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Jun 30, 2024
Booz Allen Q1 2025 Earnings Report
Booz Allen Hamilton started fiscal year 2025 with strong top line performance, delivering double-digit revenue and organic revenue growth.
Key Takeaways
Booz Allen Hamilton reported a solid first quarter for fiscal year 2025, marked by double-digit revenue and organic revenue growth. The acquisition of PAR Government Systems Corporation (PGSC) closed in June 2024, contributing to the company's strategic alignment. The company reported a 10.8% increase in quarterly revenue, a 2.4% increase in net income, and a significant rise in total backlog by 15.7%.
Revenue increased by 10.8% year-over-year to $2.9 billion, with 10.6% organic revenue growth.
Diluted earnings per share (EPS) reached $1.27, while adjusted diluted EPS was $1.38.
Total backlog increased by 15.7% to $36.2 billion, with a quarterly book-to-bill ratio of 1.72x.
Client staff headcount grew by 7.7% year-over-year.
Booz Allen
Booz Allen
Booz Allen Revenue by Segment
Revenue by Segment
Defense Revenue
CapyFin.comIntelligence Revenue
CapyFin.comCivil Revenue
CapyFin.com Forward Guidance
Booz Allen Hamilton provided financial outlook for fiscal year 2025, including revenue growth between 8.0% and 11.0%, adjusted EBITDA between $1.26 billion and $1.30 billion, and adjusted diluted EPS between $5.80 and $6.05.
Positive Outlook
- Revenue Growth: Expected to be between 8.0% and 11.0%.
- Adjusted EBITDA: Projected to be between $1,260 million and $1,300 million.
- Adjusted EBITDA Margin on Revenue: Anticipated to be approximately 11%.
- Adjusted Diluted EPS: Expected to be in the range of $5.80 to $6.05.
- Net Cash Provided by Operating Activities: Forecasted to be between $825 million and $925 million.
Challenges Ahead
- Inorganic Revenue Contribution from PGSC: Includes an approximately $80-90 million inorganic revenue contribution from PGSC.
- Adjusted Effective Tax Rate: Assumes an adjusted effective tax rate of 23–25%.
- Interest Expense: Anticipates interest expense of $180–190 million.
- Depreciation and Amortization: Expects depreciation and amortization of $160 million.
- Cash Taxes in Connection with Section 174: Assumes cash taxes of approximately $100 million and capital expenditures of approximately $100 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income