SCIENCE APPLICATIONS INTERNATIONAL CORP

Company Overview

Science Applications International Corporation (SAIC) is a U.S.-centric systems integrator and technical services firm serving federal customers, focused on engineering, enterprise IT modernization, AI, mission systems, sustainment, training & simulation and ground vehicle support. The firm reported roughly $7.5 billion in revenue for fiscal 2025, derives ~98% of revenue from U.S. government prime/subcontract work (DoD ~52%), employs ~24,000 people (including >6,000 veterans) and had backlog near $22–23 billion with funded backlog around $3.4–3.6 billion. SAIC’s contract mix (cost-reimbursement, time-and-materials, firm-fixed-price, IDIQ/GSA vehicles and OTAs), portfolio reshaping via divestitures, and heavy regulatory compliance (FAR/DFARS/CAS, export controls) create meaningful seasonality and contract-driven revenue/margin variability.

Executive Compensation Practices

Executive pay at SAIC is likely tied to metrics that reflect contract performance and cash generation: adjusted EBITDA and operating income margins, net bookings/backlog growth, contract profitability, operating cash flow, win rates on IDIQs and major awards, and cost/control improvements following portfolio actions. Management has signaled use of adjusted metrics (adjusted EBITDA 9.5% FY25; quarter-adjusted margins ~10–10.5%) and reduced stock‑based and incentive compensation in the recent period, while also returning capital via ~$527M of repurchases and a $1.2B buyback authorization — factors that can influence long‑term equity incentive sizing and timing. Given the labor‑intensive model and high clearance rates, retention and talent metrics (attrition, training hours) likely feed into short‑ and long‑term incentive plans, and one‑time events (divestitures, patent or tax settlements) are already being excluded/adjusted in reported performance measures.

Insider Trading Considerations

Because nearly all revenue is federal contracting and material information often hinges on contract awards, terminations, audit outcomes or budget timing, insiders face frequent windows of material nonpublic information and therefore tighter practical trading restrictions and blackout periods around award notifications and quarterly/annual reports. The company’s recent sizable buybacks and authorized repurchase capacity can support the share price and reduce insider sale pressure, but executives often still use planned Rule 10b5‑1 arrangements or time-limited trading windows; Section 16 short‑swing rules and Form 4 reporting remain relevant. Investors should watch for insider sales following divestitures or tax/audit settlements (which have materially affected EPS and tax rates recently) and for compensation‑related exercises (RSU vesting, option exercises) that can create predictable insider liquidity events.