.8% for the same period last year[44] - The operating loss and adjusted operating loss in the fourth quarter decreased by $19 million and$ 12 million, respectively, compared to the same period in the prior year[38] Restructuring and Costs - The restructuring and impairment costs for the year ended January 31, 2025, were $8 million, impacting the adjusted diluted EPS[57] - The acquisition and integration costs for the year ended January 31, 2025, were$ 2 million, which were excluded from the adjusted results[57] Summary of Net Income - The company achieved a net income of $362 million for the year ended January 31, 2025, compared to$ 477 million for the year ended February 2, 2024[57]