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Jun 30
ASGN Q2 2025 Earnings Report
ASGN Incorporated reported its second quarter 2025 financial results, with revenues exceeding guidance estimates and solid performance in Adjusted EBITDA margin.
Key Takeaways
ASGN reported solid second-quarter results, with revenues of $1.02 billion surpassing guidance and an Adjusted EBITDA margin of 10.6% meeting expectations. The IT consulting business continued its growth, reaching 63% of total revenues, driven by the strong performance of TopBloc. While macroeconomic uncertainty impacted discretionary spending in the commercial sector, demand for cloud and data solutions remained strong, particularly for IT modernization and AI enablement.
Revenues for Q2 2025 were $1.02 billion, exceeding the high-end of guidance estimates.
Adjusted EBITDA was $108.5 million, representing a 10.6% margin, which was at the top end of expectations.
IT Consulting revenues accounted for approximately 63% of total revenues, demonstrating continued growth in this segment.
Net income for the quarter was $29.3 million, with diluted EPS of $0.67.
ASGN
ASGN
ASGN Revenue by Segment
Revenue by Segment
Commercial Segment Revenue
CapyFin.comFederal Government Segment Revenue
CapyFin.comIT Consulting Revenue
CapyFin.comAssignment Revenues Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, ASGN estimates revenues between $992.0 million and $1,012.0 million, with Adjusted EBITDA projected to be between $108.5 million and $113.5 million. Diluted EPS is estimated to be between $0.82 and $0.90, and Adjusted Net Income per diluted share between $1.18 and $1.26. Gross margin is expected to be between 29.3% and 29.6%.
Positive Outlook
- Revenues are projected to remain strong, with a high-end estimate of $1.012 billion.
- Adjusted EBITDA is expected to be robust, with a high-end estimate of $113.5 million.
- Adjusted EBITDA margin is anticipated to be between 10.9% and 11.2%, indicating continued profitability.
- Gross margin is expected to improve slightly, ranging from 29.3% to 29.6%.
- Adjusted Net Income per diluted share is projected to be between $1.18 and $1.26.
Challenges Ahead
- The estimates assume no further deterioration in the markets ASGN serves, indicating potential sensitivity to macroeconomic changes.
- The guidance does not include any acquisition, integration, or strategic planning expenses, which could impact actual results.
- The lower end of the revenue guidance ($992.0 million) is below the current quarter's revenue of $1.02 billion.
- The lower end of the Adjusted EBITDA guidance ($108.5 million) is equal to the current quarter's Adjusted EBITDA, suggesting no significant growth at the lower end.
- The company continues to face macroeconomic uncertainty impacting discretionary spending in the commercial sector.
Revenue & Expenses
Visualization of income flow from segment revenue to net income