Q3 2025 Medpace Holdings Inc Earnings Call Transcript
Key Points
- Medpace Holdings Inc (MEDP) reported a 23.7% year-over-year increase in revenue for the third quarter of 2025, reaching $659.9 million.
- Net new business awards increased by 47.9% from the prior year, resulting in a net book-to-bill ratio of 1.20.
- The total dollar value of awarded work not yet recognized in the backlog was up approximately 30% year-over-year.
- EBITDA for the third quarter increased by 24.9% compared to the same period in 2024, reaching $148.4 million.
- The company anticipates 2026 revenue to grow in a low double-digit range, with EBITDA expected to grow at a high single-digit pace or greater.
- The company's net income growth was below EBITDA growth, primarily due to a higher effective tax rate and lower interest income.
- Pass-through costs are expected to remain high, representing between 41% and 42% of revenue, which may impact margins.
- Despite the increase in awarded work, the backlog only grew by 2.5% from the prior year, indicating potential challenges in converting awards to revenue.
- There is a concern about the potential for cancellations, which have previously impacted the company's backlog and revenue growth.
- The pricing environment remains competitive, with large pharma companies exerting pressure, which could affect future margins.
Good day ladies and gentlemen, and welcome to the Medpace 3rd quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. If you, if you'd like to ask a question, please press 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press 11 again. As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference call, Lauren Morris, Ned Pace's director of investor relations. You may begin.
Good morning and thank you for joining Medpace's third quarter 2025 earnings conference call. Also on the call today are CEO August Trendall, our President Jesse Geiger, and our CFO Kevin Brady. Before we begin, I would like to remind you that our remarks and responses to your questions during this teleconference may include forward-looking statements within the meaning of the Private Security
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