Booz Allen Hamilton, an advanced technology consulting firm specializing in services for defense, civil, and national security sectors, reported strong financial results for the fourth quarter and fiscal year 2025. The company demonstrated notable revenue and profit growth, indicating a firm standing in a changing market environment.
For the fourth quarter, Booz Allen achieved revenue of $3.0 billion, a 7.3% increase from the same quarter last year. Year-over-year organic revenue growth for the quarter was reported at 6.2%. Adjusted EBITDA for the same period rose by 10.5% to $316 million, translating to an adjusted EBITDA margin of 10.6%, up 30 basis points year-over-year. Net income increased significantly, reaching $193 million, a 50.8% increase compared to $128 million in the prior year quarter. This resulted in diluted earnings per share (EPS) of $1.52, a 55.1% increase from $0.98 in the same period last year.
For the entire fiscal year 2025, Booz Allen reported total revenue of $12.0 billion, reflecting a 12.4% growth year-over-year. Most of this growth was attributed to organic revenue, which increased by 11.6%. The company’s adjusted net income reached $815 million, up 13.4% from $719 million the previous fiscal year. Adjusted EBITDA totaled $1.315 billion for the fiscal year, an 11.9% increase compared to $1.175 billion for fiscal 2024, with the adjusted EBITDA margin remaining approximately flat at 11.0%.
Free cash flow for the fiscal year was reported at $911 million, a significant increase from $192 million in the prior year. A total of $1.2 billion was deployed in capital investments, which included repurchasing approximately 4.3% of outstanding shares. The company ended the fiscal year with $885 million in cash and a net debt of $3.1 billion, maintaining a net leverage ratio of 2.4x.
Looking forward to fiscal year 2026, Booz Allen expects revenue to be between $12 billion and $12.5 billion, with adjusted EBITDA projected to range from $1.315 billion to $1.37 billion. The adjusted EBITDA margin is anticipated to remain around 11%. The company expects adjusted diluted EPS to be between $6.20 and $6.55 and has forecasted free cash flow to be in the range of $700 million to $800 million. The guidance reflects a cautious outlook, particularly regarding the company’s civil business, which is anticipated to face challenges due to ongoing procurement slowdowns in the federal government sector.