Science Applications International Corporation (SAIC) has announced its financial results for the third quarter of fiscal year 2025. The company reported revenues of $1.98 billion, representing a 4.3% growth compared to the same period in the prior year. Net income for the quarter was $106 million, with adjusted EBITDA of $197 million, accounting for 10.0% of revenues.
Diluted earnings per share stood at $2.13, showing a 21% increase from the prior year quarter. Adjusted diluted earnings per share were $2.61, reflecting a 15% increase from the same period in the prior year.
The company's cash flows provided by operating activities increased by 42% to $143 million compared to the prior year quarter, with free cash flow amounting to $9 million, down 91% from the same period in the prior year.
SAIC's net bookings for the quarter were approximately $1.5 billion, resulting in a book-to-bill ratio of 0.7. The estimated backlog at the end of the quarter was approximately $22.4 billion, with $4.5 billion funded.
The company also announced a $1.2 billion share repurchase program, representing 20% of its market value. Additionally, SAIC's board of directors declared a cash dividend of $0.37 per share of the company's common stock, payable on January 24, 2025.
SAIC has increased its fiscal year 2025 guidance for revenue and adjusted diluted EPS, while reaffirming the midpoint of all other fiscal year 2025 financial guidance.
The company's management is optimistic about exceeding $25 billion in submissions this year, compared to the prior target of $22 billion, which is expected to translate into an improving book-to-bill and accelerating growth in fiscal year 2026.
SAIC's CEO, Toni Townes-Whitley, expressed confidence in the company's progress towards meeting its financial goals and executing its long-term strategy to drive profitable growth and value for its customers and shareholders.
SAIC's mission as a premier fortune 500® technology integrator is focused on advancing the power of technology and innovation to serve and protect the world, with a robust portfolio of offerings across the defense, space, civilian, and intelligence markets.
The company's strategic partnerships, notable new awards, and recompete awards, including contracts with the U.S. Department of Defense and the Department of Transportation, reflect its commitment to driving modernization, innovation, and efficiency in critical sectors.
SAIC's commitment to diversity, equity, and inclusion is core to its values, as it strives to foster a culture that attracts and retains exceptional talent.
The company's earnings conference call to discuss its operations and financial results is scheduled to begin at 10:00 a.m. Eastern Time on December 5, 2024. Following these announcements, the company's shares moved -0.7%, and are now trading at a price of $123.05. Check out the company's full 8-K submission here.
