FTI Consulting reports Q4 and full-year results

FTI Consulting, Inc. (NYSE:FCN), a global management consulting firm with a market capitalization of $5.9 billion, announced its financial results for the fourth quarter and full year ended December 31, 2024, during a conference call held on February 20, 2025. According to InvestingPro data, the company has maintained strong financial health with a robust EBITDA of $403 million in the last twelve months. The company also provided financial guidance for the year ending December 31, 2025, while analysts have recently revised their earnings expectations downward for the upcoming period.

In the conference call, FTI Consulting discussed a range of financial measures, including non-GAAP metrics such as Total (EPA:TTEF) Segment Operating Income, Adjusted Segment EBITDA, Total Adjusted Segment EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings per Diluted Share, and Free Cash Flow. These non-GAAP financial measures are intended to provide additional information to investors regarding the company’s operational performance and cash generation capabilities.

The company defines Segment Operating Income as a segment’s share of consolidated operating income, excluding unallocated corporate expenses. Adjusted Segment EBITDA reflects a segment’s operating income before certain expenses like depreciation, amortization, and special charges, among others. FTI Consulting uses these measures internally to evaluate segment performance and believes they are useful in understanding the company’s core operating results.

Adjusted Net Income and Adjusted Earnings per Diluted Share exclude items such as remeasurement of acquisition-related contingent consideration, special charges, and losses on early extinguishment of debt, providing a view of the company’s performance that may be more indicative of ongoing operations. Free Cash Flow, defined as net cash from operating activities minus cash payments for property and equipment, offers insight into the company’s cash available for business operations and capital deployment.

FTI Consulting emphasizes that these non-GAAP financial measures should be considered as a supplement to, and not a substitute for or superior to, the financial information contained in the company’s GAAP financial statements. The reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025.

The provided financial data is based on a press release statement and is intended to give shareholders and the investment community a more comprehensive understanding of the company’s financial results and trends.

This report is based on information from an SEC filing and is not intended to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, or to be incorporated by reference into any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such a filing. For investors seeking deeper insights, InvestingPro offers 12 additional exclusive ProTips and comprehensive analysis of FCN’s financial health, which currently shows signs of being undervalued according to InvestingPro’s Fair Value model. The platform’s detailed Pro Research Report provides in-depth analysis of FCN’s market position, financial performance, and growth prospects.

In other recent news, FTI Consulting reported its fourth-quarter 2024 earnings, revealing a shortfall in both earnings per share (EPS) and revenue compared to analyst expectations. The company’s EPS was $1.56, falling short of the expected $1.73, while revenue came in at $894.9 million, below the anticipated $932.18 million. The company also provided guidance for 2025, expecting full-year EPS to range between $7.80 and $8.60, which is below the consensus estimate of $8.68. Revenue projections for 2025 are anticipated to be between $3.66 billion and $3.81 billion, falling short of the $3.903 billion expected by analysts.

Additionally, Truist Securities revised its price target for FTI Consulting, lowering it from $275 to $225, while maintaining a Buy rating on the company’s shares. This adjustment followed the company’s announcement of weaker-than-expected results for the fourth quarter and a less optimistic outlook for 2025. The firm expressed confidence in FTI Consulting’s ability to recover from recent challenges, including talent turnover within its Economic Consulting segment.

Despite achieving record revenues for the full year 2024, the company’s second-half performance did not meet expectations due to various headwinds. These include a special charge in the first quarter of 2025, estimated at $17 million, related to aligning staffing with demand. This measure is expected to result in cost savings of around $70 million in salary and benefits-related compensation costs for 2025. FTI Consulting’s management has acknowledged the impact of senior departures on its Economic Consulting segment, estimating a potential $35 million impact. The company remains focused on growth, with plans to continue investing in talent and innovation despite financial pressures.

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