Slide 1: Fiscal 2025 Second Quarter Earnings Call
Fiscal 2025 Second Quarter Earnings Call Bruce Caswell President & Chief Executive Officer May 8, 2025 1 | Maximus: Q2 FY25 Earnings Presentation
Slide 2: Forward-looking Statements & Non-GAAP Information
Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with our most recent quarterly earnings press release, along with listening to or reading a transcript of management comments from our most recent quarterly earnings conference call. This document may contai
Slide 3: Q2 Financial Highlights
Q2 Financial Highlights • Revenue of $1.36 billion in the quarter, representing a solid 3.0% organic growth year-over-year • Adjusted EBITDA margin was 13.7% in Q2 and is in the upper end of our near-term guidance range We believe these results reflect the strength and resilience of our business, ou
Slide 4: Alignment with Administration’s Objectives
Alignment with Administration’s Objectives DOGE and the Administration’s objectives align with many of our recent Maximus Forward initiatives, where we questioned traditional structures and processes, sought to apply technology and innovation to drive more efficient operations, and focused on custom
Slide 5: Alignment with Administration’s Objectives (cont.)
Alignment with Administration’s Objectives (cont.) • We are working closely to support our customers • The environment in which we are operating and DOGE representatives to address questions continues to evolve and we are maintaining a on certain contracts and program operations. balanced stance of
Slide 6: Proven Track Record at the State Level
Proven Track Record at the State Level • Recently, federal guidance was issued to reaffirm states’ authority to use private sector partners that meet Merit Maximus was the first organization in our sector to System Principles, a framework administered by the Office of certify that its systems of per
Slide 7: Positive Proof Points of Strategic Focus Areas
Positive Proof Points of Strategic Focus Areas The strategic intent of the 2021 acquisition of We’ve secured new and rebid clinical assessment contracts Veteran Evaluation Services (VES) is manifesting in the fiscal year, which are proof points of a growing clinical beyond our primary goal of becomi
Slide 8: Anticipated Improvement in Procurement Trends
Anticipated Improvement in Procurement Trends • As has been the case for some time now, we are seeing delays in federal procurement processes, mostly in civilian agencies, resulting in new awards pushing to the right. • Consistent with the Administration’s focus on innovation through performance-bas
Slide 9: New Awards & Pipeline
New Awards (YTD) March 31, 2025 Signed Contracts $2.9 billion Unsigned Contracts $451 million New Awards Book-to-Bill ratio (TTM) 0.8x & Pipeline Our current book-to-bill total pipeline 55% new work $41.2B represents a step-up from our previous book-to-bill at of sales September 30 and tracks to our
Slide 10: Innovation Forward
Innovation Forward Maximus has once again been recognized by Fortune as one of America’s Most Innovative Companies — a distinction that places us among the top 300 companies nationwide known for shaping the future through product excellence, operational innovation, and a strong internal culture of c
Slide 11: Fiscal 2025 Second Quarter Earnings Call
Fiscal 2025 Second Quarter Earnings Call David Mutryn Chief Financial Officer May 8, 2025 11 | Maximus: Q2 FY25 Earnings Presentation
Slide 12: Total Company Results – Second Quarter of FY25
Total Company Results – Second Quarter of FY25 ($ in millions, except per share data) Q2 FY25 Margin Q2 FY24 Margin % Change • Revenue increased 1.0%, or 3.0% on an organic basis, driven primarily by the U.S. U.S. Federal Services $ 777.9 $ 701.7 10.9 % U.S. Services 442.4 486.1 (9.0)% Federal Segme
Slide 13: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased by 10.9% and was all ($ in millions) Q2 FY25 Q2 FY24 % Change organic Revenue U.S. Federal Services $ 777.9 $ 701.7 10.9 % • There were multiple growth drivers Operating Income U.S. Federal Services $ 119.0 $ 83.5 42.5 % throughout the segment, inclu
Slide 14: U.S. Services Segment
U.S. Services Segment • Revenue decreased by 9.0% as a result of ($ in millions) Q2 FY25 Q2 FY24 % Change Q2 FY24 having outsized growth from the Revenue Medicaid-related portfolio; mostly excess U.S. Services $ 442.4 $ 486.1 (9.0)% volumes from the completed unwinding Operating Income exercise U.S.
Slide 15: Outside the U.S. Segment
Outside the U.S. Segment • Revenue decreased as anticipated and ($ in millions) Q2 FY25 Q2 FY24 % Change driven by previously divested businesses Revenue that were present in Q2 FY24 Outside the U.S. $ 141.5 $ 160.5 (11.9)% Operating Income Outside the U.S. $ 4.8 $ 0.7 nm • Organic revenue growth wa
Slide 16: Cash Flows & Balance Sheet
Cash Flows & Balance Sheet Cash Flows & DSO $ in millions Q2 FY25 FY25 Guidance Cash (used in)/provided by operating activities $ 42.7 Purchases of property and equipment and capitalized software costs (17.2) Free cash flow (Non-GAAP) $ 25.5 $355M - $385M • Q2 FY25 cash flows reflect lighter collect
Slide 17: Further Improvement to Fiscal Year 2025 Guidance
Further Improvement to Fiscal Year 2025 Guidance Fiscal 2025 Guidance Updated Previous • FY25 revenue guidance now implies ~2% organic growth over the prior fiscal year Revenue $5.25B - $5.4B $5.2B - $5.35B • Adjusted diluted EPS guidance for FY25 increases by $0.40 Adjusted EBITDA margin Approx. 11
Slide 18: | Maximus: Q2 FY25 Earnings Presentation
18 | Maximus: Q2 FY25 Earnings Presentation