Maximus Reports Strong Fiscal Year 2025 Results

Maximus ( (MMS) ) has released its Q4 earnings. Here is a breakdown of the information Maximus presented to its investors.

Maximus is a prominent provider of government services, specializing in tech-enabled solutions for public service delivery across various sectors, including health and economic challenges. The company recently released its fiscal year 2025 earnings report, highlighting a year of notable achievements with revenue growth, margin expansion, and strong cash generation. Maximus reported a 2.4% increase in full-year revenue to $5.43 billion, driven by a 3.9% organic growth primarily from the U.S. Federal Services Segment. The operating margin improved to 9.7%, and the adjusted EBITDA margin reached 12.9%. Diluted earnings per share were $5.51, with adjusted diluted earnings per share at $7.36. The company also generated $429 million in cash flows from operating activities and repurchased 5.8 million shares of its stock. The U.S. Federal Services Segment saw a 12.1% revenue increase to $3.07 billion, bolstered by clinical program volume growth and natural disaster support activities. Conversely, the U.S. Services Segment experienced a 7.7% revenue decline due to reduced Medicaid-related activities, while the Outside the U.S. Segment’s revenue decreased by 8.7% following divestitures. Looking ahead, Maximus is focusing on expanding its U.S. Federal market presence and leveraging AI-enabled automation to drive future growth. The company anticipates fiscal year 2026 revenue between $5.225 billion and $5.425 billion, with an adjusted EBITDA margin of approximately 13.7%.