Booz Allen's first-quarter profit exceeds expectations, revenue declines year-on-year but still in line with expectations
The U.S. defense and technology consulting company Booz Allen Hamilton announced its first-quarter results for fiscal year 2027. Adjusted earnings per share significantly exceeded Wall Street expectations, but revenue fell year-on-year. The financial report showed that in the first fiscal quarter ended June 30, the company's revenue was US$2.8 billion, which was the same as analysts' expectations, but fell 4.2% from US$2.9 billion in the same period last year. Adjusted earnings per share were $1.81, far exceeding market expectations of $1.49. Adjusted EBITDA increased 7.4% year-on-year to $334 million, and profit margin expanded 130 basis points to 11.9%. Free cash flow jumped significantly to $261 million from $96 million in the same period last year. The performance of business segments is divided. The homeland security business contributed US$2 billion in revenue, and demand accelerated; while the civil and commercial segment revenue was only US$772 million, a significant decline from US$923 million in the same period last year, and is still the main factor dragging down overall revenue. The book-to-shipment ratio in the quarter reached 1.5 times, and the total backlog increased to US$39 billion, a year-on-year increase of 3.2%. The company issued full-year guidance for fiscal year 2027: adjusted earnings per share are expected to be $6.00 to $6.35, with revenue of $11.2 billion to $11.7 billion. It is worth noting that the median earnings per share guidance of $6.18 was lower than the $6.29 expected by analysts, but the median revenue of $11.45 billion was slightly higher than the $11.41 billion expected by the market.