Science Applications International Corporation (SAIC): History, Ownership, Mission, How It Works & Makes Money

In today's rapidly evolving technology landscape, how does Science Applications International Corporation (SAIC) stand out as a premier technology integrator? With a robust portfolio spanning defense, space, civilian, and intelligence markets, SAIC reported a strong finish to fiscal year 2025, boasting revenues of $7.48 billion and a backlog of submitted bids valued at approximately $20 billion. Intrigued to discover the history, ownership structure, and operational mechanisms that drive SAIC's success and profitability? Keep reading to explore the multifaceted dimensions of this Fortune 500 company.

Science Applications International Corporation (SAIC) History

SAIC Founding Timeline

Year established

Science Applications International Corporation (SAIC) was founded in 1969.

Original location

The company was originally located in La Jolla, California.

Founding team members

Dr. J. Robert Beyster founded SAIC. He initially invested $500 of his own money to start the company.

Initial capital/funding

SAIC started with an initial capital of $500. The company secured its first contract worth $30,000 to study the effects of underwater explosions on naval equipment.

SAIC Evolution Milestones

SAIC Transformative Moments

• Formation and Early Focus (1969): SAIC's establishment by Dr. J. Robert Beyster with a mere $500 marked the beginning of a company deeply rooted in scientific research and engineering. The initial focus on studying the effects of underwater explosions set the stage for future defense-related projects.
• Diversification into Key Sectors (1970s-1990s): SAIC strategically expanded its expertise into national security, energy, environmental services, and health. This diversification broadened its revenue streams and reduced dependence on any single sector.
• Strategic Split (2013): The decision to split SAIC into two separate entities—SAIC and Leidos—was a transformative move. SAIC focused on government services, while Leidos concentrated on technology and engineering solutions.
• Acquisition of Engility Holdings (2018): SAIC's acquisition of Engility Holdings for $2.5 billion significantly enhanced its capabilities and market position within the government services sector.
• Leadership Transitions: The transitions in leadership, from Dr. Beyster to Ken Dahlberg and later to Nazzic Keene, reflect the company's ability to adapt and evolve while maintaining its core values and strategic direction.

For more detailed insights into SAIC's financial performance, consider reading this analysis: Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors

Science Applications International Corporation (SAIC) Ownership Structure

Science Applications International Corporation (SAIC) features a mixed ownership structure, with a significant portion of its shares held by institutional investors, alongside individual shareholders and company insiders.

SAIC's Current Status

SAIC is a publicly traded company. This means that its shares are available for purchase by the general public on a stock exchange.

SAIC's Ownership Breakdown

Understanding the ownership breakdown of SAIC provides valuable insights into the distribution of control and influence within the company. Here's a look at the major categories of shareholders and their approximate ownership percentages:

SAIC's Leadership

SAIC's direction is guided by a team of experienced leaders. As of April 2025, key figures include:

• CEO: Nazzic Keene
• Executive Vice President and Chief Financial Officer: Prabu Natarajan

These individuals, along with other members of the executive team and board of directors, are responsible for setting the company's strategic direction, overseeing its operations, and ensuring its financial health.

For more in-depth insights into SAIC's investor profile, you might find this resource helpful: Exploring Science Applications International Corporation (SAIC) Investor Profile: Who’s Buying and Why?

Science Applications International Corporation (SAIC) Mission and Values

SAIC's mission is centered on providing technology integration services to address complex challenges in national security, energy, environment, health, and critical infrastructure, guided by core values that emphasize integrity, innovation, and a commitment to its customers and employees.

[SAIC's] Core Purpose

Official mission statement

SAIC's official mission statement is to 'solve our nation’s toughest problems.' This reflects the company's focus on leveraging technology and expertise to support critical government missions. SAIC aims to deliver innovative solutions and services that enhance the security, efficiency, and effectiveness of its clients.

• Focus on solving complex problems: Addressing significant challenges in national security, energy, and health.
• Technology integration: Utilizing advanced technology to create effective solutions.
• Supporting critical missions: Enhancing the security and efficiency of government operations.

Vision statement

While a specific, formally declared vision statement may not be publicly highlighted, SAIC's actions and strategic goals suggest a vision focused on being a leader in technology integration and solutions for the public sector. This involves continuous innovation, a commitment to client success, and maintaining a position as a trusted partner to government agencies.

• Leadership in technology integration: Aiming to be the foremost provider of technology solutions.
• Commitment to client success: Ensuring that clients achieve their objectives through SAIC's services.
• Trusted partnership: Maintaining a reputation as a reliable and valued partner to government agencies.

Company slogan/tagline

SAIC’s current official tagline is 'Advancing the Power of Technology and Trust.'

• Reflects dual focus: Highlights both technological advancement and the importance of trust in client relationships.
• Emphasizes innovation: Showcases SAIC's commitment to cutting-edge technology.
• Reinforces reliability: Underscores the company's dedication to being a dependable partner.

To gain more insights into the ownership and investment aspects of SAIC, you might find this resource helpful: Exploring Science Applications International Corporation (SAIC) Investor Profile: Who’s Buying and Why?

Science Applications International Corporation (SAIC) How It Works

SAIC primarily operates by providing technical, engineering, and enterprise information technology (IT) services to various government and commercial clients. They leverage expertise in areas like defense, space, energy, and health to deliver solutions that address complex challenges.

SAIC's Product/Service Portfolio

SAIC's Operational Framework

SAIC's operational framework is built around delivering customized solutions to meet the specific needs of its clients. Key aspects of their operations include:

• Project-Based Approach: SAIC typically works on a project basis, assembling teams of experts with the required skills and knowledge to address specific client challenges.
• Client Collaboration: They emphasize close collaboration with clients to understand their requirements and ensure that solutions are aligned with their goals.
• Technology Integration: SAIC integrates advanced technologies into its solutions, leveraging innovations in areas such as AI, cloud computing, and cybersecurity.
• Compliance and Security: Given the sensitive nature of much of their work, SAIC places a strong emphasis on compliance with government regulations and maintaining high levels of security.
• Skilled Workforce: SAIC relies on a highly skilled workforce of engineers, scientists, and IT professionals to deliver its services.

SAIC's Strategic Advantages

SAIC's success in the market is driven by several strategic advantages:

• Strong Government Relationships: SAIC has cultivated long-standing relationships with key government agencies, giving them a competitive edge in securing contracts.
• Technical Expertise: Their deep technical expertise in areas such as engineering, IT, and cybersecurity allows them to offer differentiated solutions.
• Agile and Adaptable: SAIC is known for being agile and adaptable, able to quickly respond to changing client needs and emerging market opportunities.
• Focus on Innovation: They invest in research and development to stay at the forefront of technological advancements and develop innovative solutions.
• Reputation for Quality: SAIC has a strong reputation for delivering high-quality services and solutions, which helps them to win repeat business and attract new clients.

To gain more insights into SAIC's ownership and investor profile, you might find this resource helpful: Exploring Science Applications International Corporation (SAIC) Investor Profile: Who’s Buying and Why?

Science Applications International Corporation (SAIC) How It Makes Money

Science Applications International Corporation (SAIC) primarily makes money by providing a range of technical, engineering, and enterprise information technology (IT) services to various government agencies, including the U.S. Department of Defense, intelligence community, and civilian agencies.

SAIC's Revenue Breakdown

SAIC's Business Economics

SAIC's business economics are driven by several key factors:

• Contract Types: SAIC utilizes various contract types, including cost-plus, fixed-price, and time-and-materials contracts. Cost-plus contracts, where SAIC is reimbursed for allowable costs plus a fee, can provide more stable profit margins.
• Pricing Strategy: SAIC's pricing is competitive, focusing on delivering value and expertise to government clients. They often bid on contracts based on a combination of technical capabilities, past performance, and price.
• Economic Fundamentals: Government spending on defense, intelligence, and IT modernization significantly influences SAIC's revenue. Economic conditions and geopolitical events that drive increased government spending benefit SAIC.
• High Barriers to Entry: The government contracting market has high barriers to entry due to stringent security requirements, complex procurement processes, and the need for specialized expertise. This dynamic reduces competition and supports SAIC's market position.

SAIC's Financial Performance

SAIC's financial performance can be assessed through the following key metrics:

• Revenue Growth: SAIC has demonstrated consistent revenue growth through contract wins, acquisitions, and expanding services. For example, in fiscal year 2024, SAIC reported revenue of $7.4 billion.
• Profitability: SAIC maintains healthy profit margins through efficient project management and cost control. The adjusted operating margin for fiscal year 2024 was approximately 9.3%.
• Backlog: SAIC's backlog provides visibility into future revenue. As of fiscal year-end 2024, SAIC's total backlog was $24.2 billion, indicating strong future revenue potential.
• Cash Flow: Strong cash flow from operations enables SAIC to invest in growth initiatives, acquisitions, and return capital to shareholders. In fiscal year 2024, SAIC generated $544 million in cash from operations.
• Debt Management: SAIC manages its debt effectively to maintain financial stability and flexibility. The company’s net debt to adjusted EBITDA ratio was approximately 2.4x at the end of fiscal year 2024.

For more insights into SAIC's financial health, you might find this resource useful: Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors

Science Applications International Corporation (SAIC) Market Position & Future Outlook

SAIC is strategically positioned to leverage its expertise in technology integration and digital transformation to maintain a strong market presence. The company's focus on providing solutions to the U.S. government, particularly in defense, intelligence, and civilian sectors, underpins its stable revenue streams and future growth potential.

Competitive Landscape

Opportunities & Challenges

Industry Position

SAIC holds a significant position in the government IT services market. Key aspects of its industry standing include:

• Strong relationships with key government agencies.
• Expertise in delivering complex, mission-critical solutions.
• Commitment to innovation and technological advancement.

For more detailed insights into the company's financial standing, explore: Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors