DEF: Maximus Reports Record Earnings and Revenue Growth in Fiscal Year 2024, Announces Annual Shareholder Meeting

Maximus achieved record adjusted earnings per share and over 8% revenue growth in fiscal year 2024, driven by strong operational performance and strategic contract wins.

Summary

• Maximus reported a strong fiscal year 2024, achieving record adjusted earnings per share and over 8% revenue growth.
• The company's revenue reached $5.31 billion, an 8.2% increase from $4.90 billion in fiscal year 2023.
• Adjusted EBITDA margin was 11.6%, up from 9.1% in the previous year.
• Adjusted diluted earnings per share reached a record $6.11, compared to $3.83 in fiscal year 2023.
• Free cash flow grew nearly 80% to $401 million, enabling debt reduction.
• New contract awards were valued at $2.2 billion, with a total pipeline of sales opportunities exceeding $54 billion.
• The company supported over 100 million American citizens through various government programs.
• Maximus is focused on technology modernization, the future of health, and digitally enabled customer services.
• The company launched a new Functional Assessment Services contract in the United Kingdom valued at $1 billion.
• Maximus is investing in talent development programs, including reskilling and upskilling initiatives.

Sentiment

Score: 9

Explanation: The document conveys a highly positive sentiment due to the company's record financial results, strong growth, and strategic initiatives. The language used is optimistic and confident, reflecting a positive outlook for the future.

Positives

• Maximus demonstrated strong financial performance with record adjusted earnings per share and significant revenue growth.
• The company's business resilience is evident in its ability to consistently achieve outcomes for government clients at scale.
• Maximus is actively engaging with shareholders and enhancing transparency in its disclosures.
• The company is committed to employee development and has seen a significant improvement in employee engagement.
• Maximus is making strategic investments in technology modernization and expanding its service offerings.
• The company has a strong pipeline of opportunities and contract award positioning.

Negatives

• The document does not explicitly mention any significant negatives.

Risks

• The document does not explicitly mention any significant risks.

Future Outlook

Maximus anticipates delivering another year of strong and focused execution in fiscal year 2025 and further expanding its long-standing practice of maintaining open dialogue with investors.

Management Comments

• The Board is pleased to share another year of strong financial and operational performance for Maximus.
• Our recently expanded leadership team continued to guide the Maximus Forward strategy to new heights and efficiencies.
• Our team achieved a year of transformative growth and record financial results, exceeding our forecasts.
• We are proud of the financial results, delivery excellence, and contract victories achieved in 2024, made possible by our more than 40,000 employees.
• We look forward to delivering another year of strong and focused execution in FY2025.

Industry Context

Maximus operates in the government services sector, providing technology and business process services to federal, state, and local governments. The company's focus on technology modernization and digital transformation aligns with broader industry trends in government contracting. The company's success in securing large contracts and expanding its service offerings positions it well in a competitive market.

Comparison to Industry Standards

• Maximus' revenue growth of 8.2% is strong compared to the average growth rate of companies in the government services sector.
• The adjusted EBITDA margin of 11.6% is competitive with industry benchmarks for companies of similar size and scope.
• The company's focus on technology modernization and digital transformation aligns with industry best practices.
• Maximus' employee engagement score of +31 is a positive indicator of a healthy work environment compared to industry averages.
• The company's success in securing large contracts, such as the $1 billion UK contract, demonstrates its ability to compete effectively in the global market.
• Compared to peers like Booz Allen Hamilton, Leidos, and SAIC, Maximus is demonstrating strong growth and profitability.

Management Changes

Corporate Governance

Related Party Transactions

• Ilene Baylinson's brothers, Peter and Evan Baylinson, are long-time employees of Maximus with total compensation of approximately $255,000 and $218,000, respectively.

Stakeholder Impact

• Shareholders are expected to benefit from the company's strong financial performance and strategic growth initiatives.
• Employees are expected to benefit from the company's investment in talent development and improved employee engagement.
• Customers, including government agencies, are expected to benefit from the company's focus on delivering efficient and effective services.
• The company's commitment to ethical practices and responsible use of technology is expected to benefit society as a whole.

Next Steps

• Shareholders are requested to vote on the election of directors, ratification of the appointment of KPMG LLP, and an advisory vote on executive compensation.
• Maximus will continue to focus on delivering strong performance in fiscal year 2025.
• The company will further expand its practice of maintaining open dialogue with investors.

Key Dates

Keywords

government services, technology modernization, healthcare, digital transformation, citizen services, contract awards, financial performance, EBITDA, revenue, earnings per share, shareholder engagement, employee engagement, talent development, cybersecurity, artificial intelligence