Maximus (MMS) investor relations material

Executive summary

• Q3 revenue reached $1.35B, up 2.5% year-over-year with 4.3% organic growth, led by U.S. Federal Services.

• Adjusted EPS was $2.16, up 24% year-over-year; adjusted EBITDA grew 15%.

• FY25 guidance for revenue, adjusted EBITDA margin, and adjusted EPS was raised for the third consecutive quarter.

• Major $77M U.S. Air Force contract win and CMMC Level 2 certification expanded the federal pipeline.

• Strategic focus on digital enablement, health services, and technology modernization continues.

Financial highlights

• Q3 operating margin was 12.3% and adjusted EBITDA margin was 14.7%, up from 10.8% and 13.1% year-over-year.

• Net income for Q3 was $106M, up from $90M in the prior year; diluted EPS was $1.86.

• Free cash flow for Q3 was an outflow of $198.2M, impacted by payment delays; improvement expected in Q4.

• Gross profit for Q3 was $359.5M, up from $332.3M year-over-year.

• Book-to-bill ratio was 0.8x on a trailing twelve-month basis; sales pipeline at $44.7B.

Outlook and guidance

• FY25 revenue guidance raised to $5.375B–$5.475B, with ~4% organic growth.

• Adjusted EBITDA margin guidance increased to ~13%; adjusted EPS guidance raised to $7.35–$7.55.

• Free cash flow guidance increased to $370M–$390M; DSO expected to normalize.

• FY26 revenue expected in line with or slightly below FY25, with margin near high end of 10–13% range.

• Effective tax rate for FY25 projected between 28% and 29%.