On May 24, 2024, Booz Allen Hamilton Holding Corp (BAH, Financial) released its 8-K filing announcing its fourth quarter and full year fiscal 2024 results. Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government, specializing in technology and engineering consulting, with a focus on defense, intelligence, and civil markets.
Fiscal Year 2024 Highlights
Booz Allen Hamilton reported a remarkable fiscal year 2024, achieving its best performance since its IPO. The company recorded an annual revenue increase of 15.2% to $10.7 billion, surpassing the analyst estimate of $10.61 billion. Organic revenue growth was 14.5%, and revenue excluding billable expenses grew by 14.4%. The company also reported an annual diluted earnings per share (EPS) of $4.59, slightly below the estimated $4.81, but adjusted diluted EPS was $5.50.
Q4 FY2024 Performance
In the fourth quarter, Booz Allen Hamilton delivered strong results with revenue of $2.77 billion, a 13.9% increase compared to the prior year period, exceeding the analyst estimate of $2.72 billion. The company reported a net income of $128.0 million, a significant improvement from a net loss of $68.3 million in Q4 FY2023. Adjusted EBITDA for the quarter was $286.8 million, up 23.9% year-over-year.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue | $2.77B | $2.43B | $10.66B | $9.26B |
| Net Income | $128.0M | $(68.3)M | $605.7M | $271.2M |
| Adjusted EBITDA | $286.8M | $231.5M | $1.18B | $1.01B |
| Diluted EPS | $0.98 | $(0.52) | $4.59 | $2.03 |
| Adjusted Diluted EPS | $1.33 | $1.01 | $5.50 | $4.56 |
Operational Achievements and Challenges
Booz Allen Hamilton's strong performance was driven by double-digit organic revenue growth in federal defense and civil markets, robust headcount growth, and a solid backlog. The company reported a 7.4% year-over-year increase in client staff headcount and a 7.2% increase in total headcount. The total backlog increased by 8.4% to $33.8 billion, with a trailing twelve-month book-to-bill ratio of 1.25x.
"Booz Allen is 110 years young and transforming to create our future. Our extraordinary workforce is delivering innovation to missions of national importance and our operations are creating efficiency and resiliency across the business. As we report the company’s best performance since going public, our VoLT strategy continues to create outstanding value for our employees, clients, and investors." — Horacio Rozanski, President and Chief Executive Officer
Financial Position and Cash Flow
As of March 31, 2024, Booz Allen Hamilton reported total assets of $6.56 billion, with cash and cash equivalents of $554.3 million. The company's net cash provided by operating activities was $258.8 million for fiscal year 2024, compared to $602.8 million in the prior year. Free cash flow for fiscal year 2024 was $192.1 million, down from $526.7 million in fiscal year 2023.
Conclusion
Booz Allen Hamilton Holding Corp (BAH, Financial) has demonstrated strong financial performance in fiscal year 2024, driven by robust organic growth and increased backlog. Despite some challenges, the company's strategic initiatives and operational efficiency have positioned it well for continued success. Investors and stakeholders can find more detailed information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Booz Allen Hamilton Holding Corp for further details.
