Acquisition of SilverEdge
The acquisition of SilverEdge is expected to be accretive next year, pushing margins up and being accretive on EPS. It will enhance the differentiation of bids not just within the intelligence community but across the broader portfolio.
Strong Business Development Results
3Q net bookings of $2.2 billion resulted in a book-to-bill ratio of 1.2x. Major awards included a five-year recompete with the Air Force ($1.4 billion) and a five-year $413 million contract with the US Army.
Improved Financial Performance
Adjusted diluted EPS was $2.58, reflecting strong margin performance and a favorable tax rate. Free cash flow for the third quarter was $135 million, with expectations of greater than $550 million for FY '26 and over $600 million for FY '27.
Cost Efficiency Initiatives
Identified over $100 million in annual spend to be reinvested in higher ROI areas to drive growth and increase margins. Efforts include implementing efficiencies across shared services and other indirect functions.