Mon, Jun 2, 5:04 PM (10 days ago)
**Science Applications International Corporation (SAIC, Ticker: SAIC)** **Q1 2025 Financial Performance Summary** **Revenue and Profitability:** - **Revenue:** $1,877 million, a 2% increase from $1,847 million in Q1 2024. - **Operating Income:** $121 million, down 8% from $131 million in Q1 2024. - **Net Income:** $68 million, a 12% decrease from $77 million in Q1 2024. - **Earnings per Share (EPS):** Basic $1.43, Diluted $1.42, down from $1.49 and $1.48 respectively in Q1 2024. **Profit Margins:** - **Operating Margin:** 6.4% of revenue, down from 7.1% in Q1 2024. - **Net Margin:** 3.6% of revenue, down from 4.2% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $100 million, a slight increase from $98 million in Q1 2024. - **Investing Cash Flow:** -$15 million, an increase in outflows from -$7 million in Q1 2024. - **Financing Cash Flow:** -$94 million, an improvement from -$136 million in Q1 2024. **Segment Performance:** - **Defense and Intelligence:** Revenue flat at $1,433 million, operating income down 8% to $98 million. - **Civilian:** Revenue up 8% to $444 million, operating income up 18% to $40 million. - **Corporate:** Operating loss increased to -$17 million from -$10 million in Q1 2024. **Trends and Uncertainties:** - **Government Spending:** SAIC's revenue is heavily dependent on U.S. government spending, which faces uncertainties due to budget negotiations and potential sequestration. - **Contract Mix:** Changes in the mix of cost-reimbursement, time-and-materials, and fixed-price contracts can impact profitability. - **Backlog:** SAIC had a total backlog of $22.3 billion as of May 2, 2025, with $18.4 billion in negotiated unfunded backlog. **Future Operations Impact:** - **Share Repurchases:** SAIC repurchased approximately 1.2 million shares for $125 million during Q1 2025. - **Dividends:** SAIC declared a quarterly dividend of $0.37 per share. - **Debt:** SAIC has a $2.6 billion secured credit facility, with $2.289 billion in total debt as of May 2, 2025. **Outlook:** - SAIC expects to recognize revenue from a substantial portion of its funded backlog within the next 12 months. - The company faces risks related to government budget uncertainties, competitive pressures, and potential changes in government priorities.