Group 1 - FTI Consulting announced the appointment of Julien Wallen as a Senior Managing Director in the Financial Services practice [1] - Mr. Wallen has 25 years of experience in asset management and consultancy, advising financial institutions on complex situations [2] - His role will involve leading balance sheet, portfolio, and risk advisory across Europe, the Middle East, and Africa (EMEA) [3] Group 2 - Mr. Wallen previously served as a Managing Director at BlackRock for over a decade, focusing on financial markets advisory and sustainability initiatives [5] - His appointment aligns with FTI Consulting's strategy to enhance its financial services capabilities, following the addition of several senior directors in the practice [6] - FTI Consulting generated $3.70 billion in revenues during fiscal year 2024, indicating strong financial performance [7]

Core Viewpoint - The Schall Law Firm is investigating FTI Consulting, Inc. for potential violations of securities laws related to misleading statements and undisclosed information affecting investors [1][2]. Financial Performance - FTI Consulting reported a 3.3% year-over-year decline in revenues for Q1 2025, which was below consensus estimates [2]. - The company experienced a significant decrease in net income compared to the previous year, attributed primarily to lower revenues and a special charge of $25.3 million related to severance and other employee-related costs [2].

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against FTI Consulting, Inc. regarding possible violations of federal securities laws and unlawful business practices [1]. Financial Performance - FTI Consulting reported first-quarter 2025 revenue of $898.3 million, a year-over-year decline of 3.3%, missing consensus estimates by $8.38 million [3]. - The company reported net income of $61.8 million, down from $80 million in the same period the previous year, attributed to lower revenues and a $25.3 million special charge related to severance and employee-related costs [3]. - Following the financial results announcement, FTI's share price fell by $6.60, closing at $161.91 on April 24, 2025, down from $168.51 on April 23, 2025 [3].

Core Insights - FTI Consulting has appointed Scott Cockerham as Senior Managing Director in the Corporate Finance & Restructuring segment, focusing on the Power, Renewables & Energy Transition practice in Houston [1][2] Company Overview - FTI Consulting is a global expert firm specializing in crisis and transformation, with over 8,100 employees across 33 countries as of March 31, 2025 [4] - The company generated $3.70 billion in revenues during fiscal year 2024 [4] Leadership and Expertise - Scott Cockerham brings over 20 years of experience in business transformation, turnarounds, and restructurings, having held various leadership roles including CEO and CFO [2][3] - Cockerham's previous role was as Chief Financial Officer at Camin Cargo Control, and he co-led the restructuring energy team at a global consulting firm [3] Industry Context - The energy sector is facing unprecedented uncertainty due to macroeconomic trends and policy shifts, impacting business plans [3] - FTI Consulting aims to leverage Cockerham's expertise to assist clients in navigating challenges and creating value in the dynamic energy landscape [3][4]

Financial Performance - First quarter 2025 revenues were $898.3 million, a decrease of $30.3 million or 3.3% compared to $928.6 million in the prior year quarter[3]. - Net income for the first quarter 2025 was $61.8 million, down from $80.0 million in the prior year quarter, primarily due to lower revenues and a $25.3 million special charge[3]. - Adjusted EBITDA for the first quarter 2025 was $115.2 million, representing 12.8% of revenues, compared to $111.1 million or 12.0% of revenues in the prior year quarter[3]. - First quarter 2025 earnings per diluted share (EPS) were $1.74, down from $2.23 in the prior year quarter, with adjusted EPS of $2.29 compared to $2.23 in the prior year quarter[4]. - Operating income for Q1 2025 was $78,707 thousand, down 21.0% from $99,633 thousand in Q1 2024[31]. - Net income for Q1 2025 was $61,824 thousand, a decline of 22.7% compared to $79,965 thousand in Q1 2024[31]. - Adjusted net income for Q1 2025 was $81,320 thousand, remaining stable compared to $79,965 thousand in Q1 2024[32]. - Net income for Q1 2025 decreased to $61,824 from $79,965 in Q1 2024, representing a decline of approximately 22.7%[38]. Segment Performance - The Corporate Finance & Restructuring segment saw revenues decrease by $22.4 million or 6.1% to $343.6 million, with adjusted segment EBITDA of $55.9 million, or 16.3% of segment revenues[10]. - The Forensic and Litigation Consulting segment reported an 8.3% increase in revenues to $190.6 million, with adjusted segment EBITDA of $37.5 million, or 19.7% of segment revenues[11]. - The Economic Consulting segment experienced a revenue decline of $24.7 million or 12.1% to $179.9 million, with adjusted segment EBITDA of $14.4 million, or 8.0% of segment revenues[13]. - The Corporate Finance & Restructuring segment generated revenues of $343,645 thousand with an adjusted EBITDA margin of 16.3% in Q1 2025[35]. - The Forensic and Litigation Consulting segment reported revenues of $190,602 thousand with an adjusted EBITDA margin of 19.7% in Q1 2025[35]. Share Repurchase and Capital Management - The company repurchased 1,126,995 shares at an average price of $165.15 for a total cost of $186.1 million, with approximately $264.3 million remaining for future repurchases[7]. - The company announced a $400.0 million increase in share repurchase authorization, bringing the total authorization to $1.7 billion since the program's inception[9]. - The company repurchased common stock totaling $182,641 during the quarter, reflecting a new strategy in capital management[38]. Special Charges and Workforce Changes - A special charge of $25.3 million was recorded in the first quarter 2025, reflecting the termination of approximately 5% of the workforce, expected to yield annualized cost savings of about $85 million[16]. - The company incurred special charges of $25,295 thousand in Q1 2025, impacting net income and adjusted EPS[32]. Cash Flow and Balance Sheet - Net cash used in operating activities increased significantly to $(465,210) compared to $(274,818) in the prior year, indicating a rise of 69.1%[38]. - Cash and cash equivalents at the end of the period dropped to $151,121 from $243,960, a decrease of 38.1%[38]. - Total assets decreased to $3,347,702 thousand as of March 31, 2025, from $3,596,830 thousand as of December 31, 2024[29]. - Total liabilities decreased to $1,198,064 thousand as of March 31, 2025, from $1,338,540 thousand as of December 31, 2024[29]. - Total borrowings under the revolving line of credit amounted to $235,000, down from $280,000 in the previous year[38]. Other Financial Metrics - Depreciation of property and equipment was $10,145, slightly down from $10,424, showing a minor reduction of 2.7%[38]. - The provision for expected credit losses decreased to $7,214 from $11,420, a reduction of 36.5%[38]. - Accounts receivable, billed and unbilled, showed a negative change of $(74,890), compared to $(73,201) in the previous year[38]. - The effect of exchange rate changes on cash and cash equivalents resulted in a positive impact of $5,942, contrasting with a negative impact of $(3,635) last year[38]. - Net cash provided by (used in) investing activities was $(17,803), a significant decline from $20,606 in the prior year[38].

Core Insights - FTI Consulting has appointed Josh Harris as a Senior Managing Director in the Private Equity practice within its Corporate Finance & Restructuring segment [1][2] - Mr. Harris brings nearly 20 years of experience in partnering with private equity firms and corporate clients, focusing on value creation throughout the deal lifecycle [2] - His expertise includes portfolio strategy, performance improvement, post-merger integration, and organizational restructuring [2] Company Overview - FTI Consulting is a global expert firm specializing in crisis and transformation, with over 8,100 employees across 33 countries as of March 31, 2025 [5] - The company generated $3.70 billion in revenues during fiscal year 2024 [5] Role and Responsibilities - In his new role, Mr. Harris will focus on large-scale transformations, change management, and operational design for private equity firms and clients in regulated sectors such as aerospace, defense, and technology [3][4] - His previous experience includes leadership roles at Bain & Company and PwC Strategy&, where he managed enterprise strategy and transformation projects for Fortune 200 clients [4] Strategic Focus - Mr. Harris emphasizes the need for customized solutions to complex business challenges, aiming to help clients enhance profitability through revenue growth and cost optimization [5]

FTI Consulting, Inc. First Quarter 2025 Earnings Conference Call April 24, 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, obje ...

Financial Data and Key Metrics Changes - First quarter 2025 revenues were $898.3 million, a decrease of $30.3 million or 3.3% compared to the first quarter of the previous year [49] - GAAP earnings per share (EPS) were $1.74 compared to $2.23 in the prior year quarter, while adjusted EPS was $2.29 compared to $2.23 in the prior year quarter [50] - Net income decreased to $61.8 million from $80 million in the prior year quarter, primarily due to lower revenues and a special charge [51] - Adjusted EBITDA for the first quarter 2025 was $115.2 million, or 12.8% of revenues, compared to $111.1 million, or 12% of revenues in the prior year quarter [53] Business Line Data and Key Metrics Changes - **Corporate Finance and Restructuring**: Revenues decreased by 6.1% to $343.6 million, with adjusted segment EBITDA of $55.9 million or 16.3% of segment revenues [56] - **Forensic and Litigation Consulting (FLC)**: Achieved record revenues of $190.6 million, an increase of 8.3%, with adjusted segment EBITDA of $37.5 million or 19.7% of segment revenues [59] - **Economic Consulting**: Revenues decreased by 12.1% to $179.9 million, with adjusted segment EBITDA of $14.4 million or 8% of segment revenues [62] - **Technology**: Revenues decreased by 3.5% to $97.2 million, with adjusted segment EBITDA of $11.6 million or 11.9% of segment revenues [64] - **Strategic Communications**: Revenues increased by 7.2% to $87 million, with adjusted segment EBITDA of $12.9 million or 14.8% of segment revenues [67] Market Data and Key Metrics Changes - The restructuring market is currently not particularly strong, impacting the Corporate Finance and Restructuring segment [21] - The M&A market has seen a decline, with U.S. deal volume falling 13% year over year [75] - The federal premerger notification program recorded the lowest monthly filing total in nearly five years, with only 89 transactions in March 2025 [66] Company Strategy and Development Direction - The company is focused on enhancing its visibility and expertise in various sectors, particularly in forensic and litigation consulting, which has shown strong performance [12][18] - There is a commitment to investing in talent acquisition, particularly in areas like antitrust, financial economics, and digital assets, despite the near-term financial impact [78] - The company is cautious about the potential impacts of regulatory changes on its business, particularly in areas like anti-consumer fraud and anti-money laundering [90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium to long-term trajectory of the business despite current uncertainties in the market [42][43] - The company anticipates potential headwinds in 2025, particularly in the Economic Consulting segment due to recent departures and market conditions [30][34] - Management highlighted the importance of adapting to macroeconomic factors and maintaining a focus on client needs amidst regulatory changes [25][41] Other Important Information - The company funded $162 million in forgivable loans to attract new talent, which will impact adjusted EBITDA in the near term [73] - The board of directors authorized an additional $400 million for share repurchases, with approximately $568.3 million remaining available under the program [71] Q&A Session Summary Question: Impact of tariffs on business - Management noted that tariffs could have both positive and negative impacts across various segments, particularly in restructuring and supply chain consulting [83][86] Question: Effect of regulatory changes on forensic and litigation consulting - Management indicated that while there has not been a significant effect yet, potential regulatory rollbacks could impact the business in the future [89][90] Question: Guidance for the year - Management confirmed that the guidance provided at the fourth quarter 2024 earnings call remains applicable and will be updated at the second quarter earnings call [93][94] Question: Revenue headwinds from departures in Economic Consulting - Management acknowledged that the financial impact from departures is expected to be significant, with a potential increase in the estimated revenue headwind [102] Question: Trends in healthcare business within FLC - Management reported positive performance in healthcare practices, with good business activity compared to the previous year [112][113] Question: Distribution of headcount actions - Management provided details on headcount actions, indicating a balanced distribution across segments and geographies, with a slight emphasis on senior roles [119]

FTI Consulting, Inc. (NYSE:FCN) Q1 2025 Earnings Conference Call April 24, 2025 9:00 AM ET Company Participants Mollie Hawkes - Head of IR Steven Gunby - President and CEO Ajay Sabherwal - CFO Conference Call Participants James Yaro - Goldman Sachs Tobey Sommer - Truist Andrew Nicholas - William Blair Operator Good morning, everyone, and welcome to the FTI Consulting, Inc. First Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please send to ...

Core Insights - FTI Consulting reported revenue of $898.28 million for Q1 2025, a year-over-year decline of 3.3%, with an EPS of $2.29 compared to $2.23 a year ago, indicating a positive EPS surprise of 27.93% against the consensus estimate of $1.79 [1][2] Revenue Performance by Segment - Technology segment generated $97.16 million, below the average estimate of $98.64 million, reflecting a year-over-year decline of 3.5% [4] - Strategic Communications segment achieved $87.02 million, exceeding the average estimate of $86.30 million, with a year-over-year increase of 7.2% [4] - Corporate Finance & Restructuring segment reported $343.65 million, below the estimated $352.91 million, marking a decline of 6.1% year-over-year [4] - Economic Consulting segment earned $179.86 million, under the average estimate of $182.74 million, showing a year-over-year decrease of 12.1% [4] - Forensic and Litigation Consulting segment reached $190.60 million, surpassing the estimated $180.63 million, with an 8.3% increase compared to the previous year [4] Stock Performance - FTI Consulting shares have returned +3.8% over the past month, contrasting with the Zacks S&P 500 composite's -5.1% change, although the stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]