Booz Allen Hamilton (US:BAH)2026-01-23 11:49Financial Performance - Revenue for the three months ended December 31, 2025, was $2,620 million, a decrease of 10.2% compared to $2,917 million for the same period in 2024[12] - Operating income for the nine months ended December 31, 2025, was $770 million, down 29.7% from $1,095 million in 2024[12] - Net income for the three months ended December 31, 2025, was $200 million, an increase of 6.9% from $187 million in 2024[15] - Earnings per share (EPS) for the three months ended December 31, 2025, was $1.64, compared to $1.46 for the same period in 2024, reflecting a 12.3% increase[12] - Revenue decreased by 10% to $2,620 million for the three months ended December 31, 2025, and by 6% to $8,434 million for the nine months ended December 31, 2025, compared to the prior year period[81] - Operating income fell by 21% to $230 million for the three months ended December 31, 2025, and by 30% to $770 million for the nine months ended December 31, 2025, reflecting a decrease in operating margin from 10% to 9%[88] - Net income increased by 7% to $200 million for the three months ended December 31, 2025, but decreased by 13% to $646 million for the nine months ended December 31, 2025, compared to the prior year[91] Assets and Liabilities - Total assets as of December 31, 2025, were $7,051 million, a decrease from $7,312 million as of March 31, 2025[10] - Total liabilities as of December 31, 2025, were $6,026 million, down from $6,309 million as of March 31, 2025[10] - Total stockholders' equity as of December 31, 2025, was $1,025 million[18] - The company had total debt of $3,940 million as of December 31, 2025, with a long-term debt net of current portion amounting to $3,857 million[37] - Long-term debt, net of current portion, was $3,857 million as of December 31, 2025, slightly down from $3,915 million as of March 31, 2025[110] Cash Flow and Investments - Cash and cash equivalents at the end of the period were $882 million, slightly down from $885 million at the beginning of the period[17] - Net cash provided by operating activities for the nine months ended December 31, 2025, was $801 million, compared to $790 million in 2024, indicating a 1.4% increase[17] - Net cash provided by operations was $801 million for the nine months ended December 31, 2025, compared to $790 million in the prior year period, primarily driven by lower tax payments[101] - Net cash used in investing activities was $52 million for the nine months ended December 31, 2025, a decrease from $184 million in the prior year, mainly due to the previous year's acquisition of PGSC[102] - Net cash used in financing activities was $752 million for the nine months ended December 31, 2025, compared to $706 million in the prior year, attributed to an increase in share repurchases of $24 million and term loan payments of $22 million[103] Shareholder Actions - The company repurchased common stock worth $521 million during the nine months ended December 31, 2025[17] - The company repurchased 1.3 million shares of Class A Common Stock for $125 million during the three months ended December 31, 2025[18] - For the nine months ended December 31, 2025, the company repurchased 4.7 million shares for $486 million[18] - The company declared a quarterly cash dividend of $0.59 per share on January 23, 2026, payable on March 2, 2026, with total dividends of $67 million and $205 million for the three and nine months ended December 31, 2025, respectively[104] - The company repurchased 4.7 million shares for an aggregate of $486 million during the first nine months of fiscal 2026, with approximately $759 million remaining under the repurchase program[105] Operational Metrics - Revenue from cost-reimbursable contracts accounted for 58% of total revenue in Q3 2025, while time-and-materials and fixed-price contracts contributed 22% and 20%, respectively[29] - Defense customers generated $1,454 million in revenue, representing 55% of total revenue for the three months ended December 31, 2025, compared to 50% in the same period of 2024[29] - Total backlog as of December 31, 2025, was $38.456 billion, an increase of 2% from $37.879 billion as of December 31, 2024[76] - Funded backlog decreased from $4.658 billion in December 2024 to $4.206 billion in December 2025[76] - Unfunded backlog increased from $8.478 billion in December 2024 to $10.059 billion in December 2025[76] - Additions to funded backlog totaled $11.0 billion for the twelve months ended December 31, 2025, compared to $11.8 billion for the same period in 2024[77] Tax and Compliance - The effective income tax rates for the three months ended December 31, 2025, and 2024, were (7.0)% and 24.7%, respectively, with a tax benefit of $57 million recognized during the same period[41] - As of December 31, 2025, the company recorded $78 million in reserves for uncertain tax positions, primarily related to research and development tax credits, with a reduction of $86 million due to IRS examination adjustments[42] - The company recorded long-term income tax receivables of $176 million as of December 31, 2025, related to amended U.S. federal return refund claims[43] - The company is subject to various risks including changes in U.S. government spending and potential impacts from government shutdowns, which may affect future performance[113] Strategic Initiatives - The company is implementing actions to reduce costs by approximately $150 million annually due to a slowed procurement environment[66] - The company plans to relocate its headquarters to new office space in Reston, Virginia, with estimated total undiscounted base lease payments of $222 million[56] - The company plans to opportunistically access financing markets to secure additional debt capital resources for strategic acquisitions and investments[100] Reporting and Compliance - The company reported its quarterly financial results for the three and nine months ended December 31, 2025, with a focus on condensed consolidated balance sheets and statements of operations[101] - The financial statements include comprehensive income and cash flow statements for the same periods, highlighting key performance metrics[101] - The report is formatted in Inline XBRL, enhancing the accessibility and usability of the financial data for stakeholders[101] - Certifications from the Chief Executive Officer and Chief Financial Officer were filed, ensuring compliance with regulatory requirements[31.1][31.2][32.1][32.2] - The company is committed to transparency and accuracy in its financial reporting, as evidenced by the detailed disclosures in the quarterly report[101] - The report includes notes to the condensed consolidated financial statements, providing additional context and insights into the company's financial position[101] - The company continues to adhere to the Securities Exchange Act of 1934, maintaining its obligations as a registrant[130] - The financial results will inform future strategic decisions and operational adjustments as the company navigates market conditions[101] - The report emphasizes the importance of accurate financial reporting in supporting investor confidence and market stability[101] - The company is focused on leveraging its financial data to drive growth and enhance shareholder value moving forward[101]