Booz Allen Hamilton Holding Corporation (BAH) Bundle
A Brief History of Booz Allen Hamilton Holding Corporation
Booz Allen Hamilton Holding Corporation, incorporated in Delaware in May 2008, specializes in management and technology consulting, analytics, engineering, digital solutions, mission operations, cyber services, and artificial intelligence. The company primarily serves U.S. and international governments, major corporations, and not-for-profit organizations.
Company Overview as of 2024
As of September 30, 2024, Booz Allen Hamilton employs approximately 35,800 personnel. The company operates in a single reportable segment and is headquartered in McLean, Virginia.
Financial Performance
For the six months ended September 30, 2024, Booz Allen Hamilton reported:
- Revenue: $5,682.5 million
- Operating Income: $490.6 million
- Net Income: $555.3 million
- Earnings Per Share (Diluted): $4.27
Comparatively, for the same period in 2023, the figures were:
- Revenue: $3,661.0 million
- Operating Income: $401.1 million
- Net Income: $332.1 million
- Earnings Per Share (Diluted): $2.51
| Financial Metrics | FY 2024 | FY 2023 |
|---|---|---|
| Revenue | $5,682.5 million | $3,661.0 million |
| Operating Income | $490.6 million | $401.1 million |
| Net Income | $555.3 million | $332.1 million |
| Earnings Per Share (Diluted) | $4.27 | $2.51 |
Stockholder Equity
As of September 30, 2024, Booz Allen Hamilton reported stockholders' equity of $1,200.8 million, an increase from $1,046.6 million as of March 31, 2024. The increase was mainly driven by net income and stock-based compensation, countered by treasury stock repurchases and dividend payments.
Dividends and Share Repurchases
On October 25, 2024, the company declared a quarterly cash dividend of $0.51 per share, payable on December 4, 2024. For the six months ended September 30, 2024, total dividends paid amounted to $133.0 million. During this period, the company repurchased 2.1 million shares of its Class A Common Stock for $308.5 million.
Government Contracting and Revenue Sources
In the fiscal year 2024, approximately 99% of Booz Allen Hamilton's revenue was generated from contracts with U.S. government agencies. The company’s total backlog increased by 17.7% from September 30, 2023, totaling $11.0 billion.
Key Financial Ratios and Metrics
| Metric | Value |
|---|---|
| Debt to Equity Ratio | 2.75 |
| Operating Margin | 8.6% |
| Net Profit Margin | 9.8% |
As of September 30, 2024, Booz Allen Hamilton's total liabilities amounted to $3.8 billion, while total assets were reported at $5.0 billion.
Recent Developments
In fiscal 2024, Booz Allen Hamilton faced a significant increase in operational costs due to inflationary pressures and increased staffing expenses. The company reported general and administrative expenses as a percentage of revenue decreasing from 11.3% in 2023 to 7.2% in 2024.
In summary, Booz Allen Hamilton continues to strengthen its position in the consulting market, significantly benefiting from its extensive government contracts while navigating the complexities of operational cost management and shareholder returns.
A Who Owns Booz Allen Hamilton Holding Corporation (BAH)
Ownership Structure
Booz Allen Hamilton Holding Corporation (BAH) is a publicly traded company primarily listed on the New York Stock Exchange (NYSE). As of September 30, 2024, the company had a total of 167,841,004 shares of Class A common stock issued.
Major Shareholders
The following table outlines the major shareholders of Booz Allen Hamilton as of 2024:
| Shareholder Name | Type of Ownership | Number of Shares | Percentage Ownership |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 16,500,000 | 9.83% |
| The Vanguard Group, Inc. | Institutional Investor | 13,800,000 | 8.22% |
| State Street Corporation | Institutional Investor | 9,700,000 | 5.79% |
| FMR LLC (Fidelity) | Institutional Investor | 7,500,000 | 4.47% |
| Invesco Ltd. | Institutional Investor | 6,200,000 | 3.70% |
Insider Ownership
As of September 30, 2024, insider ownership, including executive officers and board members, accounted for approximately 3% of the total shares outstanding. Key insiders include:
- Horacio Rozanski, President & CEO – 1,200,000 shares
- Jill Bruning, CFO – 300,000 shares
- Other executives – 1,000,000 shares combined
Shareholder Activity
The company has an active share repurchase program. As of September 30, 2024, Booz Allen Hamilton had repurchased approximately 2.1 million shares for $308.5 million during the six months ended September 30, 2024. The remaining authorization under the repurchase program was approximately $699.7 million.
Dividend Information
Booz Allen Hamilton announced a quarterly cash dividend of $0.51 per share, payable on December 4, 2024, to stockholders of record on November 15, 2024. For the six months ended September 30, 2024, total dividends paid amounted to $133.0 million.
Market Performance
As of September 30, 2024, Booz Allen Hamilton's stock was trading at approximately $154.35. The company reported a net income of $555.3 million for the six months ended September 30, 2024, with earnings per share of $4.29.
Summary of Financials
The following table summarizes the financial position of Booz Allen Hamilton as of September 30, 2024:
| Financial Metric | Amount |
|---|---|
| Total Revenue | $6,088.2 million |
| Operating Income | $803.8 million |
| Net Income | $555.3 million |
| Total Assets | $6,878.4 million |
| Total Liabilities | $5,677.6 million |
| Total Stockholders’ Equity | $1,200.8 million |
Conclusion
As a publicly traded entity, Booz Allen Hamilton's ownership is characterized by a diverse group of institutional investors and significant insider ownership. The company continues to engage in share repurchase programs and pays regular dividends to its shareholders, reflecting a commitment to returning value to investors.
Booz Allen Hamilton Holding Corporation (BAH) Mission Statement
Mission Statement Overview
Booz Allen Hamilton Holding Corporation’s mission is to empower clients to tackle their most complex challenges, leveraging technology, analytics, engineering, and digital solutions. The company aims to deliver innovative solutions that drive positive change for clients, particularly in government and commercial sectors.
Financial Performance
As of September 30, 2024, Booz Allen Hamilton reported a revenue of $6.09 billion for the six months ended, compared to $5.32 billion for the same period in 2023. The net income for the same period was $552.3 million, an increase from $329.4 million in 2023.
| Financial Metrics | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|
| Total Revenue | $6.09 billion | $5.32 billion |
| Net Income | $552.3 million | $329.4 million |
| Earnings per Share (Basic) | $4.29 | $2.52 |
| Earnings per Share (Diluted) | $4.27 | $2.51 |
| Total Stockholders' Equity | $1.20 billion | $1.05 billion |
Client Engagement
Approximately 99% of Booz Allen's revenue is generated from contracts with U.S. government agencies. The company focuses on defense, intelligence, and civil client segments, with defense clients contributing 48% of total revenue as of September 30, 2024.
| Revenue by Client Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Defense Clients | $1.54 billion (49%) | $1.27 billion (47%) |
| Intelligence Clients | $496.4 million (16%) | $442.9 million (17%) |
| Civil Clients | $1.11 billion (35%) | $952.4 million (36%) |
Stockholder Returns
The company declared a quarterly cash dividend of $0.51 per share on October 25, 2024, payable on December 4, 2024. For the six months ending September 30, 2024, total dividends paid amounted to $133 million.
| Dividends | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|
| Quarterly Dividend per Share | $0.51 | $0.47 |
| Total Dividends Paid | $133 million | $125 million |
Market Position and Growth
Booz Allen Hamilton's total backlog increased by 17.7% from September 30, 2023, to September 30, 2024, reaching $11.0 billion. The company anticipates recognizing approximately 70% of this backlog as revenue over the next 12 months.
| Backlog Metrics | As of September 30, 2024 | As of March 31, 2024 |
|---|---|---|
| Total Backlog | $11.0 billion | $8.7 billion |
| Expected Revenue Recognition (12 months) | 70% | 80% |
Employee Engagement and Compensation
As of September 30, 2024, Booz Allen Hamilton employed approximately 35,800 individuals. The total stock-based compensation expense for the six months ended September 30, 2024, was $45.7 million.
| Employee Metrics | As of September 30, 2024 |
|---|---|
| Total Employees | 35,800 |
| Stock-Based Compensation Expense | $45.7 million |
How Booz Allen Hamilton Holding Corporation (BAH) Works
Business Overview
Booz Allen Hamilton Holding Corporation (BAH) operates primarily in the consulting sector, focusing on providing services to government agencies, including national defense, intelligence, and civil services. The company supports its clients through a range of services including management consulting, technology solutions, and engineering services.
Financial Performance
As of September 30, 2024, Booz Allen reported the following financial highlights:
| Metric | Q2 2024 | Q2 2023 | 6 Months 2024 | 6 Months 2023 |
|---|---|---|---|---|
| Revenue | $3,146,386,000 | $2,666,282,000 | $6,088,183,000 | $5,320,768,000 |
| Net Income | $390,112,000 | $170,718,000 | $555,345,000 | $332,106,000 |
| Operating Income | $548,609,000 | $266,989,000 | $803,773,000 | $501,407,000 |
| Earnings per Share (Diluted) | $3.01 | $1.29 | $4.27 | $2.51 |
Cost Structure
The operating costs and expenses for Booz Allen Hamilton for the six months ended September 30, 2024, are as follows:
| Cost Type | Amount (in thousands) |
|---|---|
| Cost of Revenue | $2,733,516 |
| Billable Expenses | $1,913,003 |
| General and Administrative Expenses | $554,706 |
| Depreciation and Amortization | $83,185 |
| Total Operating Costs | $5,284,410 |
Stockholder Equity and Dividends
As of September 30, 2024, Booz Allen Hamilton's stockholders' equity was reported at $1,200,769,000, reflecting an increase from $1,046,562,000 as of March 31, 2024. During the six months ended September 30, 2024, the company declared dividends totaling $133,332,000.
Share Repurchase Program
Booz Allen Hamilton has a share repurchase program with a total authorization of $3,085 million. As of September 30, 2024, approximately $699.7 million remained under the repurchase program. During the six months ended September 30, 2024, the company repurchased 2.1 million shares for $308.5 million.
Debt and Financial Obligations
As of September 30, 2024, Booz Allen had a total long-term debt of $3,310,775,000. The company has access to a $1.0 billion revolving credit facility, which is part of its Credit Agreement with Bank of America as an administrative agent.
Contractual Obligations and Backlog
As of September 30, 2024, Booz Allen Hamilton reported remaining performance obligations of $11.0 billion, with expectations to recognize approximately 70% of this amount as revenue within the next 12 months. The total backlog increased by 17.7% from the previous year, with additions totaling $11.8 billion for the twelve months ended September 30, 2024.
Employee Compensation and Benefits
For the three months ended September 30, 2024, total expense recognized for matching contributions under the Employees’ Capital Accumulation Plan was $61.1 million, compared to $53.6 million in the prior year. The unfunded status of the post-retirement medical plan was $129.2 million as of September 30, 2024.
Cash Flow Statement
For the six months ended September 30, 2024, Booz Allen Hamilton reported the following cash flow data:
| Cash Flow Activities | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $639,219 |
| Net Cash Used in Investing Activities | ($153,272) |
| Net Cash Used in Financing Activities | ($481,480) |
| Net Increase in Cash and Cash Equivalents | $4,467 |
How Booz Allen Hamilton Holding Corporation (BAH) Makes Money
Revenue Generation
Booz Allen Hamilton generates revenue primarily through contracts with various U.S. government agencies. Approximately 99% of its revenue is derived from government contracts, where the company acts both as a prime contractor and subcontractor.
For the six months ended September 30, 2024, Booz Allen reported total revenue of $6.1 billion, representing a year-over-year increase of 14.4%. The revenue breakdown by contract type is as follows:
| Contract Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cost-reimbursable | $1,781,044 (57%) | $1,463,949 (55%) | $3,440,967 (56%) | $2,914,133 (55%) |
| Time-and-materials | $722,818 (23%) | $638,607 (24%) | $1,393,386 (23%) | $1,274,340 (24%) |
| Fixed-price | $642,524 (20%) | $563,726 (21%) | $1,253,830 (21%) | $1,132,295 (21%) |
| Total Revenue | $3,146,386 (100%) | $2,666,282 (100%) | $6,088,183 (100%) | $5,320,768 (100%) |
Cost Structure
The cost of revenue for Booz Allen Hamilton was $2.7 billion for the six months ended September 30, 2024, reflecting a 10.0% increase from the previous year. This breakdown includes:
- Cost of revenue: $2,733,516
- Billable expenses: $1,913,003
- General and administrative expenses: $554,706
- Depreciation and amortization: $83,185
The operating income for the six months ended September 30, 2024, was reported at $803,773, an increase of 60.3% year-over-year.
Client Segmentation
Revenue is also segmented by client type, with the following distribution for the six months ended September 30, 2024:
| Client Type | Revenue | Percentage of Total Revenue |
|---|---|---|
| Defense Clients | $2,960,978 | 48% |
| Intelligence Clients | $957,459 | 16% |
| Civil Clients | $2,169,746 | 36% |
Backlog and Future Revenue
As of September 30, 2024, Booz Allen Hamilton had a total contract backlog of $11.0 billion, with expectations to recognize approximately 70% of this backlog as revenue over the next 12 months. The backlog growth reflects a 17.7% increase from the previous year, largely driven by new contracts and task orders.
Dividends and Share Repurchases
The company declared a quarterly dividend of $0.51 per share, totaling $65.8 million for the three months ended September 30, 2024. Additionally, during the first half of fiscal 2025, Booz Allen repurchased 2.1 million shares for approximately $308.5 million.
Employee Compensation and Benefits
Booz Allen Hamilton invests significantly in its workforce, with total expenses for matching contributions under its capital accumulation plan amounting to $123.0 million for the six months ended September 30, 2024.
Conclusion
Booz Allen Hamilton's financial model relies on a combination of government contracts, effective cost management, and strategic investments in its workforce, which together drive its revenue growth and profitability.
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Article updated on 8 Nov 2024
Resources:
- Booz Allen Hamilton Holding Corporation (BAH) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Booz Allen Hamilton Holding Corporation (BAH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Booz Allen Hamilton Holding Corporation (BAH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.