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Jan 03
Exponent Q4 2024 Earnings Report
Exponent reported strong financial results for the fourth quarter and fiscal year 2024, exceeding expectations with increased revenues and improved margins.
Key Takeaways
Exponent, Inc. reported a robust fourth quarter and fiscal year 2024, with total revenues increasing by 11.3% to $136.8 million in Q4 and 4.1% to $558.5 million for the full year. Net income also saw significant growth, reaching $23.6 million in Q4 and $109.0 million for the fiscal year, driven by strong demand across various industries and improved operational efficiency.
Fourth quarter total revenues increased 11.3% to $136.8 million, exceeding expectations.
Net income for Q4 rose to $23.6 million, or $0.46 per diluted share, compared to $20.9 million, or $0.41 per diluted share in the prior year.
EBITDA increased to $31.2 million in Q4, representing 25.2% of revenues before reimbursements.
For the full fiscal year 2024, total revenues increased 4.1% to $558.5 million, and net income reached $109.0 million.
Exponent
Exponent
Exponent Revenue by Segment
Revenue by Segment
Engineering & Other Scientific Revenue
CapyFin.comEnvironmental & Health Revenue
CapyFin.com Forward Guidance
For the first quarter of fiscal 2025, Exponent anticipates revenues before reimbursements to be slightly down in the low-single digits, with EBITDA expected to be between 25.0% and 26.0% of revenues before reimbursements. For the full fiscal year 2025, the company expects revenues before reimbursements to grow in the low-single digits, and EBITDA to be between 26.25% and 27.0% of revenues before reimbursements.
Positive Outlook
- Anticipates further demand for services in 2025 due to industry transformations and technological advancements.
- Expects sequential headcount growth of 1-2% each quarter to meet demand.
- Anticipates an increase in activity as 2025 progresses, driving full-year growth.
- Foresees continued growth in low-single digits for full fiscal year 2025 revenues before reimbursements.
- Projects full fiscal year 2025 EBITDA to be between 26.25% and 27.0% of revenues before reimbursements.
Challenges Ahead
- Starting 2025 with a 5-6% headwind in technical full-time-equivalent employees.
- Expects net revenues to be slightly down in the first quarter of fiscal 2025.
- The return to a 52-week fiscal year in 2025 will pose a headwind for full-year comparisons, as fiscal 2024 benefited from a 53rd week.