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]