Core Insights - ASGN Inc reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $1.22 per share, but down from $1.43 per share a year ago, representing an earnings surprise of +7.38% [1] - The company achieved revenues of $1.01 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.79%, although this is a decrease from $1.03 billion year-over-year [2] - ASGN Inc has outperformed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $962.45 million, and for the current fiscal year, it is $4.46 on revenues of $3.95 billion [7] - The estimate revisions trend for ASGN Inc was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which ASGN Inc belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

ASGN (NYSE:ASGN) Q3 2025 Earnings Call October 22, 2025 04:30 PM ET Company ParticipantsShiv Iyer - PresidentRyan Griffin - Senior Equity Research AssociateKimberly Esterkin - VP of Investor RelationsMarie Perry - CFOTed Hanson - CEOTobey Sommer - Managing DirectorConference Call ParticipantsSurinder Thind - Equity Research AnalystJason Haas - Director and Senior Equity Research AnalystMaggie Nolan - Partner and IT Services AnalystAlexander Sinatra - Equity Research AnalystOperatorGreetings and welcome to t ...

ASGN (NYSE:ASGN) Q3 2025 Earnings Call October 22, 2025 04:30 PM ET Company ParticipantsShiv Iyer - PresidentRyan Griffin - Senior Equity Research AssociateKimberly Esterkin - VP of Investor RelationsMarie Perry - CFOTed Hanson - CEOTobey Sommer - Managing DirectorConference Call ParticipantsSurinder Thind - Equity Research AnalystJason Haas - Director and Senior Equity Research AnalystMaggie Nolan - Partner and IT Services AnalystAlexander Sinatra - Equity Research AnalystOperatorGreetings and welcome to t ...

ASGN (NYSE:ASGN) Q3 2025 Earnings Call October 22, 2025 04:30 PM ET Speaker2Greetings and welcome to the ASGN Incorporated Third Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Kimberly Esterkin of Investor Relations. Thank you. You may begin.Speaker3Good afternoon. ...

Financial Data and Key Metrics Changes - ASGN reported revenues of $1,010,000,000 for Q3 2025, a decrease of 1.9% year over year, but at the high end of guidance expectations [23] - Adjusted EBITDA was $112,600,000 with an adjusted EBITDA margin of 11.1% [25] - Net income for the quarter was $38,100,000 [25] - Free cash flow was $72,000,000, representing a conversion rate of approximately 64% of adjusted EBITDA [27] Business Line Data and Key Metrics Changes - The IT consulting business accounted for approximately 63% of total revenues, up from 58% in the same period last year [5] - Commercial consulting revenues totaled $334,900,000, an increase of 17.5% year over year [23] - Federal segment revenues were $300,100,000, a decrease of 3.9% year over year [24] - Assignment revenues decreased by 13.2% year over year, reflecting softness in parts of the commercial segment sensitive to macroeconomic changes [23] Market Data and Key Metrics Changes - Consumer and industrial accounts saw mid-teens growth year over year, driven by materials, utilities, and consumer discretionary clients [10] - Healthcare industry revenues increased by high single digits year over year, supported by healthcare provider and pharmaceutical clients [11] - Financial services, TMT, and business services experienced year-over-year declines [11] Company Strategy and Development Direction - The company is focusing on AI and digital advancement, with ongoing investments in AI reflecting a commitment to enterprise technology re-platforming [7] - ASGN is actively tracking changes to the H1B application process, believing it will positively impact the company [8] - The company plans to host an Investor Day on November 20 to discuss its strategy and unveil new three-year financial targets [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for IT services despite macroeconomic conditions, noting strong quarterly bookings [6] - The government shutdown has had an immaterial impact on operations, but it may slow down new awards and ramp-up activities [40] - The company anticipates that increased defense budgets will benefit its federal segment in the future [62] Other Important Information - The gross margin for Q3 2025 was 29.4%, an increase of 30 basis points year over year [24] - SG&A expenses for the quarter were $212,200,000, including $4,200,000 in acquisition and integration expenses [25] - The company repurchased 900,000 shares at an average price of $51.46, with approximately $423 million remaining under its share repurchase authorization [27] Q&A Session Summary Question: H1B situation and its impact - Management believes that tighter H1B regulations will increase the importance of onshore and nearshore technical capabilities, benefiting ASGN [35][36] Question: Federal government segment and shutdown impact - The government shutdown is causing caution in the fourth quarter guidance, primarily affecting new awards and ramp-up activities [41][42] Question: Demand for software implementations - Continued demand is noted in data and AI, particularly with platforms like Snowflake and Databricks, as well as Workday and ServiceNow [46][47] Question: Pricing dynamics and competition - ASGN competes with major firms like Accenture and sees stable pricing due to the quality of its services and unique accelerators [77][78] Question: Federal contracts and margins - The increase in cost-reimbursable contracts is not impacting margins significantly; it reflects the natural ebb and flow of contracts [71][73]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Q3 2025 Earnings Supplemental Materials | | | Q3 | | | --- | --- | --- | --- | | | 2025 | | 2024 | | Results Operating | | | | | Revenues | $ 1,011.4 | $ | 1,031.0 | | Gross Profit | | 296.9 | 300.4 | | Net Income | | 38.1 | 47.5 | | Adjusted Net Income | | 57.3 | 64.3 | | Adjusted EBITDA | | 112.6 | 116.9 | | Margins | | | | | Gross | | 29.4% | 29.1% | | EBITDA Adjusted | | 11.1% | 11.3% | | Earnings per Share - Diluted | | | | | Income per Share | $ | 0.87 $ | 1.06 | | Net Income Adjusted | $ | 1.31 $ | 1 ...

October 22, 2025 RICHMOND, VA.— (BUSINESS WIRE) -- ASGN Incorporated (NYSE: ASGN), a leading provider of IT services and solutions to the commercial and government sectors, reported financial results for the quarter ended September 30, 2025. Highlights IT Consulting Revenues - Approximately 63 percent of total revenues Management Commentary "ASGN delivered a solid performance in the third quarter, with revenues, Adjusted EBITDA, and Adjusted EBITDA margin all at the high end of our guidance ranges," said AS ...

Financial Performance - Revenues for Q2 2025 were $1,020.6 million, a decrease of 1.3% from $1,034.7 million in Q2 2024[8] - Net income for Q2 2025 was $29.3 million, a decline of 38.0% compared to $47.2 million in Q2 2024[8] - Basic earnings per share for Q2 2025 were $0.67, down from $1.03 in Q2 2024, representing a decrease of 35.0%[8] - Gross profit for the six months ended June 30, 2025, was $568.7 million, down 4.8% from $597.3 million in the same period of 2024[8] - Net income for the six months ended June 30, 2025, was $50.2 million, a decrease of 41.1% compared to $85.3 million in 2024[11] - Total comprehensive income for Q2 2025 was $31.9 million, compared to $49.3 million in Q2 2024, a decrease of 35.2%[8] - Operating income decreased to $59.6 million in Q2 2025, a decline of 26.0% from $80.4 million in Q2 2024[8] - Segment operating income for the Commercial Segment in Q2 2025 was $64.6 million, compared to $74.7 million in Q2 2024, a decline of 13.5%[30] Assets and Liabilities - Total assets increased to $3,715.0 million as of June 30, 2025, compared to $3,429.0 million at the end of 2024, reflecting a growth of 8.4%[7] - Long-term debt rose to $1,211.7 million as of June 30, 2025, up from $1,033.5 million at the end of 2024, indicating an increase of 17.3%[7] - Stockholders' equity increased to $1,826.8 million as of June 30, 2025, compared to $1,776.7 million at the end of 2024, a growth of 2.8%[7] - Cash and cash equivalents decreased to $138.9 million as of June 30, 2025, from $205.2 million at the end of 2024, a decline of 32.2%[7] - The carrying amount of long-term debt as of June 30, 2025, was $1.2 billion, with its fair value slightly less than the carrying value[37] Acquisitions - The company completed an acquisition that contributed $28.7 million to paid-in capital during the six months ended June 30, 2025[10] - The company acquired TopBloc, LLC for $340.0 million, with 90% paid in cash and 10% in equity, impacting the Commercial Segment[14] - Goodwill increased to $2,141.0 million as of June 30, 2025, following the acquisition of TopBloc, which contributed $246.3 million[15] Expenses - Selling, general, and administrative expenses for Q2 2025 were $216.8 million, an increase of 5.8% from $205.6 million in Q2 2024[8] - Corporate SG&A expenses for the six months ended June 30, 2025, were $56.7 million, an increase from $39.9 million in the same period of 2024[31] - The company reported interest expense of $18.2 million for the three months ended June 30, 2025, compared to $15.8 million in the same period of 2024[30] Cash Flow - Net cash provided by operating activities was $141.7 million, down from $164.0 million in the same period last year[11] - Cash flows from operating activities for the first half of 2025 were $141.7 million, down from $164.0 million in the same period of 2024[11] - The company incurred $306.1 million in cash paid for acquisitions in the first half of 2025[11] Tax and Compliance - The effective tax rate is based on the estimated full-year income and is subject to adjustments for discrete items occurring in the period[22] - The company expects no material impact from the One Big Beautiful Bill Act on its estimated effective tax rate[23] - The company was in compliance with its debt covenants, with a senior secured debt to trailing-twelve-months EBITDA ratio of 1.53 to 1 as of June 30, 2025[19] Segment Performance - Total revenues for the Commercial Segment in Q2 2025 were $708.1 million, compared to $725.7 million in Q2 2024, reflecting a decline of 2.4%[30] - Federal Government Segment revenues for Q2 2025 were $312.5 million, slightly up from $309.0 million in Q2 2024, an increase of 0.5%[33] - The Department of Defense and Intelligence Agencies contributed $136.2 million to Federal Government Segment revenues for the three months ended June 30, 2025, down from $141.6 million in 2024[33] Future Projections - Estimated future amortization expense for identifiable intangible assets is projected to be $182.3 million over the next several years[17] - The estimated future amortization expense for identifiable intangible assets totals $182.3 million, with $33.3 million expected in the remainder of 2025[17]

Core Viewpoint - ASGN Inc reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, but down from $1.36 per share a year ago, indicating a mixed performance despite the earnings surprise of +8.33% [1][2] Financial Performance - The company posted revenues of $1.02 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.95%, although this is a slight decrease from year-ago revenues of $1.03 billion [2] - Over the last four quarters, ASGN has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - ASGN Inc shares have declined approximately 40.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.3% [3] - The current Zacks Rank for ASGN is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $988.12 million, and for the current fiscal year, it is $4.30 on revenues of $3.91 billion [7] - The trend of estimate revisions for ASGN Inc was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Computers - IT Services industry, to which ASGN belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]