Booz Allen says DOJ has closed criminal investigation

Booz Allen Hamilton's chief executive said today the Justice Department has closed its criminal investigation, which the company first disclosed nearly four years ago.

"The civil DOJ and [Securities and Exchange Commission] investigations remain pending, and we continue to cooperate with the government to bring those matters to an appropriate resolution," Horacio Rozanski told analysts this morning.

In 2017, Booz Allen said it had been informed the Justice Department was "conducting a civil and criminal investigation relating to certain elements of the company's cost accounting and indirect cost charging practices with the U.S. government."

Meanwhile, Rozanski said today the contractor expects that an anticipated flat Pentagon budget will be unevenly spread.

"A flattening budget doesn't mean everything grows at the same rate," he said. "Some areas are probably not going to grow as much or may even decline in order to fund the priorities."

Rozanski said Booz Allen has sought to position itself to capture the growth areas.

The contractor said sales in its most recent quarter totaled nearly $2 billion, essentially flat from the same three-month period a year earlier. Quarterly profit hit $199 million, up 43% from the prior year.

For the company's fiscal year 2021, which ended March 31, sales reached $7.9 billion, up 5% from 2020. It recorded full-year profits of $609 million, up 26% from 2020.