Maximus delivered strong full-year 2024 results, underscoring its position as a leading partner to government programs and a beneficiary of ongoing digital modernization across the U.S. and select international markets. Full-year revenue rose 8.2% to approximately $5.31 billion, with organic growth of 8.8%, and adjusted EBITDA margin of 11.6%, supporting adjusted EPS of $6.11 for the year. In Q4 alone, revenue was $1.316 billion, up about 4.4% year over year, with adjusted EBITDA margin of 11.0% and quarterly adjusted EPS of $1.46. The firm benefited from persistent demand in core Medicaid-related programs and expanded clinical services in US Federal, while Outside the US remained challenged by divestitures and currency effects but showed late-year improvement.
The company reports a robust backlog and pipeline, totaling $54.3 billion in pipeline at September 30, 2024, with approximately 68% of the pipeline attributable to US Federal Services. However, the book-to-bill for the trailing twelve months stands at roughly 0.4x, reflecting a depressed rebid cycle in FY2024. Management expects the book-to-bill to normalize toward 1.0x in FY2025 as rebids regain momentum. Management also announced a disciplined capital-allocation strategy: ongoing debt reduction, dividend growth, and a measured M&A framework to accelerate organic growth. In FY2025, the company guided revenue of $5.275–$5.425 billion, adjusted EBITDA margin of about 11%, and adjusted EPS of $5.70–$6.00, signaling mid-single-digit organic growth with potential upside from higher volumes and better mix in Federal and international segments.
Key risks discussed include procurement delays during a transition period, potential labor-related procurement changes (labor harmony considerations around the CMS CCO), and the need to sustain win rates in a competitive government services environment. The DoD AI engagement and other modernization initiatives present upside optionality, but execution remains contingent on policy and procurement dynamics at Federal and state levels.