Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the economic consulting outlook, particularly regarding the potential impact of senior departures on the 2025 outlook and beyond? A: Steven Gunby, President and CEO, explained that while it's early days, the potential impact could be substantial, similar to a $35 million decline in adjusted EBITDA experienced in 2014. The exact magnitude is uncertain, but the company has factored a similar scale into their 2025 guidance. The impact could extend into early 2026, depending on the timing of departures and project completions.
Q: How are you approaching headcount growth in 2025 given the recent senior-level hiring and headcount reductions? A: Steven Gunby noted that despite the headwinds, FTI Consulting remains focused on growth. The company anticipates hiring more senior people than it will lose, with headcount growth expected, particularly in the second half of the year. Ajay Sabherwal, CFO, added that they expect reasonable headcount growth despite recent reductions.
Q: Could you discuss the M&A trends and any expectations for a pickup in activity? A: Steven Gunby mentioned that while there were some headwinds in the fourth quarter due to projects winding down, there is optimism for a pickup in M&A activity as the year progresses. The company is seeing some early signs of improvement, although there is uncertainty due to potential government policies.
Q: Within the competition practice, is there any particular industry vertical being more impacted? How do you pitch FTI's network effect to potential recruits? A: Steven Gunby stated that the impact is not specific to any industry but rather related to personal connections with departing individuals. FTI's strength lies in its rigorous academic approach and the quality of its people, which continues to attract top talent. The company has recently signed up several academic affiliates, reinforcing its reputation.
Q: What are the key themes that underscore the attractiveness of FTI Consulting? A: Ajay Sabherwal highlighted several themes: a deep bench of experts helping clients navigate global volatility, successful talent attraction in key areas and geographies, a management team focused on growth and utilization, and a strong balance sheet that allows for flexibility in boosting shareholder value through organic growth, share buybacks, and acquisitions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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