CACI Fiscal Q1 2027 Earnings: EBITDA Growth Outpaces Revenue

CACI International (NYSE: CACI) reported fiscal Q1 2027 revenue of $2.475 billion, up 8.2% year over year, while diluted EPS rose 3.7% to $5.84 for the quarter ended September 30, 2026. EBITDA increased 22.4% and its margin expanded, but free cash flow declined as higher working-capital needs reduced cash conversion. The company also raised its full-year revenue and adjusted earnings guidance.

Core Earnings Data

Revenue growth included 2.1% organic growth. Higher revenue and gross profit drove a 16.6% increase in operating income, while net income grew more slowly because of higher interest expense and a larger tax provision.

Adjusted diluted EPS increased faster than GAAP diluted EPS. The adjusted measure excludes intangible amortization and its related tax effect.

EBITDA, adjusted diluted EPS, operating cash flow excluding MARPA, and free cash flow are non-GAAP measures as defined by CACI.

Business and Revenue Mix

Department of War revenue was the main customer-level growth driver, rising 14.8% to $1.354 billion and accounting for most of CACI’s $187.0 million total revenue increase. Intelligence Community revenue grew 2.6% to $612.0 million, while federal civilian agency revenue declined 3.7% to $396.4 million. Commercial and other revenue increased 12.1% to $112.0 million.

Technology revenue grew faster than expertise revenue and supplied most of the company’s overall increase. Contract mix also shifted toward fixed-price and time-and-materials work.

Fixed-price work increased to 33.2% of revenue from 26.7%, while cost-plus-fee work declined to 52.8% from 60.5%.

Contract awards totaled $4.8 billion, down 3.4% from the prior-year quarter but equivalent to a 2.0 times book-to-bill ratio. Approximately 61% of awards represented new business for CACI. Total backlog was $34.0 billion, up 0.3%, while funded backlog increased 14.8% to $6.2 billion.

Two major programs each added $1.2 billion of recognized award and backlog value during the quarter: support for U.S. Central Command and continued operational planning support for U.S. Army Special Operations Command.

Margin Expansion Was Diluted by Interest and Amortization Costs

CACI’s operating margin improved to approximately 10.0% from 9.3%, while EBITDA margin expanded to 13.3% from 11.7%. The larger increase in EBITDA partly reflects its exclusion of depreciation and amortization, which rose to $81.3 million from $56.3 million when amounts within direct costs are included.

The improvement in operating profitability did not fully reach the bottom line. Interest expense and other, net, increased 58.6% to $73.2 million, while the tax provision rose 6.4% to $43.9 million. As a result, net income increased only 4.5% despite operating income growth of 16.6%.

Intangible amortization also increased 50.7% to $54.3 million. Because CACI’s adjusted earnings measures exclude this expense and its tax effect, adjusted diluted EPS grew 11.8%, compared with 3.7% growth for GAAP diluted EPS.

Cash Flow and Balance Sheet

GAAP operating cash flow declined to $161.3 million from $171.1 million. Excluding the company’s Master Accounts Receivable Purchase Agreement, operating cash flow fell 9.5% to $144.8 million, primarily because of higher working-capital requirements. Days sales outstanding increased to 59 from 56, excluding a seven-day MARPA effect in both periods.

Lower capital spending provided a partial offset. Capital expenditures fell to $11.4 million from $17.0 million, leaving free cash flow at $133.5 million, down 6.6%.

Cash and cash equivalents increased to $279.4 million at September 30 from $191.8 million at June 30, 2026. Long-term debt excluding the current portion declined to $4.789 billion from $4.855 billion over the same period.

Fiscal 2027 Guidance

CACI raised both ends of its fiscal 2027 revenue range by $50 million, increased adjusted net income guidance by $5 million at both ends, and lifted its adjusted diluted EPS range by $0.22. Free cash flow guidance remained unchanged at a minimum of $900 million.

Management attributed the higher outlook to first-quarter results, the company’s backlog, and its pipeline. Guidance for diluted weighted-average shares remained unchanged at 22.3 million.

Risks Investors Need to Watch

• Government customer concentration: Department of War, Intelligence Community, and federal civilian customers generated about 95.5% of quarterly revenue. Changes in federal appropriations, procurement schedules, or contract awards could materially affect growth.
• Slower organic growth: Reported revenue increased 8.2%, but organic growth was 2.1%. The difference makes the pace of underlying organic expansion an important measure in coming quarters.
• Higher financing costs: Interest expense and other, net, rose much faster than operating income and limited growth in GAAP net income and EPS.
• Working-capital pressure: Operating cash flow excluding MARPA and free cash flow declined, while days sales outstanding increased by three days.
• Backlog conversion and new awards: Funded backlog grew 14.8%, but total backlog increased only 0.3% and quarterly awards declined 3.4%, making contract conversion and future award activity important indicators.

Summary

CACI’s fiscal first quarter combined 8.2% revenue growth with faster operating income and EBITDA growth, supported primarily by Department of War and technology revenue. Margin expansion and funded backlog growth supported a higher fiscal 2027 outlook, but rising interest costs, higher amortization, modest organic growth, and weaker cash conversion limited the improvement in GAAP earnings and cash flow. Future results will depend on converting funded backlog, sustaining contract awards, and improving working-capital performance.