CACI's Q2 2025: Contradictions in Fixed-Price Contracts, M&A Strategy, and Global Expansion

Revenue and EBITDA Margin Growth:
- CACI International reported revenue of $2.1 billion for the second fiscal quarter of 2025, representing 14.5% growth year-on-year.
- The EBITDA margin increased by 180 basis points to 11.1%, driven by business mix and timing, with adjusted diluted earnings per share increasing 36%.

Strong Fiscal 2025 Performance and Guidance Increase:
- The company won $1.2 billion in awards, with a trailing 12-month book-to-bill ratio of 1.7x, reflecting strong performance in the marketplace.
- CACI raised its fiscal 2025 revenue guidance to $8.45 billion to $8.65 billion due to stronger organic growth and acquisition synergies.

Strategic Acquisitions and Integration:
- CACI completed acquisitions of Azure Summit and Applied Insight, contributing to the increased backlog and growth in their technology capabilities.
- The integrations of these acquisitions are proceeding on track, with both businesses performing well and contributing to revenue growth.

Focus on Government Efficiency and Modernization:
- CACI's strategy aligns with the objectives of the Department of Government Efficiency (DOGE), focusing on modernizing software, IT, and networks across the government.
- This alignment positions CACI to benefit from initiatives aimed at improving government efficiency and financial accountability.