Booz Allen Posts 18% Rise in Q2 Fiscal 2025 Revenue With Total Backlog of $41.3B

Booz Allen Hamilton reported $3.1 billion in second-quarter revenue for fiscal year 2025, up 18 percent from the prior-year period, and saw its Q2 operating income increase by 105.5 percent to $548.6 million.

In an earnings release published Friday, the McLean, Virginia-based information technology and management consulting firm said it ended the quarter with a total backlog of $41.3 billion, up 17.7 percent from the same period the previous year, and a quarterly book-to-bill ratio of 2.61x.

The company logged a 17.1 quarterly rise in organic revenue and an 18.3 percent growth in revenue, excluding billable expenses.

Net income climbed 128.5 percent to $390.1 million, adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, grew 25.2 percent to $364 million and diluted earnings per share increased 133.3 percent to $3.01.

CEO on Defense Business, SSMARTT Task Order Award

At an earnings call Friday, Horacio Rozanski, chairman, president and CEO of Booz Allen, told analysts that the company’s defense business recorded a 17 percent year-over-year increase in revenue for the quarter.

“This is driven by two primary components: one, the strategic support we are providing to clients around the world on existing geopolitical conflicts; and two, the increasingly important role that Booz Allen plays in modernizing existing systems and building the war fighting capability of the future,” the chief executive said of the defense segment’s double-digit growth.

The two-time Wash100 awardee noted that during the first half of FY 2025, Booz Allen won several awards exceeding $500 million each, driven by its increasing defense talent base and technology investments in space, artificial intelligence and digital battlespace, among other key areas.

During the call, Rozanski also discussed the five-year, $2.6 billion SSMARTT task order award, which stands for Service Solutions for Modernization, Analysis, Readiness Capability, Threat and Training.

He said SSMARTT supports the modernization of four existing structure capabilities across the Army and its strategic mission partners.

“SSMARTT is but one of a number of contracts that focuses on the acceleration of technology into defense missions. This is well aligned to Booz Allen’s focus on delivering innovation at speed, including through dual use technologies. We continue to build, partner and invest in new ways to help maintain U.S. technological superiority in our national security posture,” added the chairman of Booz Allen’s board of directors.

Financial Outlook

Booz Allen raised its guidance across all metrics for the full FY 2025, expecting to record revenue growth of 11 percent to 13 percent with adjusted EBITDA of between $1.3 billion and $1.33 billion, up from the previous range of $1.26 billion to $1.3 billion.

The company also increased its free cash flow guidance to a range of $825 million to $925 million and noted that it anticipates its adjusted diluted earnings per share to be between $6.10 and $6.30, up from the original guidance of $5.80 to $6.05 per share.