Research Reports

Key takeaways

Revenue was $1.2B, down 7.7% year-over-year, driven by fewer international development projects and lower disaster response activity.

Operating income rose 232% to $131.5M, reflecting improved project execution and the elimination of lower-margin cost-reimbursable work.

Net income increased to $93.8M from $5.4M, with diluted EPS of $0.36 compared to $0.02 in the prior year.

Free cash flow was $227.5M, supported by strong operating cash flow of $237.6M and capital expenditures of $10.1M.

Full analysis

USAID Cancellations and Disaster Response Decline Drove Top-Line Contraction

Margin Expansion Through Mix Shift and Operational Discipline

Cash Flow Transformation and Capital Allocation

Backlog and Outlook Signal Resilience

While specific backlog figures were not provided in the authoritative packet, management expects growth in international work to continue for the remainder of fiscal 2026. The company's operations have not been materially adversely affected by inflation or changing prices due to the average duration of projects and the ability to negotiate prices as contracts end and new contracts begin. The improved operating margin and strong cash generation position the company to navigate the current environment while investing in growth opportunities.