MCLEAN, Va. - Booz Allen Hamilton (NYSE: NYSE:BAH) has secured a task order from the U.S. Department of Homeland Security (DHS) with a potential value of up to $1.2 billion to support the Cybersecurity and Infrastructure Security Agency's (CISA) Continuous Diagnostics and Mitigation (CDM) DEFEND program. The contract, which has a base value of $421 million, is intended to enhance the cybersecurity resilience of federal government data and networks against cyberattacks.
The three-year agreement tasks Booz Allen with providing cybersecurity tools and expertise to 13 federal agencies, including high-profile entities such as NASA, the IRS, and the Department of Health and Human Services. The firm's efforts will focus on expanding critical incident support and advancing the maturity of zero trust frameworks, a strategic cybersecurity approach that assumes breaches are inevitable and verifies each access request as if it originates from an open network.
Since the CDM program's inception in 2014, Booz Allen has been a key partner, serving as a leading systems integrator. This latest award extends the company's involvement in deploying cyber capabilities across the federal civilian enterprise and enhancing risk-based decision-making through actionable data.
Kelly Rozumalski, a senior vice president at Booz Allen, emphasized the evolving and complex threat environment, highlighting the need for federal agencies to respond swiftly to emerging threats to protect U.S. critical infrastructure and civilians. The CDM program is cited as a crucial tool for federal government visibility and resilience-building.
Under the contract, Booz Allen is expected to deliver integrated solutions and services across four areas: asset management, identity and access management, network security management, and data protection management. A key deliverable includes aiding civilian agencies in improving their cybersecurity defenses in line with zero trust principles.
Erica Banks, vice president at Booz Allen, expressed enthusiasm for the continued partnership with CDM, aligning with the firm's business strategy to innovate rapidly. The award encompasses both the maintenance of operational visibility and the implementation of critical capabilities, while also reimagining future support for the CDM program.
This news is based on a press release statement. Booz Allen Hamilton is a consulting firm that specializes in technology and engineering solutions, with a focus on advancing national civil, defense, and security priorities. The company, which employs approximately 35,100 people globally as of June 30, 2024, reported revenues of $10.7 billion for the 12 months ended March 31, 2024.
In other recent news, Booz Allen Hamilton has demonstrated robust financial performance, with Q1 FY2025 earnings revealing total revenue of $2.9 billion, a year-over-year increase of 11%. The company's organic revenue growth stood at 10.6%, with the defense sector witnessing a 16% surge in revenue, despite a 3% decline in the intelligence sector. Adjusted EBITDA was reported at $302 million, and the net income at $165 million.
In the realm of mergers and acquisitions, Booz Allen has strengthened its role in the U.S. Department of Defense's mission capabilities by securing a $506 million contract with the U.S. Army. This significant contract, the largest Information Analysis Center Multiple Award Contract (IAC MAC) Task Order for the company to date, involves collaboration with over 20 businesses and academic institutions nationwide.
As per TD Cowen's recent analysis, despite a 10% decrease in Booz Allen's stock price following a first-quarter earnings "miss," the consulting firm's stock remains a favorable investment. The firm's stance is optimistic, suggesting that Booz Allen is likely to meet or exceed expectations in the upcoming quarter.
Other noteworthy developments include the appointment of Bill Vass as the new Chief Technology Officer. These recent developments underscore Booz Allen's ongoing commitment to advancing technology solutions for the U.S. Department of Defense and delivering on its financial goals.
InvestingPro Insights
Booz Allen Hamilton (NYSE: BAH) has demonstrated a robust financial performance with a market capitalization of approximately $20.09 billion, underscoring the firm's solid presence in the consulting and technology solutions sector. The company's commitment to shareholder returns is evident, as it has raised its dividend for 8 consecutive years and maintained dividend payments for 13 consecutive years, showcasing a reliable income stream for investors. This consistency in dividend payments aligns with the firm's long-term business strategy and financial planning.
InvestingPro Tips reveal that Booz Allen Hamilton is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 33.25 and a PEG ratio of just 0.3. This could suggest that the company's stock is undervalued considering its earnings growth potential. Additionally, analysts predict the company will be profitable this year, which is supported by a solid track record of profitability over the last twelve months. These factors combined with the company's strong return over the last five years may be of particular interest to investors looking for growth in addition to income.
It's also worth noting that Booz Allen Hamilton has a high Price / Book multiple of 18.53, which may reflect the market's high valuation of the company's net assets. The firm's revenue growth has been steady, with a 13.3% increase over the last twelve months, indicating a positive trajectory in its business operations. For investors seeking additional insights, InvestingPro offers a comprehensive list of tips, including 11 more tips that can be found at: https://www.investing.com/pro/BAH.
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