Recent Updates — MMS

Maximus Federal Services, a wholly owned subsidiary of Maximus, Inc., entered into a definitive Equity Purchase Agreement to acquire all outstanding equity interests of Agile Defense, LLC and its affiliates from Arclight Equity Holdings. The transaction carries a base cash purchase price of $660 million, subject to adjustments for indebtedness, working capital, and transaction expenses. Additionally, the seller is entitled to contingent earnout payments of up to $50 million if Agile Defense achieves specific revenue milestones within twelve months following closing. The acquisition is expected to close in the first quarter of Maximus' fiscal year 2027, subject to customary conditions including Hart-Scott-Rodino antitrust review and the absence of a material adverse effect. This move aims to expand Maximus' capabilities in cybersecurity, AI, and digital transformation for defense and national security missions. Maximus provides tech-enabled government services to improve public program delivery.

Maximus reported third-quarter fiscal 2026 revenue of $1.28 billion and diluted EPS of $1.95, with adjusted diluted EPS of $2.22. The company reiterated FY26 revenue guidance of $5.2–$5.35 billion but lowered adjusted EPS guidance to $7.90–$8.20 due to a temporary contractual modification on a major federal program effective July 1, 2026. Free cash flow guidance was updated to $425–$475 million. The Board declared a quarterly cash dividend of $0.33 per share, payable August 31, 2026, to shareholders of record on August 14, 2026. Share repurchases totaled $50.4 million for 0.75 million shares in the quarter. Maximus operates as a provider of government services and technology solutions.