Financial Data and Key Metrics Changes - The company reported record revenues of $3.79 billion for the full year 2025, an increase of 2.4% compared to 2024, with record adjusted EBITDA of $463.6 million and record GAAP and adjusted EPS of $8.24 and $8.83, respectively [36][37] - Fourth quarter revenues reached $990.7 million, a 10.7% increase year-over-year, with net income of $54.5 million, up 9.7% compared to the prior year quarter [38][39] - Adjusted EBITDA for Q4 was $106.2 million, or 10.7% of revenues, compared to $73.7 million, or 8.2% of revenues in the prior year quarter [41] Business Line Data and Key Metrics Changes - CorpFin achieved record revenues of $423.2 million in Q4, a 26.1% increase year-over-year, driven by higher demand in turnaround and restructuring, transactions, and transformation services [41][42] - FLC revenues increased by 9.7% to $192.9 million in Q4, primarily due to higher realized bill rates for risk and investigation services [45] - Economic Consulting revenues decreased by 14.5% to $176.2 million in Q4, attributed to lower demand for non-M&A and M&A-related antitrust services [49] - Technology revenues increased by 9.3% to $99 million in Q4, driven by higher demand for litigation and M&A-related Second Request services [51] - StratCom revenues rose by 14.8% to $99.4 million in Q4, primarily due to increased demand for corporate reputation services [53] Market Data and Key Metrics Changes - The company faced significant headwinds in the Economic Consulting and Technology segments, which resulted in nearly $100 million of adjusted EBITDA headwinds in 2025 [28] - Despite these challenges, the company managed to deliver record revenues and adjusted EBITDA growth in other segments, particularly CorpFin, FLC, and StratCom [36][37] Company Strategy and Development Direction - The company emphasized its resilience and ability to deliver strong results despite facing multiple headwinds, highlighting the importance of its multifaceted business model [11][14] - The management plans to continue investing in talent and expects to see growth in the Compass Lexecon business as new hires ramp up productivity [63] - The company is focused on leveraging AI as a positive force for growth, particularly in areas requiring expert-driven services amid market disruptions [57][59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while there are substantial headwinds entering 2026, particularly in the Economic Consulting segment, they remain confident in the company's trajectory and ability to adapt [29][32] - The company anticipates that the rapid pace of AI innovation will create new demand for its services, particularly in crisis situations and regulatory compliance [59][60] - The guidance for 2026 estimates revenues between $3.94 billion and $4.1 billion, reflecting a 6.1% year-over-year growth expectation [56] Other Important Information - The company repurchased 5.3 million shares in 2025, representing 15% of its outstanding shares, with approximately $491.8 million remaining under its stock repurchase authorization [55][56] - The effective tax rate for 2026 is expected to be between 22%-24%, down from 27% in 2025 [65] Q&A Session Summary Question: Economic Consulting stabilization and productivity of recent hires - Management indicated that the Economic Consulting segment is not yet at the bottom, with ongoing challenges primarily due to the Compass Lexecon situation, and that productivity from recent hires is expected to improve over time [71][72] Question: Impact of AI on restructuring demand - Management believes that disruption from AI will positively impact demand for restructuring services, positioning the company well to benefit from such changes [76][78] Question: Impacts of AI on the business - Management noted that while there are efficiency gains from AI, the primary benefits are seen in increased demand for expert-driven services amid market disruptions [84][88] Question: Capital deployment priorities - Management reiterated a focus on organic growth and wise cash utilization, with share buybacks being opportunistic and acquisitions being considered only when they align with company culture and value [96][98]

FTI Consulting (NYSE:FCN) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Speaker3Welcome to the FTI Consulting fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star, then 1 on your telephone keypad. To withdraw your question, please pre ...