UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________ FORM 10-Q ___________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------ ...

[Fiscal 2025 Second Quarter Performance Overview](index=1&type=section&id=Fiscal%202025%20Second%20Quarter%20Performance%20Overview) Booz Allen Hamilton achieved strong double-digit revenue and profit growth in Q2 and H1 FY25, driven by robust operational momentum [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Booz Allen Hamilton reported strong Q2 FY25 performance with 18.0% revenue growth to $3.15 billion, a 128.5% net income increase, and robust operational momentum Q2 FY2025 Financial Highlights (vs. Q2 FY2024) | Metric | Q2 FY2025 | Change vs. Q2 FY2024 | | :--- | :--- | :--- | | Revenue | $3.15B | +18.0% | | Organic Revenue Growth | - | +17.1% | | Operating Income | $548.6M | +105.5% | | Adjusted Operating Income | $335.2M | +27.3% | | Net Income | $390.1M | +128.5% | | Adjusted Net Income | $233.0M | +37.8% | | Diluted EPS | $3.01 | +133.3% | | Adjusted Diluted EPS | $1.81 | +40.3% | - Total backlog increased by **17.7%** year-over-year to **$41.3 billion**, with a strong quarterly book-to-bill ratio of **2.61x**, indicating robust demand and future revenue visibility[1](index=1&type=chunk) - Client staff headcount grew by **8.1%** year-over-year, an increase of approximately **2,500 employees**, reflecting the company's ability to attract and retain talent to support growth[1](index=1&type=chunk) [First Half Fiscal 2025 Performance](index=2&type=section&id=First%20Half%20Fiscal%202025%20Performance) The company demonstrated consistent H1 FY25 growth, with revenue up 14.4% to $6.09 billion, net income growing 67.2%, and Adjusted Diluted EPS reaching $3.19 H1 FY2025 Financial Highlights (vs. H1 FY2024) | Metric | H1 FY2025 | Change vs. H1 FY2024 | | :--- | :--- | :--- | | Revenue | $6.09B | +14.4% | | Operating Income | $803.8M | +60.3% | | Net Income | $555.3M | +67.2% | | Adjusted Net Income | $412.6M | +13.9% | | Diluted EPS | $4.27 | up from $2.51 | | Adjusted Diluted EPS | $3.19 | up from $2.76 | [Cash Flow and Shareholder Returns](index=2&type=section&id=Cash%20Flow%20and%20Shareholder%20Returns) H1 FY25 cash generation dramatically improved to **$639.2 million** from operating activities, and the company declared a **$0.51** per share quarterly dividend H1 FY2025 Cash Flow (in millions) | Metric | H1 FY2025 | H1 FY2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $639.2 | $(118.9) | | Free Cash Flow | $583.0 | $(146.4) | - A regular quarterly dividend of **$0.51 per share** was declared, payable on December 4, 2024, to stockholders of record on November 15, 2024[2](index=2&type=chunk) [Fiscal 2025 Financial Outlook](index=2&type=section&id=Fiscal%202025%20Financial%20Outlook) Booz Allen Hamilton raised and narrowed its full-year FY25 guidance, projecting higher revenue growth, Adjusted EBITDA, Adjusted Diluted EPS, and cash flow based on strong H1 performance [Updated Fiscal 2025 Guidance](index=2&type=section&id=Updated%20Fiscal%202025%20Guidance) Updated FY25 guidance projects revenue growth of **11.0% - 13.0%**, Adjusted Diluted EPS of **$6.10 - $6.30**, and higher Adjusted EBITDA and cash flow Fiscal Year 2025 Guidance Update | Metric | Updated FY2025 Guidance | Original FY2025 Guidance | | :--- | :--- | :--- | | Revenue Growth | 11.0% - 13.0% | 8.0% - 11.0% | | Adjusted EBITDA | $1,300 - $1,330 million | $1,260 - $1,300 million | | Adjusted Diluted EPS | $6.10 - $6.30 | $5.80 - $6.05 | | Net Cash Provided by Operating Activities | $925 - $1,025 million | $825 - $925 million | [Consolidated Financial Statements (GAAP)](index=4&type=section&id=Consolidated%20Financial%20Statements%20%28GAAP%29) This section presents the company's GAAP financial statements, including detailed statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 FY25 income statement shows revenue of **$3.15 billion**, operating income more than doubled to **$548.6 million**, and net income rose to **$390.1 million** Q2 FY2025 Statement of Operations (in thousands) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Revenue | $3,146,386 | $2,666,282 | | Operating Income | $548,609 | $266,989 | | Net Income | $390,112 | $170,718 | | Diluted EPS | $3.01 | $1.29 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of Sep 30, 2024, total assets were **$6.88 billion**, total liabilities **$5.68 billion**, with stockholders' equity growing to **$1.20 billion** Balance Sheet Highlights (in thousands) | Metric | September 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $2,917,023 | $2,738,909 | | Total Assets | $6,878,374 | $6,563,688 | | Total Current Liabilities | $1,874,855 | $1,692,190 | | Total Liabilities | $5,677,605 | $5,517,126 | | Total Stockholders' Equity | $1,200,769 | $1,046,562 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 FY25 net cash from operating activities was **$639.2 million**, a significant improvement, with **$153.3 million** used in investing and **$481.5 million** in financing H1 FY2025 Cash Flow Summary (in thousands) | Cash Flow From | Six Months Ended Sep 30, 2024 | Six Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Operating Activities | $639,219 | $(118,917) | | Investing Activities | $(153,272) | $(37,002) | | Financing Activities | $(481,480) | $308,353 | | **Net Increase in Cash** | **$4,467** | **$152,434** | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details the company's non-GAAP financial measures, providing definitions and reconciliations to GAAP figures for core operating performance [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company explains its rationale for using non-GAAP metrics like Adjusted EBITDA to evaluate core operating performance by excluding unusual or non-recurring items - Management uses non-GAAP measures like **Adjusted EBITDA** and **Adjusted Net Income** for business planning, managing against internal projections, and measuring core operating performance by excluding non-operational or unusual items[6](index=6&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Reconciliations detail adjustments from GAAP to non-GAAP figures, with Q2 FY25 including a **$115.3 million** gain from insurance recoveries and a **$113.1 million** reduction in claimed costs Q2 FY2025 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | Net Income (GAAP) | $390,112 | | Add: Taxes, Interest, D&A | $200,553 | | EBITDA | $590,665 | | Adjustments: | | | Change in provision for claimed costs | $(113,112) | | Insurance recoveries | $(115,320) | | Other adjustments | $1,717 | | **Adjusted EBITDA (Non-GAAP)** | **$363,950** | - Key adjustments in Q2 FY25 included a **$115.3 million** pre-tax gain from insurance recoveries related to a prior settlement and a **$113.1 million** pre-tax benefit from a reduction in the provision for claimed costs[12](index=12&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) [Key Operating Data](index=10&type=section&id=Key%20Operating%20Data) Key operating metrics highlight strong business momentum, with significant backlog growth, a robust book-to-bill ratio, and expanding headcount [Backlog and Book-to-Bill Ratio](index=10&type=section&id=Backlog%20and%20Book-to-Bill%20Ratio) Total backlog increased **17.7%** year-over-year to **$41.3 billion**, with a strong quarterly book-to-bill ratio of **2.61x** indicating robust new awards Backlog Composition (in millions) | Backlog Type | As of Sep 30, 2024 | As of Sep 30, 2023 | | :--- | :--- | :--- | | Funded | $6,612 | $6,282 | | Unfunded | $10,317 | $10,128 | | Priced options | $24,325 | $18,630 | | **Total backlog** | **$41,254** | **$35,040** | Book-to-Bill Ratio | Period | FY2025 | FY2024 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | 2.61x | 2.41x | | Six Months Ended Sep 30 | 2.18x | 1.72x | [Headcount and Revenue Mix](index=11&type=section&id=Headcount%20and%20Revenue%20Mix) The workforce grew to **35,800** employees, an increase of **2,700**, with **57%** of Q2 revenue from cost-reimbursable contracts, indicating a stable mix Headcount Growth | Headcount Type | As of Sep 30, 2024 | As of Sep 30, 2023 | | :--- | :--- | :--- | | Total Headcount | 35,800 | 33,100 | | Client Staff Headcount | 32,700 | 30,200 | Q2 Revenue by Contract Type | Contract Type | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | Cost-Reimbursable | 57% | 55% | | Time-and-Materials | 23% | 24% | | Fixed-Price | 20% | 21% | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a legal disclaimer for forward-looking statements, cautioning that actual results may differ due to various risks and uncertainties [Risk Factors](index=4&type=section&id=Risk%20Factors) Key risk factors include dependency on U.S. government spending, regulatory compliance, competition, and the ability to attract and retain skilled talent - The document contains forward-looking statements concerning financial guidance and future performance. These are subject to risks including, but not limited to, changes in U.S. government spending, budgetary constraints, contract award delays, and competition[7](index=7&type=chunk)

Booz Allen Hamilton Holding Corporation BAH will release earnings results for its third quarter before the opening bell on Friday, Oct. 25.Analysts expect the McLean, Virginia-based bank to report quarterly earnings at $1.49 per share, up from $1.29 per share in the year-ago period. L3Harris Technologies projects to report revenue of $2.97 billion for the recent quarter, compared to $2.61 billion a year earlier, according to data from Benzinga Pro.On Aug. 6, Booz Allen Hamilton said it secured a $506 millio ...

Company Performance - Booz Allen Hamilton (BAH) closed at $163.24, reflecting a -0.41% change from the previous session, underperforming the S&P 500's daily loss of 0.18% [1] - Over the past month, BAH shares gained 3.81%, while the Business Services sector and S&P 500 gained 4.62% and 4.46%, respectively [1] Earnings Projections - Booz Allen Hamilton is expected to report earnings of $1.48 per share on October 25, 2024, indicating a year-over-year growth of 14.73% [1] - The Zacks Consensus Estimate for revenue is projected at $2.96 billion, up 10.85% from the previous year [1] Full Year Estimates - For the full year, earnings are projected at $5.97 per share and revenue at $11.81 billion, representing changes of +8.55% and +10.77% from the prior year [2] Analyst Sentiment - Recent changes to analyst estimates reflect positive sentiment regarding Booz Allen Hamilton's business and profitability [2] - The Zacks Rank system currently rates Booz Allen Hamilton at 2 (Buy), indicating strong analyst optimism [3] Valuation Metrics - Booz Allen Hamilton has a Forward P/E ratio of 27.47, which is a premium compared to the industry's average Forward P/E of 24.53 [3] - The company also has a PEG ratio of 2.36, aligning with the Government Services industry's average PEG ratio [3] Industry Context - The Government Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 2, placing it in the top 1% of over 250 industries [4] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating strong industry performance [4]

Booz Allen Hamilton, Fairfax County Officials Celebrate Opening of Lorton Flagship Engineering FacilityHome of the Warfighter Applications and Rapid Prototyping Center (WARP-C)October 17, 2024 6:08 PM EDT | Source: Fairfax County Economic Development AuthorityFairfax County, Virginia--(Newsfile Corp. - October 17, 2024) - Earlier today, Booz Allen Hamilton and Fairfax County officials gathered to celebrate the opening of Booz Allen's new Flagship Engineering Facility in the Lorton area of Fair ...

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Booz Allen Hamilton (NYSE: BAH ) is a market leader in government client staffing and consulting services. The share price has surged this year to near a record on optimism of expected federal spending growth. The firm is also consolidating itsI am a self-taught individual investor and I have been investing in stocks for over 25 years. I focus on dividend growth investing with a long-term horizon since I believe in the compounding power of dividend growth investing. I generally look for undervalued large ca ...

Booz Allen Hamilton Holding Corporation (BAH) stock has had an impressive run in the year-to-date period. Shares of the company have gained 29.1%, outperforming the 24.6% rally of the industry and the 22.5% rise of the Zacks S&P 500 composite.BAH’s revenues are anticipated to increase 10.8% and 6.7% year over year in 2024 and 2025, respectively. Earnings are estimated to rise 8.6% in 2024 and 12% in 2025. The company has an expected long-term (three to five years) earnings per share growth rate of 11.6%.Fac ...

HONOLULU, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Time is running out to apply to participate in the Mark Cuban Foundation Artificial Intelligence (AI) Bootcamp hosted by Booz Allen Hamilton in Honolulu. Applications for the no-cost bootcamp are closing September 30. The Mark Cuban Foundation, in partnership with Booz Allen Hamilton is bringing the only artificial intelligence (AI) camp of its kind, free of charge, to high school students in Honolulu. With a custom and highly-relevant curriculum focused on teach ...

WASHINGTON, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Time is running out to apply to participate in the Mark Cuban Foundation Artificial Intelligence (AI) Bootcamp hosted by Booz Allen Hamilton in McLean, VA. Applications for the no-cost bootcamp are closing September 30. The Mark Cuban Foundation, in partnership with Booz Allen Hamilton is bringing the only artificial intelligence (AI) camp of its kind, free of charge, to high school students in McLean, VA. With a custom and highly-relevant curriculum focused on ...