Science Applications International Corporation · NASDAQ:SAIC
Science Applications International — Q3 2025 Earnings Presentation
27 slides from Science Applications International's earnings presentation, Dec 5, 2024
Slide 1: Financial Results FY25 3Q Supplemental Financial Presentation
FINANCIAL RESULTS FY25 3Q SUPPLEMENTAL FINANCIAL PRESENTATION December 5, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “antic
Slide 3: SAIC Investment Case
SAIC Investment Case TRACK RECORD OF DELIVERING Keen focus on consistent execution, transparency with investors, and aligning incentives ON COMMITMENTS with shareholder value drives strong track record CONSISTENT ORGANIC FY22 to FY27 average organic growth of ~3.5% supported by exposure to durable a
Slide 4: Bid More, Bid Better, Win More
BID MORE BID BETTER WIN MORE $30 TCV of Submitted Bids* >$30 indicates prior target $25 to $30 2.5x $28 $26 $25 2.0x $24 $24 $22 $22 1.5x TARGET $ in bil. Strategic $20 3Q FY25 YTD $17 Civilian 1.0x $18 $22B $16 0.5x $14 Enterprise / 0.0x $12 Mission IT F2Q20 F3Q20 F4Q20 F1Q21 F2Q21 F3Q21 F4Q21 F1Q2
Slide 5: Initial Efficiency Efforts To Focus on "Waste," Not Programs
Initial Efficiency Efforts To Focus on “Waste,” Not Programs Area of Focus Program “Within” “Between” Payment changes organization organization integrity/fraud, productivity productivity waste, and abuse Potential $250-300B $230-520B TBD Savings “The two of us will advise DOGE at every step to pursu
Slide 6: SAIC Preparing for Potential Changes in the Market
SAIC Preparing for Potential Changes in the Market 1 2 3 4 5 Focused and Durable Highly Variable Cost Ability to Manage Flexible Internal Capacity to Increase Federal Civilian Structure & Low Increased Use of Investment Budget Capital Deployment Business Capex Fixed Price Contracts Approximately 75%
Slide 7: Civilian Business Focused and Durable
Civilian Business Group Focused and Durable $350 Total SAIC Revenue by End Market $300 Approximate Annual Revenue by $250 Department of Defense Government Agency $200 Intelligence 71% $150 22% NASA $100 Civilian $50 6% 1% $0 Veterans Justice Transportation Government* Homeland State & Local NASA** H
Slide 8: Focus on Proving Earnings, Cash Flow Durability through Cycle
Focus on Proving Earnings, Cash Flow Durability through Cycle Asset-light, Low Capex Business Model + Highly Variable Cost Structure + Discretionary, Flexible “Indirect” Investments = Durable EBITDA & Free Cash Flow 100% $35 0.5% FIXED 90% Corporate & Functional Support Free Cash $30 80% FY27 Potent
Slide 9: Strategy Driving Portfolio towards Enterprise & Mission IT
Strategy Driving Portfolio towards Enterprise & Mission IT FY22 Revenue FY25 Revenue FY26 - FY28 Pipeline 11% 29% 10% 27% ~75% ~25% 48% 31% 38% 6% % of FY25 Market EBITDA % Description of Work revenue Specialized hardware, software, services and integrated solutions Mission IT 10% 9% to 10% directly
Slide 10: SAIC Fiscal Year 2027 Targets
SAIC Fiscal Year 2027 Targets REVENUE EBITDA* FREE CASH FLOW* $7.95B - $8.10B $750M – $780M $550M ~5% organic FY27 adj. EBITDA margin* revenue growth guidance of 9.4% - 9.6% ~$12/share * A non-GAAP financial measure. Such non-GAAP measure should be considered in addition to, not a substitute for, th
Slide 11: Fiscal 3Q FY25 Q3 Results
(1) FY25 Q3 RESULTS ADJUSTED REVENUE ADJUSTED EBITDA (2) FREE CASH FLOW (2) DILUTED EPS (2) $2.61 $1,976 $197 $97 $1,895 $2.27 $178 +4% 10.0% Fiscal 3Q 9.4% $9 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Space GMASS Improved Execution Civilian Vanguard Lower Tax Rate Army RITS Higher Internal Investment
Slide 12: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance CURRENT FISCAL YEAR 2025 PRIOR FISCAL YEAR 2025 GUIDANCE GUIDANCE Revenue $7.425B - $7.475B $7.35B - $7.50B Pro-Forma Organic Growth ~3% ~2.5% Adjusted EBITDA(1) $685M - $695M $680M - $700M Adjusted EBITDA %(1) ~9.3% 9.2% - 9.4% Adjusted Diluted EPS (1) $8.50 - $8.65 $8.10
Slide 13: Solid Organic Revenue Growth Expected to Continue
Solid Organic Revenue Growth Expected to Continue 8.0% 7% 7.0% 6.0% ~ 5% 5.0% 4.0% ~ 3.0% ~ 3% 3.0% 3% 2.0% 2% 1.0% 0.0% FY22 FY23 FY24 FY25 Target FY26 Target FY27 Target SAIC Adjusted Organic Growth FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 FY27 + + + + Revenues, as Reported $7,056 $7,394
Slide 14: Multi-Year Financial Targets
Multi-Year Financial Targets FY24A FY25 FY26 FY27 $7.444B Revenue $7.425B - $7.475B $7.55B - $7.75B $7.95B - $8.10B ($7.26B excl. L&SCM) Organic Growth 7.4% ~3% 2% - 4% 4% - 6% Adjusted EBITDA %* 9.0% ~9.3% 9.3% - 9.5% 9.4% - 9.6% Adjusted EBITDA $668M $685M - $695M ~$720M ~$765M Adjusted Diluted EP
Slide 15: SAIC Historical Share Repurchase Authorizations
SAIC Historical Share Repurchase Authorizations REPURCHASE AVG. ANNUALIZED INCREMENTAL TOTAL APPROXIMATE AVG. SHARES AVG. PRICE OF AUTHORIZATION AUTHORIZATION FCF** / SHARE SHARES ADDED TO “CURRENT” MONTHS TO REPURCHASED REPURCHASED DATE AS % OF DILUTED DURING AUTHORIZATION AUTHORIZATION COMPLETE PE
Slide 16: SAIC Historical Backlog and Book-to-Bill
SAIC Historical Backlog and Book-to-Bill Backlog TTM Book-to-Bill $25 2.5x Total Backlog ($ in billions) $20 2.0x $15 1.5x $10 1.0x $5 0.5x $0 0.0x F1Q19 F2Q19 F3Q19 F4Q19 F1Q20 F2Q20 F3Q20 F4Q20 F1Q21 F2Q21 F3Q21 F4Q21 F1Q22 F2Q22 F3Q22 F4Q22 F1Q23 F2Q23 F3Q23 F4Q23 F1Q24 F2Q24 F3Q24 F4Q24 F1Q25 F2
Slide 17: Appendix
Appendix
Slide 18: Working Days Per Quarter
Working Days Per Quarter Q1 Q2 Q3 Q4 Total FY25 64 62 63 60 249 FY24 64 62 63 60 249 FY23 64 62 63 65 254 FY22 64 63 63 60 250 FY21 64 63 63 60 250 FY20 64 63 63 60 250 FY19 64 63 63 60 250 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 18
Slide 19: Payroll Cycles per Quarter
Payroll Cycles per Quarter Q1 Q2 Q3 Q4 Total FY25 7 6 7 6 26 FY24 7 6 7 6 26 FY23 6 7 6 7 26 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED I 19
Slide 20: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA (1) EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are pe
Slide 21: Non-GAAP Reconciliation – Adjusted Operating Income
Non-GAAP Reconciliation – Adjusted Operating Income (1) EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are per
Slide 22: Non-GAAP Reconciliation – Adjusted Operating Income
Non-GAAP Reconciliation – Adjusted Operating Income (1) EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA and adjusted operating income are per
Slide 23: Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share
Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share (1) Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs r
Slide 24: Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share
Non-GAAP Reconciliation – Adjusted Diluted Earnings per Share (1) Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. The acquisition and integration costs r
Slide 25: Non-GAAP Reconciliation – Free Cash Flow
Non-GAAP Reconciliation – Free Cash Flow (1) Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sale of certain d
Slide 26: Unaudited Historical Segment Financials
Unaudited Historical Segment Financials (1) Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sale of certain de
Slide 27: Bring on Tomorrow
BRING ON TOMORROW, TAKING THE WORLD WHERE IT’S NEVER BEEN BEFORE. From the digital space to space defense, we move you forward SAIC.
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