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Science Applications International Corporation (SAIC+1.07%) has submitted its 10-K filing for the fiscal year ended January 31, 2025.
The filing details the company's reorganization into five customer-facing business groups, which are aggregated into two reportable segments: Defense and Intelligence, and Civilian. This reorganization was effective February 3, 2024.
SAIC reported revenues of $7.479 billion for fiscal 2025, a slight increase from $7.444 billion in fiscal 2024. The increase was attributed to ramp-up in volume on existing and new contracts, offset by the prior year's sale of the Supply Chain Business and contract completions.
Operating income for the year was $563 million, down from $741 million in fiscal 2024. This decrease was primarily due to a $233 million gain recognized from the sale of the Supply Chain Business in the prior year.
The company reported net income attributable to common stockholders of $362 million, compared to $477 million in the previous year. The decline was due to the aforementioned gain on divestiture in fiscal 2024.
SAIC's effective income tax rate for fiscal 2025 was 15.5%, lower than the 23.1% in fiscal 2024, primarily due to the gain from the divestiture of the Supply Chain Business and associated non-deductible goodwill in the prior year.
The company's backlog as of January 31, 2025, was $21.857 billion, with $3.444 billion in funded backlog and $18.413 billion in negotiated unfunded backlog.
SAIC's primary customers remain U.S. government agencies, with 98% of revenues in fiscal 2025 derived from contracts with the U.S. government or subcontracts with other contractors engaged in work for the U.S. government.
The company continues to face risks related to government spending levels, competitive pressures, and regulatory compliance. SAIC also notes the potential impact of changes in tax laws and regulations on its financial results.
SAIC's capital structure includes a $2.6 billion secured credit facility, consisting of term loans and a revolving credit facility, with various amendments executed during the fiscal year to adjust terms and extend maturities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Science Applications International Corporation annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.