Strong First Quarter Results
Maximus reported revenue of $1.40 billion for Q1 FY2025, representing a 5.7% year-over-year growth, with 6.3% on an organic basis. Adjusted EPS was $1.61 for the quarter, up from $1.34 in the prior year period.
Successful Contract Recompetes
The company secured favorable outcomes on key contracts, including the CMS contact center operations and VA medical disability examination work. These contracts are expected to continue through 2031 and have been reawarded for two years, respectively.
Divestiture of Non-core Operations
Maximus completed the divestiture of its employment services businesses in Australia and South Korea, reducing volatility and improving profitability in its Outside the US segment.
Increase in Share Repurchase Program
The Board of Directors authorized an increase of $200 million to the share repurchase program. Approximately $290 million was deployed in share repurchases from the fiscal year start through last week.
New Contract Wins and Pipeline Strength
Maximus secured new contracts, including a $76 million contract with the Federal Reserve System and a $123 million contract with the National Energy Technology Laboratory, contributing to a strong pipeline.