Contract Roll-off RisksStrong awards momentum is expected to offset risks from the roll-off of profitable Mexico SEDENA contracts, with a 2QFY25 book-to-bill ratio of 1.2x and multiple awards announced in 3QFY25.
Revenue DeclineOSIS management highlighted that while revenue from Mexico is coming down off its peak, it is confident that it will be able to fill that gap with additional work, allowing the company to provide a continued strong outlook for the second half of its fiscal year.
Valuation ConcernsThe stock is up 28% YTD vs 4% for the S&P 500, and valuation is nicely above the historical average, so analysts are inclined to be patient.