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    Brian Gesuale • Raymond James

    Brian Gesuale's questions to Maximus Inc (MMS) leadership

    Brian Gesuale's questions to Maximus Inc (MMS) leadership • Q3 2025

    Question

    Brian Gesuale from Raymond James Financial asked about the progress of technology and capacity investments in the VA business and the outlook for VA claim volumes. He also questioned the impact of a prior-quarter FEMA contract, the margin outlook, the potential for 'One Big Beautiful Bill Act' benefits to arrive in FY2026, and the extent of headwinds from the Department of Justice (Doge) and other agencies.

    Answer

    President and CEO Bruce Caswell described phased technology investments in the VA business, including AI/ML to streamline medical record review, which are expected to enhance throughput. He noted that while unprecedented VA volumes from Q3 might moderate, a sustained high level of demand is expected. Caswell also stated that headwinds from agency initiatives like Doge have had a minimal impact of less than 0.5% on revenue. CFO David Mutryn added that the company expects FY2026 EBITDA margins to remain near the high end of the target range and confirmed that the main revenue impact from the new legislation is prudently forecasted for FY2027.

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    Brian Gesuale's questions to Maximus Inc (MMS) leadership • Q1 2025

    Question

    Brian Gesuale from Raymond James asked for details on the interplay between Medicaid redeterminations and state-based exchange enrollment, the growth outlook for the veteran assessment business, the stability of the student loan servicing contracts, and the expected cadence of free cash flow for the remainder of the fiscal year.

    Answer

    CEO Bruce L. Caswell provided data showing a significant increase in health exchange enrollments, particularly from new consumers, linking it to the Medicaid unwinding process. Regarding the VA business, Caswell and CFO David Mutryn noted that while claim volumes have stabilized at high levels, they expect steady-to-modest growth rather than another large step-up. Caswell affirmed the student loan servicing work is a core function expected to continue regardless of administrative changes. Mutryn explained that the Q1 negative free cash flow was due to expected seasonal payment timings and that cash generation should be strong and more normalized over the next three quarters.

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    Brian Gesuale's questions to Amentum Holdings Inc (AMTM) leadership

    Brian Gesuale's questions to Amentum Holdings Inc (AMTM) leadership • Q1 2025

    Question

    Brian Gesuale of Raymond James inquired about shifts in customer priorities under the new administration, the composition of the business pipeline between segments and business types, and the expected seasonality of free cash flow for the fiscal year.

    Answer

    CEO John Heller noted a stable environment for Amentum's core programs, with potential award delays but no material disruption, and highlighted growth opportunities in border security, space, and cyber. CFO Travis Johnson detailed the $30 billion pending pipeline, stating it's roughly two-thirds new business and well-distributed between the Digital Solutions and Global Engineering segments. Johnson also confirmed the full-year cash flow guidance, explaining that Q2 will likely be the lowest point due to interest payment timing, with the majority of cash flow expected in the second half of the year.

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    Brian Gesuale's questions to Mercury Systems Inc (MRCY) leadership

    Brian Gesuale's questions to Mercury Systems Inc (MRCY) leadership • Q2 2025

    Question

    Brian Gesuale asked about the company's progress in shifting its business mix from development to production work and requested sensitivity analysis on how margins improve with this shift.

    Answer

    CFO Dave Farnsworth noted that the business mix is naturally shifting, with recent bookings being approximately 80% production-related. This is a consequence of completing a large number of development programs and securing follow-on production awards. While not providing a specific sensitivity formula, he affirmed that the company is still focused on pursuing the right kinds of new development and innovation.

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