Booz Allen (BAH) investor relations material

Executive summary

• Q2 revenue declined 3.9% YoY to $2.778B amid slower procurement and reduced civil activity; net income rose 3.4% to $181M.

• Adjusted diluted EPS rose 18.1% to $1.76; adjusted EBITDA margin increased 10 bps to 11.3%.

• National Security momentum and strong contract execution supported profitability and backlog growth; technology investment targets cyber, agentic, and defense products.

Financial highlights

• Q2 revenue excluding billable expenses was $1.957B, down 0.8% YoY; National Security revenue excluding billable expenses grew 5.9%.

• Q2 adjusted net income rose 15.3% to $211M; adjusted EBITDA was $313M, down 3.4% YoY.

• Q2 diluted EPS was $1.50, up 5.6%; adjusted diluted EPS was $1.76, up 18.1%.

• Q2 free cash flow was $263M versus $395M a year earlier; H1 free cash flow was $524M versus $491M.

• H1 revenue declined 4.1% to $5.578B; adjusted EBITDA was $647M, up 1.9%, and adjusted diluted EPS was $3.57, up 20.2%.

Outlook and guidance

• FY27 revenue guidance is $11.3B–$11.6B, with growth of 0%–4%; adjusted EBITDA guidance is $1.260B–$1.290B at ~11% margin.

• FY27 adjusted diluted EPS guidance rose to $6.50–$6.70 from $6.00–$6.35; free cash flow guidance is $850M–$925M.

• Guidance assumes a 16%–19% effective tax rate, 118M–120M diluted shares, and ~$200M in capital expenditures.

• National Security is expected to grow mid-single digits for FY27; Civil is expected to decline low double digits, with Q3 and Q4 revenue flat to slightly down sequentially.

• Adjusted margins are expected to step down in H2 due to seasonality, investment timing, and lower civil volumes.