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Business Wire
5 days ago
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- Business Wire
Maximus Reports Fiscal Year 2025 Third Quarter Results
TYSONS, Va.--(BUSINESS WIRE)-- Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three and nine months ending June 30, 2025. 'Our third quarter results reflect once again the resilience of our business model that is underpinned by consistent delivery at scale of critical government services,' - Bruce Caswell, President and Chief Executive Officer Share Highlights for the third quarter of fiscal year 2025 include: Revenue increased 2.5% to $1.35 billion, compared to $1.31 billion for the prior year period. Organic growth was 4.3% driven primarily by strong performance in the U.S. Federal Services Segment. Diluted earnings per share were $1.86 and adjusted diluted earnings per share were $2.16, compared to $1.46 and $1.74, respectively, for the prior year period. The company is raising revenue and earnings guidance for fiscal year 2025. Full-year revenue is expected to range between $5.375 billion and $5.475 billion. Adjusted EBITDA margin is expected to be approximately 13% and adjusted diluted earnings per share are expected to range between $7.35 and $7.55 per share for the full fiscal year 2025. A quarterly cash dividend of $0.30 per share is payable on August 31, 2025, to shareholders of record on August 15, 2025. 'Our third quarter results reflect once again the resilience of our business model that is underpinned by consistent delivery at scale of critical government services,' said Bruce Caswell, President and Chief Executive Officer. 'We are grateful to play a central role in supporting our customers' missions by delivering essential services efficiently and accountably." Caswell added, 'Over the 50 years that Maximus has served as a trusted and impartial delivery partner for government, we've consistently demonstrated adaptability as legislation and regulatory changes lead to new program imperatives and advanced technologies like AI reshape citizen services." Third Quarter Results Revenue for the third quarter of fiscal year 2025 increased 2.5% to $1.35 billion, compared to $1.31 billion for the prior year period. Organic growth was 4.3% primarily due to the U.S. Federal Services Segment and, to a lesser degree, contributions from the Outside the U.S. Segment. The U.S. Services Segment delivered expected results following the prior year period's over-performance from Medicaid-related activities. For the third quarter of fiscal year 2025, operating margin was 12.3% and the adjusted EBITDA margin was 14.7%. This compares to margins of 10.8% and 13.1%, respectively, for the prior year period. Diluted earnings per share were $1.86 and adjusted diluted earnings per share were $2.16. This compares to $1.46 and $1.74, respectively, for the prior year period. U.S. Federal Services Segment U.S. Federal Services Segment revenue for the third quarter of fiscal year 2025 increased 11.4% to $761.2 million, compared to $683.3 million reported for the prior year period. All growth was organic and driven primarily by a trend across this fiscal year of elevated volumes on programs in the clinical portfolio. The segment operating margin for the third quarter of fiscal year 2025 was 18.1%, compared to 15.5% reported for the prior year period. Processing of elevated volume on behalf of our customers across several different program areas provided additional benefit to this quarter's margin. The full-year fiscal 2025 operating margin for the U.S. Federal Services Segment is now expected to be approximately 15%. U.S. Services Segment U.S. Services Segment revenue for the third quarter of fiscal year 2025 decreased 6.9% to $439.8 million, compared to $472.3 million reported in the prior year period. Similar to the first two quarters of this year, the decrease resulted from the prior year period containing excess volumes from Medicaid-related activities, including the unwinding exercise that drove extra redeterminations. The segment operating margin for the third quarter of fiscal year 2025 was 10.2%, compared to 13.0% reported for the prior year period. The higher margin in the prior year period was a direct benefit of the excess volumes that were temporary. The full-year fiscal 2025 operating margin for the U.S. Services Segment is now expected to be approximately 10.5%. Outside the U.S. Segment Outside the U.S. Segment revenue for the third quarter of fiscal year 2025 decreased to $147.4 million, compared to $159.3 million reported in the prior year period. The revenue reduction was due to the divestitures of multiple employment services businesses in prior periods, and partially offset by positive organic growth of 7.3%. The segment operating margin for the third quarter of fiscal year 2025 was 4.0%, compared to an operating loss of 0.9% in the prior year period. A trend of improved profitability for the segment across this fiscal year continues following the divestitures of multiple employment services businesses. Sales and Pipeline Year-to-date signed contract awards at June 30, 2025, totaled $3.37 billion, and contracts pending (awarded but unsigned) totaled $1.44 billion. The book-to-bill ratio at June 30, 2025, was 0.8x as calculated on a trailing twelve-month basis. The sales pipeline at June 30, 2025, totaled $44.7 billion, comprised of approximately $3.05 billion in proposals pending, $1.20 billion in proposals in preparation, and $40.4 billion in opportunities we are tracking. New work opportunities represent approximately 63% of the total sales pipeline. Balance Sheet and Cash Flows At June 30, 2025, unrestricted cash and cash equivalents totaled $59.8 million, and gross debt was $1.67 billion. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended June 30, 2025, as calculated on a trailing twelve-month basis in accordance with our credit agreement, was 2.1x compared to 1.9x at March 31, 2025. The current debt ratio stands at the low end of our 2x to 3x target net leverage range and recent quarters of increased borrowings are due to a combination of Maximus common stock purchases and temporary working capital needs. For the third quarter of fiscal year 2025, cash used in operating activities totaled $182.7 million and free cash flow was an outflow of $198.2 million. Operating cash flows were impacted primarily by payment delays on two large programs as contemplated in prior guidance in which Days Sales Outstanding (DSO) were estimated to peak in this quarter-ended June 30, 2025. DSO were 96 days at June 30, 2025, compared with 73 days at March 31, 2025. Subsequent to June 30, 2025, collections have improved substantially and are anticipated to continue through the end of this fiscal year. As a result, fiscal year 2025 guidance for free cash flow is increasing. The current Board of Directors authorization announced in December 2024 has $65.8 million available for future purchases of Maximus common stock. On July 5, 2025, our Board of Directors declared a quarterly cash dividend of $0.30 for each share of our common stock outstanding. The dividend is payable on August 31, 2025, to shareholders of record on August 15, 2025. Raising Fiscal Year 2025 Guidance Maximus is raising revenue, earnings, and free cash flow guidance for fiscal year 2025. Revenue guidance is increasing by $100 million at the midpoint and is now expected to range between $5.375 billion and $5.475 billion. The full year adjusted EBITDA margin guidance, which excludes divestiture-related charges, improves by 130 basis points to approximately 13%, compared to prior guidance. Guidance for adjusted diluted earnings per share, which excludes expense for amortization of intangible assets and divestiture-related charges, increases by $1.00 at the midpoint and is now expected to range between $7.35 and $7.55 per share for fiscal year 2025. Free cash flow guidance increases by $10 million at the midpoint and is now expected to range between $370 million and $390 million for fiscal year 2025. Interest expense is now estimated to be $81 million for fiscal year 2025. The full year tax rate is still expected to range between 28% and 29% and the weighted average shares outstanding forecast of approximately 58 million shares is unchanged for fiscal year 2025. Conference Call and Webcast Information Maximus will host a conference call this morning, August 7, 2025, at 9:00 a.m. ET. The call is open to the public and available by webcast or by phone at: 877.407.8289 (Domestic) / +1.201.689.8341 (International) For those unable to listen to the live call, a recording of the webcast will be available on About Maximus As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit Non-GAAP Measures and Forward-Looking Statements This release contains non-GAAP measures and other indicators, including organic growth, free cash flow, operating income and EPS adjusted for amortization of intangible assets and divestiture-related charges, adjusted EBITDA, consolidated EBITDA (as defined by our Credit Agreement) and other non-GAAP measures. A description of these non-GAAP measures and details as to how they are calculated are included with our earnings presentation and forthcoming Form 10-Q. The presentation of these non-GAAP numbers is not meant to be considered in isolation, nor as alternatives to cash flows from operations, revenue growth, operating income, or net income as measures of performance. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures presented by other companies. Statements that are not historical facts, including statements about our confidence and strategies, and our guidance and expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand, or acceptance of our products are forward-looking statements that involve risks and uncertainties. These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. The guidance is only effective as of the date given. We undertake no obligation to update the guidance herein as circumstances evolve. A Special Note Regarding Forward-Looking Statements is included within our forthcoming Form 10-Q and a summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2024, which was filed with the Securities and Exchange Commission (SEC) on November 21, 2024, as supplemented by the risk factor set forth in Part II, Item 1A "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC on May 8, 2025. Our SEC reports are accessible on Maximus, Inc. Consolidated Balance Sheets September 30, 2024 (unaudited) (in thousands) Assets: Cash and cash equivalents $ 59,777 $ 183,123 Accounts receivable, net 1,422,350 879,514 Income taxes receivable 5,661 5,282 Prepaid expenses and other current assets 117,243 132,625 Total current assets 1,605,031 1,200,544 Property and equipment, net 34,536 38,977 Capitalized software, net 217,433 187,677 Operating lease right-of-use assets 115,437 133,594 Goodwill 1,782,836 1,782,871 Intangible assets, net 561,566 630,569 Deferred contract costs, net 60,392 59,432 Deferred compensation plan assets 58,714 55,913 Deferred income taxes 11,059 14,801 Other assets 15,289 27,130 Total assets $ 4,462,293 $ 4,131,508 Liabilities and Shareholders' Equity: Liabilities: Accounts payable and accrued liabilities $ 281,994 $ 303,321 Accrued compensation and benefits 164,194 237,121 Deferred revenue, current portion 70,197 83,238 Income taxes payable 31,310 26,535 Long-term debt, current portion 48,263 40,139 Operating lease liabilities, current portion 39,882 47,656 Other current liabilities 70,311 69,519 Total current liabilities 706,151 807,529 Deferred revenue, non-current portion 48,990 45,077 Deferred income taxes 161,426 169,118 Long-term debt, non-current portion 1,608,982 1,091,954 Deferred compensation plan liabilities, non-current portion 58,736 57,599 Operating lease liabilities, non-current portion 83,390 97,221 Other liabilities 21,582 20,195 Total liabilities 2,689,257 2,288,693 Shareholders' equity: Common stock, no par value; 100,000 shares authorized; 56,350 and 60,352 shares issued and outstanding as of June 30, 2025, and September 30, 2024, respectively 627,496 598,304 Accumulated other comprehensive loss (12,629 ) (32,460 ) Retained earnings 1,158,169 1,276,971 Total shareholders' equity 1,773,036 1,842,815 Total liabilities and shareholders' equity $ 4,462,293 $ 4,131,508 Expand Maximus, Inc. Consolidated Statements of Cash Flows (Unaudited) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (in thousands) Cash flows from operating activities: Net income $ 105,981 $ 89,752 $ 243,746 $ 234,410 Adjustments to reconcile net income to cash flows from operations: Depreciation and amortization of property, equipment, and capitalized software 9,607 7,530 27,502 24,146 Amortization of intangible assets 23,010 23,542 69,041 68,532 Amortization of debt issuance costs and debt discount 736 1,697 2,046 2,899 Deferred income taxes (5,239 ) 4,545 (5,829 ) (3,770 ) Stock compensation expense 10,749 9,481 30,324 27,605 Divestiture-related charges — — 39,343 1,018 Change in assets and liabilities, net of effects of business combinations and divestitures: Accounts receivable (318,415 ) 65,857 (553,297 ) (26,528 ) Prepaid expenses and other current assets 1,398 (616 ) 9,341 19,316 Deferred contract costs 1,059 (4,777 ) (856 ) (8,377 ) Accounts payable and accrued liabilities (27,751 ) 4,642 (21,808 ) (1,659 ) Accrued compensation and benefits (2,368 ) (10,487 ) (50,369 ) (21,043 ) Deferred revenue 2,618 7,374 (8,675 ) 18,079 Income taxes 12,090 (2,734 ) 5,625 10,576 Operating lease right-of-use assets and liabilities (1,145 ) (1,746 ) (3,508 ) (2,131 ) Other assets and liabilities 4,952 5,268 (2,626 ) 8,351 Net cash (used in)/provided by operating activities (182,718 ) 199,328 (220,000 ) 351,424 Cash flows from investing activities: Purchases of property and equipment and capitalized software (15,488 ) (34,690 ) (55,686 ) (82,237 ) Asset acquisition — — — (18,006 ) Proceeds from divestitures — — 736 3,078 Other — — (2,165 ) — Net cash used in investing activities (15,488 ) (34,690 ) (57,115 ) (97,165 ) Cash flows from financing activities: Cash dividends paid to Maximus shareholders (16,904 ) (18,239 ) (51,865 ) (54,847 ) Purchases of Maximus common stock — (47,275 ) (306,443 ) (47,275 ) Tax withholding related to RSU vesting (10 ) — (16,451 ) (13,455 ) Payments for contingent consideration — (2,809 ) — (10,977 ) Payments for debt financing costs — (9,724 ) (1,658 ) (9,724 ) Proceeds from borrowings 376,208 426,757 1,335,208 850,166 Principal payments for debt (212,535 ) (488,038 ) (810,174 ) (952,825 ) Other (643 ) 3,996 (1,824 ) 9,118 Net cash provided by/(used in) financing activities 146,116 (135,332 ) 146,793 (229,819 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 1,528 155 (65 ) 1,270 Net change in cash, cash equivalents, and restricted cash (50,562 ) 29,461 (130,387 ) 25,710 Cash, cash equivalents, and restricted cash, beginning of period 155,938 118,340 235,763 122,091 Expand Maximus, Inc. Consolidated Results of Operations by Segment (Unaudited) For the Three Months Ended For the Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (dollars in thousands) Revenue: U.S. Federal Services $ 761,174 $ 683,347 $ 2,319,756 $ 2,062,127 U.S. Services 439,818 472,298 1,334,418 1,448,258 Outside the U.S. 147,408 159,284 458,687 479,942 Revenue $ 1,348,400 $ 1,314,929 $ 4,112,861 $ 3,990,327 Gross profit: U.S. Federal Services $ 226,134 29.7 % $ 186,075 27.2 % $ 601,507 25.9 % $ 506,074 24.5 % U.S. Services 105,932 24.1 % 121,012 25.6 % 312,706 23.4 % 369,497 25.5 % Outside the U.S. 27,447 18.6 % 25,227 15.8 % 85,678 18.7 % 74,386 15.5 % Gross profit $ 359,513 26.7 % $ 332,314 25.3 % $ 999,891 24.3 % $ 949,957 23.8 % Selling, general, and administrative expenses: U.S. Federal Services $ 88,272 11.6 % $ 79,949 11.7 % $ 245,563 10.6 % $ 247,671 12.0 % U.S. Services 60,975 13.9 % 59,531 12.6 % 173,096 13.0 % 174,032 12.0 % Outside the U.S. 21,507 14.6 % 26,647 16.7 % 66,822 14.6 % 75,249 15.7 % Divestiture-related charges (2) — NM — NM 39,343 NM 1,018 NM Other (3) 77 NM 906 NM 599 NM 6,712 NM Selling, general, and administrative expenses $ 170,831 12.7 % $ 167,033 12.7 % $ 525,423 12.8 % $ 504,682 12.6 % Operating income: U.S. Federal Services $ 137,862 18.1 % $ 106,126 15.5 % $ 355,944 15.3 % $ 258,403 12.5 % U.S. Services 44,957 10.2 % 61,481 13.0 % 139,610 10.5 % 195,465 13.5 % Outside the U.S. 5,940 4.0 % (1,420 ) (0.9 )% 18,856 4.1 % (863 ) (0.2 )% Amortization of intangible assets (23,010 ) NM (23,542 ) NM (69,041 ) NM (68,532 ) NM Divestiture-related charges (2) — NM — NM (39,343 ) NM (1,018 ) NM Other (3) (77 ) NM (906 ) NM (599 ) NM (6,712 ) NM Operating income $ 165,672 12.3 % $ 141,739 10.8 % $ 405,427 9.9 % $ 376,743 9.4 % Expand (1) Percentage of respective revenue, as applicable. Percentages not considered meaningful are marked "NM." (2) During fiscal years 2025 and 2024, we have divested businesses from our Outside the U.S. Segment. (3) Other expenses includes credits and costs that are not allocated to a particular segment. Expand Maximus, Inc. Non-GAAP Adjusted Results - Operating Income, Adjusted EBITDA, Net Income, and Diluted Earnings per Share (Unaudited) For the Three Months Ended For the Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (dollars in thousands, except per share data) Operating income $ 165,672 $ 141,739 $ 405,427 $ 376,743 Add back: Amortization of intangible assets 23,010 23,542 69,041 68,532 Add back: Divestiture-related charges — — 39,343 1,018 Add back: Depreciation and amortization of property, equipment, and capitalized software 9,607 7,530 27,502 24,146 Adjusted EBITDA (Non-GAAP) $ 198,289 $ 172,811 $ 541,313 $ 470,439 Adjusted EBITDA margin (Non-GAAP) 14.7 % 13.1 % 13.2 % 11.8 % Net income $ 105,981 $ 89,752 $ 243,746 $ 234,410 Add back: Amortization of intangible assets, net of tax 16,958 17,350 50,883 50,508 Add back: Divestiture-related charges — — 39,343 1,018 Adjusted net income excluding amortization of intangible assets and divestiture-related charges (Non-GAAP) $ 122,939 $ 107,102 $ 333,972 $ 285,936 Diluted earnings per share $ 1.86 $ 1.46 $ 4.20 $ 3.81 Add back: Effect of amortization of intangible assets on diluted earnings per share 0.30 0.28 0.88 0.82 Add back: Effect of divestiture-related charges on diluted earnings per share — — 0.67 0.02 Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related charges (Non-GAAP) $ 2.16 $ 1.74 $ 5.75 $ 4.65 Expand
Yahoo
29-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Maximus's Q1 Earnings Call
Maximus delivered a steady first quarter, with revenue holding flat year over year and non-GAAP profits surpassing Wall Street forecasts. Management credited the results to operational efficiencies, particularly in the U.S. Federal Services segment, and successful implementation of automation in areas such as the No Surprises Act contract and Veterans Affairs case preparation. CEO Bruce Caswell highlighted that investments in artificial intelligence and process automation have begun to pay off, enabling the company to handle greater volumes and redirect staff to higher-value work. Is now the time to buy MMS? Find out in our full research report (it's free). Revenue: $1.36 billion vs analyst estimates of $1.29 billion (flat year on year, 5.2% beat) Adjusted EPS: $2.01 vs analyst estimates of $1.38 (45.7% beat) Adjusted EBITDA: $186.4 million vs analyst estimates of $139 million (13.7% margin, 34.1% beat) The company slightly lifted its revenue guidance for the full year to $5.33 billion at the midpoint from $5.28 billion Management raised its full-year Adjusted EPS guidance to $6.45 at the midpoint, a 6.6% increase Operating Margin: 11.2%, up from 9.5% in the same quarter last year Market Capitalization: $4.02 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Charlie Strauzer (CJS Securities) asked how the raised guidance accounted for the quarter's strong performance and the outlook for the remainder of the year. CFO David Mutryn explained that guidance reflects Q2 results and remains cautious due to environmental risks. Charlie Strauzer (CJS Securities) inquired about the drivers behind the strong operating margin. CEO Bruce Caswell credited increased volumes and successful automation, particularly in enabling staff to focus on higher-value activities. Charlie Strauzer (CJS Securities) questioned the impact of increased federal scrutiny and whether procurement delays were affecting the pipeline. Caswell acknowledged delays in civilian agency contracts but noted healthy proposal activity and some benefit from contract extensions. Charlie Strauzer (CJS Securities) requested more detail on the performance of the Outside The U.S. segment. CFO David Mutryn highlighted improvements from restructuring and steady growth in the UK's functional assessment services contract. Charlie Strauzer (CJS Securities) asked about the sustainability of the current business mix and pipeline. Management pointed to a balanced approach, with no reliance on new contract wins to achieve this year's forecasts, but acknowledged uncertainty in future awards. As we look to upcoming quarters, the StockStory team will be watching (1) whether automation and AI investments continue to drive operational efficiencies and margin improvement, (2) progress in securing new and rebid clinical assessment and federal contracts, and (3) the impact of ongoing government spending reviews on contract renewals and pricing. Developments in the company's international business mix and federal procurement pipeline will also be critical signposts. Maximus currently trades at $71.37, up from $67.22 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Maximus Named a Top Washington-Area Workplace by The Washington Post
For the second consecutive year, Maximus honored for its exceptional workplace culture TYSONS, Va., June 23, 2025--(BUSINESS WIRE)--Maximus, a leading employer and provider of government services, announced it has been named one of The Washington Post's 2025 Top Workplaces in the Washington, D.C. area. This marks the second consecutive year Maximus earned a spot on the list, which is based solely on employee feedback gathered through an anonymous, third-party survey by research partner Energage, LLC. The survey measured several aspects of workplace culture, including alignment, execution, and connection. This year's list honors technology companies, real estate firms, and financial service providers. "Across Maximus, we're more than colleagues. We are a community united in a mission bigger than ourselves to help the millions of people we interact with every year," said Bruce Caswell, CEO, Maximus. "Our success is directly attributed to the connectors, innovators, and problem solvers at Maximus who go above and beyond to help government agencies deliver the right services to the right people at the right time. As Maximus celebrates our 50th anniversary this year, we take pride in our culture of excellence, and receiving this prestigious honor from The Washington Post for the second year reflects our strong culture and it affirms that our people know they are seen, heard, and valued." In the past year, Maximus has been lauded with a series of company- and employee-focused awards. Thus far in 2025, Maximus has been named to Fortune's Most Innovative Company List, recognized by Time Magazine for its World's Best Company List, and earned a spot on Newsweek's list of America's Greatest Workplaces. Other honors include being ranked as a Five-Star Employer for Veterans and named a Top Veteran Employer by Maximus' most recent internal, independent Global Employee Engagement Survey reinforces these recognitions. The survey found the company "created a positive and consistently improved employee experience by fostering a culture of listening, feedback, transparency, and accountability." Additionally, nearly 90 percent of Maximus employees reported favorable views on communications, access to resources, and a work environment that fosters trust and openness. "For 12 years, The Washington Post's Top Workplaces list has served as an essential resource for D.C.-area professionals, equipping them with unparalleled insight into the best local companies to work for, as heard directly from their employees," said Bronwen Latimer, the editor for Special Initiatives at the Washington Post. "This year we have highlighted 250 companies who are making a difference in business and in our communities." The Washington Post hosted an awards ceremony on Wednesday, June 18 to recognize the top-ranked companies. For more about The Washington Post's Top Workplaces and to see the full list of this year's honorees, click here. For more information on Maximus employment and current openings, please visit: About Maximus As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit About The Washington Post The Washington Post is an award-winning media publisher dedicated to holding truth to power through impactful and consequential journalism. With the mission to connect, inform and enlighten, its trustworthy reporting, in-depth analysis and engaging opinions are consumed daily by millions of readers around the world. About Energage Making the world a better place to work together.™ Energage is an HR technology company committed to building and promoting award-winning, people-first cultures. As the research firm powering the Top Workplaces employer recognition program, Energage leverages employee survey insights to identify and celebrate exceptional organizations at regional, national, and industry levels. Our all-in-one platform equips companies to attract top talent, unlock potential, and keep employees engaged — driving culture, growth, and performance. Learn more at and View source version on Contacts Media & Public RelationsEileen Riveramedia@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
23-06-2025
- Business
- Business Wire
Maximus Named a Top Washington-Area Workplace by The Washington Post
TYSONS, Va.--(BUSINESS WIRE)-- Maximus, a leading employer and provider of government services, announced it has been named one of The Washington Post's 2025 Top Workplaces in the Washington, D.C. area. This marks the second consecutive year Maximus earned a spot on the list, which is based solely on employee feedback gathered through an anonymous, third-party survey by research partner Energage, LLC. The survey measured several aspects of workplace culture, including alignment, execution, and connection. This year's list honors technology companies, real estate firms, and financial service providers. 'Across Maximus, we're more than colleagues. We are a community united in a mission bigger than ourselves to help the millions of people we interact with every year,' said Bruce Caswell, CEO, Maximus. Share 'Across Maximus, we're more than colleagues. We are a community united in a mission bigger than ourselves to help the millions of people we interact with every year,' said Bruce Caswell, CEO, Maximus. 'Our success is directly attributed to the connectors, innovators, and problem solvers at Maximus who go above and beyond to help government agencies deliver the right services to the right people at the right time. As Maximus celebrates our 50 th anniversary this year, we take pride in our culture of excellence, and receiving this prestigious honor from The Washington Post for the second year reflects our strong culture and it affirms that our people know they are seen, heard, and valued.' In the past year, Maximus has been lauded with a series of company- and employee-focused awards. Thus far in 2025, Maximus has been named to Fortune's Most Innovative Company List, recognized by Time Magazine for its World's Best Company List, and earned a spot on Newsweek's list of America's Greatest Workplaces. Other honors include being ranked as a Five-Star Employer for Veterans and named a Top Veteran Employer by Maximus' most recent internal, independent Global Employee Engagement Survey reinforces these recognitions. The survey found the company 'created a positive and consistently improved employee experience by fostering a culture of listening, feedback, transparency, and accountability.' Additionally, nearly 90 percent of Maximus employees reported favorable views on communications, access to resources, and a work environment that fosters trust and openness. 'For 12 years, The Washington Post's Top Workplaces list has served as an essential resource for D.C.-area professionals, equipping them with unparalleled insight into the best local companies to work for, as heard directly from their employees," said Bronwen Latimer, the editor for Special Initiatives at the Washington Post. 'This year we have highlighted 250 companies who are making a difference in business and in our communities.' The Washington Post hosted an awards ceremony on Wednesday, June 18 to recognize the top-ranked companies. For more about The Washington Post's Top Workplaces and to see the full list of this year's honorees, click here. For more information on Maximus employment and current openings, please visit: About Maximus As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit About The Washington Post The Washington Post is an award-winning media publisher dedicated to holding truth to power through impactful and consequential journalism. With the mission to connect, inform and enlighten, its trustworthy reporting, in-depth analysis and engaging opinions are consumed daily by millions of readers around the world. About Energage Making the world a better place to work together.™ Energage is an HR technology company committed to building and promoting award-winning, people-first cultures. As the research firm powering the Top Workplaces employer recognition program, Energage leverages employee survey insights to identify and celebrate exceptional organizations at regional, national, and industry levels. Our all-in-one platform equips companies to attract top talent, unlock potential, and keep employees engaged — driving culture, growth, and performance. Learn more at and
Yahoo
08-05-2025
- Business
- Yahoo
Maximus (NYSE:MMS) Reports Upbeat Q1, Stock Soars
Government services provider Maximus (NYSE:MMS) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales were flat year on year at $1.36 billion. The company expects the full year's revenue to be around $5.33 billion, close to analysts' estimates. Its non-GAAP profit of $2.01 per share was 45.7% above analysts' consensus estimates. Is now the time to buy Maximus? Find out in our full research report. Revenue: $1.36 billion vs analyst estimates of $1.29 billion (flat year on year, 5.2% beat) Adjusted EPS: $2.01 vs analyst estimates of $1.38 (45.7% beat) Adjusted EBITDA: $186.4 million vs analyst estimates of $139 million (13.7% margin, 34.1% beat) The company slightly lifted its revenue guidance for the full year to $5.33 billion at the midpoint from $5.28 billion Management raised its full-year Adjusted EPS guidance to $6.45 at the midpoint, a 6.6% increase Operating Margin: 11.2%, up from 9.5% in the same quarter last year Free Cash Flow Margin: 1.9%, down from 6.5% in the same quarter last year Market Capitalization: $3.80 billion 'We are proud of our teams across the business who are focused on mission-critical service delivery of important government programs,' said Bruce Caswell, President and Chief Executive Officer. With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally. A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $5.40 billion in revenue over the past 12 months, Maximus is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. As you can see below, Maximus's 11.1% annualized revenue growth over the last five years was excellent. This shows it had high demand, a useful starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Maximus's annualized revenue growth of 6.5% over the last two years is below its five-year trend, but we still think the results were respectable. This quarter, Maximus's $1.36 billion of revenue was flat year on year but beat Wall Street's estimates by 5.2%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and suggests its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Maximus was profitable over the last five years but held back by its large cost base. Its average operating margin of 8.3% was weak for a business services business. Looking at the trend in its profitability, Maximus's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q1, Maximus generated an operating profit margin of 11.2%, up 1.8 percentage points year on year. This increase was a welcome development and shows it was more efficient. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Maximus's EPS grew at an astounding 16.1% compounded annual growth rate over the last five years, higher than its 11.1% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. We can take a deeper look into Maximus's earnings quality to better understand the drivers of its performance. A five-year view shows that Maximus has repurchased its stock, shrinking its share count by 11%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q1, Maximus reported EPS at $2.01, up from $1.57 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Maximus's full-year EPS of $6.82 to shrink by 5.7%. We were impressed by how significantly Maximus blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also excited it lifted its full-year revenue and EPS guidance. Zooming out, we think this was a solid print. The stock traded up 5.8% to $71.11 immediately following the results. Indeed, Maximus had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
