FTI Consulting Posts Record Quarter, Raises 2025 Outlook

FTI Consulting has delivered a record-breaking third quarter performance, posting impressive financial results that prompted the company to raise its full-year guidance. The global consulting firm saw revenue increase 3.3% to $956.2 million, with earnings per share surging 41% to $2.60, bolstered by favorable one-time items. Adjusted EBITDA climbed significantly to $130.6 million, representing 13.7% of revenue compared to 11.1% a year earlier. The standout performers were the Corporate Finance & Restructuring and Forensic & Litigation Consulting segments, which demonstrated remarkable strength and effectively compensated for ongoing challenges in the Economic Consulting and Technology divisions.

The Corporate Finance unit led the charge with an 18.6% revenue increase to $404.9 million, driven by robust activity in restructuring services and deal advisory work, while its EBITDA margin expanded to an impressive 23.8%. Forensic & Litigation Consulting followed with a 15.4% revenue gain to $194.7 million, benefiting from stronger pricing in risk investigations and data analytics that pushed margins to 21.9%. Strategic Communications also showed solid growth of 7.4% to $89.4 million, reflecting increased demand for crisis management, transformation consulting, and cybersecurity counsel. However, the Economic Consulting segment, dominated by Compass Lexecon, experienced a 22% revenue decline to $173.1 million and posted a $4.6 million adjusted EBITDA loss due to softer antitrust work and elevated retention and hiring costs.

Looking ahead, FTI Consulting now projects 2025 revenue between $3.685 billion and $3.735 billion, with EPS expected to range from $7.62 to $8.12 and adjusted EPS between $8.20 and $8.70, assuming a 22%-24% tax rate. The company demonstrated confidence in its financial position by repurchasing 1.426 million shares during the quarter at an average price of $164.18, followed by an additional 469,610 shares post-quarter at $160.23. The board further strengthened this commitment by adding $500 million to the buyback authorization. CEO Steve Gunby characterized the quarter's success as the payoff from years of strategic organic investment and talent acquisition across geographies and adjacent service areas, while reaffirming the company's continued investment in AI capabilities and senior recruiting despite near-term pressures in weaker segments.