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SAIC Reveals Four Percent Growth in Fiscal Year Report; CEO Nazzic Keene Quoted

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Science Applications International Corporation has released its financial report for the fourth quarter and its full fiscal year 2022, which concluded on January 28, 2022.

The defense and space contractor said Monday that fourth quarter revenue was $1.8 billion, a four percent uptick from the previous year and fiscal year revenue was $7.4 billion, which constituted five percent growth.

“I am proud of the team’s performance in fiscal year 2022 with financial results reflecting our commitment to the mission while delivering value to shareholders,” said Nazzic Keene, CEO of SAIC and a five-time winner of the Wash100 Award.

The company reported that fourth quarter revenues increased by $65 million from the prior year quarter and full year revenues increased by $338 million compared to the previous year. This was primarily attributable to SAIC’s purchase of Halfaker and Associates – a technology services provider – and new contract awards (including a fourth quarter U.S. Army award).

SAIC’s operating income as a percentage of revenues came in at a slight decrease in its fourth quarter in comparison to the same period in the preceding year as a result of necessary acquisition and integration fees. Full fiscal year operating income as a percentage of revenue was up by 0.7 percent, however, from 5.5 percent in the 2021 fiscal year to 6.2 percent in 2022.

Adjusted EBITDA as a percentage of revenues was 8.2 percent for SAIC during the final three months of the fiscal year, down from 9.3 percent in the same period the prior year. This was because of increased indirect costs and an offset of net contract adjustments.

Adjusted EBITDA as a percentage of revenues for the fiscal year was 9.3 percent, a 0.4 percent increase from the previous year’s 8.9 percent, fueled by amortization of off-market liability contracts and across the board contract gains.

The company’s book to bill ratio amounted to 1.2 for the fourth quarter and 1.3 for the fiscal year 2022. A notable fourth quarter contract was a $1.1 billion U.S. Naval Sea Systems Command award.

Keene laid out that in the coming year, SAIC’s objectives lie in “positioning our portfolio to maximize value for all stakeholders.”

“The outlook we are providing demonstrates our ability to increase free cash flow and capital returns to shareholders while investing internally to drive growth,” Keene concluded.