Maximus Inc (MMS) Q2 2024 Earnings Report

Maximus delivered a compelling QQ2 2024 performance characterized by broad-based demand and solid operating leverage across its domestic portfolio. Revenue reached $1.349 billion, up 11.7% year over year (12.6% organic), with adjusted operating income margin of 11.1% and adjusted EPS of $1.57, versus $0.81 in the prior-year period. Strong execution across the US Federal Services (up 20.1% organically) and US Services (up 8.1% organically) more than offset a modest decline in Outside the US revenue, underscoring the company’s diversified government-services model and emphasis on scale. Management highlighted that the margin outperformance was not driven by a single program but by broad portfolio strength, including higher volumes tied to Medicaid redetermination. Cash flow remained robust, generating $130 million from operating activities and $105 million of free cash flow in Q2, with DSO at 62 days and net debt to EBITDA improving to 1.7x. The quarter also produced notable strategic wins and a raised FY2024 guidance to reflect the stronger-than-expected top-line trajectory and margin enhancements.