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Dec 31, 2024
FTI Consulting Q4 2024 Earnings Report
FTI Consulting reported a decline in Q4 2024 revenue and profitability, primarily due to lower demand in key segments.
Key Takeaways
FTI Consulting's Q4 2024 revenue decreased by 3.2% year-over-year, driven by lower demand in the Corporate Finance & Restructuring and Technology segments. Net income fell to $49.7 million from $81.6 million in Q4 2023. Adjusted EPS dropped to $1.56 from $2.28 in the prior year quarter. The Forensic and Litigation Consulting segment saw an increase in revenue, but overall profitability was negatively impacted by higher compensation and SG&A expenses.
Revenue declined by 3.2% year-over-year to $894.9 million.
Net income decreased by 39.1% to $49.7 million.
Adjusted EPS fell to $1.56 from $2.28 in the prior year quarter.
Corporate Finance & Restructuring and Technology segments faced demand challenges.
FTI Consulting
FTI Consulting
FTI Consulting Revenue by Segment
Revenue by Segment
Corporate Finance & Restructuring Revenue
CapyFin.comForensic and Litigation Consulting Revenue
CapyFin.comEconomic Consulting Revenue
CapyFin.comTechnology Revenue
CapyFin.comStrategic Communications Revenue
CapyFin.com Forward Guidance
FTI Consulting expects continued revenue challenges in certain segments but anticipates overall resilience with cost optimizations in 2025.
Positive Outlook
- Revenue guidance for 2025 set between $3.66 billion and $3.81 billion.
- Full-year EPS expected between $7.44 and $8.24.
- Adjusted EPS expected between $7.80 and $8.60.
- Cost savings of $70 million anticipated from restructuring efforts.
- Strength in Forensic and Litigation Consulting expected to continue.
Challenges Ahead
- Demand challenges in Corporate Finance & Restructuring and Technology segments expected to persist.
- Expected special charge of $17 million in Q1 2025 due to staffing realignments.
- Macroeconomic headwinds could impact revenue growth.
- Higher SG&A expenses anticipated due to compensation adjustments.
- Potential currency-related risks affecting financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income