How did Booz Allen Consulting's revenue and expenses perform in Q1 2025?
4/14/2025 11:22am
Booz Allen Hamilton Holding Corp (BAH) exhibited robust performance in Q1 2025, with significant growth in revenue and improvements in profitability, driven by strong operational execution and strategic initiatives.
1. **Revenue Growth**: BAH achieved a substantial 14% year-over-year increase in revenue, reaching $2.9 billion. This growth was broad-based, with all markets contributing to the expansion. Organic revenue grew by approximately 13% year-over-year.
|code|Ticker|Name|Date|Total Revenue (FY)|Net Income (FY)|market_code|
|---|---|---|---|---|---|---|
|BAH|BAH.N|Booz Allen Hamilton|2024|1.0661896E10|6.05706E8|169|
2. **Adjusted EBITDA and Net Income**: The company reported an Adjusted EBITDA of $332 million, maintaining a strong margin of 11.4%. Net income for the quarter was $187 million, marking a 28% increase year-over-year. Diluted EPS was $1.45, up 31% from the previous year, and Adjusted Diluted EPS was $1.55, reflecting a 10% increase.
3. **Operational Efficiency and Profitability**: BAH's operational efficiency improved significantly, as evidenced by the increase in Adjusted Net Income to $198 million, a 7% year-over-year growth. The company's focus on technology-driven solutions and strategic partnerships, such as with Palantir Technologies and Amazon Web Services, has enhanced its competitive positioning and project delivery capabilities.
4. **Cash Flow and Capital Deployment**: Booz Allen Hamilton generated $134 million in free cash flow and invested $149 million in share repurchases, reflecting strong capital deployment strategies. The company also increased its quarterly dividend to $0.55 per share, demonstrating commitment to shareholders.
5. **Backlog and Business Momentum**: The company's backlog grew by 15% year-over-year, reaching $39 billion. The book-to-bill ratio stood at 1.41 times the trailing 12-month, indicating a strong pipeline of future work. Headcount grew by 6% from the previous year, with over 32,000 client staff.
In summary, BAH's Q1 2025 performance was marked by strong revenue growth, improved profitability, and enhanced operational efficiency, positioning the company well for continued success in the coming quarters.