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FTI Consulting Reports First Quarter 2025 Financial Results
FCNFTI sulting(FCN) GlobeNewswire·2025-04-24 11:30

Core Viewpoint - FTI Consulting reported a decline in revenues and net income for the first quarter of 2025, primarily due to lower performance in the Economic Consulting and Corporate Finance & Restructuring segments, although some segments showed growth. The company also announced an increase in its share repurchase authorization. Financial Performance - First quarter 2025 revenues were 898.3million,adecreaseof898.3 million, a decrease of 30.3 million or 3.3% from 928.6millionintheprioryearquarter[2]−Netincomeforthefirstquarterwas928.6 million in the prior year quarter [2] - Net income for the first quarter was 61.8 million, down from 80.0millionintheprioryearquarter,impactedbyaspecialchargeof80.0 million in the prior year quarter, impacted by a special charge of 25.3 million related to severance and employee-related costs [2][3] - Adjusted EBITDA was 115.2million,representing12.8115.2 million, representing 12.8% of revenues, compared to 111.1 million or 12.0% of revenues in the prior year quarter [2] Earnings Per Share - Earnings per diluted share (EPS) for the first quarter 2025 was 1.74,downfrom1.74, down from 2.23 in the prior year quarter, with a special charge reducing EPS by 0.55[3]−AdjustedEPSforthefirstquarterwas0.55 [3] - Adjusted EPS for the first quarter was 2.29, slightly up from 2.23 in the prior year quarter [3] Segment Performance - Corporate Finance & Restructuring segment revenues decreased by 22.4 million or 6.1% to 343.6million,primarilyduetolowerdemandfortransformationandstrategyservices[9]−ForensicandLitigationConsultingsegmentrevenuesincreasedby343.6 million, primarily due to lower demand for transformation and strategy services [9] - Forensic and Litigation Consulting segment revenues increased by 14.5 million or 8.3% to 190.6million,drivenbyhigherrealizedbillratesforriskandinvestigationsservices[12]−EconomicConsultingsegmentrevenuesdecreasedby190.6 million, driven by higher realized bill rates for risk and investigations services [12] - Economic Consulting segment revenues decreased by 24.7 million or 12.1% to 179.9 million, mainly due to lower demand for M&A-related services [13] - Technology segment revenues decreased by 3.6 million or 3.5% to 97.2 million, attributed to lower demand for M&A-related services [14] - Strategic Communications segment revenues increased by 5.8 million or 7.2% to 87.0million,supportedbyhigherdemandforcorporatereputationservices[15]CashPositionandCapitalAllocation−Netcashusedinoperatingactivitieswas87.0 million, supported by higher demand for corporate reputation services [15] Cash Position and Capital Allocation - Net cash used in operating activities was 465.2 million for the quarter, compared to 274.8millionintheprioryearquarter,primarilyduetoincreasedforgivableloanissuancesandhighervariablecompensation[5]−Thecompanyrepurchased1,126,995sharesatanaveragepriceof274.8 million in the prior year quarter, primarily due to increased forgivable loan issuances and higher variable compensation [5] - The company repurchased 1,126,995 shares at an average price of 165.15, totaling 186.1million,withapproximately186.1 million, with approximately 264.3 million remaining for future repurchases [6][8] - Cash and cash equivalents decreased to 151.1millionfrom151.1 million from 244.0 million a year ago, with total debt net of cash at 8.9million[7]SpecialCharges−Thecompanyincurredaspecialchargeof8.9 million [7] Special Charges - The company incurred a special charge of 25.3 million in the first quarter, part of a broader restructuring effort that included a total of $33.5 million in special charges over two quarters, reflecting a reduction of approximately 5% of its workforce [16]