CACI International Inc (CACI): 5 FORCES Analysis [Nov-2025 Updated]

You're looking for a clear-eyed view of CACI International Inc's competitive position, so let's break down the five forces using their strong fiscal year 2025 results. Honestly, the picture is complex: while the company enjoys a massive moat, evidenced by a $31.4 billion backlog and an exceptionally low threat from substitutes, it also faces real pressure. Consider this: 97% of their FY25 revenue came from a single customer base, and the intense need for cleared personnel gives suppliers real leverage against CACI International Inc. We need to see how the firm navigates this tightrope walk between mission-critical expertise and high-stakes rivalry with peers like Leidos to truly gauge its near-term opportunity, so dig into the force-by-force breakdown below.

CACI International Inc (CACI) - Porter's Five Forces: Bargaining power of suppliers

You're looking at CACI International Inc's supplier power, and honestly, it's a tight squeeze, especially when it comes to the human capital that holds the keys to the kingdom. The defense and intelligence work CACI International does means that access to cleared personnel is a massive bottleneck. We know CACI International has about 25,000 talented employees as of early 2025. If we take the premise that 95% of these employees require a Top Secret clearance, that creates an incredibly concentrated pool of available labor, giving the individual employee significant leverage over CACI International.

This labor dynamic translates directly into supplier power. Intense competition for this highly skilled technical talent, particularly those with the necessary clearances, absolutely drives up labor costs. For instance, you see salary discussions in the market for specialized roles reaching ranges like $100K - $220K, which puts direct upward pressure on CACI International's largest operating expense. Here's a quick look at the scale of the business that needs these suppliers:

When CACI International is winning $10 billion in new business in a single fiscal year, the demand for cleared staff and specialized tech spikes immediately. This scale means that even small, niche vendors can hold sway. CACI International's focus on differentiated technology-like their work in electromagnetic spectrum dominance and software-enabled modernization-requires reliance on these niche, high-value vendors for specific hardware or proprietary software components. Switching from one of these specialized technology and hardware suppliers isn't just a matter of changing a part number; the integration costs into existing classified systems are high, effectively locking CACI International in for the duration of the program.

The power of these specialized suppliers is further cemented by the nature of the contracts. Consider the backlog of $31.4bn as of June 30, 2025; much of that work is multi-year and mission-critical for national security. If a key software vendor for a platform like Spectral or a hardware provider for their TLS Manpack solution faces issues, CACI International's ability to meet its contractual obligations is immediately at risk. This reliance is a structural feature of the defense IT sector.

The bargaining power of suppliers is therefore high, driven by two distinct but equally potent forces:

• Limited supply of personnel with required Top Secret clearance.
• High switching costs for specialized technology and hardware.

If onboarding takes 14+ days for a clearance crossover, churn risk rises for the talent pool. Finance: draft 13-week cash view by Friday.

CACI International Inc (CACI) - Porter's Five Forces: Bargaining power of customers

You're looking at CACI International Inc.'s customer power, and honestly, it's a tale of two forces: extreme concentration versus mission criticality. The structure of CACI International Inc.'s customer base means the buyer holds significant leverage, but the nature of the work often neutralizes that threat.

The customer base is extremely concentrated. For Fiscal Year 2025, Domestic Operations accounted for 97% of CACI International Inc.'s revenue, which is what the outline suggests. To be fair, looking at the Q3 FY26 results (the latest available data), the domestic concentration is still evident: revenue from domestic operations was $2,210,043,000 out of total revenues of $2,287.6 million for that quarter. That's a massive reliance on the U.S. Federal Government, making any single agency's budget shift a real concern.

The U.S. Government definitely uses competitive mechanisms to keep prices in check. We see this clearly in the contract awards process. For instance, CACI International Inc.'s fourth-quarter FY25 contract awards explicitly excluded the ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. That exclusion signals that the government is using these vehicles to maintain a competitive pool of vendors, putting price pressure on incumbents like CACI International Inc.

Still, customer power is mitigated by CACI International Inc.'s mission-critical, embedded expertise. When you're supporting the Intelligence Community (IC) or the Department of Defense (DoD) on sensitive programs, switching costs for the customer become incredibly high. CEO John Mengucci underscored this differentiation, noting that with more than $31 billion of backlog at the end of FY25, CACI International Inc. remained 'extremely well positioned'. That deep integration makes a simple price comparison difficult for the buyer.

The substantial $31.4 billion backlog as of June 30, 2025, provides significant revenue visibility, which is a strong counterweight to buyer power. This backlog represents contracted work that the government has already committed funding for, or at least has the intent to fund. Here's the quick math: that $31.4 billion figure represented nearly four years of the prior year's annual revenue, which was $7.66 billion in FY24. What this estimate hides is the mix between funded and unfunded portions, but the sheer size locks in future revenue streams.

Here is a snapshot of the key customer-related financial figures near the end of FY25 and the start of FY26:

The revenue concentration within the U.S. Federal Government is stark when you break down the Q3 FY26 customer segments:

• Department of Defense (DoD) contribution: $1,179,626,000
• Intelligence Community (IC) contribution: $596,429,000
• Federal Civilian Agencies contribution: $411,730,000
• Commercial and other sectors contribution: $99,838,000

The government, broadly defined by the first three categories, drives almost all the top-line activity. Finance: draft 13-week cash view by Friday.

CACI International Inc (CACI) - Porter's Five Forces: Competitive rivalry

You're looking at the defense and government technology space, and honestly, the rivalry here is intense, driven by a small group of very large, established players. CACI International Inc competes directly against giants like Leidos and Booz Allen Hamilton, plus others such as SAIC and Northrop Grumman. This isn't a market where a small player can easily sneak in; these are well-entrenched firms with deep relationships.

Competition defintely centers on two main things: flawless contract performance and demonstrating superior, specialized technology differentiation. You see this play out in bid protests, where competitors challenge contract awards, as happened when Booz Allen Hamilton and Leidos protested a $2.4 billion NSA contract awarded to CACI International Inc in late 2022, arguing improper evaluation. This shows you the stakes are high and the fight for every dollar is real.

The barriers to exit this business are high, which keeps the rivalry locked in place. Specialized assets, deep security clearances, and the sheer scale of long-term government contracts mean you can't just pivot to something else overnight. CACI International Inc's massive backlog illustrates this commitment; as of the end of Fiscal Year 2025, the backlog stood at more than $31 billion.

Still, CACI International Inc is clearly winning its share of the fight. The company's Fiscal Year 2025 annual contract awards totaled $9.6 billion, which resulted in a book-to-bill ratio of 1.1x for the year, meaning they booked more in new business than they recognized in revenue. That's a strong indicator of successful competition against those peers.

Here's a quick look at how CACI International Inc stacks up against one of its primary rivals, Booz Allen Hamilton, using the latest available full-year and recent quarterly data to give you a sense of the competitive financial footing:

The nature of securing this business means CACI International Inc must continually prove its technical edge. You see this in the types of contracts they win, which often involve advanced capabilities:

• Advanced data visualization technology for the DoD and IC.
• Expert technical support for classified national security space technology operations.
• Support for U.S. Army's Secure Internet Protocol Network modernization.
• Engineering services for the U.S. Navy's NavalX Office.

The reliance on government spending, which accounted for 95.1% of CACI International Inc's revenue in Fiscal Year 2024, means that rivalry is also shaped by federal budget cycles and procurement policy changes. When agencies shift to using Government-Wide Acquisition Contracts (GWACs) like IDIQ vehicles, competition increases and pricing pressure mounts, requiring sustained post-award efforts to convert those contract ceilings into recognized revenue.

CACI International Inc (CACI) - Porter's Five Forces: Threat of substitutes

You're looking at CACI International Inc's position against outside threats, specifically what could replace their core services. For a company so deeply embedded in national security and intelligence, the threat of substitutes is structurally quite low. This isn't like a software company where a new app can pop up overnight; CACI's work is mission-critical for the U.S. government.

The nature of CACI International Inc's business inherently limits substitution. Consider where the money comes from: federal government contracts accounted for 95.7% of total revenues in fiscal year 2025, with agencies of the Department of Defense (DoD) contributing 75.4% of that total. When you are providing expertise and technology for tasks like intelligence analysis or space technology operations for classified customers, commercial off-the-shelf products simply do not cut it. The work is too specialized, and the security clearances and integration levels create massive switching costs for the customer.

High barriers to entry are built right into CACI International Inc's customer base. You see this reflected in their contract awards. For instance, in the second quarter of fiscal 2025, CACI International Inc secured a seven-year sole-source contract worth about $238 million from a classified national security customer. Sole-source awards mean there was no competition, which is the ultimate defense against substitution. Furthermore, CACI International Inc actively builds proprietary capabilities, as evidenced by its fiscal 2025 acquisition of Azure Summit Technology for $1.275 billion, which expanded their software-defined offerings and specialized technologies.

The stickiness of CACI International Inc's customer base is perhaps the clearest statistical indicator of low substitution risk. Looking at the first quarter of fiscal 2025, the company projected that approximately 89% of its revenue would come from existing programs. Recompetes-the process of bidding to keep an existing contract-accounted for another 8%. This means that nearly 97% of the expected revenue for that period was already locked in or being actively defended against known competitors, not unknown substitutes. That level of recurring revenue visibility is exceptional.

This high level of continuity is supported by the overall financial health tied to long-term work. As of June 30, 2025, CACI International Inc's total backlog stood at $31.4 billion, with $4.2 billion of that being funded backlog. The company won $9.6 billion in contract awards for the full fiscal year 2025, leading to a book-to-bill ratio of 1.1x. When you are winning nearly as much in a year as you are delivering in revenue-which was $8.6 billion in FY2025-it shows the customer base is continually relying on CACI International Inc's established solutions rather than looking elsewhere for alternatives.

Here is a quick look at the revenue composition that illustrates this reliance:

You can see that the pipeline is heavily weighted toward maintaining current work. The threat of a substitute product or service displacing a multi-year, mission-critical system that took years to integrate into the Intelligence Community's workflow is minimal, defintely limiting substitution.

• Mission-critical support for DoD and IC customers.
• Deep integration into government operations.
• Acquisitions focused on specialized, differentiated technology.
• Total backlog of $31.4 billion as of June 30, 2025.
• FY2025 annual revenue reached $8.6 billion.

CACI International Inc (CACI) - Porter's Five Forces: Threat of new entrants

You're looking at CACI International Inc.'s position in the defense and intelligence IT space, and the barriers to entry here are massive-honestly, they are structural walls, not speed bumps. For a new firm to even attempt to compete for the kind of work CACI does, they face a gauntlet of regulatory and security hurdles that scare off most commercial players. This creates a minimal threat of new entrants, which is a huge advantage for CACI International Inc.

The sheer scale of the incumbent players like CACI International Inc. also sets a high bar. Consider CACI International Inc.'s financial footing as of late 2025: their full fiscal year 2025 revenue hit $8.6 billion, and their total contract backlog stood at $31.4 billion at the end of that same fiscal year. A new entrant needs deep pockets just to bid on, let alone execute, contracts of this magnitude, especially when factoring in the typical payment delays inherent in government work.

The capital investment required extends beyond just working capital; it demands advanced infrastructure and a commitment to technology differentiation. While CACI International Inc. was directing about $35 million annually toward Independent Research and Development (IR&D) as of late 2022, this spending is necessary to stay ahead in areas like signals intelligence and electronic warfare. A new firm must match this, or at least demonstrate a credible, funded R&D pipeline, to be taken seriously by federal agencies prioritizing modernization.

New firms struggle mightily with the complex, multi-year government procurement processes. The federal government is the world's largest purchaser, spending over $637 billion on contracts in fiscal year 2021 alone, but navigating that system is a specialized skill. The process is often described as a labyrinth of rules, regulations, and jargon-filled proposals. Furthermore, the trend shows existing players consolidating their hold; the number of new entrants into the defense industrial base (DIB) actually declined from 7,083 in 2016 to 5,526 in 2020. This suggests that even for smaller, agile firms, breaking into the established ecosystem is getting harder, not easier.

The necessity of a highly cleared workforce is perhaps the nearly insurmountable barrier. You can't just hire a team and start work; you need people with the right government credentials. For CACI International Inc., which relies heavily on the Department of Defense (DoD) for revenue-accounting for 74.6% of total Q1 FY2025 revenue, or $1.53 billion-Top Secret clearances are essential. Here's the quick math on that barrier:

While the government typically pays the investigation fee, a new company still bears the significant, often unknown, cost of non-productive employee time while waiting for clearance-which can easily equal or exceed the direct investigation cost. Also, the time delay itself is a killer; waiting 6-12 months or longer for a Top Secret clearance means a new firm cannot staff a critical program immediately, putting them at a distinct disadvantage against incumbents like CACI International Inc. who have a deep bench of already-cleared personnel.

The barriers to entry for CACI International Inc.'s core market can be summarized by the requirements for scale and personnel:

• Regulatory Complexity: Navigating the Federal Acquisition Regulation (FAR) is daunting for newcomers.
• Past Performance: Agencies prioritize firms with a proven track record of success.
• Personnel Vetting: Clearance processing takes months, tying up potential staff.
• Financial Depth: Need capital to sustain operations during long procurement cycles.

If onboarding takes 14+ days for basic administrative staff, the risk of delay on a classified program rises defintely.