CACI

ACCE thesis

CACI builds and operates intelligence, surveillance, and reconnaissance systems, cybersecurity platforms, and enterprise IT infrastructure almost exclusively for the U.S. federal government, with DoD and intelligence community contracts making up the bulk of its $7.7B backlog. The classified work concentration creates a genuine moat - cleared personnel, facility accreditation, and incumbent contract relationships take years to replicate, and recompete win rates consistently run above 90%. The near-term story is CACI's aggressive push into CJADC2 (Combined Joint All-Domain Command and Control) modernization contracts, where its existing sensor integration and comms work gives it a credible seat at a table that's seeing accelerating DoD budget commitment. At 15.6x forward earnings against mid-to-high single-digit organic revenue growth, the stock trades at a discount to both Leidos and Booz Allen, which carry 18-20x multiples on comparable government services profiles. The setup gets more interesting if the FY2026 NDAA maintains the current trajectory on cyber and ISR funding, which the current Senate markup suggests it will.