Booz Allen Hamilton Reports 13.5% Revenue Growth to $2.92 Billion in Latest Quarter

Booz Allen Hamilton Holding Corporation reported significant financial growth in its latest quarterly results, with revenues reaching $2.92 billion for the three months ended December 31, 2024, marking a 13.5% increase from $2.57 billion in the same period last year. For the nine months ending December 31, 2024, revenue rose 14.1% to $9.01 billion compared to $7.89 billion in the prior year. The company's net income also saw a substantial increase, rising 28.4% to $186.95 million for the quarter and 55.4% to $742.30 million for the nine-month period. This growth was attributed to strong demand for services, increased headcount, and a notable $121.7 million reduction in the provision for claimed costs.

In terms of operational metrics, Booz Allen's total employee count increased to approximately 35,900 as of December 31, 2024, up from 33,800 a year earlier. The company also reported a total backlog of $39.41 billion, a 14.8% increase from $34.32 billion a year prior, indicating a robust pipeline of future work. The increase in backlog was driven by new contract awards and the conversion of unfunded backlog to funded backlog. The company’s operating income for the quarter was $291.26 million, reflecting a 17.7% increase year-over-year, with operating margins improving from 9.6% to 10.0%.

Booz Allen Hamilton's strategic developments included the acquisition of PAR Government Systems Corporation for approximately $98.7 million, which was completed on June 7, 2024. This acquisition is expected to enhance the company's capabilities in providing advanced technology solutions to government clients. The goodwill recognized from this acquisition amounted to $61.1 million, primarily due to expected synergies and the specialized workforce of the acquired company.

The company’s financial position remains strong, with total assets increasing to $6.82 billion as of December 31, 2024, compared to $6.56 billion at the end of the previous fiscal year. Cash and cash equivalents decreased to $453.54 million, while total debt stood at $3.37 billion. The company reported net cash provided by operating activities of $789.99 million for the nine months ended December 31, 2024, a significant increase from $115.07 million in the prior year, driven by overall revenue growth and improved cash collection processes.

Looking ahead, Booz Allen Hamilton anticipates continued growth driven by strong demand for its services, although it remains cautious about potential impacts from U.S. government budget constraints and economic conditions. The company expects to recognize approximately 70% of its remaining performance obligations as revenue over the next 12 months, indicating a positive outlook for the upcoming fiscal periods.