Science Applications International Corporation (SAIC) Reports Q3 FY2025 Financial Results
Science Applications International Corporation (NASDAQ: SAIC), a leading technology integrator, announced its financial results for the third quarter ending November 1, 2024.
Financial Metrics
| Financial Metric | Q3 FY2025 | Q3 FY2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $1.98 billion | Not Provided | 4.3% Increase |
| Net Income | $106 million | Not Provided | Not Provided |
| Adjusted EBITDA | $197 million | Not Provided | Not Provided |
| Diluted Earnings Per Share | $2.13 | $1.76 | 21.0% Increase |
| Adjusted Diluted EPS | $2.61 | $2.27 | 15.0% Increase |
SAIC's financial performance showed robust growth with a 4.3% increase in revenue, primarily due to increased business volume from existing and new contracts and strong profitability metrics. This growth trajectory was further supported by strategic resolutions such as the favorable resolution of the Assault Amphibious Vehicle (AAV) contract termination.
Revenue Performance by Segment
| Segment | YoY Change |
|---|---|
| Defense and Intelligence | +$36 million (2%) |
| Civilian | +$45 million (11%) |
The Defense and Intelligence segment reported a revenue increase of 2%, whereas the Civilian segment showed significant growth with an 11% increase, both attributed to ramping up existing contracts.
Key Developments and Operational Highlights
- Board Authorization: A $1.2 billion share repurchase program was authorized, representing 20% of the market value.
- Notable Contracts: Awarded a $229 million contract from the Department of Defense for the NORAD/USNORTHCOM Information Technology Enterprise Services program and a $118 million task order from the Department of Transportation.
- Backlog: Net bookings stood at $1.5 billion with a book-to-bill ratio of 0.7.
Executive Comments
SAIC CEO Toni Townes-Whitley stated that the third quarter results underscore the company's efforts in achieving its financial goals and long-term strategies. The operational initiatives are expected to lead to greater business volume and submissions, projecting submissions to exceed $25 billion—points exceeding fiscal projections and demonstrating growth expectations in fiscal year 2026.
Dividends and Share Repurchase Program
The company's Board declared a cash dividend of $0.37 per share, payable on January 24, 2025. In addition, they authorized a $1.2 billion share repurchase program effective December 16, 2024.
Forward Guidance
SAIC has increased its fiscal year 2025 guidance for revenue and adjusted diluted EPS, setting a new EPS range from $8.50 to $8.65.
This earnings release signifies SAIC's strong performance and strategic focus on expanding its market share in critical technology integration services, driving shareholder value through significant projects, and enhancing financial returns.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
