Science Applications keeps paying down debt, aims for 3x net leverage

By Devika Patel

Knoxville, Tenn., March 26 – Science Applications International Corp. is shooting for net leverage of 3x by the end of fiscal 2022, after repaying $23 million of its term loan debt last quarter and making $399 million of debt repayments in the last fiscal year, according to an earnings press release on Thursday.

The company has even deployed capital towards repurchasing shares, in addition to paying down debt, as management believes it will meet its net leverage goal in time and that the company can spare cash for share buybacks.

“While we continue to meet our commitment of achieving a net leverage of around 3x by the end of fiscal 2022, I am also pleased to report that we started repurchasing shares midway through the fourth quarter, deploying $19 million to repurchase approximately 200,000 shares,” chief executive officer Nazzic Keene said on the company’s fourth quarter and year ended Jan. 29 earnings conference call on Thursday.

Fourth quarter adjusted EBITDA was $159 million, a $25 million increase from the prior year.

Science Applications is a Reston, Va.-based technology integrator.

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