Thu, May 1, 10:13 AM (22 days ago)
**ASGN Incorporated (ASGN, NYSE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $968.3 million, down 7.7% YoY due to macroeconomic factors and government cost-cutting. - **Gross Profit:** $275.4 million, down 7.0% YoY, with a gross margin of 28.4%, up 0.2% YoY. - **Net Income:** $20.9 million, down from $38.1 million in Q1 2024. - **EPS:** $0.48 basic and diluted, down from $0.82 and $0.81, respectively. - **Cash Flow from Operations:** $16.8 million, down from $73.3 million in Q1 2024. - **Cash and Cash Equivalents:** $107.0 million, down from $205.2 million at the end of 2024. **Segment Performance:** - **Commercial Segment:** Revenues down 8.1% YoY, gross profit down 6.9% YoY. - **Federal Government Segment:** Revenues down 6.7% YoY, gross profit down 7.5% YoY. **Trends and Uncertainties:** - **Acquisition:** ASGN acquired TopBloc for $340.0 million, impacting cash flow and future operations. - **Stock Repurchase:** ASGN repurchased $50.4 million of its common stock in Q1 2025. - **Debt:** Long-term debt increased to $1,282.6 million, with a revolving credit facility of $250.0 million available. - **Legal Proceedings:** ASGN is involved in various legal proceedings, but none are expected to materially impact financials. **Future Operations Impact:** - **Growth Initiatives:** ASGN continues to focus on strategic acquisitions and stock repurchases. - **Cost Management:** ASGN is managing costs through SG&A expense control and debt management. - **Market Risks:** ASGN is exposed to interest rate risks and macroeconomic factors, but has measures in place to mitigate these risks. **Conclusion:** ASGN's Q1 2025 results reflect a challenging macroeconomic environment and government cost-cutting. However, the company is focusing on strategic acquisitions, stock repurchases, and cost management to drive future growth. The acquisition of TopBloc and the increase in long-term debt are expected to impact future operations and financial performance.