Booz Allen Hamilton Reports 12% Revenue Growth to $11.98 Billion for Fiscal Year 2025

Booz Allen Hamilton Holding Corporation reported a strong financial performance for the fiscal year ending March 31, 2025, with total revenue reaching $11.98 billion, a 12% increase from $10.66 billion in the previous fiscal year. The company's operating income also saw significant growth, rising 35% to $1.37 billion, compared to $1.01 billion in fiscal 2024. This increase in profitability was attributed to heightened demand for Booz Allen's services, an expanded workforce, and effective cost management strategies, which resulted in an operating margin improvement from 10% to 11%.

The company experienced notable changes in its revenue composition, with defense customers contributing approximately 49% of total revenue at $5.94 billion, up from 47% the previous year. Intelligence customers accounted for 16% of revenue, while civil customers represented 35%. The increase in revenue from defense customers was particularly significant, reflecting Booz Allen's strategic focus on supporting critical missions for the U.S. government. Additionally, the company reported a total backlog of $37.03 billion, a 15% increase from the previous year, indicating strong future revenue potential.

Strategically, Booz Allen Hamilton made key acquisitions, including the purchase of PAR Government Systems Corporation for approximately $99 million, which is expected to enhance its capabilities in providing advanced solutions to government customers. The company also reported a reduction in its provision for claimed costs, which positively impacted revenue by $122 million during fiscal 2025. This adjustment was based on findings from the Defense Contract Audit Agency, reflecting improved cost management and operational efficiency.

Operationally, Booz Allen Hamilton employed approximately 35,800 individuals as of March 31, 2025, with nearly 72% holding security clearances, underscoring the company's commitment to maintaining a skilled workforce capable of meeting the demands of its government contracts. The company reported a win rate of 56% on new contracts and 92% on recompeted contracts, demonstrating its competitive position in the government contracting space. Furthermore, Booz Allen's liquidity stood at $1.9 billion, consisting of $885 million in cash and cash equivalents and $999 million available under its revolving credit facility, providing a solid foundation for future growth.

Looking ahead, Booz Allen Hamilton expressed optimism about its growth trajectory, driven by its VoLT strategy, which emphasizes velocity, leadership, and technology. The company aims to position itself as a leading mission partner for the U.S. government by 2030, focusing on integrating and scaling advanced technologies to address national security priorities. However, the company also acknowledged potential risks, including changes in U.S. government spending and procurement practices, which could impact future revenue and operational performance.