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DLH Reports Fiscal 2025 Second Quarter Results
DLHDLH(US:DLHC) Globenewswireยท2025-05-07 20:30

Core Insights - DLH Holdings Corp. reported a revenue of $89.2 million for the second quarter of fiscal 2025, down from $101.0 million in the same period of fiscal 2024, primarily due to the impact of small business set-aside transitions [6][7] - The company reduced its debt by approximately $15.3 million during the quarter, bringing total debt to $151.7 million, supported by $14.5 million in operating cash generated [4][12] - A significant increase in bid activity was noted following the enactment of a Continuing Resolution in March, with over $1.0 billion in new business proposals currently under evaluation [5] Financial Performance - Revenue for the second quarter of fiscal 2025 was $89.2 million, a decrease of $11.8 million compared to $101.0 million in fiscal 2024 [6][30] - Operating income was reported at $5.1 million, with an operating margin of 5.7%, slightly down from 5.9% in the prior year [7][30] - Net income for the quarter was approximately $0.9 million, or $0.06 per diluted share, compared to $1.8 million, or $0.12 per diluted share, in the same quarter of fiscal 2024 [10][30] Debt Management - The company utilized $14.5 million of operating cash to reduce debt, achieving a total debt reduction of $15.3 million during the quarter [4][12] - As of March 31, 2025, DLH's total debt stood at $151.7 million, down from $167.0 million at the end of December 2024 [12][6] - The company anticipates converting 50-55% of EBITDA to debt reduction throughout the fiscal year [12] Business Outlook - The company expects a higher volume of decision-making in the third and fourth quarters, which could lead to growth opportunities into fiscal 2026 [5] - DLH is well-positioned to benefit from the President's fiscal year 2026 discretionary funding request, particularly in advanced engineering, digital transformation, data analytics, and cybersecurity [5] - The contract backlog as of March 31, 2025, was approximately $646.9 million, down from $690.3 million as of September 30, 2024 [6][13]