Maximus ( (MMS) ) has released its Q1 earnings. Here is a breakdown of the information Maximus presented to its investors.
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Maximus is a prominent global provider of government services, specializing in business process management and consulting to enhance public service delivery. In the first quarter of fiscal year 2025, Maximus reported a revenue increase of 5.7% to $1.40 billion, alongside an adjusted earnings per share of $1.61. The company saw significant growth in its U.S. Federal Services segment, which experienced a 15.3% revenue increase, while the U.S. Services segment faced a 7.7% decline due to previous year’s excess volumes.
Key financial highlights include a rise in U.S. Federal Services segment’s operating margin to 12.7% and strong performance outside the U.S., particularly in the UK. Maximus also completed the divestiture of employment services in Australia and South Korea, aiming to improve stability and profitability. The company repurchased 3.8 million shares worth $289.9 million and declared a quarterly dividend of $0.30 per share.
Looking ahead, Maximus has raised its earnings guidance for fiscal year 2025, expecting adjusted diluted earnings per share between $5.90 and $6.20. The company anticipates continued organic growth and a stable adjusted EBITDA margin of approximately 11.2%. Despite challenges, Maximus remains strategically positioned to provide value-added solutions to governmental programs globally.
