FTI Consulting (FCN) Q4 2024 earnings summary

Executive summary

• 2024 delivered record revenues of $3.7 billion, up 6% year-over-year, and net income of $280.1 million, with a tenth consecutive year of adjusted EPS growth, though the second half underperformed expectations.

• Q4 2024 revenues declined 3.2% year-over-year to $894.9 million, with net income down 39.1% to $49.7 million and adjusted EPS of $1.56, impacted by special charges.

• Free cash flow for 2024 more than doubled to $360.2 million, and cash and equivalents at year-end ranged from $660.5 million to $1.02 billion, with no debt outstanding.

• Management remains confident in the multi-year growth trajectory despite headwinds, including senior departures in Economic Consulting and a return to a higher tax rate.

• North America led regional growth, up 8%, while Latin America declined 11.5%.

Financial highlights

• 2024 revenues reached $3.7 billion, up from $3.49 billion in 2023; net income was $280.1 million, up from $274.9 million.

• Adjusted EPS for 2024 was $7.99, up from $7.71; GAAP EPS was $7.81.

• Adjusted EBITDA for 2024 was $403.7 million (10.9% margin), down from $424.8 million (12.2% margin) in 2023.

• Q4 2024 Adjusted EBITDA was $73.7 million (8.2% margin), down from $127.4 million (13.8% margin) in Q4 2023.

• Net cash from operating activities for 2024 was $395.1 million, up from $224.5 million in 2023.

Outlook and guidance

• 2025 revenue guidance is $3.66–$3.81 billion; GAAP EPS guidance is $7.44–$8.24, and adjusted EPS is $7.80–$8.60, reflecting special charges and a higher tax rate.

• Midpoint of guidance implies 1% revenue growth and 2.6% adjusted EPS growth year-over-year.

• Cost savings from workforce reductions in late 2024 and early 2025 expected to total $70 million in 2025.

• Guidance reflects steady demand in Restructuring, growth in Disputes and Investigations, but a substantial decline in Economic Consulting due to senior departures.

• Effective tax rate expected to rise to 23–25% in 2025.