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Financial Data and Key Metrics Changes - Total revenues increased by 8% to $147.1 million, while net revenues rose by 10% to $137.1 million compared to the same period in 2024 [10] - Net income for the quarter increased to $28 million, or $0.55 per diluted share, compared to $26 million, or $0.50 per diluted share in the prior year [10] - EBITDA increased by 9% to $38.8 million, with a margin of 28.3% of net revenues, slightly down from 28.6% in the same period of 2024 [11] - Billable hours increased by 4% year-over-year to approximately 376,000 [11] - Utilization improved to 74.1%, up from 73.4% in the same period last year [12] Business Line Data and Key Metrics Changes - The engineering and other scientific segment represented 84% of net revenues, with a 10% increase driven by demand in risk management and asset integrity services [14] - The environmental and health segment accounted for 16% of net revenues, increasing by 9% due to regulatory consulting engagements in the chemicals industry [15] Market Data and Key Metrics Changes - Reactive engagements saw robust growth due to increased dispute-related activity across various sectors, particularly in energy, transportation, and life sciences [4][5] - Proactive engagements were led by risk management and asset integrity projects in the utility sector, with strong demand for regulatory consulting in the chemicals sector [6] Company Strategy and Development Direction - The company is focused on capturing demand in transformative technologies, particularly in artificial intelligence and human-machine interaction [8] - Exponent aims to leverage its expertise in failure analysis and risk management to navigate technological disruptions and drive sustained growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand trends in consumer electronics and highlighted the importance of their diversified portfolio [4][7] - The company anticipates low to mid-single-digit revenue growth for the 4th Quarter of 2025, with a year-over-year revenue headwind of approximately 7% due to fewer workdays [16] Other Important Information - The company distributed $15.1 million to shareholders through dividends and repurchased $40 million of common stock [13] - A $100 million increase in the stock repurchase program was approved, reflecting confidence in the company's long-term growth trajectory [14] Q&A Session Summary Question: Thoughts on 2026 hiring plans - Management indicated strong momentum in recruiting, targeting a headcount growth of 4% to 6% in 2026, focusing on areas with growth such as digital health and autonomous vehicles [22][23] Question: AI integration and growth potential - AI is significantly penetrating the business, with applications across various sectors, and is expected to be balanced between proactive and reactive engagements [24][25] Question: Growth between proactive and reactive practices - The reactive side of the business has been the primary growth driver, with an 18% increase in the reactive business and flat growth in proactive engagements [26][27] Question: Impact of regulatory environment - The regulatory environment remains dynamic, with strong growth in chemical regulatory work, despite some delays in feedback from agencies [29][30] Question: Government shutdown impact - The company expects minimal impact from the government shutdown, as most of its federal contracts are ongoing and under contract [32] Question: Preliminary thoughts on revenue growth for next year - Management is optimistic about growth in 2026 but will provide specific guidance at the end of January or early February [33]

Financial Performance - FY24 revenue reached $559 million[8] - FY24 EBITDA margin was 28%[8] - FY24 EPS was $2.11[8] - The company paid quarterly dividend of $0.30[8] - The company returned $278 million to shareholders through dividend payments and repurchased shares[46] Growth and Diversification - The company has expanded and diversified across disciplines and industries for over 50 years[6] - The company has a diversified portfolio across various sectors including construction, consumer products, energy, transportation, life sciences & healthcare, and chemicals[18] - The company served 2,000 clients and completed 10,000 engagements in FY24[21] Key Trends and Solutions - The company is positioned to capitalize on increasing demand for a safer, healthier, more sustainable world[10] - The company offers solutions related to automation, electrification, energy transition, climate resilience, digital health, and environmental impact[23] 2025 Performance (YTD as of October 3rd) - Revenues Before Reimbursements increased by 3% from $394.7 million to $407.4 million[49] - Net Income decreased by 5% from $85.4 million to $81.2 million[49] 2025 Q3 Performance - Revenues Before Reimbursements increased by 10% from $125.1 million to $137.1 million[50] - Net Income increased by 8% from $26.0 million to $28.0 million[50]

Financial Performance - Total revenues for Q3 2025 increased by 8% to $147.1 million compared to $136.3 million in Q3 2024[4] - Net income rose to $28.0 million, or $0.55 per diluted share, in Q3 2025, up from $26.0 million, or $0.50 per diluted share, in Q3 2024[5] - EBITDA increased to $38.8 million, representing 28.3% of revenues before reimbursements, compared to $35.8 million, or 28.6%, in Q3 2024[6] - Year-to-date revenues for the first three quarters of 2025 grew by 3% to $434.6 million, compared to $421.7 million in the same period of 2024[7] - Net income for the quarter ended October 3, 2025, was $28,044,000, representing an increase of 7.7% compared to $26,044,000 for the same quarter in 2024[31] - EBITDA for the quarter ended October 3, 2025, was $38,837,000, up from $35,767,000 in the prior year, reflecting a growth of 5.8%[31] - EBITDAS for the nine months ended October 3, 2025, was $132,133,000, slightly down from $134,207,000 for the same period in 2024, a decrease of about 1.5%[31] Revenue Segmentation - The engineering and other scientific segment accounted for 84% of revenues before reimbursements in Q3 2025, with a 10% increase in this segment compared to the prior year[12] - The environmental and health segment represented 16% of revenues before reimbursements in Q3 2025, with a 9% increase driven by regulatory consulting in the chemicals industry[13] Future Guidance - Exponent plans to maintain revenue guidance while raising margin guidance for the full year 2025[14] - For the full fiscal year 2025, Exponent anticipates revenue growth in the low to mid-single digits and EBITDA to be between 26.0% to 27.0% of revenues before reimbursements[17] Dividend and Stock Repurchase - The company announced a quarterly cash dividend of $0.30 to be paid on December 19, 2025, and intends to continue paying quarterly dividends[10] - Exponent's Board of Directors approved an increase in the stock repurchase program by $100 million, in addition to $21.6 million available for repurchase as of October 3, 2025[11] Asset and Liability Changes - Total current assets decreased from $446,881,000 on January 3, 2025, to $416,786,000 on October 3, 2025, a decline of approximately 6.7%[28] - Total liabilities increased from $356,202,000 on January 3, 2025, to $358,588,000 on October 3, 2025, an increase of approximately 0.7%[28] - Cash and cash equivalents decreased from $258,901,000 on January 3, 2025, to $207,380,000 on October 3, 2025, a decline of approximately 19.9%[28] - Accounts receivable increased from $161,407,000 on January 3, 2025, to $181,996,000 on October 3, 2025, an increase of about 12.9%[28] - The company reported a decrease in accrued payroll and employee benefits from $119,285,000 to $108,922,000, a reduction of approximately 8.4%[28] - Total stockholders' equity decreased from $421,068,000 on January 3, 2025, to $402,861,000 on October 3, 2025, a decline of about 4.3%[28] Retained Earnings - Retained earnings rose to $658,788,000 on October 3, 2025, compared to $624,151,000 on January 3, 2025, marking an increase of about 5.5%[28]

Core Viewpoint - Exponent, Inc. has declared a quarterly cash dividend of $0.30 per share, reflecting the Board's confidence in the company's strategy and strong cash flow generation [1][3] Dividend and Share Repurchase - The quarterly cash dividend will be paid on December 19, 2025, to stockholders of record as of December 5, 2025 [1] - Exponent plans to continue paying quarterly dividends each year in March, June, September, and December, subject to the Board's final determination [2] - The Board has increased the share repurchase authority by $100 million, in addition to the $21.6 million available for repurchase as of October 3, 2025 [2] Management Commentary - The President and CEO, Dr. Catherine Corrigan, emphasized that the combination of a consistent dividend and increased share repurchase authorization demonstrates the strength of Exponent's balance sheet and disciplined capital allocation approach [3] Company Overview - Exponent integrates over 90 technical disciplines with more than 950 consultants to assist clients across various industries, focusing on failure analysis and developing solutions for a safer and sustainable world [3][4] - The company's consultants leverage multidisciplinary expertise and resources globally, providing valuable insights to multinational companies, startups, law firms, insurance companies, and governments [4]

Core Insights - Exponent, Inc. reported strong financial performance in Q3 2025, with double-digit net revenue growth driven by diversified service offerings across various sectors [2][4]. Financial Results - Total revenues for Q3 2025 increased by 8% to $147.1 million, while revenues before reimbursements rose by 10% to $137.1 million compared to Q3 2024 [4]. - Net income for Q3 2025 was $28.0 million, or $0.55 per diluted share, up from $26.0 million, or $0.50 per diluted share in Q3 2024 [5]. - EBITDA for Q3 2025 increased to $38.8 million, representing 28.3% of revenues before reimbursements, compared to $35.8 million, or 28.6% in Q3 2024 [6]. Year-to-Date Performance - For the first three quarters of 2025, total revenues and revenues before reimbursements both increased by 3% to $434.6 million and $407.4 million, respectively, compared to the same period in 2024 [7]. - Net income for the first three quarters of 2025 decreased to $81.2 million, or $1.58 per diluted share, down from $85.4 million, or $1.66 per diluted share in the same period of 2024 [8]. - EBITDA for the first three quarters of 2025 decreased to $113.4 million, or 27.8% of revenues before reimbursements, compared to $115.8 million, or 29.3% in the same period of 2024 [9]. Business Segments - The engineering and other scientific segment accounted for 84% of revenues before reimbursements in Q3 2025, with a 10% increase in revenues compared to the prior year [12]. - The environmental and health segment represented 16% of revenues before reimbursements, with a 9% increase in Q3 2025 driven by regulatory consulting in the chemicals industry [13]. Business Outlook - The company is maintaining its revenue guidance and raising margin guidance for the full year, indicating confidence in long-term growth despite challenges posed by a return to a 52-week fiscal year [14]. - Exponent is strategically increasing headcount to support growth and is optimistic about new engagements and talent influx [14].

Core Insights - Conestoga Capital Advisors, LLC sold 344,631 shares of Exponent, valued at approximately $24.63 million, reducing its stake in the company [1][2][10] - Exponent now represents 2.63% of Conestoga's 13F AUM, down from 2.99% in the previous quarter [2][3] Company Overview - Exponent is a leading provider of multidisciplinary consulting services, focusing on scientific and engineering expertise to solve technical and regulatory challenges [5][6] - The company operates across approximately 90 technical disciplines, including biomechanics, civil engineering, and data sciences, utilizing a fee-for-service business model [6][14] Financial Performance - As of September 30, 2025, Exponent reported a revenue of $560.51 million and a net income of $102.84 million, with a dividend yield of 1.70% [4] - The share price of Exponent as of October 23, 2025, was $68.96, reflecting a 35.61% decline year-to-date [3][4] Market Position - Exponent has underperformed the S&P 500 by 50.09 percentage points over the past year, with a year-to-date decline of 21% compared to a nearly 17% increase in the S&P 500 [3][11] - The company serves a diversified client base across various industries, including chemical, construction, and life sciences, which enhances its competitive advantage [7][5]

Core Insights - VinFast is participating in the Electrify Expo Industry Day on October 17, 2025, at Nassau Veterans Memorial Coliseum, following a successful event in Chicago [1][2] - The Industry Day will feature discussions on innovation, infrastructure, consumer adoption, and policies affecting the electric vehicle (EV) market [2] - VinFast aims to make electric mobility more accessible and will share insights on transitioning EVs into the mainstream market [3] Company Participation - VinFast will showcase its two premium electric SUVs, the VF 8 and VF 9, during both Industry Day and public festival days [5] - The VF 8 starts at $39,900 and the VF 9 at $62,900, with competitive lease rates and financing promotions available [7] - A team of VinFast experts will be present to provide information on vehicle features, sales policies, and after-sales services [8] Market Expansion - VinFast has expanded its presence in North America and Europe, with plans to enter high-potential markets such as Indonesia, the Philippines, India, and the Middle East [9] - The company is committed to adjusting its business strategies based on market analysis and macroeconomic conditions [10] - VinFast's mission is to make EVs accessible to everyone, with a diverse product lineup including electric SUVs, e-scooters, e-bikes, and e-buses [12]

Core Insights - Exponent, Inc. will report its Third Quarter financial results for fiscal year 2025 on October 30, 2025, after market close [1] - The conference call to discuss the financial results will be hosted by CEO Dr. Catherine Corrigan and CFO Richard Schlenker at 4:30 p.m. ET [1][2] Company Overview - Exponent integrates over 90 technical disciplines with more than 950 consultants to assist clients in navigating complex industry challenges [3] - The company focuses on failure analysis and developing solutions aimed at creating a safer, healthier, and more sustainable world [3] Operational Capabilities - Exponent's consultants leverage multidisciplinary expertise and resources from offices across North America, Asia, and Europe [4] - The company utilizes its laboratories, databases, and computing resources globally to provide insights that help various sectors, including multinational companies, startups, law firms, insurance companies, and governments [4]

Industry Overview - The Consulting Services industry offers professional advice across various sectors, including management, IT, human resources, and marketing, focusing on operational efficiency and digital transformation [2] - The industry has experienced exponential growth since the 2008 financial crisis, driven by digital innovation and efficiency, leading to stable revenues and dividends [3] - The sector benefits from economic recovery, with GDP growing 3.3% in Q2 2025, and strong non-manufacturing activities indicated by a Services PMI above 50% for 13 of the last 14 months [4] Demand Environment - The consulting services industry remains resilient amid global uncertainties, with organizations seeking guidance to safeguard their workforce and strengthen consumer and shareholder ties [5] - The industry's early adoption of remote collaboration has become a standard practice, supported by AI-driven insights and agile delivery frameworks [5] Market Performance - The Consulting Services industry has underperformed the S&P 500, declining 27% over the past year compared to the S&P 500's 19% gain and the broader sector's 4% rise [8] - The industry currently trades at a forward 12-month price-to-earnings (P/E) ratio of 21.54X, slightly below the S&P 500's 23.53X and the sector's 21.66X [11] Company Highlights - **FTI Consulting**: The company has diversified offerings and international operations, with 36% of revenues from international markets. It has achieved a compound annual growth rate of 8.5% from 2020 to 2024, and its 2025 EPS estimate has increased by 1.5% to $1.97 [15][16] - **Exponent**: Positioned to capitalize on technological innovation, Exponent has seen growth in dispute-related activities and proactive risk management in utilities. Its 2025 EPS estimate has increased by 0.5% to $1.97 [19][21] - **Stantec**: Focused on infrastructure and facilities, Stantec benefits from macroeconomic trends and maintains a disciplined approach to project execution, leading to margin improvement. Its 2025 EPS estimate has increased by 1% to $3.89 [24][26]