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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 faced negative drivers, including a 9.4% reduction in holdings by Federated Hermes Inc., which sold 10,970 shares during the quarter. However, the company's Q4 2025 earnings report revealed a beat on both top and bottom lines, with EPS of $1.78 per share, surpassing the Zacks Consensus Estimate of $1.39 per share. Additionally, the company's 2026 EPS estimate rose 2.2%, and it ramped up buybacks, which could fuel growth and balance sheet strength. Institutional investors, such as CWA Asset Management Group LLC, also increased their stakes.

1.c. Company Highlights

2. FTI Consulting's Q4 and Full-Year 2025 Earnings: A Record Year Amidst Headwinds

FTI Consulting reported a record year with $3.79 billion in revenue, a 2.4% increase from 2024. The company's adjusted EBITDA reached $463.6 million, and GAAP EPS was $8.24, while adjusted EPS was $8.83. In Q4, revenues increased 10.7% to $990.7 million, with every business except FLC delivering sequential growth. The company's GAAP EPS for Q4 was $1.78, beating estimates of $1.39, and adjusted EPS was also $1.78, a 14.1% increase from the previous year.

Publication Date: Mar -01

📋 Highlights
  • Record 2025 Financials:: Achieved $3.79 billion revenue (+2.4% YoY) and $463.6 million adjusted EBITDA, with GAAP/adjusted EPS of $8.24/$8.83.
  • Q4 Revenue Growth:: Q4 revenue rose 10.7% to $990.7 million, driven by 26.1% growth in CorpFin to $423.2 million and 14.8% rise in Stratcom to $99.4 million.
  • Segment Performance:: CorpFin (+26.1% Q4), FLC (+9.7% to $192.9 million), and Stratcom (+14.8%) outperformed, offsetting -14.5% decline in Economic Consulting.
  • 2026 Guidance:: Targets $3.94–$4.1 billion revenue and GAAP EPS of $8.90–$9.50, with $45 million higher SG&A and 22–24% tax rate, emphasizing AI-driven growth.
  • Headwinds & Strategy:: Navigated Compass Lexecon disruption (-$135M EBITDA impact) and regulatory shifts, prioritizing talent investment (senior/junior hires) for long-term growth.

Segment Performance

The CorpFin segment delivered record revenues of $423.2 million, with a 26.1% increase in Q4 compared to the prior year quarter. FLC revenues increased 9.7% to $192.9 million, driven by higher realized bill rates for risk and investigation services. In contrast, Economic Consulting revenues decreased 14.5% to $176.2 million, primarily due to lower demand for non-M&A and M&A-related antitrust services. Technology revenues increased 9.3% to $99 million, driven by higher demand for litigation and M&A-related second request services.

Outlook and Guidance

FTI Consulting's guidance for 2026 estimates revenue will range between $3.94 billion and $4.1 billion, representing a 7.1% growth at the midpoint, and GAAP EPS will range between $8.90 and $9.50. The company expects to continue investing in talent, with a focus on senior professionals, and anticipates SG&A expenses to be approximately $45 million higher in 2026.

Valuation and Growth Prospects

With a P/E Ratio of 19.11 and an EV/EBITDA of 11.97, the market appears to be pricing in moderate growth expectations. The company's ROE of 14.38% and ROIC of 11.29% indicate a strong ability to generate returns on equity and invested capital. As FTI Consulting navigates the challenges of AI-driven disruption, its focus on talent investment and organic growth is expected to drive future success. According to Steve Gunby, "I attribute the stabilization quarter-over-quarter in Economic Consulting to a mix of market environment and improved productivity from recent hires." This suggests that the company's efforts to adapt to changing market conditions are yielding positive results.

3. NewsRoom

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FTI Consulting Elects Angela Nam as Chief Financial Officer

Mar -09

Source: globenewswire.com

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FTI Consulting Stock Barely Moves Despite Q4 Earnings and Revenue Beat

Mar -04

Source: zacks.com

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FTI Consulting Bolsters Mining Sector Expertise in Australia with Addition of Carrie Grimes

Mar -02

Source: globenewswire.com

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Reasons Why You Should Add FTI Consulting Stock to Your Portfolio

Mar -02

Source: zacks.com

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Compared to Estimates, FTI Consulting (FCN) Q4 Earnings: A Look at Key Metrics

Feb -26

Source: zacks.com

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FTI Consulting (FCN) Surpasses Q4 Earnings and Revenue Estimates

Feb -26

Source: zacks.com

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FTI Consulting, Inc. (FCN) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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FTI Consulting Reports Fourth Quarter and Full Year 2025 Financial Results

Feb -26

Source: globenewswire.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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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

167.57$

Current Price

167.57$

Potential

-0.00%

Expected Cash-Flows