Backlog rises 3.2% to $39.48 billion as defense demand quickens
Booz Allen Hamilton reported fiscal first-quarter net income of $198 million, or $1.63 a share, compared with $271 million, or $2.16 a share, in the same period last year, according to the company’s earnings release Friday. The 27% decline in profit came as revenue slipped 4.2% year over year to $2.8 billion, narrowly missing the $2.81 billion analysts polled by FactSet had forecast.
Stripping out one-time items, adjusted earnings came in at $1.81 a share, beating the FactSet consensus estimate of $1.48 a share.
The company reported accelerating demand across its national security portfolio while its civil business remained challenged. The Trump administration has cut spending on federal contracts and pushed consulting firms, including Booz Allen, to justify their work and propose substantial cost savings. Booz Allen said it is focusing on advanced cyber and defense technologies as well as AI-native products.
Chief Executive Horacio Rozanski said the company is on track to meet its outlook for the year despite operating amid challenging market dynamics.
The company, which in the past derived 98% of its roughly $12 billion in annual revenue from government-related work, cut thousands of jobs last year after contract reductions in its civil business. In October, Booz Allen said it would restructure to cut $150 million in costs.
Total backlog stood at $39.48 billion as of June 30, up 3.2% from a year earlier. Headcount fell to roughly 30,900, a 7.5% decline from a year ago.
Looking ahead, Booz Allen reaffirmed its full-year outlook for adjusted earnings of $6 to $6.35 a share on revenue of $11.2 billion to $11.7 billion. Analysts are looking for adjusted earnings of $6.26 a share on revenue of $11.42 billion.