FTI Consulting Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - FTI Consulting reported record revenues and earnings per share for the full year 2024, with revenues of $3.699 billion, a 6.0% increase from $3.489 billion in 2023, and net income of $280.1 million compared to $274.9 million in the prior year [2][4][11]. Financial Performance - Full year 2024 revenues increased by $209.4 million, driven by growth across all business segments [2]. - Net income rose to $280.1 million, influenced by higher revenues, lower income taxes, and a foreign currency remeasurement gain, despite increased compensation and SG&A expenses [2]. - Adjusted EBITDA for 2024 was $403.7 million, representing 10.9% of revenues, down from $424.8 million or 12.2% of revenues in the prior year [2]. Earnings Per Share - Full year 2024 earnings per diluted share (EPS) was $7.81, up from $7.71 in 2023, while adjusted EPS increased to $7.99 from $7.71 [3][11]. Cash Position and Capital Allocation - Net cash provided by operating activities for 2024 was $395.1 million, significantly higher than $224.5 million in 2023, primarily due to increased cash collections [5]. - Cash and cash equivalents at year-end 2024 were $660.5 million, up from $328.7 million at the end of 2023 [6]. - The company repurchased 51,717 shares at an average price of $197.53, totaling $10.2 million, with approximately $450.4 million remaining for future repurchases [7]. Fourth Quarter Results - Fourth quarter 2024 revenues were $894.9 million, a decrease of $29.8 million or 3.2% from $924.7 million in the prior year quarter, primarily due to lower demand in Corporate Finance & Restructuring and Technology segments [8][11]. - Net income for the fourth quarter was $49.7 million, down from $81.6 million in the prior year quarter, impacted by lower revenues and increased expenses [8]. - Fourth quarter adjusted EBITDA was $73.7 million, or 8.2% of revenues, compared to $127.4 million or 13.8% of revenues in the prior year quarter [8]. Segment Performance - Corporate Finance & Restructuring segment revenues decreased by $29.8 million or 8.2% to $335.7 million, primarily due to lower demand for transformation and strategy services [10]. - Forensic and Litigation Consulting segment revenues increased by $10.4 million or 6.3% to $175.9 million, driven by higher demand for data and analytics services [13]. - Economic Consulting segment revenues remained flat at $206.1 million, with higher M&A-related antitrust revenues offset by declines in other areas [14]. - Technology segment revenues decreased by $10.3 million or 10.2% to $90.6 million, primarily due to lower demand for M&A-related services [15]. - Strategic Communications segment revenues were stable at $86.6 million, with mixed demand across services [16]. Future Guidance - For 2025, the company estimates revenues between $3.660 billion and $3.810 billion, with EPS guidance ranging from $7.44 to $8.24 and adjusted EPS between $7.80 and $8.60 [18].