On February 21, 2025, FTI Consulting Inc (FCN, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. The company reported fourth-quarter revenues of $894.9 million, a 3% decline from the previous year's $924.7 million. The quarterly earnings per share (EPS) stood at $1.38, falling short of the analyst estimate of $1.67. However, the company achieved record full-year revenues of $3.699 billion, a 6% increase from the prior year, with an EPS of $7.81, slightly below the annual estimate of $8.10.
Company Overview
FTI Consulting Inc is a global business advisory firm that provides professional services across five segments: corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. The company primarily generates revenue from its Corporate Finance segment, serving a diverse clientele across sectors such as construction, energy, healthcare, and technology, with a significant portion of its revenue derived from the United States.
Performance and Challenges
FTI Consulting Inc faced challenges in the fourth quarter, with revenues declining by 3.2% compared to the previous year. This was primarily due to reduced demand in the Corporate Finance & Restructuring and Technology segments. The company's net income for the quarter was $49.7 million, down from $81.6 million in the prior year, impacted by lower revenues and increased compensation and SG&A expenses.
Financial Achievements
Despite quarterly setbacks, FTI Consulting Inc achieved record full-year revenues of $3.699 billion, driven by growth across all business segments. The company's net income for the year was $280.1 million, up from $274.9 million in the previous year, aided by higher revenues and favorable foreign currency remeasurement gains. The adjusted EBITDA for the year was $403.7 million, representing 10.9% of revenues.
Key Financial Metrics
FTI Consulting Inc's balance sheet showed a strong cash position with $660.5 million in cash and cash equivalents at the end of 2024, compared to $328.7 million in the previous year. The company had no outstanding debt, and its stockholders' equity increased to $2.258 billion from $1.981 billion in 2023. The company repurchased 51,717 shares of its common stock during the fourth quarter, reflecting a commitment to returning value to shareholders.
Segment Performance
| Segment | Q4 2024 Revenue ($ million) | Q4 2023 Revenue ($ million) | Change (%) |
|---|---|---|---|
| Corporate Finance & Restructuring | 335.7 | 365.6 | -8.2% |
| Forensic and Litigation Consulting | 175.9 | 165.5 | 6.3% |
| Economic Consulting | 206.1 | 206.1 | 0% |
| Technology | 90.6 | 100.9 | -10.2% |
| Strategic Communications | 86.6 | 86.6 | 0% |
Analysis and Outlook
FTI Consulting Inc's performance in 2024 highlights its resilience in achieving record revenues despite facing headwinds in the latter half of the year. The company's strategic focus on growth across all segments and its strong cash position provide a solid foundation for future expansion. However, challenges such as reduced demand in key segments and increased expenses may continue to impact short-term performance. The company's guidance for 2025 indicates a cautious outlook, with estimated revenues ranging between $3.660 billion and $3.810 billion and EPS between $7.44 and $8.24.
Steven H. Gunby, President and CEO, stated, "Though a number of headwinds that we saw towards the end of 2024 resulted in second half performance that was below our expectations, we are pleased that, in aggregate, 2024 was yet another year of record revenues and earnings per share."
Explore the complete 8-K earnings release (here) from FTI Consulting Inc for further details.
