Maximus Inc. reported fourth‑quarter 2025 revenue of $1.32 billion, a modest 0.2% increase from $1.315 billion in the same quarter a year earlier, and adjusted earnings per share of $1.62, falling short of the consensus estimate of $1.67 by $0.05. The company’s adjusted EBITDA margin for the quarter was 12.1%, while the full‑year 2025 margin rose to 12.9% from 11.6% a year earlier, reflecting a continued focus on cost discipline and operational efficiency.
The Q4 EPS miss was largely driven by the slight revenue shortfall and higher-than‑expected cost pressures that offset the company’s strong pricing power in its core federal services. Revenue fell 1.5% versus the consensus estimate of $1.34 billion, underscoring the impact of a slower pace of new federal contracts and modest headwinds in the U.S. Services segment. The company’s margin expansion to 12.1% in the quarter, however, indicates that cost controls and scale benefits are mitigating the revenue dip.
U.S. Federal Services remained the primary growth engine, with clinical assessment volumes rising and penalties from performance‑based contracts decreasing. The segment’s performance helped offset weaker momentum in the U.S. Services and Outside the U.S. segments, which saw slower growth due to competitive pricing pressures and a slowdown in certain legacy programs.
Management raised its full‑year 2026 revenue guidance to $5.25 billion–$5.40 billion and adjusted EPS guidance to $6.30–$6.60, while maintaining an adjusted EBITDA margin outlook of 11.7%–12.0%. The guidance, unchanged from the May 2025 update, signals confidence that demand for federal services will remain steady and that operational efficiencies will continue to support profitability, even as the company navigates potential procurement delays and government efficiency initiatives.
CEO Bruce Caswell emphasized the company’s resilience, noting that Maximus has “consistently demonstrated adaptability as legislation and regulatory changes lead to new program imperatives and advanced technologies like AI reshape citizen services.” He highlighted ongoing investments in AI and machine‑learning initiatives designed to enhance productivity and customer experience, positioning the firm to capture future growth in digital government services.
Investors reacted positively to the forward‑looking guidance, with analysts noting that the company’s strong margin trajectory and continued focus on AI‑driven efficiencies provide a solid foundation for future earnings growth, despite the Q4 EPS and revenue misses.
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