Booz Allen Q1 2025 Earnings Report
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
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.