SAIC Reports Mixed Financial Results for Q2 2024, with Revenue Growth and Decline in Operating Income

Science Applications International Corporation (SAIC) reported its financial results for the three and six months ended August 2, 2024, reflecting a mixed performance compared to the same periods in the previous fiscal year.

For the three months ended August 2, 2024, SAIC generated revenues of $1,818 million, a 2% increase from $1,784 million in the prior year. However, for the six months, revenues decreased by 4% to $3,665 million from $3,812 million. The decline in six-month revenues was primarily attributed to the sale of the Supply Chain Business, which accounted for a $188 million reduction, alongside contract completions. Adjusted for this divestiture, revenues grew by 1.1%.

Operating income for the three months ended August 2, 2024, was $134 million, a significant 63% decrease from $362 million in the same period last year. For the six months, operating income fell 49% to $265 million from $519 million. The decrease in operating income was largely due to a prior-year gain from the sale of the Supply Chain Business, which had a positive impact of $234 million.

Net income for the three months ended August 2, 2024, was $81 million, down 67% from $247 million in the prior year. For the six months, net income decreased by 54% to $158 million from $345 million. The effective income tax rate for the three months was 19.6%, down from 26.4% in the prior year, attributed to the non-recurrence of gains from the Supply Chain Business sale.

SAIC's cash and cash equivalents as of August 2, 2024, were $48 million, a decrease from $94 million at the end of the previous fiscal period. Total current liabilities increased to $1,292 million from $1,158 million, while total assets decreased to $5,250 million from $5,314 million.

In terms of strategic developments, SAIC underwent a business reorganization effective February 3, 2024, transitioning into five customer-facing business groups under two reportable segments: Defense and Intelligence, and Civilian. The company also repurchased approximately 22.6 million shares of its common stock under its repurchase plan, which has a total authorized limit of approximately 24.4 million shares.

SAIC's total backlog as of August 2, 2024, was estimated at $22.899 billion, an increase from $22.763 billion as of February 2, 2024. The funded backlog was $4.237 billion, while the negotiated unfunded backlog stood at $18.662 billion. Net bookings for the three months were approximately $1.2 billion, and for the six months, they totaled approximately $3.8 billion.