Booz Allen Hamilton saw its revenue increase 13.5 percent to $2.92 billion during the third quarter of fiscal year 2025 and reported $291.3 million in Q3 operating income, up 17.7 percent from the same period the previous year.
Q3 Fiscal 2025 Results
In an earnings release published Friday, the McLean, Virginia-based IT and management consulting firm said net income climbed 28.4 percent to $187 million and diluted earnings per share, or EPS, increased 30.6 percent to $1.45.
The company’s earnings before interest, taxes, depreciation and amortization, or EBITDA, grew 14.8 percent to $331.4 million and adjusted EBITDA rose 14.1 percent to $331.7 million.
Booz Allen ended the third quarter with a total backlog of $39.4 billion, up 14.8 percent from the prior-year period, and a quarterly book-to-bill ratio of 0.37x.
The contractor posted a 12.6 quarterly rise in organic revenue and an 11.8 percent growth in revenue, excluding billable expenses.
CEO Horacio Rozanski on Supporting the New Administration’s Priorities
At an earnings call Friday, Horacio Rozanski, president and CEO of Booz Allen and a three-time Wash100 awardee, cited three factors that put the company in a great position to advance the priorities of the second Trump administration.
“First, our multiyear effort to become faster at everything allows us to match the velocity of change underway. Second, we are one of the few technology companies able to both innovate and deliver at scale. We have long been advocates of maximizing dual-use commercial technologies and increasing the use of AI to generate efficiencies,” the Booz Allen chairman told analysts.
Rozanski mentioned the company’s transition to outcome-based contracting.
“And third, speaking of outcomes. For quite some time now, we have prepared and advocated for a move towards outcome-based contracting as a model to create both efficiency and faster impact across the missions we support. We expect this trend to accelerate in the current environment,” the 2025 Wash100 Award recipient noted.
The Booz Allen chief executive also discussed the company’s expanded partnerships with Palantir Technologies and Amazon Web Services to support government and national security missions.
Financial Outlook
For the full fiscal 2025, Booz Allen said it expects to record adjusted EBITDA of between $1.31 billion and $1.33 billion and revenue growth of 12 percent to 13 percent, up from the previous range of 11 percent to 13 percent.
The company raised its free cash flow guidance to $850 million to $925 million, up from $825 million to $925 million.
Booz Allen said it anticipates its adjusted diluted EPS to be between $6.25 and $6.40, up from the prior guidance of $6.10 to $6.30 per share.