RESTON, Va. - Science Applications (NASDAQ:SAIC) International Corp. (NASDAQ: SAIC), a Fortune 500 technology integrator, has been awarded three contracts totaling $58.2 million to support various programs for the Naval Air Warfare Center Weapons Division in Point Mugu, California.
The contracts will bolster the Airborne Electronic Attack (AEA) Integrated Product Team (IPT) Jammer Technique Optimization (JATO) Program, the AEA IPT International Program, and the AEA IPT EA-18G Program.
Under the JATO contract, SAIC is tasked with delivering technical services that include development of jammer techniques, testing and evaluation engineering, and interoperability testing. These services are crucial for enhancing the effectiveness of Electronic Warfare (EW) platforms and ensuring the readiness of the EA-18G aircraft and other EW assets.
The AEA IPT International contract will see SAIC continue to support international service projects through maintenance of existing AEA simulations and development of new tools and simulations. SAIC will also provide engineering, technical, and policy support services for international program teams involved in Foreign Military Sales (FMS), Cooperative Development, and other related programs.
Additionally, SAIC will provide engineering services for the development and sustainment of both the United States Navy (USN) and FMS configurations of the EA-18G. This includes cooperative engineering support to other laboratories, encompassing general management, product support, and systems engineering.
Barbara Supplee, executive vice president of the Navy Business Group at SAIC, emphasized the company's commitment to delivering mission-critical solutions and supporting the Navy's operational readiness.
SAIC, headquartered in Reston, Virginia, employs approximately 24,000 people and reported annual revenues of about $7.4 billion. The company focuses on integrating technology into mission-critical operations across defense, space, civilian, and intelligence markets.
The information in this article is based on a press release statement.
In other recent news, Science Applications International Corp. (SAIC) has secured a $120 million contract from Naval Supply Systems Command to provide training support for the U.S. Navy. This contract is an extension of SAIC's longstanding relationship with the U.S. Navy, dating back to 1992. In addition to this, Jefferies has maintained a 'Hold' rating on SAIC stock, citing the company's strategic direction and investment plans. SAIC reported solid financial performance in the first quarter of fiscal year 2025, with a revenue of $1.85 billion and an adjusted EBITDA of $166 million.
Meanwhile, the European Union has initiated tariffs on electric vehicles (EVs) imported from China, with rates ranging from 17.4% to 37.6%. Chinese automakers SAIC, BYD (SZ:002594), and Geely will face tariffs of 37.6%, 17.4%, and 19.9% respectively. In light of these developments, Canada is considering implementing similar tariffs on Chinese-made EVs, following concerns over China's aggressive and state-backed production strategies.
On the other hand, TD Cowen reiterated a 'Buy' rating for SAIC, highlighting the company's high cash flow yield and the potential for growth in fiscal year 2026. These developments reflect SAIC's commitment to long-term growth and market competitiveness. Lastly, SAIC has unveiled a multi-year strategy to increase its bid volume to $30 billion by fiscal year 2027.
InvestingPro Insights
Science Applications International Corp. (SAIC) has recently secured a series of contracts that reinforce its position as a key player in providing technological solutions to the defense sector. With a focus on delivering mission-critical solutions, the company's financial health is an important aspect for investors to consider.
InvestingPro Data reveals a solid market capitalization of $6.35 billion, reflecting investor confidence in the company. SAIC's Price-to-Earnings (P/E) ratio stands at 14.25, suggesting that the company is trading at a reasonable valuation in relation to its earnings. This is further substantiated by the company's PEG ratio for the last twelve months as of Q1 2025, which is 0.3, indicating potential for earnings growth relative to its P/E ratio.
An InvestingPro Tip highlights that SAIC has been actively buying back shares, a move that often signals management's belief in the company's value and future prospects. Additionally, SAIC has maintained dividend payments for 12 consecutive years, offering a dividend yield of 1.19% as of mid-2024. This consistency in returning value to shareholders is a testament to the company's financial stability and commitment to its investors.
For those interested in further insights, there are additional InvestingPro Tips available at InvestingPro, offering a deeper dive into SAIC's performance metrics and future outlook.
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