ASGN rporated(ASGN) - 2025 Q4 - Annual Report

Revenue and Profitability - Revenues for 2025 were $4.0 billion, a decrease of 2.9% year-over-year, with the Commercial Segment contributing $2.79 billion and the Federal Government Segment contributing $1.19 billion[138]. - Total IT consulting services revenues were $2.5 billion, representing 62.3% of total revenues, and increased by 5.1% year-over-year[140]. - Gross profit declined by 2.9% to $1.15 billion, maintaining a gross margin of 28.9%[143]. - Net income for 2025 was $113.5 million, down from $175.2 million in 2024[148]. Expenses and Financial Ratios - SG&A expenses rose to $854.0 million, accounting for 21.5% of revenues, compared to 20.0% in 2024[144]. - Commercial consulting bookings increased to $1.52 billion, with a book-to-bill ratio of 1.2 to 1[150]. - New contract awards for the Federal Government Segment were $1.02 billion, with a book-to-bill ratio of 0.9 to 1[152]. Cash Flow and Investments - Net cash provided by operating activities decreased to $327.9 million in 2025 from $400.0 million in 2024, primarily due to changes in operating assets and liabilities[154]. - Net cash used in investing activities was $343.9 million in 2025, including $304.1 million for the acquisition of TopBloc and $39.8 million for capital expenditures[155]. - Net cash used in financing activities was $29.4 million in 2025, mainly consisting of $170.1 million for stock repurchases, offset by net borrowings of $138.7 million[156]. Debt and Liabilities - Long-term debt obligations total $1,381.5 million, with $68.8 million due within one year and $796.1 million due in 1-3 years[157]. - Workers' compensation loss reserves were $2.2 million in 2025, down from $2.8 million in 2024, with anticipated recoveries of $9.5 million[158]. - The company terminated its deferred compensation plan in Q2 2025, with plan assets and liabilities totaling $19.1 million as of December 31, 2025[159]. Financial Risk - A hypothetical 100 basis-point change in interest rates on variable-rate debt would result in an interest expense fluctuation of approximately $6.3 million based on $632.6 million of debt outstanding[162]. Backlog and Working Capital - Funded contract backlog was $492.9 million, while total contract backlog decreased to $2.95 billion[152]. - Cash and cash equivalents at year-end were $161.2 million, with working capital of $491.9 million[153]. - The company had approximately $455.0 million available under its $500.0 million revolving credit facility[153].