Resilience of Diversified Business Model
Despite a 5% to 6% headwind in technical full-time equivalent employees, Exponent achieved approximately flat revenues due to strong activity from key industries, particularly in reactive services like failure analysis.
Sequential Headcount Growth
Exponent reported a 2% sequential headcount growth, attributed to lower turnover than expected and mid-70s utilization.
Strong Performance in Reactive Services
Reactive services, which constitute 60% of the business, showed growth in low single digits, driven by demand in disputes and failure analysis across chemicals, transportation, and utilities industries.
Maintained Revenue and Margin Guidance
Despite macroeconomic uncertainties, Exponent maintained its revenue and margin guidance for fiscal 2025, expecting revenue growth in low single digits.