Korn Ferry said it expects second-quarter fiscal 2027 fee revenue of $860 million to $878 million, with adjusted EBITDA margin of 16.8% to 17.2% and adjusted diluted earnings per share of $1.30 to $1.40, guidance that includes the acquisition of AMS for only two months, September and October. The outlook follows a first quarter in which fee revenue grew 7% year over year to $756 million, adjusted EBITDA rose $8 million, or 7%, to $128 million, and adjusted diluted earnings per share came in at $1.43. Chief Executive Gary Burnison said the quarter marked the sixth consecutive quarter of top-line growth and that completing the combination with AMS creates a global leader in talent and organizational consulting, with the combined firm now carrying a backlog of $3.5 billion. Chief Financial Officer Robert Rozek said estimated remaining fees under existing contracts grew 14% year over year to $1.92 billion, of which about 56%, or $1.1 billion, is expected to be recognized over the next four quarters and the remaining 44%, or $835 million, beyond that. Regionally, Americas fee revenue rose 9% to $442 million, EMEA grew 4% to $228 million, and APAC returned to growth at $87 million, up 1%. Management said it would lean toward using investable cash to reduce debt tied to the AMS acquisition, while keeping buybacks in view, and targets a $140 million AMS run-rate EBITDA level within a year of close, with integration onto a common platform set for May 1, 2027.
Korn FerryKorn Ferry guided Q2 FY2027 fee revenue of $860M-$878M with adjusted EBITDA margin 16.8%-17.2% and EPS $1.30-$1.40, following 7% Q1 fee revenue growth and $1.43 adjusted EPS.
AMS Public Transport Holdings Ltd