FTI Consulting Raises Full-Year Forecast on Strong Corporate Finance and Forensic Performance
FTI Consulting reported record third-quarter results and increased its 2025 guidance as robust performance in Corporate Finance & Restructuring and Forensic & Litigation Consulting offset weakness in other business units, signaling the firm's strategic investments are yielding returns despite economic headwinds.
FTI Consulting posted record third-quarter results and raised its full-year guidance, demonstrating resilience as strength in Corporate Finance & Restructuring and Forensic & Litigation Consulting offset continued weakness in Economic Consulting and Technology segments. The performance underscores how corporate restructuring demand and litigation support services are driving growth despite broader economic uncertainty.
For the quarter ended September 30, revenue increased 3.3% to $956.2 million, while earnings per share surged 41% to $2.60, bolstered by favorable one-time items. Adjusted EBITDA climbed to $130.6 million, representing 13.7% of revenue compared to 11.1% a year earlier, indicating improved operational efficiency across the consulting firm's diversified portfolio.
Corporate Finance & Restructuring led the quarter's performance with revenue jumping 18.6% to $404.9 million, driven by increased restructuring activity and deal advisory work. The segment's EBITDA margin expanded significantly to 23.8%, reflecting strong demand for financial restructuring services amid evolving market conditions. Forensic & Litigation Consulting also delivered impressive results, with revenue rising 15.4% to $194.7 million as stronger pricing in risk investigations and data analytics pushed margins to 21.9%.
Strategic Communications grew 7.4% to $89.4 million, benefiting from increased demand for crisis management, organizational transformation, and cybersecurity counsel services. However, Economic Consulting, dominated by the Compass Lexecon practice, declined 22% to $173.1 million and posted a $4.6 million adjusted EBITDA loss amid softer antitrust work and elevated retention and hiring costs. Management indicated that while costs have stabilized, a revenue recovery will require multiple quarters as new hires ramp up their productivity.
Technology segment revenue fell 14.8% to $94.1 million due to fewer second-request regulatory matters, though activity showed sequential improvement. Chief Executive Steve Gunby characterized the quarter's results as validation of years of organic investment and strategic talent acquisitions across geographic markets and service adjacencies. The company reaffirmed its commitment to continued spending on artificial intelligence capabilities and senior recruiting despite near-term pressure in underperforming segments.
FTI now expects 2025 revenue of $3.685 billion to $3.735 billion, with EPS projected between $7.62 and $8.12 and adjusted EPS ranging from $8.20 to $8.70, assuming a 22-24% tax rate. The firm demonstrated confidence in its financial position by repurchasing 1.426 million shares during the quarter at an average price of $164.18 and an additional 469,610 shares post-quarter at $160.23. The board further strengthened this commitment by adding $500 million to the existing share buyback authorization.
The company maintained $146 million in cash with net debt of $364 million, providing financial flexibility amid market volatility. Management acknowledged typical fourth-quarter seasonality patterns but projected that 2025 would mark the eleventh consecutive year of adjusted EPS growth barring unforeseen market disruptions, signaling sustained confidence in the firm's strategic direction and operational execution.