Science Applications International Corp. (NYSE: SAIC) reported 0.4 percent organic growth and $1.85 billion in revenue during the first quarter of its fiscal year 2025 and recorded $1.48 in diluted earnings per share and adjusted diluted EPS of $1.92.
The Reston, Virginia-based government technology services contractor said in an earnings statement published Monday it recorded $2.6 billion in Q1 FY 2025 net bookings with a book-to-bill ratio of 1.4 and closed the quarter with an estimated backlog of approximately $23.6 billion, of which about $3.5 billion was funded.
SAIC logged notable contract wins in the first quarter, including a $444 million contract to support the U.S. Space Force’s Digital Transformation, Acquisition, Modernization and Modification program, a $90 million contract with the Office of the Under Secretary of Defense for Research and Engineering for business operations modernization support and a $92 million contract with the U.S. Navy for professional support services in the areas of engineering, sustainment and research and development, among others.
At the earnings conference call Monday, Toni Townes-Whitley, CEO of SAIC and a 2024 Wash100 awardee, offered updates on the company’s strategic priorities.
Townes-Whitley noted that SAIC serves customers across five national imperatives: all-domain warfighting, citizen experience, next-generation space, border of the future and undersea dominance.
“These imperatives represent drivers of long-term and enduring customer demand. In order to increase value to our customers’ missions and grow more profitably across the five imperatives, we will work to progressively shift our portfolio and bid into four key growth vectors: Integrated Solutions, Enterprise and Mission IT, Civilian, and Mission Advisory,” she told analysts.
The chief executive stated that the company will prioritize investments in six portfolio differentiators to improve competitive positioning in the market. Those differentiators are secure multi-cloud, digital engineering, operational ai, secure data analytics, system of systems integration and on-demand solution delivery.
During the call, SAIC Chief Financial Officer Prabu Natarajan responded to a question about the company’s merger and acquisition strategy. He noted that the company has signaled its preference for capability- and technology-based tuck-ins in the past two years.
“And so we’re just being very disciplined about what we’re looking at. I think given the strategy refresh we’ve got going and our pipeline is starting to reflect the strategy. The reality is our tuck-ins now become acutely more sensible in terms of pivoting to where the strategy is pivoting us and that’s how we’re simply thinking about it, not really scale-based M&A,” Natarajan said.
