MAXIMUS(US:MMS)2025-11-20 18:08Financial 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].