Booz Allen Hamilton's Q3 Earnings Beat Estimates, Rise Y/Y

Core Insights - Booz Allen Hamilton Holding Corp. (BAH) reported strong third-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][2] Financial Performance - Adjusted earnings per share were $1.55, surpassing the Zacks Consensus Estimate by 4.7% and increasing 10% year-over-year [2] - Revenues reached $2.9 billion, beating the consensus estimate by 2.7% and showing a year-over-year growth of 13.5% [2] - Revenues, excluding billable expenses, amounted to $2 billion, reflecting an 11.8% increase year-over-year [2] Backlog and Orders - Total backlog increased by 14.8% year-over-year to $39.4 billion, close to the estimate of $39.5 billion [4] - Funded backlog was $5.3 billion, a 1.6% increase, while unfunded backlog rose to $9.3 billion, also up by 1.6% [4] Operational Metrics - Priced options rose by 24.5% to $24.7 billion, exceeding expectations [5] - The book-to-bill ratio was 0.37, down from 0.72 in the previous year [5] - Headcount increased by 6.2% year-over-year to 35,800 [5] Profitability - Adjusted EBITDA was $331.7 million, a 14.1% increase from the previous year, surpassing projections [6] - Adjusted EBITDA margin on revenues was 11.4%, up 10 basis points year-over-year [6] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $453.5 million, down from $558.7 million in the previous quarter [7] - Long-term debt remained flat at $3.3 billion [7] - Generated $150.8 million in net cash from operating activities, with capital expenditure of $17.2 million and free cash flow of $133.6 million [9] Future Outlook - For fiscal 2025, BAH anticipates revenue growth of 12-13% and adjusted EPS guidance of $6.25-$6.4 [10] - Adjusted EBITDA is expected to be between $1.31 billion and $1.33 billion, with an anticipated EBITDA margin of approximately 11% [10] - Projected net cash from operating activities is between $950 million and $1.025 billion, with free cash flow expected to be between $850 million and $925 million [10]