We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can BAH's $39 Billion Backlog Offset Its Q1 Revenue Decline?
Read MoreHide Full Article
Key Takeaways
BAH revenues fell 4.2% to $2.80 billion, while adjusted EPS rose 22.3% and margins expanded.
Booz Allen Hamilton's backlog grew 3% to $39 billion, with funded backlog increasing 15%.
BAH's free cash flow surged 171.9% to $261 million as stronger collections supported cash generation.
Booz Allen Hamilton’s (BAH - Free Report) first-quarter fiscal 2027 performance presented a contrast: revenues weakened, but profitability, earnings and cash generation improved. Revenues fell 4.2% year over year to $2.8 billion from $2.92 billion, reflecting the bifurcated market conditions highlighted by the company. The decline raises questions about near-term sales momentum, but the rest of the quarter points to resilient execution.
Booz Allen Hamilton Holding Corporation Revenue (TTM)
Adjusted EBITDA increased 7.4% to $334 million, while the adjusted EBITDA margin expanded 130 basis points to 11.9%. Adjusted diluted earnings per share advanced 22.3% to $1.81, supported by stronger profitability, a lower tax rate, a reduced share count and unrealized investment gains. Free cash flow surged 171.9% to $261 million, aided by solid collections. BAH therefore converted a smaller revenue base into stronger profits and cash flow.
Backlog Supports Revenue Visibility
The central factor is BAH’s backlog. Total backlog increased 3% year over year to $39 billion, while funded backlog climbed 15%. A quarterly book-to-bill ratio of 1.5 times shows that awards outpaced recognized revenues. The trailing-12-month ratio of 1.1 times also remained above one, suggesting demand has not disappeared despite the quarterly contraction. Converting those awards into revenues will determine whether the decline proves temporary.
How Leidos and SAIC Fit Into the Picture
Leidos (LDOS - Free Report) and Science Applications International Corporation (SAIC - Free Report) provide relevant reference points within government services. For investors comparing BAH with Leidos and SAIC, backlog conversion, contract execution and cash generation are key considerations. However, the slide provides no peer-specific figures, making direct performance conclusions about either company unsupported.
The Takeaway
BAH’s revenue decline warrants attention, but stronger margins, earnings, cash flow and bookings soften the concern. Its $39 billion backlog is the clearest indication that the company retains a sizeable base of future work.
View the Zacks #1 Rank List
Image: Shutterstock
Can BAH's $39 Billion Backlog Offset Its Q1 Revenue Decline?
Key Takeaways
Booz Allen Hamilton’s (BAH - Free Report) first-quarter fiscal 2027 performance presented a contrast: revenues weakened, but profitability, earnings and cash generation improved. Revenues fell 4.2% year over year to $2.8 billion from $2.92 billion, reflecting the bifurcated market conditions highlighted by the company. The decline raises questions about near-term sales momentum, but the rest of the quarter points to resilient execution.
Booz Allen Hamilton Holding Corporation Revenue (TTM)
Booz Allen Hamilton Holding Corporation revenue-ttm | Booz Allen Hamilton Holding Corporation Quote
Profit Growth Eases Top-Line Concerns
Adjusted EBITDA increased 7.4% to $334 million, while the adjusted EBITDA margin expanded 130 basis points to 11.9%. Adjusted diluted earnings per share advanced 22.3% to $1.81, supported by stronger profitability, a lower tax rate, a reduced share count and unrealized investment gains. Free cash flow surged 171.9% to $261 million, aided by solid collections. BAH therefore converted a smaller revenue base into stronger profits and cash flow.
Backlog Supports Revenue Visibility
The central factor is BAH’s backlog. Total backlog increased 3% year over year to $39 billion, while funded backlog climbed 15%. A quarterly book-to-bill ratio of 1.5 times shows that awards outpaced recognized revenues. The trailing-12-month ratio of 1.1 times also remained above one, suggesting demand has not disappeared despite the quarterly contraction. Converting those awards into revenues will determine whether the decline proves temporary.
How Leidos and SAIC Fit Into the Picture
Leidos (LDOS - Free Report) and Science Applications International Corporation (SAIC - Free Report) provide relevant reference points within government services. For investors comparing BAH with Leidos and SAIC, backlog conversion, contract execution and cash generation are key considerations. However, the slide provides no peer-specific figures, making direct performance conclusions about either company unsupported.
The Takeaway
BAH’s revenue decline warrants attention, but stronger margins, earnings, cash flow and bookings soften the concern. Its $39 billion backlog is the clearest indication that the company retains a sizeable base of future work.
BAH carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.