Maximus, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company operates as a provider of government services in the United States and internationally, with three primary segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Federal Services segment delivers solutions to various U.S. federal government agencies, including program operations, management, clinical services, and technology solutions. The U.S. Services segment provides business process services, clinical services, employment services, and technology solutions for U.S. state and local government programs. The Outside the U.S. segment offers business process solutions and technology services for international governments, including health and disability assessments, program administration for employment services, and wellbeing solutions.
In the 10-K report, Maximus provided a detailed analysis of its financial condition and results of operations. The company reported a significant increase in revenue for the fiscal year ended September 30, 2024, reaching $5.3 billion, compared to $4.9 billion in the previous year. The cost of revenue also increased to $4.05 billion, reflecting a gross profit of $1.25 billion, with a gross profit percentage of 23.6%. The operating income for the year was $488.5 million, indicating an operating margin of 9.2%. The company's net income for the year stood at $306.9 million, resulting in basic earnings per share of $5.03.
The U.S. Federal Services segment reported a revenue of $2.74 billion for the fiscal year 2024, representing a 13.9% increase from the previous year. The segment's gross profit percentage stood at 24.3%, with an operating margin of 12.2%. Maximus anticipates that revenue and profit margins for this segment will remain consistent through fiscal year 2025, driven by volume growth and strong performance on contracts related to clinical assessments.
In the U.S. Services segment, revenue for the fiscal year 2024 increased by 5.5% to reach $1.91 billion, while the gross profit percentage improved to 25.1%, with an operating margin of 12.9%. Maximus expects profit margins of approximately 11% in fiscal year 2025 for this segment, as it anticipates reverting to a run-rate consistent with the fourth quarter of fiscal year 2024.
The Outside the U.S. segment reported a revenue of $657.1 million for the fiscal year 2024, reflecting a 4.6% decrease from the previous year. The segment's gross profit percentage increased to 16.1%, with an operating margin of 1.2%. Maximus highlighted the impact of organic effects, disposal of businesses, and currency fluctuations on the segment's financial results.
As a result of these announcements, the company's shares have moved -6.9% on the market, and are now trading at a price of $74.96. For the full picture, make sure to review Maximus's 10-K report.
