Booz Allen Hamilton executives downplayed threats Monday from President Trump to shut down the federal government over funding for a wall on the U.S.-Mexico border.
Higher federal funding is spurring growth at the McClean, Va.-based government consulting firm. Revenue increased 8.1 percent to $1.65 billion for the three months through June, while net income rose 48 percent to $104.2 million. Just this month, the Department of Homeland Security awarded the company a $1 billion order to help six federal agencies bolster cybersecurity protections.
After signing a $1.3 trillion omnibus funding bill earlier this year, however, Trump warned that he would not approve another catch-all spending measure. While the House and the Senate are both trying to advance the annual federal appropriations bills through their respective chambers, Congress will likely need to pass a short-term patch to extend funding beyond the Sept. 30 deadline, and Trump’s demand for money for his wall is a wild card.
While Senate Majority Leader Mitch McConnell, R-Ky., said on Friday that border wall funding would wait until after the upcoming November elections, Trump on Sunday said he would close the government if his administration does not receive money for it. Booz Allen’s top executive downplayed those threats and told investors that firm clients have become more sophisticated at managing the turbulent government funding environment.
“The way things are progressing through the Hill its actually quite orderly,” Chief Executive Officer Horacio Rozanski said on the company’s earnings call, “and one would hope that that would continue.” The company’s clients are monitoring the bills, he noted.
Booz Allen’s backlog grew 21 percent in the quarter to $17.1 billion.
