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1. Company Snapshot

1.a. Company Description

FTI Consulting, Inc.provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide.The company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications.


Its Corporate Finance & Restructuring segment provides business transformation, transactions, and turnaround and restructuring services.The company's Forensic and Litigation Consulting segment offers.construction and environmental solution, data and analytics, dispute, health solution, and risk and investigation services.


Its Economic Consulting segment provides.antitrust and competition economic, financial economic, and international arbitration services.The company's Technology segment offers corporate legal operation; e-discovery and expertise; and information governance, privacy, and security services.


Its Strategic Communications segment provides corporate reputation, financial communication, and public affairs services.The company serves aerospace and defense, agriculture, airlines and aviation, automotive and industrial, construction, energy, power and products, environmental solutions, financial services, healthcare and life sciences, hospitality, gaming and leisure, insurance, mining, private equity, public sector, real estate, retail and consumer products, telecom, media and technology, and transportation and logistics industries.The company was founded in 1982 and is headquartered in Washington, District of Columbia.

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1.b. Last Insights on FCN

FTI Consulting's recent performance was positively driven by its Q3 2025 earnings beat, with quarterly earnings of $2.6 per share exceeding the Zacks Consensus Estimate of $1.93 per share. The company's stronger margins and segment gains also contributed to the positive momentum. Additionally, FTI Consulting's strategic investments in its Financial Services sector, including the addition of 15 new Senior Managing Directors and Managing Directors, have bolstered its global platform. The company's threat intelligence capabilities were also enhanced with the appointment of Keith Wojcieszek.

1.c. Company Highlights

2. FTI Consulting's Record Q3 2025 Earnings: A Closer Look

FTI Consulting reported record results for the third quarter of 2025, with revenue reaching $956.2 million, up 3.3% from the prior year quarter. Earnings per share (EPS) was $2.60, significantly exceeding analyst estimates of $1.93 and representing a 41% increase from the prior year quarter. The company's adjusted EPS growth is expected to continue, with guidance suggesting the 11th year in a row of adjusted EPS growth. The strong EPS performance was driven by double-digit revenue growth in Corp Fin, FLC, and Strat Com, which offset declines in E Con and Tech.

Publication Date: Oct -25

📋 Highlights
  • Record EPS Growth:: EPS and adjusted EPS reached $2.60 per share, up 41% year-over-year.
  • Corp Fin Revenue Surge:: Revenue hit $404.9M, surging 18.6% YoY driven by restructuring and transaction services.
  • FLC EBITDA Expansion:: Adjusted segment EBITDA grew 60% YoY, with year-to-date revenues up double-digit.
  • Strat Com Double-Digit Gains:: Revenue rose 7.4% to $89.4M, and segment EBITDA climbed 34% YoY.
  • Mega Share Repurchases:: $234.1M spent repurchasing 1.426M shares, reducing outstanding shares by 11.3% YoY.

Segment Performance

The company's segments showed varied performance, with Corp Fin revenue increasing by 18.6% to $404.9 million, driven by higher demand for restructuring and transaction services. FLC revenue grew by 15.4% to $194.7 million, driven by higher realized bill rates and demand for risk and investigation services. In contrast, E Con revenue declined by 22% to $173.1 million, due to lower demand for antitrust services, while Tech revenue decreased by 14.8% to $94.1 million, due to lower demand for M&A-related second request services. Strat Com revenue increased by 7.4% to $89.4 million, driven by higher demand for corporate reputation services.

Investments and Growth Initiatives

FTI Consulting is making investments in its businesses to drive growth, with a focus on talent acquisition and geographical expansion, particularly in AI. The company has retained its staff and announced 28 new senior hires in Compass Lexecon, a record for the firm. These investments are expected to pay off in the medium term, with the company confident in its ability to deliver adjusted EPS growth. As Steve Gunby noted, "We're discussing how to support our teams and get them back on a growth trajectory."

Valuation and Outlook

With a P/E Ratio of 18.7 and an EV/EBITDA of 13.97, the market is pricing in a certain level of growth for FTI Consulting. Analysts estimate revenue growth of 6.7% for next year. The company's strong balance sheet, with cash and cash equivalents of $146 million and total debt, net of cash, of $364 million, provides flexibility for organic growth, acquisitions, and share repurchases. The Board of Directors has authorized an additional $500 million for share repurchases, demonstrating confidence in the company's future prospects.

Conclusion on Financial Health

The company's financial health is robust, with a Return on Equity (ROE) of 13.21% and a Return on Invested Capital (ROIC) of 10.05%. The Net Debt / EBITDA ratio of 1.45 indicates a manageable debt burden. With a strong track record of EPS growth and a solid balance sheet, FTI Consulting is well-positioned for future success.

3. NewsRoom

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FTI Consulting Appoints Jason Leow to Strategic Communications Segment in Singapore

Dec -04

Source: globenewswire.com

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FTI Consulting Continues Private Equity and Financial Services Investment With Addition of Four Senior Hires

Dec -03

Source: globenewswire.com

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FTI Consulting, Inc. $FCN Stock Position Cut by Black Creek Investment Management Inc.

Nov -18

Source: defenseworld.net

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Atlantic Union Bankshares Corp Makes New $73,000 Investment in FTI Consulting, Inc. $FCN

Nov -11

Source: defenseworld.net

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FTI Consulting Continues Investment in EMEA Tax Capabilities with Addition of Two Senior Hires

Nov -10

Source: globenewswire.com

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Unlock Big Gains With These 5 Undervalued Price-to-Sales Stock Picks

Nov -04

Source: zacks.com

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State of New Jersey Common Pension Fund D Sells 1,574 Shares of FTI Consulting, Inc. $FCN

Nov -02

Source: defenseworld.net

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FTI Consulting Stock Moves Up 2.7% Since Q3 Earnings Beat

Oct -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.78%)

6. Segments

Corporate Finance & Restructuring

Expected Growth: 4.5%

Strong demand for restructuring services, driven by increasing debt levels and distressed asset sales, coupled with growing need for corporate finance advisory services, particularly in M&A and capital raising, contribute to 4.5% growth in Corporate Finance & Restructuring segment.

Economic Consulting

Expected Growth: 4.8%

FTI Consulting's Economic Consulting segment growth of 4.8% is driven by increasing demand for expert testimony and advisory services in high-stakes litigation and regulatory proceedings. Strong growth in cross-border transactions, antitrust cases, and intellectual property disputes also contribute to this growth. Additionally, the segment benefits from the company's investments in digital transformation and expansion into new markets.

Forensic and Litigation Consulting

Expected Growth: 5.2%

FTI Consulting's Forensic and Litigation Consulting segment growth of 5.2% is driven by increasing demand for dispute advisory services, growth in cross-border investigations, and rising adoption of digital forensics and e-discovery solutions. Additionally, the segment benefits from the company's expertise in areas like anti-money laundering, fraud investigations, and regulatory compliance, which are in high demand from corporations and governments.

Technology

Expected Growth: 5.5%

FTI Consulting's Technology segment growth of 5.5% is driven by increasing demand for digital transformation, cybersecurity, and data analytics services. Growing adoption of cloud computing, artificial intelligence, and the Internet of Things (IoT) also contribute to this growth. Furthermore, the need for companies to stay competitive and innovative in a rapidly changing technology landscape fuels demand for FTI's technology consulting services.

Strategic Communications

Expected Growth: 4.2%

Strategic Communications' 4.2% growth is driven by increasing demand for crisis communications, reputation management, and public affairs services. FTI Consulting's expertise in navigating complex regulatory environments and providing strategic counsel to clients facing reputational challenges is a key differentiator. Additionally, the segment benefits from cross-selling opportunities with other FTI Consulting services, such as forensic and litigation consulting.

7. Detailed Products

Corporate Finance & Restructuring

Provides strategic and financial advisory services to companies, creditors, and investors in distressed or underperforming situations.

Economic Consulting

Provides expert analysis and testimony in high-stakes litigation and regulatory proceedings, as well as strategic advisory services to companies and governments.

Forensic and Litigation Consulting

Provides investigative, analytical, and testimonial services to companies, governments, and law firms in response to allegations of fraud, corruption, or other wrongdoing.

Strategic Communications

Provides strategic communications advisory services to companies, governments, and organizations facing complex reputational, crisis, or stakeholder engagement challenges.

Technology

Provides e-discovery, digital forensics, and information governance services to companies, governments, and law firms.

8. FTI Consulting, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

FTI Consulting, Inc. operates in a highly specialized industry, and the threat of substitutes is moderate. While there are some substitutes available, they are not as effective or efficient as FTI Consulting's services.

Bargaining Power Of Customers

FTI Consulting, Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's services are highly specialized, and customers rely on FTI Consulting's expertise.

Bargaining Power Of Suppliers

FTI Consulting, Inc. is not heavily dependent on suppliers, and the company has a diverse supply chain. The bargaining power of suppliers is low, and FTI Consulting has the ability to negotiate favorable terms.

Threat Of New Entrants

The consulting industry has high barriers to entry, and new entrants would need significant resources and expertise to compete with FTI Consulting, Inc. The threat of new entrants is low.

Intensity Of Rivalry

The consulting industry is highly competitive, and FTI Consulting, Inc. faces intense rivalry from established players. The company must continually innovate and differentiate its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.51%
Debt Cost 4.44%
Equity Weight 88.49%
Equity Cost 4.44%
WACC 4.44%
Leverage 13.00%

11. Quality Control: FTI Consulting, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.2/10

Value: 3.4

Growth: 6.6

Quality: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

170.79$

Current Price

170.79$

Potential

-0.00%

Expected Cash-Flows