Maximus Records Nearly 9% Rise in FY 2022 Revenue; Bruce Caswell Quoted

Maximus (NYSE: MMS) saw its full fiscal year 2022 revenue rise 8.9 percent to $4.63 billion and reported $3.29 in diluted earnings per share and adjusted diluted EPS of $4.37 for the year ended Sept. 30.

The Tysons, Virginia-based government services contractor said Monday it booked $10.5 billion in contracts for FY 2022, including a $6.6 billion contract to operate contact centers for the Centers for Medicare and Medicaid Services.

Maximus posted a contract backlog of $19.8 billion and $30.7 billion in sales pipeline as of Sept. 30, with new work opportunities accounting for 73.5 percent of the total pipeline.

“Our fiscal year 2022 results provide us confidence that the foundation we laid for the core business is yielding the desired outcome. There were record signed contract awards and the backlog of business is at an all-time high,” said Bruce Caswell, president and CEO of Maximus. 

“Expansion of core work and new business wins that take full advantage of our capabilities more than replaced the anticipated decline in short-term work,” added Caswell, a four-time Wash100 awardee.

The company’s U.S. federal services segment’s FY 2022 revenue rose 19.4 percent to $2.26 billion driven by Maximus’ acquisitions of Veterans Evaluation Services, Attain Federal and Aidvantage, while its U.S. services segment reported $1.61 billion in sales, down 3.3 percent from the previous fiscal year.

Caswell told analysts during an earnings call Tuesday that the company is seeing opportunities in two areas within its federal services segment and those are clinical assessments and technology platforms supporting information technology modernization efforts from federal agencies.

He also cited cross-selling opportunities that Maximus is seeing.

“Here and there, in our federal segment, to incorporate business process services or BPS into complex solutions that might begin as a technology consulting services or TCS opportunities. So those teams are working well together, and we’re bringing the full capabilities of the company to bear for our customers,” Caswell noted.