Booz Allen Hamilton Reports 18% Revenue Growth, 128.5% Net Income Increase in Q2 Fiscal 2024

Booz Allen Hamilton Holding Corporation reported significant financial growth for the three and six months ended September 30, 2024, compared to the same periods in the previous fiscal year. Revenue for the quarter reached $3,146.4 million, an increase of 18.0% from $2,666.3 million in Q2 fiscal 2024. For the six-month period, revenue rose 14.4% to $6,088.2 million from $5,320.8 million. This growth was bolstered by a reduction in the provision for claimed costs, which contributed an additional $121.7 million to revenue.

Operating income for the three months ended September 30, 2024, surged 105.5% to $548.6 million, up from $267.0 million in the prior year, while the six-month operating income increased 60.3% to $803.8 million. Net income for the quarter also saw a substantial rise of 128.5%, reaching $390.1 million compared to $170.7 million in the same period last year. For the six months, net income increased 67.2% to $555.3 million.

The company’s operating margin improved significantly, with the three-month margin rising from 10.0% to 17.4%, and the six-month margin increasing from 9.4% to 13.2%. The cost of revenue as a percentage of total revenue decreased, reflecting improved operational efficiency.

Booz Allen Hamilton's total assets grew to $6.88 billion as of September 30, 2024, up from $6.56 billion at the end of March 2024. Total liabilities also increased to $5.68 billion from $5.52 billion. Stockholders’ equity rose to $1.20 billion, driven by net income and stock-based compensation, despite significant treasury stock repurchases totaling $324.4 million.

Strategically, the company completed the acquisition of PAR Government Systems Corporation for approximately $98.7 million in June 2024, which added $61.1 million in goodwill and $27.0 million in intangible assets. The acquisition is expected to enhance Booz Allen's capabilities in specialized areas.

Booz Allen Hamilton's workforce expanded to approximately 35,800 employees, up from 33,100 a year earlier, reflecting the company's growth and increased demand for its services. The company reported a total backlog of $41.25 billion as of September 30, 2024, a 17.7% increase from the previous year, indicating strong future revenue potential.

The company also reported a net cash provided by operating activities of $639.2 million for the six months ended September 30, 2024, a significant turnaround from the net cash used in operations of $118.9 million in the prior year. This improvement was attributed to strong revenue growth and collections, alongside $115.3 million in insurance recoveries related to prior settlements.