Consulting Firm Booz Allen Hamilton's Federal Defense and Civil Markets Drive Q2 Revenue, Raises FY24 Outlook

Booz Allen Hamilton Holding Corp BAH reported second-quarter revenue growth of 16% year-on-year to $2.67 billion, beating the consensus of $2.61 billion. Revenue, excluding billable expenses, grew 14.1%.

In Q2, the company delivered excellent top and bottom-line performance, including double-digit organic revenue growth in federal defense and civil markets, strong adjusted EBITDA growth, and double-digit quarterly headcount growth.

Adjusted EPS of $1.29 missed the consensus of $1.33. 

Adjusted EBITDA margin declined by 190 bps to 15.8%.

Booz Allen Hamilton's free cash flow was $(64.3) million. The backlog increased by 10.1% Y/Y to $35 billion.

Dividend: The company declared a regular quarterly dividend of $0.47 per share. It held $557.3 million in cash and equivalents.

"Our VoLT strategy continues to fuel extraordinary organic revenue growth in an uncertain budgetary environment." — CEO HORACIO ROZANSKI.

FY24 Outlook: Booz Allen Hamilton revised its FY24 outlook. It sees sales growth of 11.0% – 14.0% (prior 7% - 11%) vs $10.35 billion consensus. It expects an adjusted EPS of $4.95 – $5.10 (prior $4.80–$4.95) vs. the consensus of $5.04.

Price Action: BAH shares traded higher by 0.12% at $121.50 premarket on the last check Friday.