Navy Awards CACI Five-Year Order Worth Up to $281 Million for Electromagnetic Warfare
Key Facts
The U.S. Navy awarded CACI a five-year task order worth up to $281 million to support the Naval Surface Warfare Center in Crane and strengthen electromagnetic warfare capabilities, according to a company statement. The value represents a financial ceiling for the order, not a confirmed payment or guaranteed final amount. The scope places the company in a program aimed at developing capabilities related to the electromagnetic spectrum. The order covers work over five years from the date of award. The announcement comes as the company raised its financial outlook for fiscal 2027 following its first-quarter results.
CACI said its work will include research, analysis, assessment and prototype development to strengthen electromagnetic spectrum operations across multiple operating environments. The scope includes designing and testing technologies, along with developing the necessary infrastructure and capabilities. The program therefore combines needs assessment, prototype development and solution testing, according to the company’s description. Chief Executive John Mengucci said, "Electromagnetic superiority is foundational to how our nation deters conflict and protects its forces." He added that the work accelerates the development of next-generation spectrum technologies and AI-enabled decision tools.
In trading on Monday, October 26, CACI shares rose 5.6%, according to an Investing.com report, which attributed the move to the Navy order and a Jefferies upgrade. Jefferies raised its rating on the stock to Buy from Hold and lifted its price target to $725 from $700. The report attributed the recommendation to analyst Sheila Kahyaoglu. The contract announcement coincided with the rating and price target changes, in a session when the stock posted the cited gain. The order’s value of "up to" $281 million does not mean the full financial ceiling will be recorded as revenue immediately.
The award follows CACI’s report of results for the first quarter of fiscal 2027, with revenue of $2,474.6 million for the three months ended September 30, 2026, up 8.2% year over year. Adjusted diluted earnings per share were $7.66, up 11.8% from the corresponding period. The company reported earnings before interest, taxes, depreciation and amortization of $328.8 million, with a margin of 13.3%, compared with 11.7% a year earlier. Following the results, CACI raised its fiscal 2027 revenue, adjusted net income and adjusted earnings per share guidance, while leaving guidance for other financial metrics unchanged. Mengucci said the company achieved a 2.0-times book-to-bill ratio and another quarter of double-digit growth in funded backlog.
CACI’s funded backlog was about $6.2 billion as of September 30, 2026, compared with $5.4 billion a year earlier, an increase of 14.8%. Total backlog was $34.0 billion, versus $33.9 billion a year earlier, up 0.3%. The figures show different growth rates for the funded portion of backlog and the total. The company raised its fiscal 2027 revenue forecast range to $10,700–$10,900 million from $10,650–$10,850 million. It also raised its adjusted diluted earnings per share range for the same fiscal year to $33.18–$34.08 from $32.96–$33.86.
The U.S. Census Bureau will release its advance report on durable goods orders for September 2026 on October 27 at 8:30 a.m. Eastern time. The full report is scheduled for release on November 3 at 10:00 a.m. Eastern time. The two dates are part of the durable goods data release schedule, and the announced timing includes no figure for orders. The reported guidance and results show that CACI raised its fiscal 2027 revenue and adjusted earnings per share ranges after its first quarter. The Navy order’s stated ceiling remains "up to" $281 million, and the order runs for five years.