FTI Consulting Inc Earnings Summary
FTI Consulting, Inc. surprised the financial markets by reporting record revenues and earnings for the third quarter of 2025, a formidable achievement in the face of industry-wide challenges. Spearheaded by increased demand and enhanced service offerings, the company showcased its resilience and operational prowess. Despite headwinds, particularly in some segments, FTI Consulting managed to achieve impressive financial metrics, reflecting both strategic focus and agile management.
FTI Consulting Inc Results
Below is a detailed table representation of FTI Consulting’s key financial metrics for the third quarter of 2025, compared to the same quarter last year:
| Financial Metric | Q3 2025 | Q3 2024 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $956.2 million | $926.0 million | Up 3.3% |
| Earnings Per Share (EPS) | $2.60 | $1.85 | Up 41% |
| Net Income | $82.8 million | $66.5 million | Up 24.5% |
| Adjusted EBITDA | $130.6 million | $102.9 million | Up 27% |
The data reflects a solid performance, with significant expansion in profitability, indicated by the 41% surge in EPS and increased adjusted EBITDA margins.
Revenue Breakdown
Let's delve into the revenue performance across major segments:
| Segment | Q3 2025 Revenue | Q3 2024 Revenue | Year-over-Year Change |
|---|---|---|---|
| Corporate Finance & Restructuring | $404.9 million | $341.5 million | Up 18.6% |
| Forensic and Litigation Consulting | $194.7 million | $168.8 million | Up 15.4% |
| Economic Consulting | $173.1 million | $222.0 million | Down 22.0% |
| Technology | $94.1 million | $110.4 million | Down 14.8% |
| Strategic Communications | $89.4 million | $83.3 million | Up 7.4% |
Segment Performance Analysis
The Corporate Finance & Restructuring segment led the charge with a remarkable 18.6% rise in revenues, driven by heightened demand for restructuring and transaction services. This segment's success is attributed to macroeconomic volatility, which often heightens the demand for financial advisory services that support organizations through restructuring and strategic transactions.
The Forensic and Litigation Consulting segment also demonstrated robust growth of 15.4%, capitalizing on elevated billing rates for risk, investigations, and data analytics services. This sector is experiencing a boom due to growing regulatory scrutiny and the increasing complexity of corporate litigation, prompting firms to seek expert consulting.
On the contrary, the Economic Consulting segment saw a downturn, with revenues plummeting by 22%. This drop is primarily due to a deceleration in demand for antitrust services outside M&A scenarios. While the segment managed to realize better bill rates in certain areas, the overall dip in demand resulted in an operating loss.
Similarly, the Technology segment faced challenges, with revenues decreasing by 14.8%. The loss predominantly stemmed from a decline in demand for M&A-related technology solutions, including second request and information governance services.
Strategic Communications, however, posted a respectable 7.4% revenue increase. This growth was fueled by heightened demand for corporate reputation services, affirming FTI's prowess in navigating an intricate landscape of corporate public relations and reputation management.
Key Developments
A notable development this quarter is the company’s robust share repurchase activity. FTI Consulting repurchased approximately 1.43 million shares, with a continued commitment from their Board of Directors to allocate $500 million more towards repurchases. This signifies strong confidence in the company's financial health and future growth prospects.
Additionally, the company has revised its full-year 2025 guidance upwards, projecting revenues between $3.685 billion and $3.735 billion. The EPS is now expected to range from $7.62 to $8.12, showcasing strategic optimism amidst economic uncertainties.
Comments from Company Officers
Steven H. Gunby, CEO and Chairman of FTI Consulting, stated, "Notwithstanding major headwinds in a couple of our businesses, we delivered yet again, record revenues and earnings this quarter. These tremendous results, to me, confirm once again the power of our team and the strength of our continued commitment to invest behind great professionals who help clients navigate their most significant opportunities and challenges."
Dividends and Share Repurchases
FTI Consulting has not declared any dividends in the third quarter of 2025, rather it focused extensively on its share repurchase program. With $75.3 million available for repurchases by the end of the quarter, the company's strategic decision to harness shareholder value through buybacks is notable. This move, complemented by the additional $500 million authorization, underpins a robust capital allocation strategy aimed at enhancing shareholder returns.
FTI Consulting Inc Stock Forecast
Considering FTI Consulting’s escalating financial performance, robust segment growth, and strategic capital management, stock price projections appear favorable. High projections suggest the stock price could appreciate to approximately $200 over the next 12 months, backed by strong earnings momentum and share repurchasing activities. Low projections, accounting for potential economic slowdowns or unforeseen market conditions, hover around $160, indicating the company's continued resilience amidst challenges.
Overall, FTI Consulting’s successful quarter underscores not just its capability to thrive amid uncertainty, but also highlights its strategic foresight in navigating complex financial challenges. As FTI Consulting continues on its growth trajectory, investor confidence remains bolstered by a firm commitment to enhancing long-term shareholder value.
