On July 26, 2024, Booz Allen Hamilton Holding Corp (BAH, Financial) released its 8-K filing for the first quarter of fiscal year 2025. Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government, offering technology and engineering consulting services focused on defense, intelligence, and civil markets. The company also serves large corporations, institutions, and nonprofit organizations globally.
Performance Overview
Booz Allen Hamilton Holding Corp (BAH, Financial) reported a 10.8% increase in quarterly revenue to $2.94 billion, surpassing the analyst estimate of $2.93 billion. However, the company's diluted earnings per share (EPS) of $1.27 fell short of the estimated $1.43. Adjusted diluted EPS was $1.38, down from $1.47 in the prior year period.
Key Financial Achievements
The company achieved double-digit organic revenue growth of 10.6% and a 15.7% increase in total backlog to $36.2 billion. The quarterly book-to-bill ratio stood at 1.72x, indicating strong future revenue potential. Operating income rose by 8.9% to $255.2 million, while net income increased by 2.4% to $165.2 million. However, adjusted net income decreased by 7.0% to $179.6 million.
Income Statement Highlights
| Metric | Q1 FY2025 | Q1 FY2024 | Change |
|---|---|---|---|
| Revenue | $2.94B | $2.65B | +10.8% |
| Operating Income | $255.2M | $234.4M | +8.9% |
| Net Income | $165.2M | $161.4M | +2.4% |
| Diluted EPS | $1.27 | $1.22 | +4.1% |
| Adjusted Diluted EPS | $1.38 | $1.47 | -6.1% |
Balance Sheet and Cash Flow
As of June 30, 2024, Booz Allen Hamilton Holding Corp (BAH, Financial) reported total assets of $6.64 billion, up from $6.56 billion at the end of the previous quarter. The company's cash and cash equivalents stood at $297.7 million, a decrease from $554.3 million. Net cash provided by operating activities was $52.1 million, compared to a net cash outflow of $71.5 million in the prior year period. Free cash flow for the quarter was $19.7 million, a significant improvement from a negative $82.0 million in the previous year.
Commentary and Analysis
"Our first quarter performance demonstrates our strategic and operational momentum. We are on track to achieve our fiscal year guidance and our multi-year Investment Thesis. VoLT continues to fuel our growth as we accelerate our clients’ national priority missions through transformative technology solutions." — Horacio Rozanski, Chairman, Chief Executive Officer, and President
The company's strategic acquisition of PAR Government Systems Corporation (PGSC) in June 2024 supported its double-digit organic revenue growth and record-high quarterly backlog. The increase in client staff headcount by 7.7% year-over-year also reflects the company's robust hiring efforts.
Conclusion
Booz Allen Hamilton Holding Corp (BAH, Financial) has started fiscal year 2025 with strong top-line performance, driven by double-digit revenue growth and a significant increase in backlog. While the company missed the EPS estimate, its strategic initiatives and acquisitions position it well for future growth. Investors will be keen to see how the company continues to execute its VoLT strategy and achieve its fiscal year guidance.
Explore the complete 8-K earnings release (here) from Booz Allen Hamilton Holding Corp for further details.
