Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Booz Allen Hamilton (NYSE: BAH) and the best and worst performers in the government & technical consulting industry.
The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins.
The 7 government & technical consulting stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.
Booz Allen Hamilton (NYSE: BAH)
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Booz Allen Hamilton reported revenues of $2.92 billion, flat year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.
Unsurprisingly, the stock is down 11.4% since reporting and currently trades at $101.90.
Is now the time to buy Booz Allen Hamilton? Access our full analysis of the earnings results here, it’s free.
Best Q2: Maximus (NYSE: MMS)
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Maximus reported revenues of $1.35 billion, up 2.5% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with a beat of analysts’ EPS estimates.
Maximus scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 17.6% since reporting. It currently trades at $87.97.
Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Amentum (NYSE: AMTM)
With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.
Amentum reported revenues of $3.56 billion, up 2% year on year, exceeding analysts’ expectations by 1.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 7.9% since the results and currently trades at $23.32.
Read our full analysis of Amentum’s results here.
UL Solutions (NYSE: ULS)
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
UL Solutions reported revenues of $776 million, up 6.3% year on year. This print surpassed analysts’ expectations by 0.6%. More broadly, it was a slower quarter as it produced EPS in line with analysts’ estimates.
UL Solutions delivered the fastest revenue growth among its peers. The stock is down 4.2% since reporting and currently trades at $70.
Read our full, actionable report on UL Solutions here, it’s free.
Jacobs Solutions (NYSE: J)
With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.
Jacobs Solutions reported revenues of $3.03 billion, up 5.1% year on year. This result came in 0.9% below analysts' expectations. In spite of that, it was a satisfactory quarter as it recorded a solid beat of analysts’ backlog estimates.
The stock is up 5.3% since reporting and currently trades at $147.46.
Read our full, actionable report on Jacobs Solutions here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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