Q2 2025 Science Applications International Corp Earnings Call Transcript
Key Points
- Reported second quarter organic revenue growth of 2% year-over-year, driven by new business wins and on-contract growth.
- Adjusted EBITDA of $170 million with a margin of 9.4%, reflecting solid program performance.
- Strong free cash flow of $241 million in the second quarter, bringing first half free cash flow to $262 million.
- Increased guidance for adjusted diluted earnings per share to a range of $8.10 to $8.30.
- Significant progress in business development with $14.5 billion of submitted bids in the first half of the year, on track to exceed the $22 billion target for the full year.
- Approximately 5-point headwind from contract transitions impacting revenue growth.
- Book-to-bill ratio of 0.6x in the quarter, indicating potential challenges in securing new contracts.
- Recompete pressures expected to continue, with a 5% headwind assumed in revenue guidance.
- Potential risks from political and budgetary changes, particularly in defense and civilian sectors.
- Execution risks associated with increasing fixed-price contracts and ensuring technical differentiation in bids.
Good day, and thank you for standing by. Welcome to the SAIC Second Quarter Fiscal Year 2025 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to your first speaker today, Joseph DeNardi, Senior Vice President of Investor Relations, Treasurer. Please go ahead.
Good morning and thank you for joining SAIC's Second Quarter Fiscal Year 2025 Earnings Call. My name is Joe DeNardi, Senior Vice President of Investor Relations and Treasurer. And joining me today to discuss our business and financial results are Toni Townes-Whitley, our Chief Executive Officer; and Prabu Natarajan, our Chief Financial Officer.
Today, we will discuss our results for the second quarter of fiscal year 2025 that ended August 2, 2024. Earlier this morning, we issued our earnings release, which can be found at investors.saic.com where you will also find supplemental financial
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