CACI International Inc (CACI): BCG Matrix [Dec-2025 Updated]

You're looking for the clearest picture of CACI International Inc's portfolio health following their $8.62 billion FY2025 results, so I've mapped their business units onto the classic Boston Consulting Group Matrix. Honestly, the story is clear: stable Cash Cows from core U.S. Department of Defense contracts, making up about 75% of the business, are funding high-potential Stars like Electronic Warfare and software-defined tech, while the small international slice is currently a Dog. The real action, though, is in the Question Marks-big bets on Artificial Intelligence and Machine Learning integration and recent acquisitions that need capital to really take off. Dive in to see exactly where CACI International Inc is placing its chips for the next growth cycle.

Background of CACI International Inc (CACI)

You're looking at CACI International Inc (CACI) as of late 2025, so let's ground ourselves in what they actually did in the most recent full fiscal year, which ended June 30, 2025. CACI International Inc is a major player providing expertise and technology, mostly to U.S. government customers, especially in national security and defense. They are definitely focused on high-growth areas like cyber, space, and the electromagnetic spectrum, expecting continued strong government spending there.

For the fiscal year 2025, CACI International reported annual revenues of $8.6 billion, which was a 13% jump year-over-year. That growth included 7.2% organic growth, meaning it came from existing business rather than just acquisitions. To be fair, they also closed some big deals; annual contract awards for FY2025 hit $9.6 billion, leading to a book-to-bill ratio of 1.1x. This shows they were winning new work faster than they were recognizing revenue.

Operationally, the company showed strong profitability. Fiscal year 2025 saw annual net income reach $499.8 million, a 20% increase from the prior year, pushing diluted Earnings Per Share (EPS) to $22.32. Their EBITDA for the year was $966.8 million, resulting in an EBITDA margin of 11.2%. This performance helped them raise guidance for the following year, fiscal 2026.

Looking at the business mix, CACI International is overwhelmingly a domestic player. Their segment breakdown for FY2025 shows that Domestic Operations accounted for 97% of total revenues, while International Operations made up the remaining 3%. When you break down the customer base, the Department of Defense (DoD) was the largest piece, contributing 75.4% of revenue, with Federal Civilian Agencies at 20.3%.

A significant strategic move during FY2025 was capital deployment through acquisitions. CACI International spent a combined cash total of $1.70 billion to acquire assets like Applied Insight, Azure Summit Technology, and Identity E2E. These moves are designed to expand their software-defined offerings. By the end of September 2025, the first quarter of FY2026, their total backlog had grown further to $33.9 billion, showing a solid foundation for the near term.

The very start of fiscal year 2026 looked strong too. For the quarter ended September 30, 2025, revenues were $2.3 billion, an 11.2% increase year-over-year. They also posted a very healthy book-to-bill of 2.2x for that quarter, indicating even stronger forward momentum in new business wins.

CACI International Inc (CACI) - BCG Matrix: Stars

You're looking at the engine room of CACI International Inc's current portfolio, the businesses that define high market share in rapidly expanding sectors. These are the areas where CACI International Inc is investing heavily to maintain its leadership position, consuming cash to fuel expansion but promising significant returns as the market matures. The overall performance for fiscal year 2025 clearly signals this high-growth momentum.

For the full fiscal year 2025, CACI International Inc achieved revenues of approximately $8.63 billion, representing a 12.6% year-over-year growth from the prior fiscal year's $7.66 billion. This top-line acceleration was significantly underpinned by an organic growth rate of 7.2% in FY2025, which is the hallmark of a Star quadrant business unit-high market growth translating directly into high company growth.

Here's a quick look at the financial scale supporting this Star categorization:

Electronic Warfare (EW) and Signals Intelligence (SIGINT) capabilities represent a core area where CACI International Inc is securing significant, high-value work in a market that is critically important to national security. This segment is characterized by the need for rapid technology insertion, which CACI International Inc is meeting through software-defined architectures.

The direct evidence of CACI International Inc's market leadership and the high-priority nature of this space includes a recent contract modification from the U.S. Army:

• Award value for the Terrestrial Layer System Brigade Combat Team Manpack (TLS BCT Manpack) was nearly $400 million.
• This award supports expanded procurement of mobile EW and SIGINT systems for U.S. Army Brigade Combat Teams.
• The TLS BCT Manpack is a software-defined, modular system designed for low size, weight, and power (SWaP) characteristics.
• The broader Defense SIGINT market is estimated at USD 17.7 billion in 2025, with a projected CAGR of 5.4% through 2035, indicating a strong growth environment for CACI International Inc's offerings.

Advanced Cybersecurity and Data Analytics solutions for intelligence customers are another key driver, aligning with the overall high organic growth. While specific FY2025 segment revenue is not detailed for this exact grouping, the performance of the Intelligence Community (IC) customer base in the most recent reported quarter shows the strength of this vertical. For the first quarter of fiscal year 2026, IC revenues grew by 11.6% to reach $596.4 million. This demonstrates that the intelligence sector, which heavily relies on these advanced solutions, is growing faster than the overall company revenue growth of 12.6% in FY2025, suggesting these specific capabilities are market leaders.

Technology differentiation is evident in rapidly prototyped, differentiated offerings like the CrossBeam® optical system. This product is positioned as a Star because it is pioneering in a new, high-growth technology area-space-based optical communications-and has achieved significant industry validation.

Key facts about this differentiated technology include:

• CrossBeam® is the first and only American-made, Space Development Agency-compliant optical communications terminal (OCT).
• CACI International Inc received a prestigious bronze Edison Award™ for CrossBeam® in 2025.
• The system is designed for low-cost, high-volume manufacturing and supports SDA's Tranche 0/1/2/3 satellite crosslinks.
• CACI International Inc emphasizes its leadership in rapidly prototyping and leveraging commercial practices to iterate software-defined developments in real time.

CACI International Inc is definitely investing heavily in these areas to ensure they become the next generation of Cash Cows.

CACI International Inc (CACI) - BCG Matrix: Cash Cows

You're looking at the bedrock of CACI International Inc's financial stability, the business units that are market leaders in mature, high-barrier-to-entry government services markets. These are the Cash Cows, the segments that generate more cash than they need to maintain their position, funding the rest of the company's portfolio.

The core of this cash generation comes from CACI International Inc's deep entrenchment within the U.S. national security apparatus. The segment most clearly fitting this profile is the work supporting the U.S. Department of Defense (DoD). For the first quarter of fiscal year 2025, the DoD contributed 74.6% of total revenue, and when combined with the Intelligence Community (IC) and Department of Homeland Security (DHS), this National Security base accounted for approximately ~90% of total revenue as of January 2025. This high market share in a stable, non-discretionary spending area means high, predictable profit margins and strong cash flow generation.

Also contributing to this stable base are the long-term, stable federal civilian agency contracts. While the DoD is the largest component, the segment for Other Federal Civilian customers (excluding IC and DHS) represented approximately ~6% of CACI International Inc's revenue as of January 2025. These contracts, often multi-year and essential to agency operations, provide the consistent, low-growth cash flow characteristic of a Cash Cow.

The visibility into future cash flow is exceptional, which is why these units are so prized. The massive total contract backlog as of June 30, 2025, stood at $31.4 billion, ensuring revenue visibility for years to come. Furthermore, CACI International Inc management indicated that approximately 89% of the expected fiscal year 2025 revenue was projected to come from existing programs. This level of embedded revenue minimizes the need for heavy promotional spending, allowing management to focus investments on efficiency.

Instead of aggressive marketing, the strategy here is to invest in supporting infrastructure to 'milk' the gains passively and improve efficiency. For instance, the operating margin expanded to 11.2% for the full fiscal year 2025, showing that operational leverage is being achieved on this stable revenue base. The company generated $442 million in free cash flow for fiscal year 2025, the very cash needed to fund the riskier Question Marks or Stars in the portfolio.

Here are the key financial metrics that define the Cash Cow performance for the fiscal year ending June 30, 2025:

The stability is further evidenced by the contract flow, which ensures the base remains fed:

• Total contract awards for FY2025 reached $9.6 billion.
• The resulting book-to-bill ratio for FY2025 was 1.1x.
• The funded backlog grew 11% year-over-year to $4.2 billion as of June 30, 2025.

You should view these segments as the engine room. They require maintenance spending to keep the machinery running smoothly, but they don't demand the massive growth capital that Stars or Question Marks do. The focus here is on incremental efficiency gains, like the expansion of the EBITDA margin to 11.2%, which directly translates to more free cash flow.

CACI International Inc (CACI) - BCG Matrix: Dogs

You're analyzing CACI International Inc (CACI) portfolio, and the 'Dogs' quadrant represents those business units or contracts that are stuck in low-growth markets and hold a small slice of that market. Honestly, these are the areas where capital gets tied up for minimal return, and the usual advice is to minimize exposure or divest.

For CACI International Inc (CACI), the International Operations segment is positioned here, defined by its relatively small contribution to the overall top line. We classify this segment as a Dog because it reportedly contributes a low 3% of total revenue, indicating low market presence relative to the core U.S. Federal business. To give you some context on the overall size, in the first quarter of fiscal year 2026, which ended September 30, 2025, the combined Commercial and other revenues, which includes international customers, totaled $99.8 million on total company revenues of $2.3 billion.

This segment, along with certain legacy service lines, fits the profile of a Dog because they often represent:

• Legacy, commoditized IT infrastructure support services with low differentiation and margin pressure.
• Non-strategic, low-margin contracts that are not aligned with the company's technology-first focus.

These are the units that frequently break even, neither earning nor consuming significant cash, but they still require management attention. Expensive turn-around plans for these types of units rarely pay off, so divestiture is often the clearest path to redeploying resources toward Stars or Cash Cows.

Here's a quick look at the overall financial scale for CACI International Inc (CACI) as of the end of fiscal year 2025, which helps frame the context of these smaller units:

The pressure on legacy services comes from the market itself; when a service becomes a commodity, differentiation vanishes, and you're left competing almost solely on price. For CACI International Inc (CACI), this means that contracts falling into the Dog category-those low-margin, non-strategic deals-are cash traps because they consume operational bandwidth without contributing meaningfully to the high-growth, technology-first initiatives the company is pushing. If onboarding takes 14+ days for these smaller contracts, churn risk rises defintely.

Finance: draft 13-week cash view by Friday.

CACI International Inc (CACI) - BCG Matrix: Question Marks

QUESTION MARKS (high growth products (brands), low market share): These parts of a business have high growth prospects but a low market share. CACI International Inc is channeling significant capital into areas that are rapidly expanding, but where its current revenue contribution remains relatively small compared to its core government segments. These units consume cash in the pursuit of market position, which is the classic profile of a Question Mark.

Artificial Intelligence (AI) and Machine Learning (ML) service integration, a high-growth investment area.

CACI International Inc is actively developing and deploying sophisticated data analytics and Artificial Intelligence/Machine Learning (AI/ML) platforms engineered to process vast datasets and generate actionable intelligence for complex operational challenges. This technology focus aligns with enduring national security priorities, indicating a high-growth market. While the company is leading in these areas, the revenue contribution from these specific new technology platforms, relative to the total $8.6 billion in fiscal year 2025 revenue, is currently categorized as having a low market share, thus consuming investment capital.

The investment strategy is clear: build capability ahead of the need. The company's capital deployment over the last decade shows a preference for growth through M&A, spending approximately $4.613 billion on acquisitions from 2015 to 2025, compared to only $579 million on CAPEX in the same period. For the fiscal year ending June 30, 2025, reported capital expenditures were approximately $85 million, which supports the high-cash-burn nature of developing these emerging technology offerings.

New, niche technology acquisitions (like Azure Summit Technology) that need capital to scale and gain market share.

Strategic acquisitions are a primary driver of CACI International Inc's expansion into high-growth technology niches. The acquisition of Azure Summit Technology, which was completed in late 2024, serves as a prime example of investing heavily in a Question Mark capability. The cost for this specific niche acquisition was approximately $1.31 billion in fiscal year 2025, or reported as $1.28 billion in a separate filing, representing a massive infusion of capital to gain immediate, specialized market share in defense electronics.

The potential payoff is evident, as Azure Summit Technology had secured a $300 million contract award from the U.S. Navy just prior to the acquisition. This investment aims to quickly convert this niche capability into a Star. The company's pro-forma leverage following the Azure Summit and Applied Insight acquisitions was 2.9x debt to trailing twelve-month EBITDA, showing the immediate financial impact of these large, market-share-gaining investments.

Expansion into new international markets beyond the current 3% revenue base.

While CACI International Inc's primary focus remains the U.S. Federal market, its commercial and other segment, which includes international customers, shows high growth, suggesting these markets are in a high-growth phase for the company. Revenues from this combined segment rose by 20.2% to $99.8 million in the quarter ended September 30, 2025. This $99.8 million figure represents the current low-share revenue base that the company is trying to rapidly scale up.

The UK operations, for example, delivered a record year of revenue and income, supported by strategic investments and the acquisition of Identity E2E Limited. The goal is to quickly increase the market share within these geographies, turning this segment from a small revenue contributor into a significant Star.

• Commercial and Other/International Revenue (Q3 FY2025): $99.8 million
• Growth Rate for Commercial/Other Segment (Q3 FY2025): 20.2%
• UK Operations: Expanded with Identity E2E Limited acquisition.

Large, high-value bids under evaluation that could become Stars if won, but currently require significant business development spend.

The pipeline of potential work represents the high-demand aspect of the Question Mark category, as winning these bids would immediately shift the associated business into the Star quadrant. CACI International Inc has a substantial pipeline of bids under evaluation. Specifically, the company reported having $4 billion of bids under evaluation, with approximately 80% of that value targeted as new business.

This pipeline requires continuous, significant business development spending to pursue and shape these opportunities. The company's total contract awards for the first quarter of fiscal year 2026 (ending September 30, 2025) reached $5.0 billion, yielding a book-to-bill ratio of 2.2x, demonstrating strong demand capture, but the $4 billion in evaluation represents the speculative, high-cost, low-certainty investment area.

• Total Bids Under Evaluation: $4 billion
• Percentage of Pipeline Targeted as New Business: Approximately 80%
• Q1 FY2026 Contract Awards: $5.0 billion
• Q1 FY2026 Book-to-Bill Ratio: 2.2x