Maximus saw its full fiscal year 2024 revenue rise 8.2 percent to $5.31 billion and reported $1.3 billion in fourth-quarter revenue, a 4.4 percent increase from the prior-year period.
In an earnings release published Wednesday, the Tysons, Virginia-based government services contractor said quarterly and full FY 2024 results were driven by volume growth on clinical programs in the U.S. federal services segment.
The company posted $4.99 in full year diluted earnings per share and adjusted diluted EPS of $6.11 with full year cash flows from operating activities totaling $515 million.
“We are proud of the team for an excellent finish to a strong year, and one that demonstrates a healthy core business operating within our margin expectations,” said Bruce Caswell, president and CEO of Maximus.
Federal Services Segment’s Financial Results
The company’s U.S. federal services segment recorded $2.74 billion in FY 2024 revenue, up 13.9 percent from the prior year.
The segment’s full FY 2024 and Q4 operating margins were 12.2 percent and 11.1 percent, respectively, driven by higher demand for clinical services and a mix of performance-based work.
Contract Awards & Backlog
Maximus logged $2.2 billion in year-to-date signed contract awards and $312 million in pending contracts.
As of Sept. 30, the company posted a backlog of $16.2 billion and a sales pipeline of $54.3 billion, with new work opportunities accounting for 48 percent of the total pipeline.
FY 2025 Outlook
For its FY 2025 guidance, Maximus said it expects to record $5.275 billion to $5.425 billion in revenue and adjusted diluted EPS of between $5.70 and $6.00.
An adjusted EBITDA margin of about 11 percent is anticipated for the full year. The company expects its FY 2025 free cash flow to range between $345 million and $375 million.
“We kick off fiscal 2025 with guidance that blends the momentum of fiscal 2024 with thoughtfulness toward the upcoming U.S. Presidential transition,” Caswell noted.
“Our earned position as an efficient and flexible partner to government in the administration of entitlement programs and essential government services perennially supported on a bipartisan basis positions us well to advise, adapt, and rapidly implement new priorities,” added the four-time Wash100 awardee.
