Booz Allen, KBR's government group report improved sales, profit

By Marjorie Censer / July 30, 2018 at 10:03 AM

Booz Allen Hamilton said today sales during its most recent quarter hit $1.6 billion, up 8 percent from the same three-month period a year earlier.

The contractor's quarterly profit reached $104 million, up 48 percent from the prior year.

Horacio Rozanski, Booz Allen's chief executive, struck a positive tone during during a morning call with analysts.

"This is one of the best markets we've seen in certainly the last five years," he said. "Our clients have been looking to invest in the future, have been looking to modernize . . . and that's where the focus is right now."

He said government customers have moved from seeking lowest-priced, technically acceptable proposals to a "best value" mindset. Rozanski said they are seeking "best value in the full sense of the word," meaning price matters -- but it isn't the only factor.

Meanwhile, KBR said today its government services business recorded quarterly revenue of $868 million, up nearly 60 percent from the same period a year earlier. The unit's quarterly profit reached $71 million, almost double its profit the prior year.

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