Maximus, Inc. reported a slight increase in revenue for the second quarter of fiscal year 2025, achieving $1.36 billion, up from $1.35 billion in the same period last year. The company's gross profit also rose to $338.8 million, reflecting a gross profit margin of 24.9%, compared to 23.6% in the prior year. Operating income increased to $153.0 million, up from $127.5 million, while net income for the quarter was $96.6 million, compared to $80.5 million in the previous year. Earnings per share rose to $1.69, up from $1.31, indicating a positive trend in profitability.
In terms of operational performance, Maximus experienced a 3.0% organic growth in revenue, driven by increased demand for its services, particularly in the U.S. Federal Services segment, which saw revenue rise to $777.9 million from $701.7 million. However, the U.S. Services segment reported a decline in revenue to $442.4 million from $486.1 million, attributed to a normalization of activities following heightened volumes related to Medicaid redetermination in the previous fiscal year. The Outside the U.S. segment also faced challenges, with revenue decreasing to $141.5 million from $160.5 million, primarily due to divestitures.
Strategically, Maximus has continued to focus on its core mission of improving public service delivery. The company has made significant investments in technology, including the launch of its Total Experience Management (TXM) platform, aimed at enhancing customer service for federal agencies. Additionally, Maximus has divested its operations in Australia and Korea, which has impacted revenue but is expected to improve overall margins. The divestiture-related charges amounted to $39.3 million, reflecting accumulated foreign exchange losses and indemnifications provided to the buyer.
Maximus reported a total debt of $1.51 billion as of March 31, 2025, with an effective interest rate of 5.4%. The company has maintained compliance with its debt covenants and has access to approximately $615 million through its revolving credit facility. Looking ahead, Maximus anticipates continued growth opportunities, particularly in its Federal Services segment, while managing the impacts of divestitures and market conditions. The company expects to maintain a full-year operating margin of approximately 12.5% to 13.0% for its Federal Services segment and around 11% for its U.S. Services segment.
About MAXIMUS, INC.
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