Core Viewpoint - Exponent (EXPO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based solely on changes in a company's earnings picture, which is a powerful driver of near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance and Outlook - The upgrade in Zacks Rank for Exponent suggests an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending December 2026, Exponent is expected to earn $2.29 per share, with a 1.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Exponent to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

1 Forward Looking Statements & Non-GAAP Financial Measures This presentation release contains, and incorporates by reference, certain "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Com ...

Core Insights - Exponent, Inc. reported a strong financial performance for the fourth quarter and fiscal year 2025, highlighting the resilience and diversification of its portfolio [2][3][6] Financial Performance - Total revenues for Q4 2025 increased by 7.8% to $147.4 million compared to $136.8 million in Q4 2024 [3] - Revenues before reimbursements rose by 4.5% to $129.4 million in Q4 2025 from $123.8 million in Q4 2024 [3] - Net income for Q4 2025 was $24.8 million, or $0.49 per diluted share, up from $23.6 million, or $0.46 per diluted share in Q4 2024 [4] - EBITDA for Q4 2025 increased to $34.7 million, representing 26.8% of revenues before reimbursements, compared to $31.2 million or 25.2% in Q4 2024 [5] Annual Financial Results - Total revenues for fiscal year 2025 grew by 4.2% to $582.0 million from $558.5 million in fiscal year 2024 [6] - Net income for fiscal year 2025 was $106.0 million, or $2.07 per diluted share, down from $109.0 million, or $2.11 per diluted share in fiscal year 2024 [7] - EBITDA for fiscal year 2025 was $148.1 million, or 27.6% of revenues before reimbursements, slightly down from $147.1 million or 28.4% in fiscal year 2024 [8] Business Segments - The engineering and other scientific segment accounted for 85% of revenues before reimbursements in Q4 2025, with a 7% increase compared to the prior year [10] - The environmental and health segment represented 15% of revenues before reimbursements in Q4 2025, experiencing a 5% decline due to one less week of activity compared to Q4 2024 [12] Business Outlook - The company anticipates high-single-digit revenue growth for fiscal year 2026, supported by strong market drivers and a proven operating model [13][16] - Exponent is well-positioned to deliver profitable growth as innovation accelerates and systems become more complex, leveraging its multidisciplinary expertise [13]

Core Insights - Exponent, Inc. (NASDAQ:EXPO) is recognized as one of the 15 overlooked dividend stocks to consider for investment [1] - Truist has maintained a Buy rating on Exponent while reducing its price target from $100 to $90, citing potential opportunities in artificial intelligence and risks from automation [2] - The company reported strong third-quarter performance with double-digit net revenue growth, particularly in dispute-related work across various sectors [3][4] Financial Performance - For Q3 2025, Exponent's total revenue increased by 8% to $147.1 million, while revenue before reimbursements rose by 10% to $137.1 million, compared to $136.3 million and $125.1 million in the same period last year [4] - The growth was driven by a diversified portfolio, with notable strength in sectors such as energy, transportation, life sciences, and construction [3][4] Industry Context - The integration of artificial intelligence into safety-critical systems presents new opportunities for Exponent as clients seek expertise in managing risks [3] - However, the consulting sector may face challenges from increased efficiencies due to automation, potentially impacting billable hours [2]

Financial Performance - FY24 revenue reached $559 million[8] - FY24 EBITDA margin was 28%[8] - FY24 EPS was $2.11[8] - The company paid quarterly dividend of $0.30[8] - The company returned $278 million to shareholders through dividend payments and repurchased shares[46] Growth and Diversification - The company has expanded and diversified across disciplines and industries for over 50 years[6] - The company has a diversified portfolio across various sectors including construction, consumer products, energy, transportation, life sciences & healthcare, and chemicals[18] - The company served 2,000 clients and completed 10,000 engagements in FY24[21] Key Trends and Solutions - The company is positioned to capitalize on increasing demand for a safer, healthier, more sustainable world[10] - The company offers solutions related to automation, electrification, energy transition, climate resilience, digital health, and environmental impact[23] 2025 Performance (YTD as of October 3rd) - Revenues Before Reimbursements increased by 3% from $394.7 million to $407.4 million[49] - Net Income decreased by 5% from $85.4 million to $81.2 million[49] 2025 Q3 Performance - Revenues Before Reimbursements increased by 10% from $125.1 million to $137.1 million[50] - Net Income increased by 8% from $26.0 million to $28.0 million[50]