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Mar 31
Maximus Q2 2025 Earnings Report
Reported financial results for the three months ending March 31, 2025
Key Takeaways
Maximus reported a solid second quarter for fiscal year 2025 with revenue increasing by 1.0% to $1.36 billion. Diluted EPS and adjusted diluted EPS saw significant increases compared to the prior year period. The company is raising its full-year fiscal year 2025 guidance for both revenue and earnings.
Revenue increased 1.0% to $1.36 billion, driven by organic growth of 3.0% in the U.S. Federal Services Segment.
Diluted earnings per share increased to $1.69 and adjusted diluted earnings per share rose to $2.01.
Operating margin improved to 11.2% and adjusted EBITDA margin reached 13.7% compared to the prior year period.
Maximus raised its full-year fiscal year 2025 guidance for revenue and adjusted diluted earnings per share.
Maximus
Maximus
Maximus Revenue by Segment
Revenue by Segment
U.S. Federal Services Revenue
CapyFin.comU.S. Services Revenue
CapyFin.comOutside the U.S. Revenue
CapyFin.com Forward Guidance
Maximus is raising its full-year fiscal year 2025 revenue and adjusted diluted earnings per share guidance.
Positive Outlook
- Full year revenue guidance increased by $50 million, all organic.
- Full year revenue expected to range between $5.25 billion and $5.4 billion.
- Adjusted EBITDA margin expected to improve by 50 basis points to approximately 11.7% for the full year.
- Adjusted diluted earnings per share expected to increase by $0.40, ranging between $6.30 and $6.60 per share for the full year.
- Free cash flow guidance remains unchanged at between $355 million and $385 million for the full year.
Challenges Ahead
- Interest expense is estimated to be $78 million for fiscal year 2025.
- Full year tax rate is expected to range between 28% and 29%.
- Weighted average shares outstanding forecast of approximately 58 million shares is unchanged for fiscal year 2025.
- The increase in DSO to 73 days was primarily due to a delay in finalizing an extension with a single U.S. state customer.
- Guidance is only effective as of the date given and the company undertakes no obligation to update it as circumstances evolve.
Revenue & Expenses
Visualization of income flow from segment revenue to net income