Equity |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | EQUITY Stock Compensation
We grant restricted stock units (RSUs) and performance stock units (PSUs) to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by our Board of Directors and shareholders. As of September 30, 2025, approximately 1.9 million shares of Maximus stock were reserved for future issuance under this plan. We issue new shares to satisfy our obligations.
The RSUs granted to employees typically vest ratably over or four years, with a small number which cliff vest over three years. The RSUs granted to directors cliff vest after one year from date of grant. The expense is recorded ratably over the same period, or the employee service period if that is shorter, and is based upon the fair value of the award on grant date. Expenses are recorded consistent with employee salary costs, with the majority of the cost recorded within selling, general and administrative expenses.
The PSUs granted to employees vest at the end of a three-year performance period. Vesting is subject to the achievement of certain performance and market conditions, and the number of PSUs earned could vary from 0% to 200% of the number of PSUs awarded. The value of performance-based awards are calculated at grant date based upon the value of each individual award; these awards are expensed over the three year period based upon our expectation of the number of PSUs which will ultimately vest. The value of the market-based awards is calculated at grant date based upon a Monte Carlo model; unforfeited awards are expensed over three years regardless of the performance of the share price.
The weighted-average grant-date fair value for awards issued in the years ended September 30, 2024, and 2023, was $82.61 and $70.38, respectively.
In addition to the non-vested shares, certain directors and employees held approximately 292,000 vested but not issued awards as of September 30, 2025. These vested unissued units are included in outstanding shares for basic and diluted earnings per share but are not reported as issued and outstanding in the Consolidated Balance Sheets and Consolidated Statements of Changes in Shareholders' Equity.
For the fiscal years ended September 30, 2025, 2024, and 2023, we recognized share-based compensation expenses of $41.2 million, $35.3 million, and $29.5 million, respectively. The income tax benefit recorded on these charges for the same years was $12.4 million, $11.0 million, and $8.1 million, respectively. As of September 30, 2025, there was $47.4 million of total estimated unrecognized compensation cost related to non-vested awards. This cost is expected to be recognized over four years, with an average life of 1.1 years. The total fair value of awards vested during the years ended September 30, 2025, 2024, and 2023, was $42.3 million, $39.6 million, and $29.8 million, respectively. As of September 30, 2025, the intrinsic value of awards expected to vest was $84.6 million. Our future share-based compensation expense and the future vesting of awards will be affected by factors including Company performance, share price, and award forfeitures.
Stock Repurchase Programs
In September 2025, our Board of Directors authorized an increase to our existing stock purchase program that allows us to purchase, at management's discretion, up to $400 million of our common stock; this resolution superseded similar resolutions for purchases up to $200 million authorized in December 2024 and June 2024. During the fiscal years ended September 30, 2025 and 2024, we purchased 5.8 million and 0.9 million of our common shares at a cost of $456.6 million and $73.1 million, respectively. We made no purchases during fiscal year 2023. As of September 30, 2025, $280.8 million remained available for future stock purchases. Subsequent to year-end, we have acquired a further 0.4 million shares at a cost of $30.7 million.
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