Science Applications International Corp. (NYSE: SAIC) announced strong earnings growth in the third quarter of fiscal 2024, with net income rising 16 percent to $93 million versus Q3 fiscal 2023.
The technology integrator in the defense, space, civilian, and intelligence markets said Monday total revenues reached $1.9 billion owing to the 10.6 percent organic growth rate.
“Revenue growth in the quarter was driven primarily by the ramp-up of work on new and existing programs, improved labor productivity and favorable timing of material sales,” said Prabu Natarajan, executive vice president and chief financial officer of SAIC, during the earnings call.
Toni Townes-Whitley, CEO of SAIC, commented that the company works to ensure its strong position in the market by focusing on strategic pivots across four key dimensions of the business: innovation & solutions, go-to-market, culture and brand. She looks forward to sharing the company’s success against milestones in the coming quarters and years.
Another notable highlight is the eight percent increase in operating income from a year ago to $143 million. SAIC’s adjusted EBITDA margin improved 50 basis points to 9.4 percent owing to the 5 percent Adjusted EBITDA growth to $178 million compared to the same quarter in 2023. For its capital deployment strategy, SAIC repurchased 101 million in shares, paid $19 million in dividends, and spent $4 million for CAPEX.
The estimated backlog at the quarter’s end was approximately $2.1 billion. SAIC’s new contract awards include a seven-year, $575 million contract by the U.S. Space Force and $1.1 billion by the space and intelligence community.
The technology company popped 13.41 percent to $136 per share following the earnings release.
