Total Revenue

+7% " "

Underlying Business Factors: Expanded portfolios in health, defense, and civil programs led to higher contract volumes and new awards. Market Conditions: Continued federal spending and stable demand in key markets supported revenue growth.

U.S. Revenue

+8% " "

Underlying Business Factors: Increase in domestic managed health services and defense-related contracts boosted sales. Company-Specific Initiatives: Focus on U.S. government opportunities led to strong backlog execution, improving year-over-year performance.

Operating Income (EBIT)

$516M vs. -$336M in Q3 2024 " "

Previous Values: Q3 2024 was impacted by one-time charges and contract write-downs, leading to negative EBIT. Current Period: Cost controls, program wins, and better execution drove margins higher, reversing the prior-year loss. Forward-Looking: A more profitable contract mix may sustain operating momentum.

Net Income

$362M vs. -$396M in Q3 2024 " "

Previous Values: Large non-cash impairment and restructuring expenses weighed on prior-year results. Current Period: Higher revenues, improved cost management, and absence of major write-downs significantly lifted profitability. Forward-Looking: Continued focus on high-margin segments could maintain stronger net income.

EPS – Basic

$2.70 vs. -$2.91 in Q3 2024 " "

Underlying Business Factors: Net income growth and fewer shares outstanding, due to share repurchases, amplified EPS. Company-Specific Initiatives: Operational efficiencies and the recovery from one-time charges in Q3 2024 boosted earnings per share. Forward-Looking: Future repurchases and steady margins may continue to support EPS.

Net Change in Cash

-22% YoY " "

Previous Values: Prior period included higher cash proceeds from contract completions and favorable working capital timing. Current Period: Increased capital deployment for strategic initiatives and share repurchases reduced cash inflows. Company-Specific Challenges: Balancing investments in growth with maintaining liquidity remains a focus area.