Booz Allen Hamilton Holding Corporation (BAH), a prominent defense contractor, recently announced its financial outcomes for the second fiscal quarter. The company's adjusted earnings per share were reported at $1.49, falling short of the anticipated $1.51 from analysts. Furthermore, quarterly sales reached $2.89 billion, an 8.1% decrease from the previous year, missing the market's expectation of $2.99 billion. The firm's operational profit for the quarter stood at $283 million, a significant drop from $549 million in the prior year.
Despite the financial setbacks, Booz Allen Hamilton observed a 2.9% increase in its project backlog, accumulating $40 billion, and maintained a book-to-bill ratio of 1.7x for the quarter. However, organic revenue experienced a 4.7% decline. The company's workforce also saw a reduction, with client staff headcount decreasing by approximately 3,100, or 9.5%, year-over-year. As of September 30, the company held $816 million in cash and equivalents, alongside a net long-term debt of $3.88 billion. The board declared a quarterly dividend of 55 cents per share, payable on December 2, 2025, to shareholders of record by November 14, 2025.
Horacio Rozanski, Chairman and CEO of Booz Allen, attributed the quarterly results to a 'bifurcated market' but highlighted the company's success in securing new contracts, driven by robust demand for its cutting-edge technologies in cybersecurity, artificial intelligence, and warfighting. Looking ahead, the company revised its fiscal year 2026 revenue projections downwards to $11.3 billion-$11.5 billion, from an earlier forecast of $12.00 billion-$12.50 billion, also lowering its adjusted EPS outlook to $5.45-$5.65. Additionally, the adjusted EBITDA margin guidance was reduced to mid-10%, and the free cash flow forecast was adjusted to $850 million-$950 million.
The current market landscape presents both challenges and opportunities, as demonstrated by Booz Allen Hamilton's strategic focus on innovation and adaptability in critical technology sectors. By prioritizing advancements in cybersecurity, artificial intelligence, and defense capabilities, the company aims to solidify its position and contribute to national security, illustrating a forward-thinking approach amidst evolving market dynamics.