Maximus secures $20 million OPM contract

TYSONS, Va. - Maximus (NYSE: NYSE:MMS), a provider of government services globally, has been awarded a $20 million contract to operate as the Contact Center Services Provider for the Office of Personnel Management's (OPM) new Postal Service Health Benefits Program. This program is slated to offer health insurance to eligible Postal Service employees and their families starting in 2025.

Under the contract, Maximus will spearhead customer support, handling calls and emails through OPM's enhanced customer service platform. The company plans to utilize its Total Experience Management (TXM) solution, which incorporates advanced telephony, customer relationship management, and call quality reporting tools, aiming to deliver top-tier customer service.

Larry Reagan, Senior Managing Director, Federal Civilian Market at Maximus, emphasized the company's extensive experience in setting up large-scale customer service programs for federal agencies. Maximus' track record includes work with various agencies, such as the Federal Emergency Management Agency (FEMA) and the Internal Revenue Service (IRS).

The Postal Service Health Benefits Program is a new initiative within the Federal Employees Health Benefits (FEHB) Program, managed by OPM, and is set to take the place of FEHB coverage for eligible individuals. Maximus has been involved in the implementation and modernization of public-facing programs, leveraging its experience to enhance service delivery.

Maximus recently introduced TXM, a cloud-based technology designed to be modular, flexible, and scalable, catering to the needs of federal agency leaders. This solution integrates communication platforms, customer and employee-centric strategies, and a suite of microservices, including AI-enabled web services, chatbots, and the Maximus Intelligent Virtual Assistant (IVA).

This information is based on a press release statement from Maximus. For further details on Maximus and its services, including its capabilities to improve customer experience (CX) for federal agencies, interested parties can visit the company's website.

In other recent news, Maximus has reported a 10.6% year-over-year revenue growth, reaching $1.31 billion in Q3 of the fiscal year 2024. This growth was primarily driven by a 17.0% revenue increase in the U.S. Federal Services segment. The company also reported an adjusted operating income margin of 12.6% and an adjusted EPS of $1.74. Maximus has raised its full-year guidance for FY2024, expecting revenue to reach between $5.25 billion and $5.35 billion, with adjusted operating income projected between $570 million and $590 million, and adjusted EPS forecasted to be between $6 and $6.20 per share. Looking ahead to FY2025, Maximus anticipates similar revenue levels and is aiming for at least a 10% adjusted operating income margin. The company has also secured recent contract wins with the IRS, TSA, FEMA, and the state of Pennsylvania, totaling over $596 million. Despite a potential impact on the award date due to a protest filed against the CMS contract, Maximus remains confident in its growth prospects and its ability to navigate policy changes and administration shifts post-election.

InvestingPro Insights

Maximus (NYSE: MMS), the company behind the new contract for the Postal Service Health Benefits Program, not only demonstrates a strong commitment to enhancing customer experience but also showcases robust financial health and promising projections. According to InvestingPro data, Maximus holds a market capitalization of $5.53 billion, reflecting its significant presence in the industry. The company's P/E ratio stands at a competitive 19.11, suggesting an attractive valuation relative to its earnings.

Furthermore, Maximus has a track record of consistent financial performance, with a gross profit margin of 23.63% over the last twelve months as of Q3 2024. This indicates a solid ability to manage costs and maintain profitability. In line with these strong financial metrics, one of the InvestingPro Tips highlights that Maximus has maintained dividend payments for 20 consecutive years, reassuring investors of its stable financial management and commitment to shareholder returns.

Another InvestingPro Tip points out that analysts have revised their earnings upwards for the upcoming period, which could signal anticipated growth and an optimistic outlook for the company. This is particularly relevant to investors who may be considering Maximus as part of their portfolio. For those interested in further insights, there are additional InvestingPro Tips available at InvestingPro's dedicated Maximus page, which could provide a deeper understanding of the company's financial health and market position.

Overall, the financial data and InvestingPro Tips suggest that Maximus is not only expanding its operational scope with new contracts but is also positioned favorably in the financial markets, with potential for growth and continued profitability.

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