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TYSONS, Va. - On Thursday, Maximus, Inc. (NYSE:MMS) reported fourth-quarter earnings that exceeded analyst expectations and issued an optimistic outlook for fiscal 2026.
The government services provider saw its shares climb 2.88% in pre-market trading after the results.
The company reported adjusted earnings of $1.62 per share for the fourth quarter, surpassing the analyst consensus of $1.47. Revenue came in at $1.32 billion, slightly above estimates of $1.31 billion. For the full fiscal year 2025, Maximus achieved revenue of $5.43 billion, representing a 2.4% increase from the previous year, with organic growth of 3.9%.
"Fiscal 2025 was a year of significant achievement for Maximus, as our teams skillfully navigated shifting priorities, seized opportunities to step up for our customers, and ultimately delivered revenue growth and profitability well above our expectations at the beginning of the fiscal year," said Bruce Caswell, President and Chief Executive Officer.
The company’s U.S. Federal Services segment was the primary growth driver, with revenue increasing 12.1% YoY to $3.07 billion. This segment also posted an impressive operating margin of 15.3%, up from 12.2% in the prior year, benefiting from volume growth in clinical programs and technology-driven productivity enhancements.
For fiscal 2026, Maximus expects revenue between $5.225 billion and $5.425 billion, with adjusted earnings per share ranging from $7.95 to $8.25, above the analyst consensus of $7.45. The company also anticipates an adjusted EBITDA margin of approximately 13.7%, showing continued margin expansion.
The company generated strong cash flow in the fourth quarter, with free cash flow of $642 million, contributing to full-year free cash flow of $366 million. Maximus maintained a solid balance sheet with a leverage ratio of 1.5x at the end of the fiscal year.
Maximus also declared a quarterly cash dividend of $0.30 per share, payable on December 1, 2025, to shareholders of record on November 14, 2025.
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