The defense contractor reaffirmed full-year guidance despite a revenue decline, citing stronger profitability and backlog growth.
Booz Allen Hamilton reported a 4.2% year-over-year decline in first-quarter fiscal 2027 revenue to $2.8 billion, driven by a 16% drop in civil revenue that offset a 1% rise in national security work. Adjusted EBITDA rose to $334 million, with margins expanding 130 basis points to 11.9%, while earnings per share climbed 22% to $1.81.
Funded backlog surged 15% to $4.7 billion, and total backlog increased 3% to over $39 billion, with a book-to-bill ratio of 1.5x. Management highlighted strengthening demand in national security, though hiring constraints for cleared personnel persist. Cyber and defense technology remain key growth areas.
The company reaffirmed its full-year outlook, citing better-than-expected profitability and cash flow. It also expects to close the Ultra I&C Mission Solutions acquisition in the second quarter, which could boost growth and margins.