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Booz Allen's Q4 Earnings Surpass Estimates, Increase Y/Y

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Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported mixed fourth-quarter fiscal 2025 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

Quarterly adjusted earnings per share of $1.61 surpassed the Zacks Consensus Estimate by 1.3% and increased 21.1% from the year-ago fiscal quarter’s actual. The company reported revenues of $2.3 billion, which missed the consensus estimate by 1.5% and increased 7.3% on a year-over-year basis. Revenues, excluding billable expenses, were $2.05 billion, up 6.2% on a year-over-year basis.

The earnings beat failed to impress the market, as there has not been any price change since the earnings release.

BAH’s Backlogs Increase in Q4

The total backlog increased 14.8% from the year-ago quarter to $37 billion, missing our estimate of $38.7 billion. The funded and unfunded backlogs amounted to $4.4 billion and $8.8 billion, respectively. Funded backlog increased 5.6%, missing our anticipation of $4.9 billion. The unfunded backlog rose 4.9%, missing our estimate of $9.8 billion.

Priced options rose 21.9% to $23.8 billion, marginally missing our expectation of $23.9 billion. The book-to-bill ratio was 1.39 compared with 1.22 in the year-ago quarter. The headcount of 35,800 improved 4.4% on a year-over-year basis.

BAH’s Q4 EBITDA Margins Rise

Adjusted EBITDA amounted to $1.32 billion, an increase of 11.9% from the year-ago quarter, and was in line with our estimate. The adjusted EBITDA margin on revenues of 11% remained flat on a year-over-year basis.

Key Balance Sheet & Cash Flow Numbers

Booz Allen exited the quarter with cash and cash equivalents of $885 million compared with $554 million in the March-end quarter of 2024. Long-term debt (net of current portion) was $3.9 billion, up 16.9% on a year-over-year basis.

The company generated $218 million in net cash from operating activities. Capital expenditure was $1.2 billion. The free cash flow was $911 million.

FY26 Outlook

For fiscal 2026, BAH expects revenues to be in the range of $12-$12.5 billion. The revenue growth is anticipated to be in the range of 0-4%. It expects an adjusted EPS of $700-$800 million. Capital expenditures are expected to be approximately $110 million.

Booz Allen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.

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