Booz Allen Hamilton Holding (BAH) 26 Jul 242025 Q1 Earnings call transcript

Good morning, and thank you for standing by, and welcome to Booz Allen Hamilton's earnings call covering first quarter fiscal year 2025 Results. [Operator Instructions]

I would now like to turn the call over to Mr. Matt Calderone.

Thank you. thanks the and everyone, morning, for call. joining Good by Joyce. would like Lindsay begin to I introducing been trusted a has Allen Lindsay a finance the member team Booz of for nearly decade. adviser and core help She join and since and a had establish corporate corporate of in finance. development has roles me variety business the function our to firm Lindsay is and at Planning Analysis. and President Financial leading Allen, now Booz our Vice Relations both Investor Lindsay, you? welcome, and over to

Year we Allen's XXXX and morning, you joining First thank you've Quarter Booz an the Fiscal this Call. Thank to you. Good had Earnings us for hope issued We read for morning. opportunity press earlier release

Rozanski, provided We Chairman, and Officer and to also now about Chief on Matt our X. President; Vice President Calderone, presentation Officer. have Horacio website Financial talk and financial are and our slides on and Chief our Executive me With business Executive Slide are results

morning of made. result update call. obligation whether statements, unknown may our cause of that as performance, SE foregoing no their to on date or publicly are entirety as required and a we will our shown discussed in cautionary keep involve future only As undertake All by by revise future mind forecasted we from this to forward that factors statements and in Except new otherwise. actual disclaimer on other events expressly any filings differ the please as this of the uncertainties statements our the the law, forward-looking qualified and in or results and information, forward-looking speak events known or items X, and to results future Slide are looking some risks, financial on may discuss materially relate and

be non-GAAP release our our We also presented and most an the earnings in metrics, may vary quarter XXXX explanation and adjustments year During discuss disclosure. and investors. provide may comparable rounded slides. such, to of believe of first non-GAAP and, financial slightly call, those fiscal other today's Numbers GAAP other as public included useful information measures from measures for will in our measures we we reconciliations which some

my the turn our President, is call It over Chairman, to CEO Rozanski. now to Horacio and pleasure

Slide We X. on now are

continued great you I Lindsay. proud with and Then the and context our to our over the first the an talent. you growth to investment how And overview before year, exceptional growth. Today, describe quarter good in-depth with look results. Matt thesis. for Thanks, quarter fiscal momentum finally, Matt year top an quarter attract first helps the strategically have I'll us and these I'll remainder it for us everyone. of on to morning, on share line our calls, are another XXXX turning It's of begin strong positions I'll VoLT for and the double-digit fiscal fiscal share of at of priorities in

We growth. performance. significant with organic quarter, in momentum the double-digit built Beginning delivering revenue

quarter was internal our Our will the flow performance bottom ahead our nonoperational for remain a robust. of was Matt X.XX and comparatively expectations, Cash Leading factors, which the combination excellent. strong. Headcount of business indicators due to and describe book-to-bill own softer operational was momentarily. line for was

guidance goals. are full looking thesis to investment the we our the So our we and of on year fiscal believe end track at meet when high XXXX picture, achieve

transformation which in and priority taking national stands velocity, work deliver the and the is we across shows quality the innovative working. because for VoLT, VoLT leadership momentum we the place of attract. financials. center win, capabilities the has It put of beyond This at missions. exceptional technology, is we talent us Allen's Booz the our evident is tech

Booz Allen challenge clients and At historic this and is scale our innovation at an powerful a technologies help to leading-edge time is dual nation, use accelerator. and of ability Our differentiator. utilize change faster for

me examples morning, This this. let that demonstrate X share

the and and Today, $X.X The Space one we supported the first is longest, civilian, encompasses more growing. have missions. space. than of Booz defense billion missions Allen's actually is intelligence from space business

been beginning, as to We NASA more since Space edge a partner years, continue from to to response And using XX the our world, U.S. to nation's XX analytics. did years on the working the Apollo leading trusted and future Telescope. we than space Sputnik the launch ago Hubbell help have trajectories inspire we

go moon the a flight create are systems Artemis, and lunar integrator back Mars. overarching We to the a to for output the system for of mission to

support security teams Importantly, to and I contracts that discuss to to the Allen in States the strategic our visit national Operations and had and space Two over past year, vital Springs capabilities. with space. opportunity United ago, to the has our opportunities Command spend modernize interests won Space position several Colorado protect time us Booz weeks nation's

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most in Europe Booz the or example States years. United one growing our combatant supporting is a second XX VoLT supporting EUCOM. in more trusted the long-standing of been in and The our has action dynamic than Europe for commands, partner Command, efforts footprint, Allen European of work

we speed our Through professionals. right leverage work about at won continue right years, XXX XX That XXX have Russia's proud nearly data why of more decision-making EUCOM highest levels. to grown solutions have critical is country's continent. to to people across time to we the has past support are sixfold help than work the during growth recompete particularly missions from to accelerated science supporting to our efforts and This Ukraine. the the VoLT, a Over U.S. cutting-edge at the our invasion

and momentum original and is engineering leading our VoLT driving preeminent is for and tactical support and partner third Allen's solutions, ground, awareness, accelerate tactical enabling and threats. our acquisition Systems nation's ability to software acquisition capabilities spans edge. solutions and our the and PAR augments final war air our help readiness space mission-critical drone Government situational My This will PAR on is fighters recent to defeating It creator deliver an how that products missions. Booz mission of strategically example Corporation. for detecting

in moves vital from remain beyond of national examples across These face missions helps change. ensure the the of partner globe show VoLT how we and forward us importance ongoing a and in

go. if our people powering momentum, are makes fuel the So is engine that VoLT us our the

expertise not the our every people I to real our about and contracts our to Our success. speak people technological project. key is why innovation as unmatched and mission bring And always this

our Chief faster Booz will attracting welcomed at brings Booz Technology the best Allen Bill Allen talent, government. scale. XX welcome. in Bill clients' Bill, industry tech Officer. and accelerate help new into stays than injecting more and vibrant years like we spanning technology our dual-use He month by leadership as leadership, of experience last whom missions has Vas, our

the have other Games. stars building students through we the pipeline are program. end on Summer which we year, internship This the spectrum, of our XXX program, exceptional And call participating our in summer we of future

good of with capability purpose all on interns. that to And analysts, empowering want world. to interns and, scientists, of We proud level Booz change this with my every in and course, development, Allen past, This longest-serving. own from social and people Allen's consultants, fits in ideas our cyber the team to summer newest am our collaborate with the again so, come thank and of our Our empower believe firm, process colleagues, engineers, people. areas from present this challenged so starts to future. professionals colleagues projects good. our I of Booz improvement

priorities on laid focus out Today, in May. our Returning operational and to we the the here now. collective is

of excellent First, proposal continuing we advantage This to and our quickly win to expertise. people depth and the of pipeline. launching our work will build includes take hiring full recompetes, programs new record

Second, continue across [indiscernible] to business the our actions. all and we drive to effectiveness will efficiency manage

growing we improve opportunities an margin uncertainty while election year. in continue to to mitigate budgetary have We

technology at securing And third, to our capabilities. solutions VoLT breakthrough we building maturing partnerships positions, will market technology and internal the implement full and by next-generation speed continue

in We about contentious vibrant budgetary and prospects the Allen and So fundamental is of built strength about optimistic as scenario even in young, At XXX we as environment. have and the the a growth future. confident ever. feel in summary, our we remain election Booz believe business exciting an uncertain years

that, with over Matt, a financial dive into our And to deep you performance. for

Thank you, Horacio.

in As first you continued noted, to build Booz Allen quarter. momentum the

government's increasingly the at and Our the of transformation. is center VoLT work technology strategy the is working,

We to keep are year. another strong fiscal to and growing deliver poised

quarter, were on Cash performance important, our once the growth. organic delivered our revenue indicators again team side, most solid. strong. And was double-digit leading positive For the

record and we an On key had backlog. yielded side, book-to-bill wins excellent that the demand

growth side, On add the support the objectives. to needed supply to continue talent we our

number was however, individually small bit Our over performance, anticipated. the bottom to This softer up and we was a a of than added nonoperational that line factors quarter. operational due

As fiscal we full for managed the previously, we year. the business said

our operating Slide We the have us to results X. quarter as thesis. end cover and and more available Please first objectives supply top the XXXX in the levers year both investment side our as of to demand well to now momentum, meet side I'll fiscal turn detail. our achieve

the increased XX% for look about year-over-year revenue X.X%. market XX.X% $X.X up expenses and year-over-year billion. revenue billable Total was a the revenue breakdown. grew to at Organic quarter excluding Taking

from the quarter. Our prior business to defense XX% year thrive, up continues

Our won and opportunities importance. defense in leaders both takeaway missions national of recompetes true

performance well. Our year-over-year, grew XX% Total this civil was to business and continues revenue perform broad-based.

revenue in As our X% year-over-year. declined about intelligence business expected,

demonstrate solid We this continue for fiscal business expect the year. full to to growth

X. Slide to Turning

the $XX of This stood Total June year And have XX the future proposal yielded up of record of backlog growth. the and of from up full and the X.XXx, quarter $X out capturing. Net bookings our of gate teams In first pipeline the are our strong was qualified came quarterly at hit in for our at necessary year book-to-bill scale both advantage pleased year-over-year. quarter, trailing and that is the ago. the short, remainder years. the backlog as of an of taking are pipeline a all-time XXXX were billion, the quarter, fuel in end $XX to for We highest of We This our X X.XXx. a we our with robust fiscal billion, the pipeline. book-to-bill XX% XX-month first billion. quality XX% work the

joined Booz staff XX,XXX our XXX to goal more the Moving Allen X% skilled client of in headcount. who including year growth than translated staff X%. headcount X.X% now professionals of ahead to PAR quarter, people. year-over-year, XXX the quarter through the with This client closed We increased to full Allen by acquisition. Booz than more

demand and aggressively recruit momentum. to continue We hire side match to our

line. the the to $XXX prior period. million adjusted generated in quarter, the now down We in from first bottom Turning X.X% year EBITDA

year-over-year. points basis XXX down XX.X%, was margin EBITDA adjusted Our

Our lower in profitability a of due to than factors. came expected combination

the a higher staff And basis. side, softer profitability, operational side, utilization level slightly back-weighted expenses and lower on year-over-year the the on contract quarter. On during slightly client hiring nonoperational

others Some items timing of and are over to and the these of normalize are are fiscal year. nonrecurring, course the related expected

P&L. Working down the

net $XXX earnings interest X.X% decreased higher [indiscernible] rate last to to by year-over-year a X% share higher $X.XX a year, income moderately declined X% diluted year-over-year our share. in tax offering, was investment-grade increased share $X.XX. diluted fiscal both year-over-year earnings per Our lower million, share count. X% and bond include year-over-year. Diluted offset Adjusted These results per expense income Adjusted net $XXX to million. per

for a debt $XXX of ended net cash months. the adjusted of of Moving on and CapEx due collections. million the X.Xx EBITDA the leverage sheet. Free strong $X includes to the to Cash net XX million were with quarter cash in first for first $XX the million. flow trailing quarter million quarter. paid from now million previously balance activities $XX and hand, We improved the billion of $XX accrued ratio was that expenditures to quarter $XX operating was in

this strong, value. operate business in gives deploy we capital how is flexibility and sheet generate to us balance Our the

Turning on capital now X. deployment to Slide

includes million roughly the share to superior for a $XX to we million acquisition $XXX repurchases committed through sheet for June. at average are capital of an first the quarterly in million value in our deployed $XXX.XX shareholders dividends. in share, $XX shareholders. strength using and $XXX It PAR cash our of In million. million per cash approximately We returned of of to also drive total almost quarter, $XX price balance includes generation This and

that will PAR acquisition this to financial $XX balance believe We million in we and revenue fiscal anticipate performance. our to deliver the for of accelerate and add the value this million $XX will We clients be increase accretive earnings. will mildly year to

including program, of commercial recently QuinDar, our investments million venture an corporate space made our company. strategic also $X through We announced capital technology investment early-stage in

has to of per August of on a quarterly which Finally, dividend record XX XX. I'll be $X.XX approved August Board payable of will share, note our that as stockholders

we operating X% year. XXXX for expect the turn as of performance and I run a the strong believe through line, line the X growth to momentum bottom deliver have year Now ahead. and look Please We flexibility full XX%. revenue top to for to top fiscal our At guidance. we fiscal Slide

in to of billion EBITDA expect dollars an year. about the for adjusted of $X.X billion. deliver adjusted EBITDA range We to This the margin $X.XX implies XX% full

profile While we the previously now moderately fiscal for remaining we XXXX, X margin expect quarters. ascending a profile indicated flatter year quarterly a over

is range Our EPS $X.XX share. and guidance between $X.XX per

million and between $XXX and million. $XXX operating free flow million, $XXX of cash and million we between $XXX Lastly, flow expect cash

are final range top of year to our our EBITDA, almost X-year adjusted we for I In thesis, performance. the of organic proud at deliver am in the investment target entirely through closing, positioned that extremely end

the to our confidence. ahead business We and continue with build forging for are future

let's With questions. the operator, that, open line for

[Operator comes Instructions] And from Mariana Bank of Mora America. with Perez it

special a welcome to And Lindsay.

Thanks, Mariana.

first and other related technical. business the my question X, I like more one So have -- one

synergies and installed intimacy question type could and acquisition? potential base that have? with please and these in of you when PAR the And tag, describe what from special reputation, is from expect Levering combination a Allen about talent, wintag position this? the bit like customer you leading unlock and little like is of this Could what can acquisition. about all the company's The first they the Booz that we

really, Mariana. of a this close those the PAR sometimes and were find really question, -- happy and fighter. where really some -- doing Thanks It's acquisition. able innovators work is the innovative on war that company out come cases, entire and sources, it that our we're using they with, multiple carve he for the I'll small very with into place bringing about well artificial trying to a we transaction type That big packages, so edge it one to information for focuses a it we're space do to fits that needs and -- filter war and need at or in that what from giving it. and need fighter, putting platform, the in digital the integrating the in information she ultimately they battle together intelligence time

things together will that knit really doing. this so the And help augment we are a number of

the so it's for basis reduction. -- And exciting. not acquisition very cost this is We

acquisition As we've And you said, perspective fits it's really acceleration. revenue synergies. the strategic like always been saying this of

companies lead faster. for to doing and our looking efforts own are We move able allow to faster take implement will what to us and competitors be VoLT and our we're that both

XX% achieve that you one that you year sure the be make Or confident And What to ] to sure quarter? to [ throughout low trend? the place [ the makes the in the XXs for in margin that that are print efforts you versus second year EBITDA key can? you'll can the ] you are you put you Matt. what this in milestones making the the achieve What looking

I'll Mariana, is and a Matt happy some I'm over is, results take in line since okay. we driven and view not one-offs. Matt, it of line pointed largely roll, through, give in the this on as quarter, primary very you context as course, timing with turn if we're quarter. the growth me top happy with he'll and although the bottom let We're that's that to The by out, then have this

we confidence the of most profitability the see us remains gives What momentum the underlying in strong. very the business. that business is So strong the

in which book-to-bill, is exceptional. see You our it

is our in it hiring, which You exceptional. see

a You we put and investment acquisition at the in small which 'XX we for when objectives is achieve see us. confident can great all of And end that our top PAR, the we together, then thesis. it are FY deliver that for

that probably we strategically to to in continue we'll of making positioning winning national Allen importance, the we resiliency near X I wouldn't numbers, technical have And working. lot uncertainty to both missions like. is a sure is, Because just to And in political the of exceptional is that. of We're want, we happened but We're work, about are are and a VoLT the aside but Booz invest VoLT of accelerate not budgetary time type technology important keep and more think really bringing from term, talk talent ago. an leading-edge I'm these all the work of years attracting which also us gives us. accelerator at uncertainty or things that what's

it So against to I'll Matt. that frame, turn over

Mariana, And Horacio. business the to in the EBITDA to margin. just manage that, Thanks, for talked we dollars, this add not we've past Yes. about

a our nonoperational then take you said,in result. mentioned And timing was nonrecurring. is small, -- number through, dollars remarks, both profit factors, drive on margin added But sort of and quarter. as will the focus impacted first, prepared the So in what that how of up, a and but we drove profit over I as portion to of by up these or increase do the they significant miss a and were related Horacio were operational individually QX

regulatory of compared saw on in last obviously expenses. a in we dollars. year-over-year basis for soft. areas, couple the we Just frankly, to on on side, side, ex-billable the driver quarter QX client they then of added quite the started a win lower profitability amount billing. and an primary busy of year, That level and PAR us about go including was growth was capitalization deeper equivalent expenses But over and, profit the quarter, touch a to combination a the contract client higher X.X% when revenue and cost operational And the quarter legal M&A, staff nonoperating how

to most the and well. as the And outyears quarter up. fiscal for improved metrics our really growth we said, us continue aspirations up that utilization need to important, and the meet our trend headcount we over But year have well set

we levers, we're So strong another confident line. if year really have momentum the bottom the on both operating and needed, to the deliver

comes with Jefferies. from Sheila And it line the Kahyaoglu of

and know continue contract points to of I a et How on questions that client hiring margin. of willing get much and fees, to just utilization just XXX maybe I going on versus Matt that you're So to basis Horacio, lot don't year-over-year. of cetera? Matt, this topic, contraction timing you're quantify know was and M&A structure the that if

I we added timing as as just staff the became utilization billables. of sorry, they about cost us and as rev said, points when Sheila ex billable well Yes, on X.X

So second you an say terms profit do bit activities. had in the off. a the And on that nonoperating math and of equivalent a contract meant was side in onetime these of side. then can terms what we profitability level amount would probably from little And timing-related

Okay.

for Sorry then a Horacio, if you. I that question bigger missed And X.X. picture maybe

think in been comps. the home defense difficult I business have lapping growth, run civil double-digit

you about runway customer are the segments year? each how thinking So of those for of the the remainder of

Sure.

the really the think that across good is momentum is news portfolio. about broad-based the I it

critical set much mentioned, allowing of we business, very a and deeply very a really and work I defense about. bring about as exceptionally in of that recompetes are missions technology country cares won that about, to we the us care Our new to couple want important Pacific the some excited

pressures some industry-wide, fall disruption, be or really result as in strong which of whatnot. the throughout the defense absent in So strong our year, will nationwide, major we business see performance budgetary momentum, a

When to you growth a as long time. tremendous our had said, you civil for business, it's go civil,

civil well front program, We they they're CDM growth consecutive missions. is of extension critical of And in all is by the one recompete. centers The our news. bringing key this preparing to the XXth great our We're which key think double-digit that for. under I positioned had have them around business. technology some recompetes in won quarter of

Booz So well these Allen we where the but positioned. are very places can't future, predict is

underlying showed about last -- some we business really quarter though a of year of And the and issue in business, extensively comp because FocusedFox growing won tough This in is year. quarter, decline, from over then the so strong. that the They and of that actually, sort of the momentum important the our it we've of kind business course intelligence this see really is the work. even last talked the the

and of that But of this Judy to delivering Fifer, years, excellent then again, transitioned underearths delivering lot intelligence Tom couple nation. analysis have under the business first technology intelligence importantly, analysis extraordinary from in last we a for the the under accelerated Dots

is that doing So sourcing and good again, this is a talent things. business critical

expect our momentum entirety across the so of year. growth And markets we and the for

Bert our and from it with moment One Stifel. of line Subin next comes for the question,

the the So I would unusually were, quarter bookings strong. in say,

getting X.X, Obviously, If the to sort quarter. look years, maybe around of momentum. of in And I pursue some now last I was just you you're good of imagine Matt, that this to range comments the sort sort in to quarter, work. few closer some the at of, made going and you X.X the some ready you're first utilization that be in guess, of

over As forward think you booking strongest quarter, on Or just book-to-bill. on building there that do side? Was typically X.X second pull your some award momentum the quarter, the about there? that's keeps quarterly think we

the a now. The about question, right for strong is demand, really momentum there's strong good and it to think budget Thanks underlying way Bert.

would you quarter to quarter. this so demand expect those fundamentals, on a good see And based

help stuff to advantage clients longer do forward. realize. to to to tactical against was and were some we've over done say, there I the prior they that wouldn't took is have from money that to something it would them years. I sales anything, know, left pull them, if hard sell in and say it missions to for you year any Our matter engine that our as take opportunity, and is none, a to second ability budgets leap when take there

ample Even get lot we the our we contracts headcount I year to deliver we is when commitments have of to of a have the guess off be for against to if driven the have and as But win the ample good is comes ceiling factors. the as a reality to as work, number this is year. something exact number going tend what and ours think protested, we is by demand, large your protest.

just Maybe point. it. Got a follow-up that on

said earlier, some you've mentioned pretty of our winning seen recompetes. and terms you You there momentum good recompetes in Horacio,

You can you've give sense some through this year, out quarter recompete stand? for of in us we the a you watching? of was that ones been Or highlighted are you larger a they higher-than-average just where last you? Are still front

and work really There Yes grow. -- in plus, you and increase a is there we really a And that's how generally I when in the portfolio comes, significant the quality terms the because suppose. as it's additional know, there, of yes, and contracts is enviable built that comes recompete of a ceilings. the work scope that's with recompete it underlying

we've we said, been deliver year those obviously we want that of There's left successfully. the you some want and those to few a of win. very As in to through against

But really, importantly, really pipeline overall is the healthy.

As that's have Matt that XX% year-over-year. pointed pipeline out, a prosecuting actively, up and we we're billion $XX

can. really it's good, continue and we really win as as is to intend we to condition demand strong, much the So

next moment One Rumohr from our with that comes for von TD of Cowen. Cai question the line

there I So basically utilization? using we of is until better little to delay, doing you as think, because regulatory of kind more a still next Because then what look timing the are about factors mean, get should you we a the snap Matt, guess AI disappointing? of M&A sort this sort you've the are I been see been lose interested I'm the timing. know to quarter, And mentioned does so legal it expenses. were. of Why of at were. this second how the going presumably quarter why quarter. we big Or And you've back? Those basically, secondly, that X.X you the kind did so and factors talking explained

and but XX-K, a of thirdly, like gross margin all looks said for that I at it And questions. accretive, has is this about PAR, you business you apologize X%. look these if their

your does how become it So accretive numbers? on

try take one them I'll turn, in I bring to me Cai. but back. please miss if Thanks, Yes.

people Bert meaningful really right? mode. including Ukraine, on leave. go and but a mode, for pretty there. leaders And We new we into military mentioned was and our for in prosecuting remain just pipeline, out a they investment a First, proposal We funding what it in for the We've combination a issues, one-off been tighter. deeper need some little factors, wins. run market utilization, a the dig can example to more of this, little heavy significant in know ramping business delay investment contract-related do had to honestly, some Both up

on when over And the the last of PAR course of staff we it back the towards we acquisition, typically, perspective through end. it started, but was year, just quarter, added the QX staff when but the year, happens. just QX early numbers quarter. even the matter, lot a of in don't intra-quarter added And this staff organically not

about where headed. utilization up up. We picking good So that that's adds I has to as the X.X. to question, another feel But mentioned, in been response

year. right, On a the is get into ability I timing obviously, our deliver we you're but one-off to to feel related. don't of or side, comfortable very nonoperational want about lot fiscal it the QX, full

out a had to question did then they disclose company, a they they on And we've itself, accounting. PAR, PAR book how Obviously, how bit. -- their being quite public gotten this

stuff have some margin fighters of generate adding great that the we services I think comfortable year of of acquisition. that the we just unit this accretive have provides digital by at in as on incremental information it the We're to AI it time, Horacio but will very they X think our model. will different war not look is mildly lot under have year, said, over an we a like TAC not somewhat and And be which bad ability revenue, top the of edge. to the

all catch did X? hopefully, I did. think So I I

the for of Matt moment next Fargo. our question. comes Akers line with Wells from One That

any the I just for how if in business. the we've got could costs QX. more we think these rest of you because compare orders Matt, some you about easier wonder get of away going modeling on year Intel the an the know comment after should I

you ramp, on commented you think further color revenue any there. but I just can the provide

right way, change. profit the it And and of our moderately now. back provided comps thinking ascending Obviously, margins color. we running be I amount No, And quarters we right think will to about Matt. mentioned, anticipate over the you as X the you're

Got Yes. it.

guess positive Okay. A years the I last any year, to And thoughts haven't couple in cash on free decent flow. been of QX. start

on goes Just from doing where here you're capital, or there? any working just that thoughts how

had Yes, a good we start.

as rate there. greater to conversion And free think collections return flow about calls, of I of particularly run aspire or were the to past this vector XXX% for to strong. good get couple talked we we a cash and

for our question, the next Spingarn Melius One of from Research. and Robert line moment it's with

This Rob you civil lower is you the in defense, more Scott or was on concentrated that. provide Spingarn. on in Matt, it contracts? quarter, could intel color if Mikus mentioned profitability I wondering just contract Was for

No, we're it was we one across slightly business, factor spread It anticipated. that lower no particularly about. the just than was worried

Okay. And then Horacio, for you.

the lessons significant Ukraine of from how large on have quantities the can the impact of learned inexpensive is a drones Warren One battlefield.

to value think becomes software the take we advantage drives the you initiative, digital CCA of role DoD's how the space? hardware? want and and when So more in do hardware JADCX battle do trend, increasingly or Forces' where Booz's And the is about in be the the programs program that like the commoditized what connected you Air

and like in is positioned a edge. And at to been make to headquarters Booz believe relationship been of we've we've bring because our years, the war I that We because together important we that information the that it. digital because for like about trend companies, board Allen doing fighter about on some talking uniquely as is technologies, can to scale, And that AI, track ourselves but PAR, anticipating at the an speed, record with talk quarter, Scott, this play making we've been been from investments role player view tech making of we've of it own cyber. across this we're of our leadership our all work. this because investments leading-edge to primary

in on threats we're fits to We threat. take are the environment an remarks, ability in that I work into that the this the doing space and even to ways that's to described conflict at in And to look well. persistently to of effective need understand and prepared them in type as that anticipate the have

the work in Indo-Pacific, doing the how threats. Ukraine with help be in As clients board and the then our in us doing do that lot ready CENTCOM. have kinds their better. you we're do we're of do work work to contracts And work this That and doing the to teaches to translates these our of to helping that better, ability across a into this informs doing we're how the that and fighters accelerate we're in work know, respond war readiness to

comes from that Sachs. One our for with Poponak next Noah moment Goldman question,

or higher talked where stable revenue about I was the you've Or with also driving a of margins growth think on over to know contracted do and might the favorable if some offsets growth I we talked time over And about right? that growth. there long-term be of you mix you've minute faster parts in think Is I to more margins and you wondering can above about are And beyond the medium- thinking higher-margin favorably margins, time? business. scale spend should year. go this headcount profitability that?

then want start, sure will I to add and to Matt this. don't Why I'm

our Let of me invest drive take us thought start to mid-XXs X all we're to to and back you going we margins of we technologies be going these in said invest we in the business saying, to gave About when in new by be that the I'll able were wave years ago next thesis. the investment to outlook, the growth.

the the profitability the range, thought preserving in of is full at we business, point our same underlying a XX% to deliver while higher strength margins higher than organically of than business the level time, would, capacity. the fact, even which sheet X.X balance invest both us anticipated. we And In at underlying allowed an we the has

preparing in the as long to for hold I as have for think the growth. over be opportunities term overall opportunities time, out, that focused talking contracting especially question that, trends that's that And and dollar going the the to take about and can we accelerate. more what we're is how to term, Matt But on. other outcome-based is, in anticipating we're of quickly There's some near for year. we accelerate to are EBITDA there's pointed profitability continue this

we're the growth that some trends ascribe to profitability I'm But is Now want to going I ability Booz exactly to to drive when Allen's optimistic long-term given above-market would very term, happen, not long immediate over you, describing to about that any fiscal year. rate.

agree. I

basic said we aspire going I we business, contracting of But food It's do a that outlined. of more of have that's to, in we question And to and factors can we a the industry We're scale. a think outcome-based and use take business, how then to. extent an scale while. something aspire you does our mix that's contract current build lot that generating how evolve. what to

revenue Okay. rest high of X the are What the year, the the low through would the And total line, contemplating we quarter you in the the in be I months of the of with the now range left easier should I little the compares take to top kind organic the to risk at a the growth for? guess for end guess rate with is get factors what year. year? end regard

can start. I

impact the picture but I tends obviously, has to of environment -- continue and that think the And have all mindful This bills unpredictable X the on challenging we is a are fact or passing that just an forth. times. we X environmentally, to -- particularly year. this need is election appropriations changed change is very so the the election Congress it we in an not, to around very weeks, I many resolutions assume and it be behaves continuing mindful with, will or may way of so last fact are and

mindful And of very that. so we're

to to we continuing the internally ideal, which are do all stable successful, be monitor we and more it need a We unstable would or things a budget closely have doing whether be environment, to one.

Beyond we that all, push to main, wins that, accelerate decelerated, see optimistic continue year. about not which obviously optimistic momentum and But the and any continue on happens in of our that we prosecute we and which we're will We're win. a our risks significant have that. optimistic. while optimistic to the on healthy whole pipeline, would of recompetes we at want a very to we will continue there, hope And to then if number work that business. But We're on about about on what impact year. we're you this the them we're and cognizant of even dismissing some beyond the

that the moment Barclays. David our from for One question, line comes Strauss with of next

Josh actually for Korn Is David. on

So as year last this to out expect to of sales the I compared you to year. base break as a just cost ask wanted percent how

other SG&A? words, COGS, So billables, in

of to Yes, we've a think but term. I this just long this part Dave, compounder a to pretty build we support as being mentioned, I phase out-years. growth the business year investment as been It's in our commitment heavy not the for into

to business. continue So we invest the in

I mentioned, fiscal as levers available operating full we we to sure have deliver As the to us some year. needed make

But really appropriate adjust year happens. to line. will But terms a QX cost question, in the for back in be momentum got basis of indicator us of in work up QX to -- year. to in really what and us sort for next We the many us bottom years. our determinant, as of little side, is based leading built the on go this a profit lot for on a of we'll dropping do last we to And QX setting terms important

question, One from of Truist please. our Securities. line moment with for is And the next Tobey Sommer

are of retention? specifically Maybe any changes in as billable color your AI touch you skills us your on answer. And give the hoping part hiring, comparable was some changing of there. on headcount could pace if any I trends there

I Tobey, important years, start, of can did couple really the over last some work. we're -- we

that Martin puts billable. recruiting important both us few an cycle exciting to been these this one you allowed the a work that all edge capabilities, places, missions if the where we work are in work, development against this national people that position. more all allowed market. lean candidates, integrate and not can led us to to is attracts really into This shorten hiring them us identifying this Frankly, of Our a strongly. That's only Anderson, labor COO, the that Christine good market, of the some AI do importance. has doing because bring of of And the of is great then place, making

is lowest And our the in numbers attrition many, we've some many of years. seen

good feel we we about So are. where

the bit had par But for in year. don't month, As year, business Matt is growth more in headcount year, manage had hires out, maybe June we manage we And last by the April. little we expected, April more and we in June. pointed on this This here hires our a business even the ahead. than what we overall

I true. the same AI front, is story On think the

-- are We is VoLT working.

in have, together winning differentiating when exciting that own Booz has, differentiation. that to us track is And that intellectual record a that attract Allen position. allowing talent with the with its are itself capital you work we We and really creates it's it's that put

said, low to just QX of Applications XX% Allen historically attrition, to night as consecutive it's we last attrition. to Christine Horacio but this. X low, were to historically now Yes, I give quarters about Booz And numbers talking on you was couple of year-over-year. a that, in keep build up it calling

slightly of proposition. to bears repeating, It speaks it we quality doing think the over speaks I it but to referrals. from of X/X fact and but that come stay I said our need to want And their that adjust baseline. the just the So just the hires of want employee quality before, friends. value our we're work our who here, to people are to not they refer here

question the of with Louie line Next DiPalma Blair. comes from William

your on XXX-year Congrats anniversary.

Thanks, Louie.

Thank you, Louie.

delay mentioned impacted Ukraine. down, I recall ago, recently points how percentage Three you Afghanistan, headwind were guys was a couple which had wind Matt, the a years if exposure you during to by correctly. in And funding a to of you of

So Allen's administration? exposure new the you to with those lines, dry to that can up Ukraine were if Booz conflict along quantify for funding

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very we to resources doing exceptional have and much so We grow to and nation, to made while the our deliver a difference we shareholders. want continue

-- overall largest that the cyber, September, theater any Siv? to implementations you're trust been services holding from of CrowdStrike and Industry intelligence are obviously in I another And sense work service also there the how durable. along very on related progressing? the demand And And you're your community with is European you has get as cybersecurity Cyber Command you Federal issue zero DoD wondering, was Day. the for I And your and increased your are providers. think a I saying note, one deal

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this. for come Nothing we're So of it. we to well Certainly, work out believe happened may positioned date. has

it In pleased last adoption, positive with lot a on in but of really we're question, question, seeing terms specific where of client Thunderdome. had we of your momentum there. your technically, not We're terms just

is and both increasingly puts it optimism span cyber aspects markets, have together. sets relates Yes. also leading we And the it and all Booz of just to range And and what these space. about that coming future. have to about integrating for And these sector, in gives things quantum, Louie, I'll in the AI, seeing, just we we'll VoLT without across of positions talk its broad talk to cyber, as unique of began run by stealing we're September, that power like thunder, invested that saying and at more space. technology a It's ability AI really technologies Matt's in technologies and and cyber even but and space. answer in some it but next not AI AI Allen's are us and these us cyber position and a probably

his today. you it all back comments. that's Rozanski all Q&A to for I have Thank the we final participated. time who for will And Horacio And pass

for in at to enduring our the joining understanding us and questions hope long and goals. month, honor this deliver and great few really reflected had of history deeper you bell great us feel confident it company's discussion impact. it near- we And will a Stock our the why all ring performance I and long-term a the moment was this we Exchange, of enduring a our presence York New and and for gave thank Last you your you. morning. Thank our

vibrant the a looking how put for for trust shaping Ultimately, event forever We for that was to develop exceptional XXX the and and and XXX shareholders foresight future this the more. grateful. testament their we're agility years we incredible the to has the team And and and clients kept have and talked relevant about our own us years who our to to Allen are continue that, performance. and Booz to in future,

and have of And great with the a a that, great day rest summer.

participating now you disconnect. you may today's for and thank And all in conference,