Exponent Reports Second Quarter 2025 Financial Results

Core Insights - Exponent, Inc. reported flat revenues for Q2 2025 but exceeded expectations, driven by growth in dispute-related activities in construction, automotive, and medical device sectors [2][4] - The company is optimistic about early-stage work in digital health, AI usability, and distributed energy systems, indicating significant growth potential [2][3] Financial Results - Total revenues for Q2 2025 increased by 1% to $142.0 million compared to $140.5 million in Q2 2024, while revenues before reimbursements were approximately flat at $132.9 million [4] - Net income decreased to $26.6 million, or $0.52 per diluted share, down from $29.2 million, or $0.57 per diluted share in Q2 2024 [5] - EBITDA for Q2 2025 decreased to $37.0 million, representing 27.8% of revenues before reimbursements, compared to $39.9 million, or 30.2% in Q2 2024 [6] Year-to-Date Financial Performance - For the first half of 2025, total revenues increased by 1% to $287.5 million, while revenues before reimbursements were approximately flat at $270.3 million [7] - Net income for the first half of 2025 was $53.2 million, or $1.03 per diluted share, down from $59.4 million, or $1.15 per diluted share in the same period of 2024 [8] - EBITDA for the first half of 2025 decreased to $74.5 million, or 27.6% of revenues before reimbursements, compared to $80.1 million, or 29.7% in the first half of 2024 [9] Business Segments - The engineering and other scientific segment accounted for 85% of revenues before reimbursements in Q2 2025, with a 1% increase in revenues driven by demand in construction, automotive, and medical device sectors [11] - The environmental and health segment represented 15% of revenues before reimbursements in Q2 2025, with a 4% decrease in revenues due to lower activity in life sciences and chemical regulatory services [12] Business Outlook - The company is optimistic about market opportunities and expects growth in the second half of 2025, maintaining its full-year guidance [13] - Exponent anticipates mid-single-digit growth in revenues before reimbursements and EBITDA to be between 26.75% and 27.75% of revenues before reimbursements for the full fiscal year 2025 [16]