Maximus (NYSE: MMS), a global provider of government services, has reported its financial results for the fourth quarter and full year of fiscal year 2024. Here's a breakdown of the key highlights:
- Revenue:
- Full-year revenue increased by 8.2% to $5.31 billion compared to $4.90 billion in the prior year.
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Organic growth stood at 8.8%, driven by higher volumes on key programs in the U.S. segments.
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Earnings per Share:
- Full-year diluted earnings per share were $4.99, while adjusted diluted earnings per share were $6.11.
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Fourth quarter diluted earnings per share were $1.19, with adjusted diluted earnings per share amounting to $1.46.
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Cash Flows:
- Cash flows from operating activities for the full year totaled $515 million, with free cash flow at $401 million.
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This enabled debt reduction throughout the year, yielding a 1.4x leverage ratio at the end of September 30, 2024.
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Dividends:
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A quarterly cash dividend of $0.30 per share was declared, payable on November 30, 2024, to shareholders of record on November 15, 2024.
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Fiscal Year 2025 Guidance:
- Maximus has established guidance for fiscal year 2025, expecting revenue to range between $5.275 billion and $5.425 billion.
- The adjusted EBITDA margin is anticipated to be approximately 11.0%, and adjusted diluted earnings per share are projected to range between $5.70 and $6.00 per share.
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Free cash flow is expected to range between $345 million and $375 million for fiscal year 2025.
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Conference Call:
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Maximus will host a conference call on November 21, 2024, at 9:00 a.m. ET to discuss these results and the outlook for fiscal year 2025.
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Segment Performance:
- U.S. Federal Services Segment: Revenue increased by 13.9% to $2.74 billion, with an operating margin of 12.2% for the full fiscal year 2024.
- U.S. Services Segment: Revenue grew by 5.5% to $1.91 billion, with an operating margin of 12.9% for the full fiscal year 2024.
- Outside the U.S. Segment: Revenue decreased by 4.6% to $657.1 million, but the segment reported an operating profit of $7.7 million for fiscal year 2024.
These figures demonstrate the company's strong performance and provide insights into its financial health and strategic direction for the upcoming fiscal year. Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $80.53. If you want to know more, read the company's complete 8-K report here.
