Maximus (MMS) Q1 2026 Earnings Call Transcript

Image source: The Motley Fool.

Thursday, Feb. 5, 2026 astatine 9:00 a.m. ET

• President and Chief Executive Officer — Bruce Caswell

• Chief Financial Officer — David Mutryn

Bruce Caswell: Thanks, James, and bully morning. Our quality to present accordant show is evidenced successful our archetypal 4th results and enables america to rise net guidance and constrictive our gross guidance for the afloat fiscal twelvemonth 2026. Maximus, Inc. operates successful a resilient assemblage of authorities spend, and the transportation of indispensable services successful a high-quality and businesslike mode is simply a hallmark of our business. The show and outcomes-based quality of our portfolio has aligned good with medication priorities and has historically operated mostly unaffected done impermanent shutdowns.

The spot of that instauration enabled america to grow to enactment caller customers, arsenic with the US Air Force, and to absorption connected the pursuit of opportunities up that we spot some successful our national and authorities markets. Most currently, that's Medicaid and SNAP connected the authorities side. And I'll stock however those are tracking. Finally, I'll update you connected our continued strategical improvement arsenic a trusted supplier of technology-driven solutions and services to our authorities customers. This strategy includes expanding our usage of automation, including successful immoderate instances AI, to augment however enactment is done, heighten national satisfaction, and amended fiscal performance. Enabling reinvestment to enactment our customers and thrust shareholder value.

Our archetypal 4th results bespeak virtually nary nonstop interaction to our declaration portfolio from the shutdown past fall. Historically, a important bulk of our programs are deemed indispensable erstwhile a impermanent shutdown occurs, resulting successful the quality to support our P&L forecast. However, 2 secondary impacts thin to beryllium slower payments from customers, which David volition interaction on, and impermanent delays successful grant decisions. Both of these dynamics occurred, truthful let's spell done the awards and pipeline metrics now. For 2026, signed awards totaled $246 cardinal of full declaration value. In addition, astatine December 31, we had a equilibrium of $699 cardinal worthy of contracts that person been awarded but not yet signed.

These awards construe into a book-to-bill ratio of astir 0.5 times utilizing our modular reporting for the trailing twelve-month period. The little TTM book-to-bill ratio was impacted by precise airy grant enactment successful our conscionable completed archetypal quarter, which had a quarterly book-to-bill ratio of 0.2 times. The awards successful the 4th comprised chiefly respective smaller recompete wins for the US services business, which we typically person connected a rolling basis. The authorities shutdown had a nonstop interaction connected our US national grant activity, which has besides been noted precocious by others successful our industry.