Maximus, Inc. · NYSE:MMS
Maximus — Q1 2025 Earnings Presentation
16 slides from Maximus's earnings presentation, Feb 6, 2025
Slide 1: Fiscal 2025 First Quarter Earnings Call
Fiscal 2025 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 6, 2025 1 | Maximus: Q1 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: Q1 Highlights
Q1 Highlights Contact Center Operations (CCO) Contract Veterans Evaluation Services Rebid Win • In late November, the government withdrew the • We were successfully re-awarded the successor attempted early recompete of our contract with contracts for our VA Medical Disability Examination the Centers
Slide 4: Durable Business & Unique Position
Durable Business & Unique Position • Already witnessed the durability of our core business during the new administration transition. • Our portfolio is tied to well-established entitlement programs and others requiring mandatory spending that have broad, bipartisan support. − Medicare and Veterans D
Slide 5: Established, Value-Add Partner to Medicaid Customers
Established, Value-Add Partner to Medicaid Customers • Federal Medicaid spending faces potential changes, including Federal Medical Assistance Percentage (FMAP) reductions to per-person spending caps or block-grants. • Potential state responses include accessing reserves or examining eligibility req
Slide 6: Recent Wins
Recent Wins We are pleased to have been selected by the Federal Reserve System to provide technology-enabled contact center services through our recently announced Total Experience Management (or TXM) solution. Total contract value of the award is $76 million over 9 years, with options, and is repor
Slide 7: New Awards & Pipeline
New Awards (YTD) December 31, 2024 Signed Contracts $2.1 billion Unsigned Contracts $410 million New Awards Book-to-Bill ratio (TTM) 0.7x & Pipeline Book-to-Bill ratio (Q1 FY25) 1.5x When measured in the quarter, total pipeline 57% new work $41.4B our book-to-bill is 1.5x. of sales This represents a
Slide 8: Innovation Woven into our Strategic Direction
Innovation Woven into our Strategic Direction AI & Data Accelerator Maximus Ventures (CVC) • Established by CDIO to providing the necessary • Via our inaugural investment, we will be partnering resources, frameworks, and infrastructure to harness the with a company that is developing human-in-the-lo
Slide 9: Fiscal 2025 First Quarter Earnings Call (CFO)
Fiscal 2025 First Quarter Earnings Call David Mutryn Chief Financial Officer February 6, 2025 9 | Maximus: Q1 FY25 Earnings Presentation
Slide 10: Total Company Results – First Quarter of FY25
Total Company Results – First Quarter of FY25 ($ in millions, except per share data) Q1 FY25 Margin Q1 FY24 Margin % Change • Revenue increased 5.7%, or 6.3% on an organic basis: U.S. Federal Services $ 780.7 $ 677.1 15.3 % U.S. Services 452.3 489.8 (7.7)% − Driven primarily by the U.S. Federal Segm
Slide 11: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased by 15.3% and was all ($ in millions) Q1 FY25 Q1 FY24 % Change organic Revenue U.S. Federal Services $ 780.7 $ 677.1 15.3 % • Growth drivers were across the portfolio, including clinical assessments, outsized Operating Income U.S. Federal Services $ 9
Slide 12: U.S. Services Segment
U.S. Services Segment • Revenue decreased by 7.7% ($ in millions) Q1 FY25 Q1 FY24 % Change − Q1 FY24 had outsized growth from the Medicaid- Revenue related portfolio; mostly excess volumes from the U.S. Services $ 452.3 $ 489.8 (7.7)% completed unwinding exercise Operating Income U.S. Services $ 40.
Slide 13: Outside the U.S. Segment
Outside the U.S. Segment • Revenue increased by 6.0% ($ in millions) Q1 FY25 Q1 FY24 % Change − Organic growth was 10.7% and partially offset by Revenue divested revenue Outside the U.S. $ 169.8 $ 160.1 6.0 % Operating Income/(Loss) • Q1 FY25 margin was 4.8% and reflects Outside the U.S. $ 8.1 $ (0.
Slide 14: Cash Flows & Balance Sheet
Cash Flows & Balance Sheet Cash flows & DSO $ in millions Q1 FY25 FY25 Guidance Cash (used in)/provided by operating activities $ (80.0) Purchases of property and equipment and capitalized software costs (23.0) Free cash flow (Non-GAAP) $ (103.0) $355M - $385M • Q1 FY25 negative cash flows had been
Slide 15: Raising Fiscal Year 2025 Earnings Guidance
Raising Fiscal Year 2025 Earnings Guidance Fiscal 2025 Guidance Updated Previous • FY25 revenue guidance crosswalk: FY25 Revenue Revenue $5.2B - $5.35B $5.275B - $5.425B Previous Guidance (Midpoint) $ 5,350 Outside the U.S. Divestiture (100) Other organic growth 25 Adjusted EBITDA margin Approx. 11.
Slide 16: | Maximus: Q1 FY25 Earnings Presentation
16 | Maximus: Q1 FY25 Earnings Presentation