ASGN Incorporated

Greetings and welcome to the ASGN Incorporated fourth quarter and full year 2025 earnings call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Kimberly Estikin of Invested Relations. Thank you. You may begin.

Good afternoon. Thank you for joining us today for ASGN's soon to be Everforth's fourth quarter and full year 2025 conference call. With me are Ted Hanson, Chief Executive Officer, Shiv Iyer, President, and Marie Perry, Chief Financial Officer. Before we get started, I would like to remind everyone that our commentary contains forward-looking statements. Although we believe these statements are reasonable, They are subject to risks and uncertainties, and as such, our actual results could differ materially from those statements. Certain of these risks and uncertainties are described in today's press release and in our SEC filings. We do not assume any obligation to update statements made on this call. For your convenience, our prepared remarks and supplemental materials can be found in the investor relations section of our website at investors.asgn.com. Please also note that on this call, we will be referencing certain non-GAAP measures, such as adjusted EBITDA, adjusted net income, and free cash flow. These non-GAAP measures are intended to supplement the comparable GAAP measures. Reconciliations between GAAP and non-GAAP measures are included in today's press release. I will now turn the call over to Ted Hansen, Chief Executive Officer.

Thank you, Kim, and thank you for joining our fourth quarter and full year 2025 earnings call. As we begin 2026, I want to thank everyone who joined us for our investor day this past November. And if you've not had a chance to view the presentation, a replay of the webcast is available on our website. Our investor day provided a valuable platform to showcase our next wave growth strategy and the significant progress we made in our transition toward higher value, higher margin technology and digital engineering solutions. At this event, we also had the opportunity to introduce several of our solutions leaders who presentations brought to life our advanced capabilities in AI, cybersecurity, and enterprise platforms. AI is now a dominant driver of demand, with nearly 80% of enterprises planning to increase their AI spending in 2026. These investments are driving growth in solution capabilities vital to the successful deployment of AI enterprise-wide. Shiv Iyer, our president, will speak more on that shortly. Turning to our fourth quarter 2025 results, which we previewed with you in our recent Quinox announcements. ASGN delivered solid results for the quarter. Revenues of $980.1 million were at the top end of our guidance range, with IT consulting revenues comprising 63% of the total, up from 59% in the prior year. Adjusted EBITDA margin was 11%, exceeding our expectations. Commercial consulting bookings hit a record $444.4 million. translating to a book-to-bill of 1.3 times for the quarter and 1.2 times on a trailing 12-month basis. Volume of new consulting work continues to grow as our customers increasingly recognize the importance of preparing data, building infrastructure, and deploying enterprise platforms to harness the full potential of AIs. In our federal segment, new contract awards totaled $144.2 million, or it booked a bill of 0.9 times on a trailing 12-month basis. Federal contract backlog was approximately $3 billion at quarter end, or a coverage ratio of 2.5 times the segment's trailing 12-month revenues. In addition to traditional holiday-related seasonality, the lengthy government shutdown delayed new award activity in the fourth quarter. Nonetheless, we are seeing solid put-up demand in Q1, and increased defense, intelligence, and national security budgets position our federal business strongly for the future. As we discussed at our investor day, our clients are increasingly seeking us out as one of their strategic technology partners. To meet this demand, we've been proactively transforming our business. advancing our solution capabilities, developing proprietary assets and accelerators, and partnering with leading technology companies to better serve our clients' IT needs. Continuing this transformation momentum in the first half of 2026, we will be adopting a new customer and investor-facing brand, Everforth, unifying our commercial and federal brands under a single, dynamic identity. Our transition to Everforth a name rooted in forth progress, is designed to unlock our scale as an enterprise and increase cross-selling by bringing the breadth of our solutions to our enterprise clients, all while supporting continued revenue growth and margin expansion. While organic revenue growth remains a primary focus, we will also pursue strategic acquisitions that enhance our solutions capabilities and technology partnerships. I'm pleased to report just two weeks ago we announced our intent to acquire Quinox, an agile, results-driven digital solutions provider. As an acquirer of choice, we employ a proven, repeatable acquisition strategy, our M&A playbook, which is guided by well-defined strategic filters and rigorous financial criteria. The acquisition of Quinox followed this disciplined approach. From a strategic standpoint, joining forces with Quinox represents a key step forward in our long-term strategy to enhance our digital engineering and global delivery capabilities. Like ASGN, Quinox is exceptionally client-centric, maintaining customer relationships for well over a decade. We're excited to leverage their established client connections to broaden our market presence, and as we did with GlideFast and TopLock, pull Quinox's capabilities across our gold nugget commercial client base. From a financial perspective, Quinox is an accretive transaction that strengthens our market position without compromising the strength of our balance sheet or our financial flexibility. Our disciplined approach to capital allocation enables us to make strategic acquisitions like Quinox while still investing organically and buying back our shares In the fourth quarter, we generated $93.7 million in pre-cash flow and bought back $64.2 million in shares. We continued to repurchase shares in the first quarter, and with a newly approved $1 billion share repurchase program, we are well-positioned to provide sustainable shareholder returns. To build upon our discussion, let me now turn the call over to our President, Shiv Iyer, to speak about Quinox's digital engineering capabilities and global delivery strength.