Financial Performance - Revenue for fiscal year 2025 increased to $5,431,276, representing a 2.4% growth compared to $5,306,197 in fiscal year 2024[183]. - Gross profit for fiscal year 2025 was $1,333,443, a 6.5% increase from $1,251,652 in fiscal year 2024, with a gross profit margin of 24.6%[183]. - Operating income rose to $528,289 in fiscal year 2025, up from $488,499 in fiscal year 2024, resulting in an operating margin of 9.7%[183]. - Net income for the year ended September 30, 2025, was $319,034 thousand, compared to $306,914 thousand in 2024[243]. - Adjusted EBITDA for fiscal year 2025 was $701,554 thousand, with an adjusted EBITDA margin of 12.9%, up from 11.6% in 2024[243]. Segment Performance - The U.S. Federal Services Segment reported revenue of $3,067,691 for fiscal year 2025, a 12.1% increase from $2,737,244 in fiscal year 2024[192]. - The U.S. Services Segment experienced a revenue decline to $1,763,691, down 7.7% from $1,911,813 in fiscal year 2024[197]. - The Outside the U.S. Segment's revenue decreased to $599,894, an 8.7% decline from $657,140 in fiscal year 2024, primarily due to business disposals[201]. - The company anticipates operating margins for the U.S. Federal Services Segment in fiscal year 2026 to range between 15.5% and 16%[195]. - The company expects operating margins for the Outside the U.S. Segment in fiscal year 2026 to range between 3% to 5%[203]. Cash Flow and Debt - The net cash provided by operating activities decreased by $85.9 million to $429.4 million in fiscal year 2025 compared to $515.3 million in fiscal year 2024[212]. - The company reported a free cash flow of $366.2 million for fiscal year 2025, down from $401.1 million in fiscal year 2024[217]. - The total debt under the Credit Agreement as of September 30, 2025, was $1.35 billion, with an additional $750 million available through a revolving credit facility[218]. - The Consolidated Net Total Leverage Ratio as of September 30, 2025, was 1.51, compared to 1.37 in the previous year[228]. - The Consolidated Net Interest Coverage Ratio improved to 9.25 for fiscal year 2025, up from 8.54 in fiscal year 2024[228]. Shareholder Returns - The company utilized $447.5 million in fiscal year 2025 to repurchase 5.8 million shares of common stock, funded by operating cash flows and a $250 million expansion of its credit facility[214]. Assets and Investments - Cash and cash equivalents stood at $222.4 million as of September 30, 2025, indicating a stable liquidity position[208]. - The company made significant investments in technology upgrades for federal medical disability examinations, largely completed in the middle of fiscal year 2025[216]. - As of September 30, 2025, the company reported $1.78 billion in goodwill and $538.3 million in net intangible assets[235]. - The company held net assets denominated in currencies other than the U.S. Dollar amounting to $266.8 million as of September 30, 2025[246]. Tax and Exchange Rate Impact - The effective tax rate for fiscal year 2025 was 28.3%, up from 24.5% in fiscal year 2024, impacted by the disposal of businesses in Australia and Korea[189]. - A hypothetical 10% favorable exchange rate movement would increase comprehensive income by $26,681 thousand[248]. - A 100 basis point increase in interest rates would decrease net income by $6,969 thousand, while a decrease would increase net income by the same amount[251]. Other Financial Metrics - The company experienced a rise in Days Sales Outstanding (DSO) to 62 days as of September 30, 2025, up from 61 days in the previous year[216]. - The company has no collateral posted with its counterparty related to derivatives as of September 30, 2025[252].

Core Insights - Maximus reported revenue of $1.32 billion for the quarter ended September 2025, reflecting a year-over-year increase of 0.2% [1] - The earnings per share (EPS) for the quarter was $1.62, up from $1.46 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate by 1.52%, while the EPS also missed the consensus estimate by 0.61% [1] Revenue Breakdown - U.S. Federal Services revenue was $747.94 million, slightly below the average estimate of $750.39 million, with a year-over-year increase of 10.8% [4] - U.S. Services revenue was reported at $429.27 million, which is a decline of 7.4% compared to the previous year and below the estimated $454.98 million [4] - Revenue from outside the U.S. was $141.11 million, exceeding the average estimate of $133.36 million, but showing a significant year-over-year decline of 20.4% [4] Stock Performance - Over the past month, Maximus shares have returned -11.2%, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Fiscal year 2025 revenue totaled $5.43 billion, reflecting a 2.4% increase year-over-year, with an organic growth rate of 3.9% [26][29] - Adjusted EBITDA margin for the full year was 12.9%, up from 11.6% in the prior year, and adjusted earnings per share were $7.36, a 20% increase from $6.11 [26][29] - Free cash flow for fiscal year 2025 was $366 million, with strong cash flows of $642 million in the fourth quarter alone [26][33] Business Line Data and Key Metrics Changes - The U.S. federal services segment achieved 12.1% organic growth, while the outside-the-U.S. segment delivered 4.1% organic growth [5][29] - Revenue for the U.S. services segment decreased to $1.76 billion from $1.91 billion, with an operating income margin of 9.7%, down from 12.9% in the prior year [31][32] - The outside-the-U.S. segment's revenue decreased to $600 million due to divestitures, but it experienced positive organic growth of 4.1% [32] Market Data and Key Metrics Changes - The total pipeline at September 30 was $51.3 billion, up from $44.7 billion in the previous quarter, with 64% representing new work [24] - Approximately 66% of the total pipeline is attributable to the U.S. federal services segment, with significant opportunities tied to the One Big Beautiful Bill Act still in development [24] Company Strategy and Development Direction - The company is focused on three strategic priorities for fiscal year 2026: expanding in U.S. federal markets, policy-driven initiatives, and deploying AI and tech-enabled automation [7][8] - Investments in AI capabilities are a key priority, aimed at transforming service delivery and enhancing operational efficiency [20][21] - The company aims to maintain a disciplined approach to capital allocation, prioritizing organic investments, dividends, and strategic acquisitions [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth opportunities, citing strong customer relationships and strategic investments as key drivers [7][9] - The company anticipates that fiscal 2026 will be defined by shaping efforts, with actual work and revenue expected to materialize in fiscal year 2027 [43] - Management noted that the impact of the recent government shutdown is expected to be minimal, as most programs are deemed essential services [55][57] Other Important Information - The company repurchased approximately $457 million worth of shares during fiscal year 2025, with a remaining authorization of $250 million [34][35] - The adjusted EPS guidance for fiscal year 2026 is projected to be between $7.95 and $8.25, with a midpoint of $8.10 [37][41] Q&A Session Summary Question: Can you provide more color on what's driving the EBITDA margin expansion for 2026? - Management indicated that the margin guidance reflects continued deployment of technology and automation, along with cost management efforts [47][50] Question: How are you thinking about the effects of the government shutdown on your results? - Management does not anticipate negative impacts on contract delivery, as most programs were funded prior to the shutdown [55][56] Question: What are your priorities for allocating capital in the short term? - The company remains focused on growth in the U.S. federal market, particularly in defense and national security, while also considering M&A opportunities [60][63] Question: What phase of the opportunity related to the One Big Beautiful Bill are you currently in? - Management noted that states are actively planning for compliance with new requirements, with significant urgency around SNAP payment error rates [66][68]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenue of $5.43 billion, reflecting an organic growth rate of 3.9% compared to the previous year [25][27] - The adjusted EBITDA margin for the full year was 12.9%, an increase from 11.6% in the prior year, while adjusted earnings per share rose to $7.36 from $6.11, representing a 20% increase [27][28] - Free cash flow for fiscal year 2025 totaled $366 million, with strong cash flows of $642 million in the fourth quarter alone [25][31] Business Line Data and Key Metrics Changes - The U.S. federal services segment achieved 12.1% organic growth, driven by high demand in clinical and disaster support programs [5][27] - The U.S. services segment revenue decreased to $1.76 billion, with an operating income margin of 9.7%, down from 12.9% in the prior year due to the completion of pandemic-related engagements [29][30] - The outside-the-U.S. segment reported revenue of $600 million, with a 4.1% organic growth rate, and an operating income margin improved to 3.7% from 1.2% in the prior year [30] Market Data and Key Metrics Changes - The total pipeline of sales opportunities as of September 30 was $51.3 billion, up from $44.7 billion in the previous quarter, with 66% of this attributed to the U.S. federal services segment [24][22] - Approximately 64% of the total pipeline represents new work, indicating a strong future growth potential [24] Company Strategy and Development Direction - The company is focusing on three strategic priorities for fiscal year 2026: expanding in U.S. federal markets, policy-driven initiatives related to the One Big Beautiful Bill Act, and deploying AI and tech-enabled automation [8][10] - Investments in AI capabilities are seen as crucial for transforming service delivery and enhancing operational efficiency [21][22] - The company aims to maintain a disciplined approach to capital allocation, prioritizing organic investments, dividends, and strategic acquisitions to accelerate growth [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, citing strong customer relationships and a robust pipeline of opportunities, particularly in the U.S. federal services segment [7][42] - The company anticipates that fiscal year 2026 will be characterized by shaping efforts, with actual revenue growth expected to materialize in fiscal year 2027 [42][43] - Management noted that the impact of the recent government shutdown is expected to be minimal, as most programs are deemed essential services [48][49] Other Important Information - The company repurchased approximately $457 million worth of shares during fiscal year 2025, with a remaining authorization of $250 million for future repurchases [32][33] - The adjusted EPS guidance for fiscal year 2026 is projected to be between $7.95 and $8.25, reflecting ongoing margin expansion and growth [36][40] Q&A Session Summary Question: Can you provide more color on what's driving the EBITDA margin expansion for 2026? - Management indicated that the margin guidance reflects continued deployment of technology and automation, along with cost management initiatives [44][45] Question: How do you anticipate the government shutdown affecting results? - Management stated that they do not expect negative impacts on contract delivery, as most programs were funded prior to the shutdown [48][49] Question: What are the priorities for allocating capital in the short term? - The company emphasized a focus on growth in the U.S. federal market, particularly in defense and national security, while also considering M&A opportunities [51][52]

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Fiscal 2025 Year End Earnings Call Bruce Caswell President & Chief Executive Officer November 20, 2025 1 | Maximus: Q4 FY25 Earnings Presentation Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with our most recent quarterly earnings press release, along with listening to or reading a transcript of management comments from our most recent quarterly earnings conference call. This document contains non-GAAP financial information. Management uses this information in ...

Core Insights - Maximus reported quarterly earnings of $1.62 per share, slightly missing the Zacks Consensus Estimate of $1.63 per share, but showing an increase from $1.46 per share a year ago, resulting in an earnings surprise of -0.61% [1] - The company posted revenues of $1.32 billion for the quarter ended September 2025, which also missed the Zacks Consensus Estimate by 1.52%, remaining unchanged from the previous year's revenues [2] - Maximus has surpassed consensus EPS estimates three times over the last four quarters, indicating some volatility in earnings performance [2] Earnings Outlook - The future performance of Maximus shares will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.73 on revenues of $1.43 billion, while for the current fiscal year, the estimate is $7.07 on revenues of $5.58 billion [7] Industry Context - The Government Services industry, to which Maximus belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Maximus's stock performance [5][6]

Financial Performance - Fiscal year 2025 revenue increased by 2.4% to $5.43 billion, with organic growth of 3.9% driven by clinical programs in the U.S. Federal Services Segment[3][6] - Operating margin for fiscal year 2025 was 9.7%, and adjusted EBITDA margin was 12.9%, compared to 9.2% and 11.6% in the prior year, reflecting margin expansion[4] - Diluted earnings per share for fiscal year 2025 were $5.51, up from $4.99 in the prior year, with adjusted diluted earnings per share increasing to $7.36 from $6.11[5] - U.S. Federal Services Segment revenue rose by 12.1% to $3.07 billion, driven by organic growth from clinical programs and natural disaster support activities[6][7] - U.S. Services Segment revenue decreased by 7.7% to $1.76 billion, primarily due to excess volumes from Medicaid-related activities in the prior year[9] - Outside the U.S. Segment revenue fell by 8.7% to $599.9 million, impacted by divestitures, though partially offset by 4.1% organic growth[11] - For fiscal year 2026, Maximus expects revenue between $5.225 billion and $5.425 billion, with an adjusted EBITDA margin of approximately 13.7%[19] - The company anticipates adjusted diluted earnings per share for fiscal year 2026 to range between $7.95 and $8.25[20] - For the year ended September 30, 2025, total revenue reached $5,431,276, an increase from $5,306,197 in 2024, representing a growth of approximately 2.4%[39] Cash Flow and Assets - Total cash flows from operating activities for fiscal year 2025 were $429 million, with free cash flow of $366 million, compared to $515 million and $401 million in the prior year[16] - Cash flows from operating activities for the three months ended September 30, 2025, were $649,372, significantly higher than $163,834 in 2024[35] - Cash, cash equivalents, and restricted cash at the end of the period were $260,459, up from $235,763 in 2024, indicating an increase of 10.5%[35] - Free cash flow for the year ended September 30, 2025, was $366,159, a decrease from $401,068 in 2024[42] Income and Profitability - Net income for the three months ended September 30, 2025, was $75,288, representing an increase of 3.9% compared to $72,504 in 2024[35] - Segment operating income for the U.S. Federal Services was $113,212 for the three months ended September 30, 2025, compared to $75,219 in 2024, showing a growth of 50.5%[36] - Net income for the year ended September 30, 2025, was $319,034, an increase from $306,914 in 2024[43] - Operating income for the year ended September 30, 2025, was $528,289, an increase from $488,499 in 2024[39] - Adjusted EBITDA for the year ended September 30, 2025, was $701,554, with an adjusted EBITDA margin of 12.9%, compared to $615,044 and 11.6% in 2024[43] - Gross profit for the year ended September 30, 2025, was $1,333,443, with a gross margin of 24.5%, compared to $1,251,652 and a margin of 23.6% in 2024[39] - Diluted earnings per share for the year ended September 30, 2025, was $5.51, compared to $4.99 in 2024, reflecting a growth of approximately 10.4%[43] Divestitures and Liabilities - The company reported divestiture-related charges of $39,549 for the year ended September 30, 2025, compared to $1,018 in 2024[43] - Total liabilities increased to $2,395,604 as of September 30, 2025, from $2,288,693 in 2024, marking an increase of 4.7%[33] - Total shareholders' equity decreased to $1,674,035 as of September 30, 2025, from $1,842,815 in 2024, a decline of 9.1%[33] Sales Pipeline - As of September 30, 2025, the total sales pipeline was $51.3 billion, with U.S. Federal Services Segment opportunities representing approximately 66% of this pipeline[14]

Core Insights - Maximus reported significant achievements in fiscal year 2025, with revenue growth and profitability exceeding initial expectations, highlighting the essential nature of its services [1][2] - The company is focusing on expanding in U.S. Federal markets and leveraging AI-enabled automation for productivity improvements in fiscal year 2026 [1] Financial Performance - Revenue for fiscal year 2025 increased by 2.4% to $5.43 billion, up from $5.31 billion in the previous year, with organic growth of 3.9% driven by clinical program volume growth in the U.S. Federal Services Segment [2][8] - The operating margin for fiscal year 2025 was 9.7%, compared to 9.2% in the prior year, while the adjusted EBITDA margin improved to 12.9% from 11.6% [3][8] - Diluted earnings per share rose to $5.51 from $4.99, and adjusted diluted earnings per share increased to $7.36 from $6.11, primarily due to enhanced operating profitability [4][8] Segment Performance - U.S. Federal Services Segment revenue grew by 12.1% to $3.07 billion, driven by organic growth from clinical programs and increased contributions from natural disaster support activities [5][8] - The operating margin for the U.S. Federal Services Segment improved to 15.3% from 12.2% in the prior year, reflecting better operating leverage and productivity enhancements [6][8] - U.S. Services Segment revenue decreased by 7.7% to $1.76 billion, attributed to excess volumes from Medicaid-related activities in the previous fiscal year [7][8] - Outside the U.S. Segment revenue fell by 8.7% to $599.9 million, impacted by divestitures, although there was positive organic growth of 4.1% [10][11] Cash Flow and Shareholder Returns - Cash flows from operating activities totaled $429 million, with free cash flow of $366 million, compared to $515 million and $401 million in the prior year [15][8] - The company repurchased approximately 5.8 million shares for $457 million during the fiscal year, with an additional $30.7 million spent on share repurchases post-September 30, 2025 [16][8] - A quarterly cash dividend of $0.30 per share was declared, payable on December 1, 2025 [17][8] Fiscal Year 2026 Guidance - Maximus expects fiscal year 2026 revenue to range between $5.225 billion and $5.425 billion, with an adjusted EBITDA margin of approximately 13.7% [18][19] - Adjusted diluted earnings per share are anticipated to be between $7.95 and $8.25 [18][19] - Free cash flow is projected to be between $450 million and $500 million for fiscal year 2026 [19][8] Sales and Pipeline - Year-to-date signed contract awards totaled $4.7 billion, with pending contracts amounting to $331 million, resulting in a book-to-bill ratio of 0.9x [12][8] - The total sales pipeline was valued at $51.3 billion, with U.S. Federal Services Segment opportunities representing approximately 66% of this pipeline [13][8] Balance Sheet - As of September 30, 2025, cash and cash equivalents stood at $222 million, with gross debt of $1.35 billion, resulting in a leverage ratio of 1.5x [14][8] - The company demonstrated strong improvement in collections, with days sales outstanding (DSO) decreasing to 62 days from 96 days [15][8]

Group 1: Earnings Reports and Expectations - Walmart Inc. is expected to report quarterly earnings of 60 cents per share on revenue of $177.43 billion [2] - Maximus Inc. is anticipated to post quarterly earnings of $1.67 per share on revenue of $1.34 billion [2] - Intuit Inc. is projected to report quarterly earnings of $3.09 per share on revenue of $3.76 billion [2] Group 2: Company Performance and Stock Movements - Walmart shares rose 1% to $101.65 in after-hours trading [2] - Palo Alto Networks Inc. reported strong first-quarter results for fiscal 2026 and raised its guidance, but shares fell 3.7% to $192.51 [2] - Nvidia Corp. reported third-quarter revenue of $57.0 billion, a 62% increase year-over-year, exceeding expectations, and shares gained 5.1% to $196.00 [2]