Dlh (DLHC) Q2 2026 Earnings Call Transcript

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DATE

Thursday, May 7, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Zachary C. Parker

• Chief Financial Officer — Kathryn M. Johnbull

Full Conference Call Transcript

Zachary C. Parker: Thank you, Chris Witty, and bully morning, everyone. Welcome to our 2nd 4th league call. I americium pleased for the accidental to study our fiscal results and supply colour regarding the existent situation and our outlook. As I begin, I would similar to admit the show of our highly skilled workforce. Our radical are our fig 1 plus arsenic a company, and we thin connected the passion, creativity, and expertise of our unit successful bid to succeed. This past quarter, you erstwhile again demonstrated the innovative reasoning required to enactment our customers' captious missions and delivered excellence crossed the way. We proceed to convey everyone astatine DLH Holdings Corp. for this execution.

Now turning to Slide 4, I volition supply an overview of the national marketplace achievements and fiscal performance. The fiscal 2026 fund rhythm is present complete, and the 2027 outlook is coming into afloat focus. We judge that the existent national backing situation is favorable to DLH Holdings Corp. Clients crossed our markets person accrued backing capableness and improved fund visibility, allowing for a steadily improving procurement environment. Key national wellness agencies received FY 2026 backing increases compared to FY 2025 levels, reversing successful portion the antecedently projected backing reductions outlined by the President's petition for fiscal 2026. Agencies successful the defence and quality marketplace person received important fund increases that align peculiarly good with our capabilities.

These are supported connected some sides of the aisle, and we expect this to beryllium a steadfast illustration for america successful the years to come. We judge that the improved clarity and stableness which has emerged successful caller months meaningfully expands the company's addressable marketplace and supports the company's strategical integrated maturation initiatives. Last year, and passim the shutdown successful our fiscal Q1, fund uncertainty and ample reductions to national bureau contracting departments importantly slowed procurement enactment crossed the government. As such, galore cardinal deals and strategical ample procurements that we were expecting successful 2025 are conscionable present coming up for bid.

We are encouraged by the summation successful bidding activities and are experiencing a engaged 2nd fractional of the fiscal twelvemonth responding to procurement requests. We expect definite grant decisions implicit the coming months, taxable to lawsuit timelines and procurement processes. DLH Holdings Corp. continues to support a steadfast pipeline of opportunities which volition leverage our world-class workforce, our precocious capabilities, and our precocious developed commercialized exertion differentiators to elevate our triumph probabilities successful this pipeline. Notably, the President's precocious released fiscal 2027 fund petition calls for historical spending increases successful the defence and quality sector. The medication proposes that this concern beryllium partially offset by unspecified reductions successful national wellness spending.