FTI Consulting delivered steady second-quarter results, buoyed by record performances in restructuring and communications, even as its technology and economic consulting units faltered. The firm’s aggressive buyback program and an upcoming CFO transition are drawing investor attention.
The Washington, D.C.–based advisory firm reported revenue of $944 million, little changed from a year earlier but ahead of Wall Street estimates. Earnings per share fell to $2.13 from $2.34 a year ago, though the figure still topped expectations. Adjusted EBITDA margin held just under 12%.
Corporate Finance & Restructuring led the quarter, with revenue rising 9% to a record $379 million. Strategic Communications surprised with a 21% jump to $103 million, fueled by corporate reputation and crisis work. Forensic and Litigation Consulting posted 10% growth to $187 million.
The weaker spots were Economic Consulting, where revenue dropped 17% and margins narrowed to 7%, and Technology, which fell 28% amid fewer regulatory-driven discovery assignments. Management noted that investments in senior hires and partnerships, while weighing on margins now, are designed to support long-term growth.
FTI repurchased $355 million of stock in the second quarter and $540 million year-to-date, tapping debt to finance the program. Total debt rose to about $470 million, up from $160 million in the prior quarter. Even so, leverage remains modest at about 1.2 times gross debt to EBITDA.
CFO Ajay Sabherwal emphasized that leverage is “an outcome, not a target,” underscoring management’s opportunistic approach to capital deployment. Sabherwal, CFO since 2016, is set to depart in September for a role outside consulting. Paul Linton, currently Chief Strategy and Transformation Officer, will serve as interim CFO. Analysts say continuity should be manageable, though Sabherwal’s track record in capital discipline makes the transition notable.
FTI shares trade around $163, roughly 22 times forward earnings and 14 times EBITDA, nearly unchanged since July. That suggests investors value the company’s stability and cash generation, but aren’t yet pricing in a rebound from its weaker segments.
Chief Executive Steven Gunby has described 2025 as a “tough year.” With some businesses thriving and others struggling, the balance reflects the firm’s strategy of investing through cycles.
