RESTON, VA – Science Applications International Corporation (NASDAQ:) (NASDAQ: SAIC), a leading Fortune 500® technology integrator, reported first-quarter earnings per share (EPS) of $1.92, in line with analyst estimates.
Revenue for the quarter slightly beat expectations, coming in at $1.85 billion versus the consensus estimate of $1.84 billion, marking a slight increase from the same quarter last year.
The company’s results for the first quarter of fiscal 2025 showed organic growth of 0.4%, reflecting the impact of asset sales. However, revenue decreased 9% year-over-year, primarily due to the sale of the logistics and supply chain management business and contract completions, somewhat offset by higher existing and new contract volumes.
SAIC’s net income was $77 million and adjusted EBITDA reached $166 million, or 9.0% of revenue. Diluted earnings per share for the quarter were $1.48, down from $1.79 in the prior-year quarter. Adjusted diluted earnings per share also decreased from $2.14 to $1.92 year-over-year (YoY). The company’s net reserves for the quarter were approximately $2.6 billion, with a book-to-book ratio of 1.4.
For fiscal 2025, SAIC reiterated its financial guidance, expecting revenue to be between $7.35 billion and $7.50 billion and adjusted EBITDA expected to be in the range of $680 million to $700 million.
Adjusted EBITDA margin is projected to be between 9.2% and 9.4% and adjusted diluted earnings per share to be between $8.00 and $8.20. This forecast suggests a midpoint slightly below analyst consensus of $8.10 for adjusted earnings per share and right in the middle for revenue estimates.
“We reported strong financial results for the quarter as we began to implement our enterprise growth strategy presented at SAIC Investor Day 2024,” said SAIC CEO Toni Towns-Whitley. “We are confident that the strategy and investments we are implementing will best position the company to maximize long-term shareholder value.”
SAIC’s cash flows from operating activities were $98 million, up 20% from the prior year. The company’s capital deployment during the quarter was $107 million, including planned share repurchases, cash dividends and capital expenditures.
While continuing to operate, the company remains focused on the nation’s digital transformation in the defense, space, civil and intelligence markets, employing approximately 24,000 people and generating annual revenues of approximately $7.4 billion.
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