Maximus ( (MMS) ) has released its Q4 earnings. Here is a breakdown of the information Maximus presented to its investors.
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Maximus is a leading provider of government services, specializing in business process management, consulting, and technology solutions to improve public service delivery globally. The company recently announced its financial results for the fourth quarter and full fiscal year 2024. Maximus reported an 8.2% increase in full-year revenue, reaching $5.31 billion, driven by significant organic growth in its U.S. segments. The company achieved a notable improvement in earnings per share and reduced its leverage ratio through strong cash flow management.
Maximus’ financial performance highlights include a robust increase in diluted earnings per share from $2.63 to $4.99, with adjusted diluted earnings per share reaching $6.11. The U.S. Federal Services segment saw a 13.9% revenue growth due to increased demand for clinical programs, while the U.S. Services segment benefited from strong Medicaid-related activities, contributing to a 5.5% revenue increase. Outside the U.S., the company turned a prior year’s operating loss into a profit, despite a 4.6% revenue decline due to divestitures and currency effects.
The company maintained a healthy operating margin of 9.2% for the year, with an adjusted EBITDA margin of 11.6%, reflecting efficient operations and improved service delivery. Maximus’ strong cash flow, totaling $515 million from operating activities, facilitated debt reduction and shareholder returns, including a quarterly dividend of $0.30 per share. The sales pipeline remains robust, although the book-to-bill ratio was impacted by lower rebid activity.
Looking ahead, Maximus sets a cautious yet optimistic guidance for fiscal year 2025, anticipating revenue between $5.275 billion and $5.425 billion and maintaining an adjusted EBITDA margin of around 11.0%. The company is prepared to leverage its position as a key government partner in the face of upcoming political transitions, aiming to continue its growth trajectory while adapting to new priorities.
