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Mar 31, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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