Maximus CEO sees tech modernization as opportunity in Trump's efficiency push
Having a workforce that reflects the people it services has always been a priority for Maximus, says CEO Bruce Caswell. Maximus
By
Nick Wakeman
For the $5.3 billion-a-year company, having a workforce that looks like the people it serves is a critical element of its success.
Maximus is coming off a high-growth year for 2024 and its fiscal first quarter 2025 results indicate continued momentum.
CEO Bruce Caswell expects that growth to continue for Maximus' 2025 fiscal year, even while the market is going through a significant transition to the new Trump administration.
The company hit $5.3 billion in revenue in 2024 to show 8.2% growth. First quarter sales climbed 5.7% year-over-year to $1.6 billion.
Caswell told us he sees more opportunity than risk for Maximus amid the Trump administration’s rapid churn of executive orders and Department of Government Efficiency roiling the market.
"The balance tips in favor of opportunity," Caswell told WT, pointing to DOGE's focus on technology modernization. "The executive order speaks to technology modernization directly, including software modernization initiatives, improving data sharing, and improving IT systems operations. That’s exactly what we do.”
Maximus’s federal business accounted for $2.9 billion of its total fiscal 2024 revenue, or around 55%. Caswell sees much of that business as secure.
“The major programs that underpin our businesses are entitlement programs in nature or programs that require mandatory spending,” Caswell said.
That includes work the company does with Medicare, clinical assessments for the Veterans Benefits Administration and Medicaid work at the state level.
“As compared to our peers, our business is far more insulated from significant budget events,” he said.
Caswell estimated that one in three Americans relies on services Maximus supports, or "over a hundred million."
The Trump administration has advocated for many changes across the federal government, including the consolidation and even the elimination of agencies such as the Department of Education.
“You need to look at it on a contract-to-contract basis,” Caswell said of any potential Maximus exposure. “What services are being performed, and will they necessarily go away?”
Maximus is the second largest student loan services in the county, for example.
“It’s a fundamental kind of financial management servicing function,” he said. “So, whether it is performed in one agency or another, that’s up for others to decide.”
That core function is likely not going away.
“You’ve got tens of millions of borrowers that need to know that their payments are being processed,” Caswell said. “They need to be able to pick up the phone and call to find out what their balances are.”
A second major change in the market is the Trump administration’s rollback of diversity, equity and inclusion requirements.
Like other government contractors, Maximus is reviewing policies and procedures to make sure the company complies with the new requirements.
“We want to ensure we are fully compliant with the laws and regulations of whatever administration is in power,” he said. “We are looking closely at our contracts and our policies.”
At the same time, he says Maximus’ culture has emphasized the value and business impact of being a diverse company.
“Our wonderful country is comprised of many cultures and peoples, and we want to make sure that the Maximus employees that are serving them reflect those populations,” he said.
Diversity is also a driver of innovation for Maximus.
“We are firm believers that an inclusive organization enables individuals to be their best selves to work and that leads to productivity and innovative thinking,” he said. “We very much rely on having an environment where people feel respected.”
For Maximus, that means finding new ways to deliver services or developing new software assets to help agencies deliver on their mission.
“We’ve created that kind of environment and I’m proud of the work the team has done,” he said.
This includes the various employee resource groups that Maximus has created, including one for veterans.
“We are a major employer of veterans because we also serve millions of veterans through the work we do with the VA,” Caswell said. “Again, we need to resemble the populations that we serve.”
The new administration may change the timing of opportunities as new leadership teams get in place at the agencies, but Maximus has $2.5 billion proposals pending award and another $1.5 billion in proposals in preparation. The company is tracking $41.4 billion in its pipeline.
“I’m proud of the work the team has been doing because you see it in the results,” Caswell said.
Over many years, the company has reworked processes and looked hard at where it spends its resources to improve margins.
Major acquisitions such as Veterans Evaluation Services in 2021 have laid a foundation for organic growth, which was 8.8% for fiscal 2024. Maximus has also built out the way it identifies and prepares for opportunities in its pipeline.
“We've been bringing technology to bear in critical program areas in ways we hadn't historically,” he said.
Caswell estimated that the company can cover 90% of the requirements it sees ahead.
“The question is how to cover the remainder,” he said. “It’ll be through strategic relationships. It’ll potentially be through acquisitions that bring capabilities or customer relations. It’s about converting on that pipeline.”