Maximus reported its financial results for the fourth quarter and full fiscal year ended September 30, 2024. For the full fiscal year 2024, revenue increased 8.2% to $5.31 billion, with organic growth reaching 8.8% over the prior year, driven by clinical programs in the U.S. Federal Services Segment.
The company's full fiscal year 2024 adjusted diluted earnings per share (EPS) was $6.11, a significant increase from $3.83 in the prior year. However, fourth-quarter adjusted diluted EPS of $1.46 missed the analyst consensus estimate of $1.50 per share, despite quarterly revenue of $1.32 billion surpassing estimates.
Maximus established its fiscal year 2025 guidance, projecting revenue between $5.275 billion and $5.425 billion. Adjusted EBITDA margin is anticipated to be approximately 11.0%, and adjusted diluted EPS is expected to range from $5.70 to $6.00 per share, which is lower than the $6.11 reported for FY24.
The U.S. Federal Services Segment was a primary growth driver, with revenue increasing 13.9% to $2.74 billion for FY24, all organic, and an operating margin of 12.2%. The U.S. Services Segment saw revenue increase 5.5% to $1.91 billion, benefiting from Medicaid-related activities, while the Outside the U.S. Segment's revenue decreased 4.6% to $657.1 million, though it returned to an operating profit of $7.7 million.
Cash flows from operating activities totaled $515 million for fiscal year 2024, with free cash flow at $401 million. The company's net leverage ratio stood at 1.4x, below its target range, and it repurchased approximately 0.9 million shares totaling $73.1 million during FY24, with further repurchases of $43.2 million subsequent to quarter-end.
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