Core Insights - Booz Allen Hamilton (BAH) reported quarterly earnings of $1.61 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and up from $1.33 per share a year ago, indicating an earnings surprise of 1.26% [1] - The company posted revenues of $2.97 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 1.50%, but up from $2.77 billion year-over-year [2] - Booz Allen has surpassed consensus EPS estimates three times over the last four quarters, while also topping revenue estimates three times in the same period [2] Earnings Outlook - The sustainability of Booz Allen's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.63 on revenues of $3.16 billion, and for the current fiscal year, it is $6.87 on revenues of $12.78 billion [7] Industry Context - The Consulting Services industry, to which Booz Allen belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

FY25 Performance Highlights - Booz Allen Hamilton achieved excellent FY25 performance with double-digit growth on both top and bottom lines[10] - Revenue reached $12 billion, a 12.4% increase year-over-year[11, 31] - Adjusted EBITDA was $1.315 billion, up 11.9% year-over-year, with an Adjusted EBITDA margin of 11.0%[11, 31] - Adjusted Diluted EPS increased by 15.5% to $6.35[11, 31] - The company's LTM Book-to-Bill ratio was 1.39x, and Backlog increased by 15.3% to $37 billion[11] Q4 FY25 Financial Results - Revenue for Q4 FY25 was $3 billion, a 7.3% increase compared to Q4 FY24[19, 31] - Adjusted EBITDA for Q4 FY25 was $316 million, a 10.5% increase compared to Q4 FY24, with an Adjusted EBITDA margin of 10.6%[19, 31] - Adjusted Diluted EPS for Q4 FY25 was $1.61, a 21.1% increase compared to Q4 FY24[19, 31] - Free Cash Flow for Q4 FY25 was $194 million, a 51.6% increase compared to Q4 FY24[19, 31] FY26 Financial Outlook - The company initiated FY26 revenue guidance of $12.0 - $12.5 billion, representing a year-over-year growth of 0 - 4.0%[28] - Adjusted EBITDA is projected to be $1.315 - $1.370 billion, with a margin of approximately 11%[28] - Adjusted Diluted EPS is expected to be $6.20 - $6.55[28] - Free Cash Flow is projected to be $700 - $800 million[28]

Financial Performance and Risks - The company may not realize the full value of its backlog, which could lead to lower than expected revenue due to various contingencies [91]. - The funded backlog is subject to change based on congressional appropriations and U.S. government policies, which may impact the total backlog and financial performance [92]. - The actual receipt of revenue from contracts in backlog may be delayed or may never occur due to funding issues or program changes [91]. - Global inflationary pressures and increased tariffs are raising costs for goods and services, potentially leading to significant cost overruns on fixed-price contracts [115]. - Economic instability and weakening credit markets may negatively impact customer spending, reducing demand for the company's services [116]. - The company may experience delays in the collection of receivables, adversely affecting cash flow and working capital [140]. - A delay in the U.S. government's budget process could reduce the company's backlog and adversely affect revenue and operating results [126]. - The company may incur additional debt and face operational disruptions due to acquisitions or investments, impacting future earnings [146]. - The company’s financial results may vary significantly from period to period due to external factors, which could affect the market price of its common stock [192]. - The company may not be able to declare future dividends, which could negatively affect the market price of its common stock [195]. Cybersecurity and Compliance Risks - Cybersecurity threats have increased in frequency and sophistication, posing risks to the company's reputation and future contract win rates [93]. - The company develops technologies designed to prevent and monitor threats, which may expose it to financial loss or reputational harm if successful attacks occur [94]. - Compliance with data privacy and cybersecurity laws may require significant investments and could result in liabilities for noncompliance [101]. - The company is subject to additional regulatory compliance requirements under DFARS and CMMC, which could impact contract eligibility and revenue [103]. - The company faces risks related to potential security breaches that could harm its reputation and lead to significant remediation costs [100]. - Insufficient insurance coverage for cyber threats could result in significant legal and other costs, adversely affecting business operations [99]. - Legal and regulatory compliance is critical, with potential penalties including fines, contract terminations, and debarment from U.S. government contracts [145]. - Increased regulatory scrutiny has led to a higher risk of audits and investigations, which could result in civil or criminal penalties [149]. - The company is subject to various laws and regulations, including the FAR and the False Claims Act, which impose strict compliance requirements [147]. - Non-compliance with anti-corruption laws, such as the FCPA, could result in substantial civil and criminal penalties, affecting business operations [158]. Competition and Market Dynamics - The company faces significant competition in AI development, which could adversely affect its business if competitors develop superior or more cost-effective technologies [106]. - The company may struggle to attract and retain skilled employees due to intense competition and lengthy security clearance processes, which could impair revenue generation and growth strategy execution [107]. - The company relies on strong relationships with other contractors, and failure to maintain these relationships could adversely affect business operations and results [122]. - The U.S. government may restrict certain procurements to small or small disadvantaged businesses, limiting the company's opportunities to bid as a prime contractor [170]. - U.S. government efforts to revise organizational conflict of interest rules may limit the company's ability to compete for new contracts, adversely affecting operational results [159]. - The company may be adversely affected by the U.S. government's preference for small businesses, which could limit its ability to compete for certain contracts [170]. Acquisitions and Growth Strategies - The company is focused on expanding its presence in addressable markets by acquiring new customers and developing new capabilities, which entails inherent risks [132]. - Acquisitions may require the company to issue common stock or incur additional debt, resulting in ownership dilution or increased debt leverage [141]. - The company may face challenges in integrating acquired businesses, which could diminish the strategic value of transactions [142]. - The company continually monitors U.S. government spending to align investments in new capabilities and selectively pursue acquisitions, which involve numerous risks [141]. Debt and Financial Management - As of March 31, 2025, the company had total indebtedness of approximately $4.0 billion and $1.0 billion available under its revolving credit facility [175]. - The company’s substantial indebtedness could limit its ability to obtain additional financing and require a significant portion of cash flows to be dedicated to debt service payments [175]. - A $1.5 billion term loan facility is outstanding, and a quarter-point change in interest rates would result in a $2 million change in projected annual interest expense [189]. - The company is exposed to interest rate risk due to variable rate borrowings, with interest rates having increased significantly during 2022 and 2023 [188]. - The company’s ability to generate sufficient cash flows to service its debt obligations is subject to prevailing economic and competitive conditions [177]. - The agreements governing the company’s indebtedness impose significant operating and financial restrictions, potentially hindering its ability to grow [182]. - A downgrade or withdrawal of the company’s credit rating could make it more difficult to obtain additional debt financing in the future [190]. Operational and Strategic Risks - Internal system failures or those of vendors could disrupt business operations, leading to material adverse effects on results [96]. - The company may incur liability due to potential violations of laws and regulations related to AI, impacting its ability to deliver AI-driven solutions [104]. - The loss of key personnel could impair the company's ability to perform required services and secure new contracts [110]. - The company may face misconduct risks from employees or subcontractors, which could lead to legal penalties and reputational harm [119]. - The company relies on subcontractors for portions of service delivery, which poses risks to operating results and future growth if subcontractors fail to perform their obligations [123]. - The company faces significant risk exposures that may not be adequately covered by insurance, particularly related to advanced defense and technology systems [128]. - Geopolitical events, such as the conflict between Russia and Ukraine, may create economic uncertainties that adversely affect business operations [154]. - The U.S. government has imposed enhanced export controls and sanctions that could impact the company's supply chain and business partners [155]. - International operations expose the company to risks including political instability, inconsistent laws, and compliance with foreign regulations [156]. - Proposed regulatory changes could require the Department of Defense to impose contractual withholding based on assessments of the company's business systems, impacting cash flow [167]. - The company may face increased scrutiny and potential penalties if its financial management systems do not comply with government requirements, which could delay contract performance and affect cash flow [167]. - The company is subject to audits and reviews by U.S. government agencies, which could result in increased payment withholding and adversely affect cash flow if significant internal control deficiencies are identified [166].

Revenue Performance - Revenue for Q4 FY25 was $2.974 billion, a 7.3% increase year-over-year, while total revenue for FY25 reached $12.0 billion, growing 12.4% year-over-year[6]. - Revenue for the fiscal year ended March 31, 2025, was $11,980 million, an increase of 12.3% from $10,662 million in 2024[28]. - The company's revenue for the fiscal year 2025 was $11,980 million, up from $10,662 million in 2024, indicating a year-over-year increase of 12.3%[31]. - Revenue from the Defense sector for the three months ended March 31, 2025, was $1,527 million, up from $1,343 million in the same period last year, a growth of 13.7%[38]. - The intelligence sector revenue for the fiscal year ended March 31, 2025, was $1,867 million, an increase from $1,763 million in 2024, representing a growth of 5.9%[38]. Profitability Metrics - Adjusted Net Income for Q4 FY25 was $203 million, reflecting a 17.3% increase, and for FY25, it was $815 million, a 13.4% increase[5]. - Adjusted Diluted EPS for Q4 FY25 was $1.61, a 21.1% increase, and for FY25, it was $6.35, a 15.5% increase[5]. - Net income for the three months ended March 31, 2025, was $193 million, compared to $128 million for the same period in 2024, representing a 50.8% increase[28]. - Diluted earnings per share (EPS) for the fiscal year 2025 was $7.25, up from $4.59 in 2024, reflecting a 57.8% increase[28]. - Adjusted EBITDA for FY25 was $1.315 billion, an 11.9% increase, with an adjusted EBITDA margin on revenue of 11.0%[6]. - Adjusted EBITDA for the fiscal year 2025 reached $1,315 million, compared to $1,175 million in 2024, reflecting a growth of 11.9%[33]. - The adjusted EBITDA margin on revenue for fiscal year 2025 was 11.0%, consistent with the previous year, reflecting stable operational efficiency[31]. Cash Flow and Capital Management - Free Cash Flow for FY25 was $911 million, compared to $192 million in the prior year, marking a 374.5% increase[6]. - The net cash provided by operating activities for the fiscal year 2025 was $1,009 million, a substantial increase from $259 million in 2024[30]. - The company reported a free cash flow of $911 million for the fiscal year 2025, compared to $192 million in 2024, marking an increase of 373.4%[31]. - The company repurchased 4.3% of outstanding shares during FY25, totaling $1.2 billion in capital deployment[5]. - The company made payments for business acquisitions totaling $97 million in fiscal year 2025, indicating ongoing strategic expansion efforts[30]. Balance Sheet and Financial Position - Total assets increased to $7,312 million as of March 31, 2025, from $6,564 million in 2024, marking an increase of 11.4%[29]. - Current liabilities rose to $1,846 million in 2025, compared to $1,692 million in 2024, indicating an increase of 9.1%[29]. - Long-term debt increased to $3,915 million in 2025 from $3,350 million in 2024, representing a 16.8% rise[29]. - Total debt as of March 31, 2025, was $3,998 million, up from $3,412 million in 2024, while cash and cash equivalents increased to $885 million from $554 million[33]. - Cash and cash equivalents increased to $885 million in 2025, up from $554 million in 2024, a growth of 59.8%[29]. - The net leverage ratio remained stable at 2.4 for both fiscal years 2025 and 2024[33]. - The net leverage ratio is calculated as net debt divided by Adjusted EBITDA over the prior twelve months, reflecting the company's financial health[34]. Operational Highlights - The company reported a record Q4 backlog of $37 billion and a trailing twelve-month book-to-bill ratio of 1.39x[5]. - The total backlog as of March 31, 2025, was $37,027 million, up from $32,113 million in 2024, indicating a growth of 15.9%[35]. - The book-to-bill ratio for the trailing twelve months ended March 31, 2025, was 1.39x, compared to 1.22x for the previous year, reflecting an increase of 13.9%[37]. - Cost-reimbursable contracts accounted for 59% of total revenue for the three months ended March 31, 2025, compared to 56% in the previous year[38]. - The company employs approximately 35,800 people globally as of March 31, 2025[12]. - The total headcount increased to 35,800 as of March 31, 2025, from 34,300 in 2024, marking a growth of 4.4%[38].

Booz Allen Hamilton Holding Corporation BAH will release its fourth-quarter earnings results before the opening bell on Friday, May 23.Analysts expect the McLean, Virginia-based company to report quarterly earnings at $1.61 per share, up from $1.33 per share in the year-ago period. According to data from Benzinga Pro, Booz Allen Hamilton projects to report quarterly revenue at $3.03 billion, compared to $2.77 billion a year earlier.On April 25, Booz Allen Hamilton and Meta Platforms Inc. META introduced an ...

Group 1: Company Overview - Booz Allen Hamilton Holding Corporation (BAH) is set to report its fourth-quarter fiscal 2025 results on May 23, before the market opens, and has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the past four quarters with an average surprise of 6.7% [1] Group 2: Revenue Expectations - The consensus estimate for BAH's revenues in the upcoming quarter is $3.02 billion, reflecting an 8.9% growth compared to the same quarter last year, driven by strong service demand, headcount growth, and higher billable expenses [2] Group 3: Earnings Per Share (EPS) Expectations - The consensus estimate for EPS in the upcoming quarter is $1.59, indicating a 19.4% increase from the year-ago quarter, likely due to strong operating performance [3] Group 4: Earnings Prediction Model - The current model does not predict a definitive earnings beat for BAH, as it has an Earnings ESP of +1.42% and a Zacks Rank of 4 (Sell), which does not align with the conditions that typically increase the odds of an earnings beat [4]

Analysts on Wall Street project that Booz Allen Hamilton (BAH) will announce quarterly earnings of $1.59 per share in its forthcoming report, representing an increase of 19.4% year over year. Revenues are projected to reach $3.02 billion, increasing 8.9% from the same quarter last year.The current level reflects an upward revision of 0.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial proj ...

Group 1 - The article emphasizes the importance of research-driven insights for retail investors [1] - It highlights the potential savings on subscription fees for premium investment content [1] - The author clarifies that there are no current stock positions or plans to initiate any within the next 72 hours [1] Group 2 - The article does not provide specific investment recommendations or advice [2] - It notes that past performance is not indicative of future results [2] - The authors of the articles may not be licensed or certified by any regulatory body [2]

Core Insights - Booz Allen Hamilton Holding Corporation (BAH) has experienced a significant correction since the US elections, currently down approximately 33% from its peak around November 2024 [1] Company Performance - The recent rally from tariff sell-offs has not fully recovered the stock, indicating ongoing volatility in the market [1] Analyst Background - The analysis is conducted by a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management, specializing in equity valuation and market trends [1]

Core Insights - Defense contractors, particularly those specializing in IT systems for the federal government, are facing pressure due to the Department of Government Efficiency (DOGE) seeking cost-cutting measures [1] - The initial aggressive savings target of DOGE has been revised down from approximately $2 trillion to a more manageable $150 billion, which may still impact contractors like Booz Allen Hamilton but is less daunting when distributed across a wider contractor base [5] Company Performance - Booz Allen Hamilton's shares experienced a significant increase of 14.8% in April as investor concerns regarding potential cuts eased following DOGE's revised goals [2] - Prior to April, Booz Allen's stock had declined by about 20% for the year due to uncertainty surrounding DOGE's impact on contracts [4] - The company has maintained a strong growth trajectory, achieving an average revenue growth of 21% over the past five years, supported by a substantial share of classified defense and intelligence contracts [7] Market Dynamics - The DOGE initiative presents a dual scenario for IT specialists like Booz Allen Hamilton, where it could either lead to revenue losses or create new opportunities as government agencies streamline operations [3] - The return of Elon Musk to his role as CEO of Tesla and his announcement to scale back government work may have contributed to the positive market sentiment surrounding Booz Allen Hamilton [4] - The overall impact of DOGE on Booz Allen Hamilton is expected to be mixed, with both opportunities and potential contract cancellations arising from government efficiency efforts [6]