How New Canadian Defense Contracts at CACI International (CACI) Have Changed Its Investment Story

• CACI International Inc. announced it has been awarded two new contracts by the Canadian Armed Forces as part of phase two of the Counter Uncrewed Aircraft System (C-UAS) Urgent Operational Requirement, with a total value of approximately US$124 million and up to 10 years of support.
• This expanded agreement highlights CACI's growing role in providing modular, advanced counter-drone capabilities to international defense clients, reinforcing its position in addressing emerging security threats.
• We'll examine how this Canadian Armed Forces contract supports CACI's positioning in international defense modernization and technological innovation.

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CACI International Investment Narrative Recap

To be a CACI International shareholder, one must trust in the company’s ability to leverage government and allied defense spending into multi-year contract wins while managing risks tied to its customer concentration and intense industry competition. The recent Canadian Armed Forces contract expands CACI’s international footprint and adds to the backlog, but at $124 million over up to 10 years, it is not a material near-term catalyst compared to CACI’s large US pipeline; key risks involving federal budget exposure remain top of mind.

Among recent announcements, the $1.64 billion IDIQ contract supporting the Joint Transportation Management System at Scott Air Force Base, disclosed on August 12, stands out as directly relevant for investors following contract momentum and revenue visibility. This US government award not only reinforces CACI’s lead position in technology modernization for mission-critical programs but also speaks to the durability of its core US business relative to incremental international wins like the Canadian contract.

However, in contrast to headlines celebrating contract wins, investors should also watch for potential delays from US federal budget cycles and procurement consolidation, as…

Read the full narrative on CACI International (it's free!)

CACI International's outlook anticipates $10.4 billion in revenue and $634.1 million in earnings by 2028. This scenario relies on 6.5% annual revenue growth and a $134.3 million increase in earnings from the current $499.8 million.

Uncover how CACI International's forecasts yield a $542.15 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community offered fair value estimates for CACI from US$302 to US$784 per share, reflecting a wide spread in outlooks. While many see continued strength in government contract flow, concentrated exposure to US funding leaves CACI’s performance particularly sensitive to any shifts in budget priorities.

Explore 5 other fair value estimates on CACI International - why the stock might be worth 37% less than the current price!

Build Your Own CACI International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CACI International research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free CACI International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CACI International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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