Huron Consulting Group (HURN) Investor Day 2025 summary

Strategic and financial aspirations

• Targets low double-digit revenue growth, primarily organic, with 2%-4% annual growth from programmatic M&A over the next five years.

• Aims to expand adjusted EBITDA margins to 15%-17%, with 50-75 basis points of improvement annually.

• Plans to double adjusted EPS by 2029 from the 2024 base, driven by revenue growth, margin expansion, and capital deployment.

• Expects to convert 75% of adjusted EBITDA to free cash flow, generating over $1.5 billion in deployable capital over five years.

• Capital allocation will be balanced between tuck-in M&A and share repurchases, maintaining leverage below 2.5x EBITDA.

Business segment performance and growth drivers

• Healthcare and education segments have seen 21% compound annual growth from 2022-2024, with commercial growing at 5% CAGR.

• Digital capabilities grew 21% CAGR, now comprising about 42% of total revenue, with strong industry recognition and partnerships.

• Healthcare segment nearly doubled revenue in four years, with high client retention and NPS scores, and expanded offerings in managed services and strategy.

• Education segment achieved 25% revenue growth over four years, with over 90% revenue from repeat clients and expansion into philanthropy and new geographies.

• Commercial segment, now 17% of revenue, is positioned for accelerated growth through integrated solutions and recent acquisitions like AXIA.

Operational model and culture

• Integrated operating model and collaborative culture have driven higher growth rates, with over 50% of projects now involving cross-team collaboration.

• Incentive programs align with shareholder interests, tying bonuses to organic growth, operating income, and EBITDA margin targets.

• Stock-based compensation with multi-year vesting fosters leadership retention and alignment.

• Employee engagement is high, with voluntary attrition below 10% and a strong pipeline of managing directors and principals to support growth.