Booz Allen Hamilton Holding Corporation has recently released its 10-K report, revealing that it provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to governments, corporations, and not-for-profit organizations in the United States and internationally. The company focuses on artificial intelligence services, including machine learning, predictive modeling, automation, decision analytics, and quantum computing. Booz Allen Hamilton was founded in 1914 and is headquartered in McLean, Virginia.
In the 10-K report, Booz Allen Hamilton reported generating year-over-year revenue growth of 12% during fiscal 2025, driven by strong demand for its solutions, outcomes, and services, as well as an increase in headcount to meet that demand and higher billable expenses. Operating income increased by 35% to $1,370 million in fiscal 2025 from $1,014 million in fiscal 2024, reflecting an increase in operating margin to 11% from 10% in the comparable year. The company's margins were impacted by a decrease in general and administrative expenses resulting from $115 million in insurance recoveries from claims related to the company’s fiscal 2024 settlement.
Booz Allen Hamilton also disclosed certain non-GAAP financial measurements, including Revenue, Excluding Billable Expenses, EBITDA, and Adjusted EBITDA. Revenue, Excluding Billable Expenses represents revenue less billable expenses, providing useful information about the company's operating performance by excluding the impact of costs such as subcontractor expenses, travel expenses, and other non-labor expenses incurred to perform on contracts. The company views Adjusted EBITDA as a measure of its core operating business, which excludes the impact of certain items not considered indicative of ongoing operating performance due to their unusual, extraordinary, or non-recurring nature.
The 10-K report also highlighted factors and trends affecting Booz Allen Hamilton's results of operations, including the uncertain and evolving U.S. political, budget, and regulatory environment. The company expects this uncertainty to continue affecting its business performance, as it is subject to reviews, price adjustments, and renegotiations of contracts as a result of changes in U.S. government spending priorities and regulations. The report also mentioned the potential impact of Executive Orders and actions by the new U.S. government administration on the company's business, as well as the effects of reductions in personnel at U.S. government agencies with which Booz Allen Hamilton does business.
As a result of these announcements, the company's shares have moved 0.55% on the market, and are now trading at a price of $129.13. For the full picture, make sure to review Booz Allen Hamilton's 10-K report.
