In This Article:
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Revenue Growth: Approximately 14% year-over-year increase to $2.9 billion.
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Organic Revenue Growth: About 13% year-over-year.
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Adjusted EBITDA: $332 million with an 11.4% margin.
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Net Income: $187 million, a 28% increase year-over-year.
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Adjusted Net Income: $198 million, a 7% increase year-over-year.
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Diluted EPS: $1.45, up 31% year-over-year.
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Adjusted Diluted EPS: $1.55, up 10% year-over-year.
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Free Cash Flow: $134 million.
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Share Repurchases: $149 million at an average price of $157.74 per share.
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Dividend Increase: Quarterly dividend increased to $0.55 per share.
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Book-to-Bill Ratio: 1.41 times trailing 12-month, highest in six years.
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Backlog: $39 billion, up 15% year-over-year.
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Headcount Growth: 6% increase from a year ago, with over 32,000 client staff.
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Booz Allen Hamilton Holding Corp (NYSE:BAH) reported double-digit growth in both revenue and adjusted EBITDA for the third quarter of fiscal year 2025.
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The company achieved approximately 14% top-line growth, with 13% being organic, and maintained a strong adjusted EBITDA margin of 11.4%.
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Booz Allen Hamilton Holding Corp (NYSE:BAH) has the largest AI business in the federal government and one of the largest cyber businesses globally.
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The company has expanded partnerships with Palantir Technologies and Amazon Web Services to accelerate outcomes across US federal missions.
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Booz Allen Hamilton Holding Corp (NYSE:BAH) increased its quarterly dividend and expanded its share repurchase authorization, reflecting strong capital deployment strategies.
Negative Points
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The company anticipates a short-term slowdown in funding and award activity due to the new presidential administration's transition.
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There is some uncertainty in the procurement environment, particularly affecting civilian agencies, which could impact future contract awards.
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Booz Allen Hamilton Holding Corp (NYSE:BAH) experienced a flat client staff headcount for the quarter, indicating potential challenges in scaling operations.
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The company is facing a higher tax rate compared to the prior year, which partially offsets its profitability gains.
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There is a potential risk of disruption in the procurement environment due to executive orders and shifting government priorities.
Q & A Highlights
Q: How is Booz Allen Hamilton preparing for potential disruptions due to the presidential transition and its impact on hiring and headcount? A: Horacio Rozanski, CEO, explained that Booz Allen anticipated short-term disruptions typical of a presidential transition. The company is managing its business tightly to create investment capacity and is strategically positioned with its VoLT strategy to drive technology to outcomes. They have a dozen big ideas aligned with the new administration's priorities and are already in discussions with clients.