Q4 2026 Booz Allen Hamilton Holding Corp Earnings Call Transcript
Key Points
- Booz Allen Hamilton Holding Corp (BAH) exceeded profit expectations for fiscal year 2026, delivering $1.2 billion of adjusted EBITDA and an adjusted margin of 11%.
- The company saw significant growth in outcome-based opportunities and contracts, with a nearly 90% increase in OTA proposal submissions and about a 50% increase in OTA awards compared to the prior year.
- Booz Allen Hamilton Holding Corp (BAH) accelerated the creation of differentiated offerings and products across its cyber and defense tech sectors, including the Vellox suite and EdgeXtend product lines.
- The company ended the year with a backlog of over $38 billion and a trailing 12-month book-to-bill of 1.1 times, indicating strong demand.
- Booz Allen Hamilton Holding Corp (BAH) generated robust free cash flow of $951 million and deployed $1.1 billion of capital through strategic investments, dividends, and share repurchases.
- Fiscal year 2026 was challenging for Booz Allen Hamilton Holding Corp (BAH) due to unprecedented headwinds in its Civil business and significant market changes.
- The company's Civil business declined 23% year-over-year in the fourth quarter, driven by comp headwinds from contract roll-offs and reductions.
- Booz Allen Hamilton Holding Corp (BAH) expects its Civil portfolio to continue declining in fiscal year 2027, particularly in the first half, due to challenging comps and reduced work at Treasury.
- The macro environment remains fluid and uncertain, with potential volatility and choppiness due to procurement changes and geopolitical factors.
- Despite strong execution, the company faces pressure from declining Civil revenues, which could impact margins in fiscal year 2027.
Good morning. Thank you for standing by, and welcome to Booz Allen Hamilton's earnings call covering fourth-quarter fiscal year 2026 results. (Operator Instructions) I'd now like to turn the call over to the Head of Investor Relations, Dustin Darensbourg.
Thank you. Good morning and thank you all for joining us for Booz Allen's fourth-quarter fiscal year 2026 earnings call. We hope you've had an opportunity to read the press release we issued earlier this morning. We also have provided presentation slides on our website and are now on slide 2.
With me today to talk about our business and financial results are Horacio Rozanski, our Chairman and Chief Executive Officer; Kristine Martin Anderson, President and Chief Operating Officer; and Troy Lahr, Executive Vice President and Chief Financial Officer.
As shown on the disclaimer on slide 3, please keep in mind that some of the items we will discuss this morning are forward-looking and may relate to future events or
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