FTI Consulting (FCN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $949.2M, up 9.8%–10% year-over-year, with EPS rising 33.7%–34% to $2.34, driven by strong demand in Corporate Finance, Economic Consulting, and Technology, as well as favorable tax and FX gains.

• Net income increased 34.5% to $83.9M, aided by higher revenues, lower effective tax rate, and FX gains.

• Adjusted EBITDA rose 15.7% to $115.9M (12.2% margin), up from $100.2M (11.6%) year-over-year.

• All segments grew, with standout performance in Corporate Finance, Economic Consulting, and Technology.

• Raised full-year 2024 revenue guidance to $3.70–$3.79B and EPS guidance to $8.10–$8.68 following record first-half results.

Financial highlights

• Q2 2024 revenues were $949.2M, up from $864.6M in Q2 2023.

• Net income was $83.9M, compared to $62.4M in the prior year quarter.

• Adjusted EBITDA was $115.9M (12.2% margin), up from $100.2M (11.6%) year-over-year.

• Free cash flow for Q2 2024 was $125.2M, a significant improvement from an outflow of $22.0M in Q2 2023.

• Cash and cash equivalents stood at $226.4M as of June 30, 2024; total debt, net of cash, was ($166.4M).

Outlook and guidance

• Full-year 2024 revenue guidance raised to $3.70–$3.79B (prior: $3.65–$3.79B).

• Full-year 2024 EPS guidance increased to $8.10–$8.68 (prior: $7.75–$8.50).

• Effective tax rate for the year expected between 20% and 22%.

• Management expects capital expenditures of $25M–$30M for the remainder of 2024.

• Forecasts assume Q2 restructuring activity levels persist and M&A-related work remains strong but not at Q2's record pace.