Booz Allen Hamilton Holding Corp

Overview

Booz Allen Holding Corporation (herein referred to as “Booz Allen,” the “Company,” “we,” “us,” or “our”) is an advanced technology company delivering outcomes for the nation’s most critical defense, civil, and national security priorities. Booz Allen was founded in 1914 by Edwin Booz and for over 110 years, business, government, and military leaders have turned to us to solve their most complex problems. In 2013, we launched our Vision 2020 strategy that fundamentally reshaped the firm into the advanced technology company we are today, accelerating our ability to anticipate and build scale ahead of technology waves and solidifying a leading position at the center of the dual-use tech ecosystem. We build technology solutions using artificial intelligence (“AI”), cyber, and other cutting-edge technologies to advance and protect the nation and its citizens. By focusing on outcomes, we enable our people and customers to transform missions for the nation.

We support critical missions for a diverse base of federal government customers, including nearly all of the U.S. government’s cabinet-level departments, as well as for commercial customers, both domestically and in select international locations. Our work is designed to protect soldiers in combat, secure our national infrastructure, enable enhanced digital services, and improve government efficiency to achieve better outcomes. Drawing on our deep expertise and leading position as a cybersecurity provider, we bring advanced tradecraft to commercial customers across industries, including financial services, health and life sciences, energy, and technology.

We combine our in-depth expertise in AI and cybersecurity with leading-edge technology and engineering practices to deliver powerful solutions. By investing in markets, capabilities, and talent, and building new business models, including ventures, partnerships, and product offerings, we believe we are creating sustainable quality growth for the Company.

Our Core Technology, Expertise, and Innovation

Our technologists and mission experts identify, assess, build, and deploy technology solutions to advance and protect the nation using AI, cyber, and other cutting-edge technologies. We work alongside trusted industry leaders to rapidly create and co-create proven technologies, leveraging a broad array of longstanding relationships from Silicon Valley startups and Fortune 500 companies to the Pentagon and NASA. Through scouting, partnerships, and venturing we identify the right commercial technology for government missions.

Booz Allen’s position at the center of the government and technology ecosystem enables us to anticipate, invest in, build, and scale emerging technologies at speed. Our core technologies and capabilities include:

•Artificial Intelligence: We are one of the largest AI providers to the federal government. We create secure, purpose-built AI solutions that adapt commercial and internally-developed technology to the unique needs of the federal government.

•Cyber: We have one of the most impactful cyber businesses globally, delivering cyber solutions to our federal and commercial customers. We build and deploy intelligence-grade technology, coupled with our unique trade craft, to defend the nation’s critical assets.

•Digital Transformation: We modernize legacy systems with cloud-enabled infrastructure, platforms, and applications, delivering outcomes at scale by putting customer missions at the center of enterprise digital transformation.

•Space: We have space experts aimed at solidifying the nation’s superiority in this critical frontier. We deliver large scale multi-modal data fusion coupled with cyber and AI for secure, rapid, enhanced Intelligence, Surveillance, and Reconnaissance (“ISR”), earth observation, and domain awareness/battle management.

•Emerging Technologies: We hold a leading position in quantum with years of dedicated research, development, and delivery in this disruptive tech field. We cover the full spectrum of quantum information sciences (“QIS”) with capabilities in quantum computing, quantum sensing, quantum communications, post-quantum compute readiness, and post-quantum cryptography. Our technologists are developing first-of-their-kind quantum and quantum-safe solutions to accelerate quantum adoption at scale.

Our Institution and Operating Model

We operate as a single profit and loss center with a single bonus pool for leadership. Our operating model encourages collaboration allowing us to bring a mix of the best talent to every customer engagement. As a result, we can go to market as a whole company rather than as a collection of individual competing business units or profit centers. Our operating model also encourages and enables continuous investment in the right markets, capabilities, and talent to position us for further growth by anticipating what government and commercial customers will need next.

Across all markets, we address our customers’ complex and evolving needs by deploying multifaceted teams with a combination of advanced technical expertise, market-leading innovation, and deep mission understanding. These customer-facing teams, which are fundamental to our differentiated value proposition, better position us to identify and deliver against diverse customer needs in a more agile manner. Our significant win rates during fiscal 2025 on new and re-competed contracts of 56% and 92%, respectively, as compared to 63% and 92%, respectively, in fiscal 2024, demonstrate the strength of this approach.

Our Long-Term Growth Strategy

VoLT is the next era of Booz Allen and stands for Velocity, Leadership, and Technology. Our VoLT strategy requires us to operate with increased speed, agility, and scale in a rapidly changing, highly competitive, and increasingly technical environment. Our ability to embrace and drive change is crucial to our success, which is why we are using our VoLT strategy and its framework to rapidly innovate and scale solutions to transform missions and address our customers’ complex challenges with advanced technology.

Velocity: Get There First

Leverage our mission knowledge to get to the future at speed and scale

•Double-down on innovation

•Strategically use mergers, investments, and partnerships to build market positions

•Make decisions ahead of customer needs

Leadership: Transform with Conviction

Redefine mission leadership to stand apart in this new era

•Identify customer needs ripe for hyper-growth

•Scale businesses at the nexus of mission and technology

Technology: Differentiate to Win

Put technology at the heart of the customer mission to define the next generation of impact

•Identify, build, and scale next generation technology to transform mission

•Use mission insights to drive real-world outcomes

With VoLT as the catalyst to transform Booz Allen, our ambition is that, by 2030, we are the market-leading mission partner for the U.S. government in the new digital environment, highly differentiated across a portfolio of scaled mission and technology businesses, and recognized for integrating, applying, and scaling technologies in the service of national mission priorities.

Our Customers

Booz Allen is committed to solving our customers’ toughest challenges, and we work with a diverse base of public and private sector customers across a number of industries in the U.S. and select international locations. We bring unmatched tech superiority to help our customers win in today’s competitive world and prepare for what’s next.

Defense Customers

We deliver advanced technologies for the Department of Defense aligned to their most critical missions. We are deeply focused on last mile modernization — making technology work in the most austere environments where warfighters operate. To do this, we blend decades of mission experience with cutting edge AI/machine learning autonomy, software infrastructure, and engineering. Our technologists partner with our mission experts to build technologies focusing on deterring our adversaries across all domains.

Our core defense customers include all six branches of the U.S. military, the Office of the Secretary of Defense, NASA and the Joint Staff. Our key defense customers include the Army, Navy/Marine Corps, Air Force, Space Force, Coast Guard, and Joint Combatant Commands.

Revenue generated from defense customers was $5.9 billion, or approximately 49% of our revenue, in fiscal 2025, as compared to $5.1 billion, or approximately 47% of our revenue, in fiscal 2024. Revenue generated from defense customers also includes foreign military sales and work performed under Status of Forces Agreements (“SOFA”) to U.S. and non-U.S. government customers.

Intelligence Customers

We deliver innovative, highly technical capabilities and solutions that directly impact core national security missions across the Intelligence Community and national cyber mission providers. We leverage our knowledge of the mission to deliver tailored solutions for our customers—our biggest driver is the demand for innovation, requiring us to be ahead of the pace of technology adoption. Technology is at the center of our customers' missions and ours—we are investing in emerging technologies like AI, zero trust cyber solutions, multi-cloud, and 5G to adapt ahead of adversaries. The national security workforce remains focused on what's next, blending cleared and uncleared talent across dispersed geographies, ensuring mission impact. Our combination of technology, innovation, and talent is helping to shape the future of our national security ecosystem.

Our intelligence customers are the 18 organizations of the U.S. Intelligence Community, which includes independent agencies, the Department of Defense elements, such as the National Security Agency and Defense Intelligence Agency, and other departments or agencies.

Revenue generated from intelligence customers was $1.9 billion, or approximately 16% of our revenue, in fiscal 2025, as compared to $1.8 billion, or approximately 17% of our revenue, in fiscal 2024.

Civil Customers

Our civil work centers on the federal missions that are the highest priority to the domestic agenda, and we excel at helping our customers innovate their most critical missions. From healthcare, homeland security, and financial services to justice, law enforcement, immigration, energy, transportation, and labor, we work at the core of the mission to modernize systems, boost efficiencies, and save money.

Our major civil government customers include the Departments of Veterans Affairs, Health and Human Services, Treasury, Labor, Homeland Security, Justice, Energy, Commerce, and Transportation. Modernization and transformation arekey needs of our customers, and we offer the technical expertise and mission understanding required to deliver innovative solutions to all our customers' needs across the civil portfolio.

Within our civil customers, we include our global commercial customers, for whom we deliver advanced cyber solutions, which accounts for 2% of our total revenue.

Total revenue generated from civil and global commercial customers was $4.2 billion, or approximately 35% of our revenue, in fiscal 2025, as compared to $3.8 billion, or approximately 36% of our revenue, in fiscal 2024.

Contracts

The U.S. government procures solutions, outcomes, and services through two predominant contracting methods: indefinite contract vehicles and definite contracts. Each of these is described below:

•Definite contracts call for the performance of specified services or the delivery of specified products. The U.S. government procures services and solutions through single award, definite contracts that specify the scope of services that will be delivered and identify the contractor that will provide the specified services. When an agency recognizes a need for services or products, it develops an acquisition plan, which details how it will procure those services or products. During the acquisition process, the agency may release a request for information to determine if qualified bidders exist, a draft request for a proposal to allow the industry to comment on the scope of work and acquisition strategy, and finally a formal request for a proposal. Following the evaluation of submitted proposals, the agency will award the contract to the winning bidder.

•Indefinite contract vehicles provide for the issuance by the government customer of orders for services or products under the terms of the contract. Indefinite contracts are often referred to as contract vehicles or ordering contracts. IDIQ contracts may be awarded to one contractor (single award) or several contractors (multiple award). Under a multiple award IDIQ contract, there is no guarantee of work as contract holders must compete for individual work orders. IDIQ contracts will often include pre-established labor categories and rates, and the ordering process is streamlined (usually taking less than a month from recognition of a need to an established order with a contractor). IDIQ contracts often have multiyear terms and unfunded ceiling amounts, thereby enabling but not committing the U.S. government to purchase substantial amounts of products and services from one or more contractors in a streamlined procurement process.

Approximately 85% of our revenue for fiscal 2025 was derived from 2,596 active task orders under IDIQ contract vehicles. Our top IDIQ contract vehicle represented approximately 18% of our revenue in fiscal 2025. Our largest task order under an IDIQ contract vehicle accounted for approximately 4% of our revenue in fiscal 2025. Our largest definite contract represented approximately 1% of our revenue in fiscal 2025. For risks related to our contracts, see “Item 1A. Risk Factors—Industry and Economic Risks.”

•We delivered solutions, outcomes, and services under 5,279 contracts and task orders.

•We derived 95% of our revenue in fiscal 2025 from engagements for which we acted as the prime contractor.

•We derived 13% of our revenue in fiscal 2025 from the Department of Veterans Affairs, which was the single largest customer that we served in that year.

Competition

We operate in a highly competitive industry, and we compete with companies of all types and sizes. Due to the diverse requirements of the U.S. government and our commercial customers, we frequently collaborate with other companies to compete for contracts and bid against these same companies in other situations. Our major competitors include large enterprise software companies, large global technology providers, traditional government consulting firms, government contractors focused principally on the provision of technology services to the U.S. government, large defense contractors that provide both products and technology services to the U.S. government, diversified service providers, systems integrators, small businesses, and technology startups.

We compete based on various factors, including our ability to deliver innovative cost-effective services in a timely manner, technical expertise, customer knowledge and past performance, our ability to successfully recruit and retain appropriately skilled and experienced talent, including security-cleared personnel, our reputation and relationship with our customers, and pricing. In addition, to maintain our competitive position, we routinely review our operating structure, capabilities, and strategy to ensure we are effectively meeting the needs of existing customers, effectively responding to developments in our markets, and successfully building a platform intended to provide the foundation for the future growth of our business.

Human Capital Management

We attract top talent using innovative recruitment strategies and a strong employer brand that markets our expansive brand and extensive opportunities. Our total rewards strategy offers comprehensive benefits and wellness programs across various stages of life and career. Our annual Employee Experience Survey highlights our commitment to meaningful engagement, and delivery against our employee promise with approximately 83% reporting a favorable experience.

Our people at a glance (as of March 31, 2025):

•Booz Allen and its subsidiaries has 35,800 employees (32,700 customer staff) spread across various locations, with a significant presence in the United States and other strategic global regions.

•Nearly 29% of our employees identified as a veteran or an individual with military experience (based upon voluntary self-reporting).

•Approximately 72% of our employees hold security clearances.

•Highly Educated: Our workforce possesses a wide range of advanced technical acumen and in-depth domain knowledge and expertise, including artificial intelligence, cyber, quantum, and software engineering.

•Advanced Degrees: Approximately 88% of our employees hold a bachelor’s degree or higher; of that 88%, approximately 45% hold master’s degrees and 4% hold doctoral degrees (based upon voluntary self-reporting).

Building solutions that empower people to change the world is what we do at Booz Allen. We bring the right people together to build and deploy advanced technology solutions against missions of national importance.

A strong foundation. Our values of Ferocious Integrity, Unflinching Courage, Passionate Service, Champion’s Heart, and Collective Ingenuity guide our actions. Our culture differentiates how we capture opportunity, create an environment that fosters innovation, and deliver impact to customers. Our VoLT (Velocity, Leadership, and Technology) strategy positions Booz Allen for the future and guides how we recruit and retain top talent and the capabilities we cultivate through upskilling and development practices.

Differentiated by Culture. We empower our people to succeed with access to opportunities, professional development, and programs that support individual growth. We foster our culture of heart and performance by focusing on:

•Defined Values & Behaviors: Leading with care and accountability.

•Purposeful Engagement: Creating connections that drive growth.

•Flexible Environment: Offering opportunities and choices to realize potential.

•Holistic Wellbeing & Development: Promoting lifelong learning for resilience and relevance.

At Booz Allen, we act ethically, hold ourselves accountable, and lead with integrity. Our people possess strong character, expertise, and exceptional passion. Our Code of Business Ethics and Conduct represents our values in action and sets forth expectations for our employees on how they should operate on behalf of the Company. We reinforce our culture with annual mandatory training for all employees on our values and how to navigate challenging business issues ethically. We inspire curiosity, encourage people to ask questions, raise concerns, explore solutions, and think outside the box to find creative answers.

Guided by Strategy. Our VoLT strategy pairs our technology prowess with mission expertise to bring solutions to customers at scale. Our modern workplace initiatives are designed to recruit, incentivize, reward, and retain top talent based on merit. We leverage our Talent Mobility and Performance programs to identify opportunities for employees that are both aligned with our strategic objectives and critical to their development. Managers and leaders coach employees on their personalized career journeys and use a variety of tools such as goal setting, regular feedback, and career profiles to help employees reach their full potential.

Engaged through Learning. We continuously expand our upskilling programs through hands-on learning, as well as award winning in-house training, formal badging, and certificate programs. Our Technical Experience Groups (TXGs) build technical acumen, foster mentor/mentee relationships, and create thought leadership and intellectual property. These experiences heighten engagement, bolster retention, and offer limitless opportunities for skill enhancement. We offer robust leadership development programming - encouraging collaboration, collective growth, and a one-team mindset.

Patents and Proprietary Information

Our business utilizes a variety of proprietary rights in delivering products and services to our customers. We claim a proprietary interest in certain service offerings, products, software tools, methodologies, and know-how, and also have certain licenses to third-party intellectual property that may be significant to our business. While we have several patents issued and pending in the United States and in certain foreign countries, we do not consider our overall business to be materially dependent on the protection of such patents. In addition, we have a number of trade secrets that contribute to our success and competitive position, and we endeavor to protect this proprietary information. While protecting trade secrets and proprietary information is important, we are not materially dependent on any specific trade secret or group of trade secrets.

We rely on a combination of nondisclosure agreements and other contractual arrangements, as well as copyright, trademark, patent, and trade secret laws, to protect our proprietary information. We also enter into proprietary information and intellectual property agreements with employees, which require them to disclose any inventions created during employment, to convey such rights to inventions to us, and to restrict any disclosure of proprietary information. We have a variety of trademarks registered in the United States and certain foreign countries, including Booz Allen Hamilton® and Booz Allen®.

Booz Allen Hamilton and other trademarks or service marks of Booz Allen Hamilton Inc. appearing in this Annual Report are the trademarks or registered trademarks of Booz Allen Hamilton Inc. Trade names, trademarks, and service marks of other companies appearing in this Annual Report are the property of their respective owners.

Regulation

As a contractor to the U.S. government, and to a lesser extent, to state and local governments, we are heavily regulated in most fields in which we operate. We deal with numerous U.S. government agencies and entities, and, when working with these and other entities, we must comply with and are affected by unique laws and regulations relating to the formation, administration, and performance of public government contracts. Some significant laws and regulations that affect us include the following:

•the FAR, and agency regulations supplemental to the FAR, which regulate the formation, administration, and performance of U.S. government contracts. For example, FAR 52.203-13 requires contractors to establish a Code of Business Ethics and Conduct, implement a comprehensive internal control system, and report to the government when the contractor has credible evidence that a principal, employee, agent, or subcontractor, in connection with a government contract, has violated certain federal criminal laws, violated the civil False Claims Act, or has received a significant overpayment;

•the False Claims Act, which imposes civil and criminal liability for violations, including substantial monetary penalties, for, among other things, presenting false or fraudulent claims for payments or approval;

•the False Statements Act, which imposes civil and criminal liability for making false statements to the U.S. government;

•the Truthful Cost or Pricing Data Statute (formerly known as the Truth in Negotiations Act), which requires certification and disclosure of cost and pricing data in connection with the negotiation of certain contracts, modifications, or task orders;

•the Procurement Integrity Act, which regulates access to competitor bid and proposal information and certain internal government procurement sensitive information, and our ability to provide compensation to certain former government procurement officials;

•laws and regulations restricting the ability of a contractor to provide gifts or gratuities to employees of the U.S. government;

•post-government employment laws and regulations, which restrict the ability of a contractor to recruit and hire current employees of the U.S. government and deploy former employees of the U.S. government;

•laws, regulations, and executive orders restricting the handling, use, and dissemination of information classified for national security purposes or determined to be “controlled unclassified information” or “for official use only,” and the export of certain products, services, and technical data, including requirements regarding any applicable licensing of our employees involved in such work;

•laws, regulations, and executive orders, regulating the handling, use, and dissemination of personally identifiable information in the course of performing a U.S. government contract, performing work for our commercial customers or running the business;

•international trade compliance laws, regulations, and executive orders that prohibit business with certain sanctioned entities and require authorization for certain exports or imports in order to protect national security and global stability;

•laws, regulations, and executive orders governing organizational conflicts of interest that may restrict our ability to compete for certain U.S. government contracts because of the work that we currently perform for the U.S. government or may require that we take measures such as firewalling off certain employees or restricting their future work activities due to the current work that they perform under a U.S. government contract;

•laws, regulations, and executive orders that impose requirements on us to ensure compliance with requirements and protect the government from risks related to our supply chain;

•laws, regulations, and mandatory contract provisions providing protections to employees or subcontractors seeking to report alleged fraud, waste, and abuse related to a government contract;

•the Contractor Business Systems rule, which authorizes Department of Defense agencies to withhold a portion of our payments if we are determined to have a significant deficiency in our accounting, cost estimating, purchasing, earned value management, material management and accounting, and/or property management system; and

•the Cost Accounting Standards and Cost Principles, which impose accounting and allowability requirements that govern our right to reimbursement under certain cost-based U.S. government contracts and require consistency of accounting practices over time.

Given the magnitude of our revenue derived from contracts with the Department of Defense, the Defense Contract Audit Agency (“DCAA”) is our cognizant government audit agency. The DCAA audits the adequacy of our internal control systems and policies including, among other areas, compensation. The Defense Contract Management Agency (“DCMA”), as our cognizant government contract management agency, may determine that a portion of our claimed costs are unallowable based on the findings and recommendations in the DCAA's audits. In addition, the DCMA directly reviews the adequacy of certain of our business systems, such as our purchasing system. See “Item 1A. Risk Factors—Legal and Regulatory Risks—Our work with government customers exposes us to additional risks inherent in the government contracting environment, which could reduce our revenue, disrupt our business, or otherwise materially adversely affect our results of operations.” We are also subject to audit by Inspectors General of other U.S. government agencies.

The U.S. government may revise its procurement practices or adopt new contract rules and regulations at any time. To help ensure compliance with these laws and regulations, all of our employees are required to attend ethics training at least annually, and to participate in other compliance training relevant to their position. Internationally, we are subject to special U.S. government laws and regulations (such as the Foreign Corrupt Practices Act), local government regulations and procurement policies and practices, including regulations relating to import-export control, investments, exchange controls, and repatriation of earnings, as well as varying currency, political, and economic risks.

U.S. government contracts are, by their terms, subject to termination by the U.S. government either for its convenience or default by the contractor. In addition, U.S. government contracts are conditioned upon the continuing availability of Congressional appropriations. Congress usually appropriates funds for a given program on a September 30 fiscal year basis, even though contract performance could take many years. As is common in the industry, our Company is subject to business risks, including changes in governmental appropriations, national defense policies, service modernization plans, and availability of funds. Any of these factors could materially adversely affect our Company’s business with the U.S. government in the future.

The U.S. government has a broad range of actions that it can instigate to enforce its procurement law and policies. These include proposing a contractor, certain of its operations or individual employees for debarment or suspending or debarring a contractor, certain of its operations or individual employees from future government business. In addition to criminal, civil, and administrative actions by the U.S. government, under the False Claims Act, an individual alleging fraud related to payments under a U.S. government contract or program may file a qui tam lawsuit on behalf of the government against us; if successful in obtaining a judgment or settlement, the individual filing the suit may receive up to 30% of the amount recovered by the government.

See Item 1A., “Risk Factors—Legal and Regulatory Risks—We are required to comply with numerous laws and regulations, some of which are highly complex, and our failure to comply could result in fines or civil or criminal penalties or suspension or debarment by the U.S. government that could result in our inability to continue to work on or receive U.S. government contracts, which could materially and adversely affect our results of operations.”

Available Information

We file annual, quarterly, and current reports and other information with the Securities and Exchange Commission (the “SEC”). The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding registrants that file electronically with the SEC, including us. You may also access, free of charge, our reports filed with the SEC (for example, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and any amendments to those forms) through the “Investors” portion of our website (www.boozallen.com). Reports filed with or furnished to the SEC will be available as soon as reasonably practicable after they are filed with or furnished to the SEC. Our website is included in this Annual Report as an inactive textual reference only. The information found on our website is not part of this or any other report filed with or furnished to the SEC.