Key Takeaways FCN's Q3 EPS of $2.60 beat estimates by 34.7% and rose 40.5%, while revenue fell 3.3% to $956.2M. Corporate Finance & Restructuring and Strategic Communications segments posted double-digit growth. Adjusted EBITDA climbed 26.8% with a 13.7% margin, as FCN guided full-year EPS between $8.20 and $8.70.FTI Consulting, Inc. (FCN) reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.In response to the better-than-expected results and ...

FTI Consulting, Inc. 555 12th Street NW Washington, DC 20004 +1.202.312.9100 Investor & Media Contact: Mollie Hawkes +1.617.747.1791 mollie.hawkes@fticonsulting.com FTI Consulting Reports Record Third Quarter 2025 Financial Results Washington, D.C., October 23, 2025 — FTI Consulting, Inc. (NYSE: FCN) today released financial results for the third quarter ended September 30, 2025. Third quarter 2025 revenues of $956.2 million increased $30.1 million, or 3.3%, compared to revenues of $926.0 million in the pri ...

Core Insights - The company reported record results for Q3 2025, with earnings per share (EPS) and adjusted EPS of $2.6, reflecting a year-over-year increase of over 40% [5][41] - Despite facing headwinds in two of its business segments, the company achieved double-digit organic revenue growth across its core segments [40][41] - The leadership emphasized the importance of long-term investments in talent and capabilities, which have contributed to the company's resilience and growth trajectory [38][63] Financial Performance - Total revenue for Q3 2025 was $956.2 million, a 3.3% increase compared to the same quarter last year [41] - Net income rose to $82.8 million, marking a 25% increase year-over-year [41] - Adjusted EBITDA for Q3 2025 was $130.6 million, representing 13.7% of revenue, compared to 11.1% in the prior year quarter [42] Segment Performance - Corporate Finance (Corp Fin) revenue increased by 18.6% to $404.9 million, driven by higher demand for restructuring and transaction services [44] - FTI's Financial and Litigation Consulting (FLC) segment saw a revenue increase of 15.4% to $194.7 million, attributed to higher realized bill rates and demand for risk and investigation services [48] - The Economic Consulting segment experienced a revenue decline of 22% to $173.1 million, primarily due to lower demand for antitrust services [50] Strategic Focus - The company is committed to organic growth and enhancing its service offerings, particularly in high-demand areas such as cybersecurity and risk investigations [25][63] - Investments in talent acquisition have been prioritized, with 79 senior management and affiliate hires announced year-to-date, significantly higher than previous years [61][63] - The leadership believes in the potential for continued rate increases across all segments, although the pace may moderate compared to the current year [76] Guidance and Outlook - The company updated its full-year 2025 revenue guidance to a range of $3.685 billion to $3.735 billion, with EPS expected between $7.62 and $8.12 [60] - The fourth quarter is typically weaker due to seasonal business slowdowns, but the company remains optimistic about stabilizing its economic consulting business and gradual revenue growth [61][63] - The leadership expressed confidence in the long-term growth potential of the company, emphasizing resilience and the ability to navigate market challenges [38][63]

Core Insights - Italian shipbuilder Fincantieri has introduced its first underwater drone system, indicating a strategic shift towards enhancing its submarine business, which is becoming increasingly profitable [1] Company Developments - The launch of the underwater drone system marks a significant development in Fincantieri's product offerings, reflecting the company's focus on diversifying its portfolio to capitalize on the growing demand in the submarine sector [1]

Core Insights - FTI Consulting reported revenue of $956.17 million for Q3 2025, a 3.3% year-over-year increase, with an EPS of $2.60 compared to $1.85 a year ago, exceeding both revenue and EPS estimates [1] - The company achieved a revenue surprise of +1.41% and an EPS surprise of +34.72% compared to consensus estimates [1] Revenue Breakdown - Technology segment revenue was $94.08 million, below the average estimate of $89.48 million, reflecting a year-over-year decline of -14.8% [4] - Strategic Communications segment revenue reached $89.42 million, exceeding the average estimate of $98.35 million, with a year-over-year increase of +7.4% [4] - Corporate Finance & Restructuring segment reported $404.9 million, surpassing the estimated $378.75 million, marking an +18.6% year-over-year increase [4] - Economic Consulting segment revenue was $173.09 million, below the average estimate of $181.74 million, showing a year-over-year decline of -22% [4] - Forensic and Litigation Consulting segment generated $194.69 million, slightly below the estimated $195.1 million, with a year-over-year increase of +15.4% [4] Stock Performance - FTI Consulting shares have returned -3% over the past month, while the Zacks S&P 500 composite increased by +0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company reported record results with earnings per share (EPS) and adjusted EPS of $2.60, an increase of over 40% year-over-year [5][36] - Revenue for the third quarter was $956.2 million, a 3.3% increase compared to the prior year quarter [36] - Net income rose to $82.8 million, reflecting a 25% increase year-over-year [36] - Adjusted EBITDA for the third quarter was $130.6 million, or 13.7% of revenue, compared to $102.9 million, or 11.1% of revenue in the prior year quarter [36][37] Business Line Data and Key Metrics Changes - **Corporate Finance (Corp Fin)**: Revenue increased by 18.6% to $404.9 million, with double-digit growth across all core businesses [38][39] - **Forensic and Litigation Consulting (FLC)**: Revenue rose by 15.4% to $194.7 million, driven by higher demand for risk and investigation services [41] - **Economic Consulting**: Revenue decreased by 22% to $173.1 million, primarily due to lower demand for antitrust services [43] - **Technology**: Revenue decreased by 14.8% to $94.1 million, attributed to lower demand for M&A-related services [46] - **Strategic Communications (Stratcom)**: Revenue increased by 7.4% to $89.4 million, supported by higher demand for corporate reputation services [48] Market Data and Key Metrics Changes - The company experienced strong demand in the U.S., U.K., Germany, Spain, France, and Australia for restructuring services [40] - The EMEA region showed particularly strong growth in risk and investigation services [41] - The economic consulting segment faced significant headwinds, particularly in EMEA, affecting revenue from antitrust services [46] Company Strategy and Development Direction - The company emphasizes organic growth and investment in high-value areas where it believes it has a competitive advantage [8][9] - There is a commitment to enhancing team capabilities and attracting top talent, even during challenging market conditions [11][32] - The leadership team is focused on expanding service offerings and maintaining a strong brand position in the market [41][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and potential for future growth despite current headwinds in certain segments [33][54] - The company anticipates a gradual return to revenue growth in the economic consulting segment, although the timing remains uncertain [52] - There is a belief that the investments made in talent and capabilities will yield positive results in the medium to long term [30][31] Other Important Information - The company repurchased 1.426 million shares at an average price of $164.18, with an additional $500 million authorized for share repurchases [50][51] - Cash and cash equivalents decreased to $146 million compared to $386.3 million a year ago, primarily due to share repurchases [51] Q&A Session Summary Question: How much of the revenue decline in economic consulting is market-driven versus talent dynamics? - Management estimates that approximately two-thirds of the revenue decline is due to talent transition and one-third to market conditions [61] Question: Can you elaborate on the strength of the transactions practice? - The strength is largely attributed to the quality of the team and their leadership, which has built credibility and allowed for the introduction of additional services [66] Question: Regarding FLC, can the price realization continue into next year? - Management believes that the price increases may be specific to 2025, but they are optimistic about maintaining strong performance in the segment [67]

Financial Data and Key Metrics Changes - The company reported record results with earnings per share (EPS) and adjusted EPS of $2.60, an increase of over 40% year-over-year [5][36] - Revenue for Q3 2025 was $956.2 million, a 3.3% increase compared to the prior year quarter [36] - Net income rose to $82.8 million, reflecting a 25% increase year-over-year [36] - Adjusted EBITDA for Q3 was $130.6 million, or 13.7% of revenue, compared to $102.9 million, or 11.1% of revenue in the prior year quarter [36][37] Business Line Data and Key Metrics Changes - **Corporate Finance & Restructuring**: Revenue increased by 18.6% to $404.9 million, driven by higher demand for restructuring and transaction services [38] - **Forensic & Litigation Consulting**: Revenue rose 15.4% to $194.7 million, attributed to higher realized bill rates and increased demand for risk and investigation services [41] - **Economic Consulting**: Revenue decreased by 22% to $173.1 million, primarily due to lower demand for antitrust services [42] - **Technology**: Revenue fell 14.8% to $94.1 million, mainly due to reduced demand for M&A-related services [46] - **Strategic Communications**: Revenue increased by 7.4% to $89.4 million, driven by higher demand for corporate reputation services [48] Market Data and Key Metrics Changes - The company experienced double-digit organic revenue growth across Corporate Finance & Restructuring, Forensic & Litigation Consulting, and Strategic Communications, which offset declines in Economic Consulting and Technology [35][36] - The restructuring revenue is up 11% year-to-date, with significant mandates won in key geographies [40] - The transactions revenue increased by 16% year-to-date, despite a slight decline in global transaction volumes [40] Company Strategy and Development Direction - The company emphasizes organic growth and investment in high-value areas, focusing on enhancing team capabilities and attracting top talent [9][11] - There is a commitment to maintaining leadership in key markets and expanding service offerings, particularly in restructuring and forensic consulting [40][41] - The management highlighted the importance of resilience and adaptability in navigating market challenges and pursuing long-term growth [33][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in Economic Consulting and Technology but expressed confidence in the overall resilience and potential for growth across other segments [33][54] - The company expects to continue delivering adjusted EPS growth for the 11th consecutive year, despite anticipated seasonal slowdowns in Q4 [33][51] - There is cautious optimism regarding the stabilization of the Economic Consulting business and gradual revenue growth in the coming quarters [52] Other Important Information - The company repurchased 1.426 million shares at an average price of $164.18, with an additional $500 million authorized for share repurchases [49][50] - Cash and cash equivalents decreased to $146 million from $386.3 million a year ago, while total debt net of cash increased to $364 million [50] Q&A Session Summary Question: Economic Consulting performance and market impact - Management estimated that about two-thirds of the revenue decline in Economic Consulting was due to talent transition, with the remainder attributed to market conditions [57][59] - There is uncertainty regarding whether EBITDA has bottomed out, with a cautious outlook on the timing of revenue recovery [60] Question: Strength in transactions practice - The strength in the transactions practice is largely attributed to the team's leadership and credibility built over the years, rather than solely market-driven factors [62][63] Question: Price realization in Forensic & Litigation Consulting - Management indicated that the price realization improvements could continue into the next year, but specifics on the sustainability of rate increases were not confirmed [66]

FTI Consulting (NYSE:FCN) Q3 2025 Earnings Call October 23, 2025 09:00 AM ET Speaker0Welcome to the FTI Consulting Third Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded. I would now like to turn the conference over to Molly Hawkes, Head of Investor Relations.Please go ahead.Speaker1Good morning. Welcome to the FTI Consulting conference cal ...

Core Insights - FTI Consulting reported quarterly earnings of $2.6 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and showing an increase from $1.85 per share a year ago, resulting in an earnings surprise of +34.72% [1] - The company achieved revenues of $956.17 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.41% and up from $926.02 million year-over-year [2] - FTI Consulting has outperformed consensus EPS estimates three times in the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The future performance of FTI Consulting's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings surprise [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.72 on revenues of $930.69 million, while for the current fiscal year, the estimate is $8.08 on revenues of $3.71 billion [7] Industry Context - The Consulting Services industry, to which FTI Consulting belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact FTI Consulting's stock performance [5][6]

FTI Consulting, Inc. Third Quarter 2025 Earnings Conference Call October 23, 2025 Cautionary Note About Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve uncertainties and risks. Forward-looking statements include statements concerning our plans, initiatives, projections, prospects, policies, processes and practices, ob ...