Nazzic S. Keene
Chief Executive Officer
Donna S. Morea
Chair of the board
At SAIC, we are committed to going beyond our fiduciary responsibility and taking a human-centric approach to all of our efforts, including our engagement with shareholders, employees, customers, and the global community. As we go to press with this report, we are all witnessing the unfathomable events taking place in Ukraine. Our thoughts are with the courageous people of Ukraine who are experiencing an unthinkable human toll. We are taking action to support them – to date, SAIC and our employees have donated more than $125,000 to humanitarian relief efforts in the region. We join the global community in a single, united call for peace.
And, now, we turn to our financial results. We are proud of the performance we delivered in Fiscal Year 2022 (FY22) as we were able to meet our financial objectives, invest to support growth in the future, and make progress against important environmental, social, and governance (ESG) goals. Three things we are known for at SAIC are our extraordinarily smart and passionate people who are dedicated to always doing the right thing, a commitment to the government mission, and bold thinking that delivers innovative solutions by using advanced technology.
It’s important to recognize the people who have contributed to the success of the business, our employees, particularly their resiliency and commitment through a prolonged, challenging environment. Our business is only as strong as our people and their dedication to the customer’s mission, the organization’s values, and the company’s purpose. SAIC’s approximately 26,000 innovative employees work tirelessly to create a better world, challenging boundaries, and redefining excellence.
It’s important to recognize our customers as well, who also contribute to the success of our business through the trust they put into our ability to deliver outcomes. We are grateful for that confidence and their partnership, and strive every day to ensure we are supporting all of their mission critical efforts – from the depths of the ocean to the farthest reaches of space.
For all of our fellow shareholders, know that we continue to be future focused – whether that is architecting the future for our customers, or reinventing the future of work for our employees. We’ve invested in both and you’ll see the benefits of those investments reflected in our financial results. We are proud of the steps taken during the year to drive long-term value, while continuing to live the values that are at the core of SAIC.
Dear Fellow Shareholders,
Annual Report
FISCAL
Year 2022
Fiscal Year 2022 Annual Report
Download FY22 Annual Report
FY22
FY21
FY20
$7.4B
$7.1B
$6.4B
annual revenue
growth
5%
REvenues
FY22
FY21
FY20
$467M
$524M
$437M
decrease from Prior year
11%
Free Cash Flow
FY22
FY21
FY20
$686M
$627M
$538M
MARGIN UP FROM 8.9% PRIOR YEAR
9.3%
Adjusted Ebitda
FY22
FY21
FY20
$24.1B
$21.5B
$15.3B
Increase From Prior Year
12%
Total Backlog
FY22
FY21
FY20
$333M
$152M
$285M
increase from prior year
119%
capital deployed
We continue to be focused on driving sustained, profitable growth and investing capital to maximize long-term stockholder value. Our solid organic revenue growth, margin expansion, and strong free cash flow are evidence of the progress we made in FY22. We also invested in strategic acquisitions, giving us access to new capabilities, customers, and markets. Our focus continues to be on investing, and ensuring that free cash flow is deployed in ways that generate the highest return on capital for our shareholders.
It is critical that we reinvest in the business now to support future growth. The investments we made in innovation, through the launch of the company’s Innovation Factories, set us apart in the areas of artificial intelligence (AI), engineering, and digital capabilities. The acquisitions of Koverse and Halfaker demonstrate our ability to find new ways to deliver solutions and evolve our “go-to-market” strategies to meet our customers' critical mission needs.
In FY22, SAIC delivered revenue growth, record profitability, and strong cash generation, while keeping free cash flow solid. The company grew total revenue by 5% to $7.4 billion in FY22 and achieved strong increases in adjusted EBITDA, earnings per share, and solid free cash flow. Because of our continued strong ability to generate cash, we deployed $333 million of capital, consisting of share repurchases of $211 million or 2.4 million shares of our common stock, cash dividends of $86 million and $36 million of capital expenditures.
By continuing to balance our contract mix to be representative of demand, and increasing our composition of higher value work, we are driving growth that is sustainable over the long term.
Financial Performance
Our Commitment to Diversity, Equity, and Inclusion
27%
Women in Leadership
(in FY22)
22%
(in FY22)
people of color in leadership
(in FY22)
64% OF OUR BOARD OF DIRECTORS ARE WOMEN AND/OR PEOPLE OF COLOR
Significant events in our world are impacting global economic prosperity, innovation, and security, making diversity, equity, and inclusion (DE&I) and employee well-being critical business imperatives.
This commitment extends throughout every level of the organization, up to and including our board of directors. It is important to note the diversity of our board, which features not only ethnic and gender diversity, but also a deep breadth of critical skills and live experiences. With this tone set at the very top of the organization, the leadership team is well positioned to ensure this business imperative is achieved, and importantly, we believe it is one of SAIC’s many competitive advantages.
Women and people of color continue to be disproportionally impacted by the pandemic. SAIC is committed to increasing representation of women and people of color throughout all levels of our leadership because the strength of our leadership is greatest when it fully reflects the diversity of our workforce. We understand the importance of diversity of thought and experiences on technological advancements, productivity, and overall business results. To that end, we are holding ourselves accountable for DE&I outcomes, not only because it’s the right thing to do, but because we know it’s also good for business.
In fiscal year 2022, we established goals to achieve parity in the representation of women and people of color between our leadership and non-leadership roles within five years. We made meaningful progress toward our goals this year, with women now representing 27% of our leadership and people of color representing 22%.
We are committed to being transparent and intentional in our efforts to increase leadership diversity through strategic recruiting and retention efforts. We seek to drive tangible change through our commitments to:
• Fighting racism, bias, and prejudice in our workplace
• Making SAIC more inclusive and diverse
• Supporting non-profit organizations that are uplifting minorities in our communities
• Measuring and holding ourselves accountable for results
The well-being of our employees is paramount. As part of our future of work efforts, we conduct an annual Employee Culture Survey. Based on the most recent feedback, we implemented a number of benefits designed to differentiate our employee experience by enriching their lives. We believe listening to our employees, understanding their desire for flexibility, and providing benefits enhancements that meet their needs, make SAIC the employer of choice for exceptional talent. More specifically, in FY22, we added new benefits which include expanding flexible work schedules to 4/10 while keeping 9/80 and traditional work week options, holding medical premiums flat, providing back up child and elder care, adding Juneteenth as a paid holiday, and increasing family leave for all employees.
These efforts are just a sample of what can be achieved when a company makes employee well-being a priority.
People and Culture
3.8M
Equivalent
Meals
21K
Hours
$300K+
STEM
DISCIPLINE
#412
up 54 spots from 2020 in fortune 500
(four consecutive years with a perfect score)
BEST PLACES
TO WORK
FOR LGBTQ EQUALITY
#5
2021 America's Best Employers For Veterans
(Best in our industry, 23% of SAIC’s workforce are U.S. military veterans)
2022 America's Best large Employers
(every year since 2019)
2021 America's Best employers for Diversity
(every year since 2019)
Donated to Feeding America by SAIC and its employees
Volunteered by SAIC employees
PERSONAL FUNDS DONATED BY SAIC EMPLOYEES
middle and high school students MENTORED by SAIC employees
Corporate responsibility is embedded in our culture, vision, and mission, and continues to be integral to what we do at SAIC. Our legacy of philanthropy and employee volunteerism is a natural outgrowth of our values. Ethical behavior and acting with integrity are non-negotiables in our culture and we embrace a broad scope of ESG imperatives in the company’s daily operations because we believe it makes our business, employees, and communities better.
We believe taking a long-term approach to corporate philanthropy is best, targeting programs that specifically address our three pillars of focus: military heroes, community wellness, and STEM (Science, Technology, Engineering, and Mathematics). Our SAIC Charitable Foundation, created by employees for employees and with corporate support, is focused on helping our employees and their dependents in times of need.
Additional information relating to SAIC's initiatives can be found in our 2021 Corporate Responsibility Report available in the Corporate Responsibility section of investors.saic.com. SAIC will publish the next Corporate Responsibility Report in mid-2022.
Corporate Responsibility
In FY22, our company delivered strong financial performance and invested to drive shareholder value over the long term. We believe our success is attributable to our people-first approach, whether it’s our shareholders, customers or employees.
Our approximately 26,000 visionary employees use science and technology to solve our customers’ most complex problems. Our talent and commitment make us an ideal partner for our customers, creating and enabling their transformation and mission success, and we are relentless in the pursuit of both.
Yes, we took bold steps this past year to ensure employee well-being and equity were measured and enhanced. These efforts differentiate us and the results are worth it. Every day, we live our values in our communities through both time and treasure, doing our part to make the world a better place for our customers, employees, the community at large, and you, our shareholders. We are honored to have the opportunity to do so.
In ClosinG
Previous
Annual Reports
SAIC Investors Website
Previous
Annual Reports
SAIC Investors Website
Nazzic S. Keene
Chief Executive Officer
Donna S. Morea
Chair of the board
At SAIC, we are committed to going beyond our fiduciary responsibility and taking a human-centric approach to all of our efforts, including our engagement with shareholders, employees, customers, and the global community. As we go to press with this report, we are all witnessing the unfathomable events taking place in Ukraine. Our thoughts are with the courageous people of Ukraine who are experiencing an unthinkable human toll. We are taking action to support them – to date, SAIC and our employees have donated more than $125,000 to humanitarian relief efforts in the region. We join the global community in a single, united call for peace.
And, now, we turn to our financial results. We are proud of the performance we delivered in Fiscal Year 2022 (FY22) as we were able to meet our financial objectives, invest to support growth in the future, and make progress against important environmental, social, and governance (ESG) goals. Three things we are known for at SAIC are our extraordinarily smart and passionate people who are dedicated to always doing the right thing, a commitment to the government mission, and bold thinking that delivers innovative solutions by using advanced technology.
It’s important to recognize the people who have contributed to the success of the business, our employees, particularly their resiliency and commitment through a prolonged, challenging environment. Our business is only as strong as our people and their dedication to the customer’s mission, the organization’s values, and the company’s purpose. SAIC’s approximately 26,000 innovative employees work tirelessly to create a better world, challenging boundaries, and redefining excellence.
It’s important to recognize our customers as well, who also contribute to the success of our business through the trust they put into our ability to deliver outcomes. We are grateful for that confidence and their partnership, and strive every day to ensure we are supporting all of their mission critical efforts – from the depths of the ocean to the farthest reaches of space.
For all of our fellow shareholders, know that we continue to be future focused – whether that is architecting the future for our customers, or reinventing the future of work for our employees. We’ve invested in both and you’ll see the benefits of those investments reflected in our financial results. We are proud of the steps taken during the year to drive long-term value, while continuing to live the values that are at the core of SAIC.
Dear Fellow Shareholders,
Annual Report
FISCAL
Year 2022
Fiscal Year 2022 Annual Report
Download FY22 Annual Report
FY22
FY21
FY20
$7.4B
$7.1B
$6.4B
annual revenue
growth
5%
REvenues
FY22
FY21
FY20
$467M
$524M
$437M
decrease from Prior year
11%
Free Cash Flow
FY22
FY21
FY20
$686M
$627M
$538M
MARGIN UP FROM 8.9% PRIOR YEAR
9.3%
Adjusted Ebitda
FY22
FY21
FY20
$24.1B
$21.5B
$15.3B
Increase From Prior Year
12%
Total Backlog
FY22
FY21
FY20
$333M
$152M
$285M
increase from prior year
119%
capital deployed
We continue to be focused on driving sustained, profitable growth and investing capital to maximize long-term stockholder value. Our solid organic revenue growth, margin expansion, and strong free cash flow are evidence of the progress we made in FY22. We also invested in strategic acquisitions, giving us access to new capabilities, customers, and markets. Our focus continues to be on investing, and ensuring that free cash flow is deployed in ways that generate the highest return on capital for our shareholders.
It is critical that we reinvest in the business now to support future growth. The investments we made in innovation, through the launch of the company’s Innovation Factories, set us apart in the areas of artificial intelligence (AI), engineering, and digital capabilities. The acquisitions of Koverse and Halfaker demonstrate our ability to find new ways to deliver solutions and evolve our “go-to-market” strategies to meet our customers' critical mission needs.
In FY22, SAIC delivered revenue growth, record profitability, and strong cash generation, while keeping free cash flow solid. The company grew total revenue by 5% to $7.4 billion in FY22 and achieved strong increases in adjusted EBITDA, earnings per share, and solid free cash flow. Because of our continued strong ability to generate cash, we deployed $333 million of capital, consisting of share repurchases of $211 million or 2.4 million shares of our common stock, cash dividends of $86 million and $36 million of capital expenditures.
By continuing to balance our contract mix to be representative of demand, and increasing our composition of higher value work, we are driving growth that is sustainable over the long term.
Financial Performance
Our Commitment to Diversity, Equity, and Inclusion
27%
Women in Leadership
(in FY22)
22%
people of color in leadership
(in FY22)
(in FY22)
64% OF OUR BOARD OF DIRECTORS ARE WOMEN AND/OR PEOPLE OF COLOR
Fighting racism, bias, and prejudice in our workplace
Making SAIC more inclusive and diverse
Supporting non-profit organizations that are uplifting minorities in our communites
Measuring and holding ourselves accountable for results
•
•
•
•
We are committed to being transparent and intentional in our efforts to increase leadership diversity through strategic recruiting and retention efforts. We seek to drive tangible change through our commitments to:
The well-being of our employees is paramount. As part of our future of work efforts, we conduct an annual Employee Culture Survey. Based on the most recent feedback, we implemented a number of benefits designed to differentiate our employee experience by enriching their lives. We believe listening to our employees, understanding their desire for flexibility, and providing benefits enhancements that meet their needs, make SAIC the employer of choice for exceptional talent. More specifically, in FY22, we added new benefits which include expanding flexible work schedules to 4/10 while keeping 9/80 and traditional work week options, holding medical premiums flat, providing back up child and elder care, adding Juneteenth as a paid holiday, and increasing family leave for all employees.
These efforts are just a sample of what can be achieved when a company makes employee well-being a priority.
Significant events in our world are impacting global economic prosperity, innovation, and security, making diversity, equity, and inclusion (DE&I) and employee well-being critical business imperatives.
This commitment extends throughout every level of the organization, up to and including our board of directors. It is important to note the diversity of our board, which features not only ethnic and gender diversity, but also a deep breadth of critical skills and live experiences. With this tone set at the very top of the organization, the leadership team is well positioned to ensure this business imperative is achieved, and importantly, we believe it is one of SAIC’s many competitive advantages.
Women and people of color continue to be disproportionally impacted by the pandemic. SAIC is committed to increasing representation of women and people of color throughout all levels of our leadership because the strength of our leadership is greatest when it fully reflects the diversity of our workforce. We understand the importance of diversity of thought and experiences on technological advancements, productivity, and overall business results. To that end, we are holding ourselves accountable for DE&I outcomes, not only because it’s the right thing to do, but because we know it’s also good for business.
In fiscal year 2022, we established goals to achieve parity in the representation of women and people of color between our leadership and non-leadership roles within five years. We made meaningful progress toward our goals this year, with women now representing 27% of our leadership and people of color representing 22%.
People and Culture
3.9M
Equivalent
Meals
21K
Hours
$300K+
STEM
DISCIPLINE
#412
up 54 spots from 2020 in fortune 500
(four consecutive years with a perfect score)
BEST PLACES
TO WORK
FOR LGBTQ EQUALITY
#5
2021 America's Best Employers For Veterans
(Best in our industry, 23% of SAIC’s workforce are U.S. military veterans)
2022 America's Best large Employers
(every year since 2019)
2021 America's Best employers for Diversity
(every year since 2019)
Donated to Feeding America by SAIC and its employees
Volunteered by SAIC employees
PERSONAL FUNDS DONATED BY SAIC EMPLOYEES
middle and high school students MENTORED by SAIC employees
Corporate responsibility is embedded in our culture, vision, and mission, and continues to be integral to what we do at SAIC. Our legacy of philanthropy and employee volunteerism is a natural outgrowth of our values. Ethical behavior and acting with integrity are non-negotiables in our culture and we embrace a broad scope of ESG imperatives in the company’s daily operations because we believe it makes our business, employees, and communities better.
We believe taking a long-term approach to corporate philanthropy is best, targeting programs that specifically address our three pillars of focus: military heroes, community wellness, and STEM (Science, Technology, Engineering, and Mathematics). Our SAIC Charitable Foundation, created by employees for employees and with corporate support, is focused on helping our employees and their dependents in times of need.
Additional information relating to SAIC's initiatives can be found in our 2021 Corporate Responsibility Report available in the Corporate Responsibility section of investors.saic.com. SAIC will publish the next Corporate Responsibility Report in mid-2022.
Corporate Responsibility
In FY22, our company delivered strong financial performance and invested to drive shareholder value over the long term. We believe our success is attributable to our people-first approach, whether it’s our shareholders, customers or employees.
Our approximately 26,000 visionary employees use science and technology to solve our customers’ most complex problems. Our talent and commitment make us an ideal partner for our customers, creating and enabling their transformation and mission success, and we are relentless in the pursuit of both.
Yes, we took bold steps this past year to ensure employee well-being and equity were measured and enhanced. These efforts differentiate us and the results are worth it. Every day, we live our values in our communities through both time and treasure, doing our part to make the world a better place for our customers, employees, the community at large, and you, our shareholders. We are honored to have the opportunity to do so.
In ClosinG
Previous
Annual Reports
SAIC Investors Website