📈 Maximus, Inc. (NYSE:MMS) ended Q3 FY24 with strong revenue growth of 10.6%, reaching $1.31 billion. Organic growth reached 11.2%, driven by the U.S. Federal Services segment, which saw a 17% increase due to expanding clinical programs. This underscores Maximus’ ability to capitalize on high-demand sectors while maintaining strategic focus​​.
💹 Adjusted earnings per share (EPS) surged to $1.74, reflecting a 123% increase from last year. Adjusted operating margin also improved significantly, rising to 12.6% from 6.9% a year ago. The U.S. Federal Services segment achieved a 15.5% margin, while U.S. Services reached 13%. This showcases Maximus’ operational efficiency and strong financial management, even amidst competitive pressures​​.
📊 The company raised its full-year guidance for the third time, now forecasting adjusted EPS between $6.00 and $6.20—a 59% increase from FY23. This growth is largely driven by higher Medicaid-related volumes in U.S. Services, highlighting Maximus’ adaptability and resilience in evolving markets. The company anticipates continued positive momentum as it enters FY25​​.
💼 Maximus secured $1.3 billion in new awards year-to-date, maintaining a $44.1 billion pipeline. This includes $2.9 billion in pending proposals and $7.3 billion in preparation, emphasizing strong growth potential. The company targets mid-single-digit organic growth for FY25, aiming to solidify its position across key markets​​.
💰 Financial management improved the net debt-to-EBITDA ratio to 1.5x, down from 2.2x in FY23. With a contract renewal rate near 90%, Maximus demonstrates high customer retention and consistent revenue streams. The focus on debt reduction and disciplined capital allocation sets the stage for sustainable growth and long-term shareholder value​.
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