Maximus’s shares edged up 0.5% following Q2 results largely in line with expectations, reflecting steady revenue but limited upside amid ongoing segment challenges and cautious near-term outlook.

• Revenue came in at $1.31 billion, consistent with guidance and prior expectations, with U.S. Federal Services revenue down year-over-year due to lapping natural disaster work but up 1.5% organically.
• Adjusted EBITDA margin improved to 14.4%, aided by automation initiatives, supporting a slight increase in adjusted EPS to $2.07 from $2.01 a year ago.
• U.S. Federal Services segment margin expanded to 17.6%, prompting a raised margin guidance for the segment.
• U.S. Services segment revenue declined to $416 million, still impacted by a non-cash $6.9 million asset impairment, though margin excluding this charge improved sequentially.
• Outside U.S. segment remains unprofitable with a $3.1 million operating loss, as the company continues to reshape this business and pursue growth opportunities in select geographies.