- FTI Consulting (FCN, Financial) reports Q1 2025 revenue of $898.3 million, down 3.3% from the previous year.
- Annual cost savings of $85 million expected from a 5% workforce reduction.
- Board authorizes an additional $400 million for share repurchases, boosting total to $1.7 billion.
FTI Consulting, Inc. (FCN) has announced its financial results for the first quarter of 2025, noting a revenue decline of 3.3% year-over-year to $898.3 million, primarily due to reduced demand in the Economic Consulting and Corporate Finance & Restructuring segments. However, net income fell sharply by 22.8% to $61.8 million, as the company contended with a $25.3 million special charge related to severance costs affecting approximately 5% of its workforce.
Despite these challenges, FTI Consulting reported an increase in adjusted EBITDA to $115.2 million, representing 12.8% of revenues compared to 12.0% in the previous year. The adjusted earnings per share (EPS) also improved to $2.29, up from $2.23. These adjustments reflect the company's strategic cost-cutting measures and a focus on maintaining operational efficiency in challenging economic conditions.
In a significant move, the Board of Directors approved an additional $400 million in share repurchase authorization, bringing the total authorization to $1.7 billion since its inception in 2016. This decision underlines the company’s confidence in its long-term prospects despite current headwinds.
On a segment basis, while both the Corporate Finance & Restructuring and Economic Consulting divisions experienced revenue declines of 6.1% and 12.1%, respectively, the Forensic and Litigation Consulting and Strategic Communications segments posted growth, with increases of 8.3% and 7.2%. These trends highlight shifting client demands and the company's adaptability in such a dynamic market.
The recent workforce reduction is expected to yield annualized cost savings of $85 million, providing a strong foundation for enhanced profitability moving forward. CEO Steven H. Gunby emphasized the company's strategic realignment, noting its commitment to leveraging comprehensive expertise during times of client disruption.
