Exponent(EXPO) - 2025 Q4 - Annual Report

Financial Performance - Revenues for 2024 increased by 4.1% to $558,514,000 compared to$ 536,766,000 in 2023[167] - Net income rose by 9% to $109,002,000 in 2024, up from$ 100,339,000 in 2023, with diluted earnings per share increasing to $2.11 from$ 1.94[162] - Total operating income increased to $119,557,000 in 2024, up 7.4% from$ 111,322,000 in 2023[176] - Other income increased by 13.2% to $27,813,000, primarily due to a$ 2,851,000 rise in interest income from cash and cash equivalents[178] - EBITDA for 2024 was $147,058,000, representing 28.4% of revenues before reimbursements, up from 27.7% in 2023[191] - Effective tax rate decreased to 26.0% in 2024 from 26.2% in 2023, with an adjusted rate of 27.9% excluding excess tax benefits[179] Segment Performance - Engineering and Other Scientific segment revenues increased by 5.1% to$ 469,544,000, accounting for 84.1% of total revenues[167] - Environmental and Health segment revenues decreased by 1.0% to $88,970,000, representing 15.9% of total revenues[167] - Engineering and Other Scientific segment operating income rose by 7.1% to$ 164,883,000, driven by increased billing rates and billable hours[176] Expenses - Compensation and related expenses increased by 3.2% to $330,011,000, constituting 59.1% of total revenues[170] - Other operating expenses rose by 11.2% to$ 46,196,000, making up 8.3% of total revenues[172] - General and administrative expenses decreased by 7.0% to $22,726,000, representing 4.1% of total revenues[174] Utilization and Operations - Utilization rate improved to 73% in 2024 from 69% in 2023, driven by better alignment of resources with demand[166] - Billable hours remained constant at 1,495,000 for both 2024 and 2023, with a slight increase in utilization[166] - Utilization rate improved to 73% in 2024, up from 69% in 2023, reflecting increased demand for services[192] Cash Flow and Investments - Net cash provided by operating activities was$ 144,537,000 in 2024, compared to $127,352,000 in 2023[181] - Cash and cash equivalents increased to$ 258,901,000 as of January 3, 2025, from $187,150,000 at December 29, 2023[181] - The company plans to continue investing in capital expenditures and may use cash reserves for stock repurchases and strategic acquisitions[186] Strategic Focus - The company continues to focus on expanding client relationships and enhancing its capabilities in response to increasing demand for multidisciplinary services[161] Foreign Currency Exposure - The company has net assets of approximately$ 24.2 million in British Pounds, indicating exposure to foreign currency risk[196]