Heidrick & Struggles Q2 2025: Executive Search Fuels Strong Growth and Integration

Heidrick & Struggles International, Inc. discusses "Search" primarily in the context of its Executive Search business segment, highlighting its financial performance, strategic importance, and integration with other service lines. The mentions reveal a strong focus on growth, profitability, and the role of Search within the broader portfolio of leadership advisory services.

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Key Themes and Analysis of "Search" in the Transcript

1. Executive Search as a Core Business Driver

The company identifies Executive Search as a major revenue and profit contributor, emphasizing strong growth and productivity improvements:

"In Executive Search, revenue grew 13% to $238 million. Looking at our regional performance compared to the prior year quarter, we saw revenue increase of 9% in the Americas, 31% in Europe, and 12% in APAC... Consultant productivity annualized in the second quarter at $2.3 million, up from $2 million on the same basis in the year ago quarter... Executive Search continues to produce strong profitability with adjusted EBITDA of $54.6 million and an adjusted EBITDA margin of 22.9%."

This highlights:

• Robust top-line growth across all major regions, with particularly strong performance in Europe.
• Increased consultant productivity, indicating operational efficiency and effective talent deployment.
• High profitability and margin strength, underscoring Executive Search as a key profit center.

2. Integration with Other Service Lines

Search is positioned as part of a broader ecosystem of leadership services, including Heidrick Consulting and On-Demand Talent:

"At the core of this investment is IP that powers all our businesses, including Search, Heidrick Consulting and our digital product portfolio, which includes digital assessments."

"Clients continue to benefit from our ability to address urgent needs, which complements our Search business and enhances our ability to serve clients comprehensively."

This suggests:

• The company leverages intellectual property and technology across Search and other offerings to create synergies.
• On-Demand Talent and Consulting services are seen as complementary to Search, enabling a more holistic client solution.

3. Strategic Importance and Market Positioning

Search is framed as a foundational element of Heidrick’s strategy to deepen client relationships and drive growth:

"In sum, our strong Q2 results reflect our team's energy and focus on our compelling and integrated growth opportunities across Executive Search, consulting and on-demand talent."

"We aim to build differentiated relationships by being the most trusted leadership partner to the C-suite and Board... The need here is great, as illustrated by the most recent addition of our annual route-to-the-top analysis that looks at CEO succession across major markets globally."

This indicates:

• Executive Search is central to the company’s mission to be a trusted advisor on leadership and succession.
• The firm is leveraging data and insights (e.g., CEO succession analysis) to differentiate its Search offering and deepen client engagement.

4. Operational and Financial Discipline

The company discusses managing costs and scaling general and administrative expenses while investing in Search and related businesses:

"Part of the improvement is driven by the onetime fair value adjustment, but a major portion is also due to the progress we're making across the enterprise and scaling G&A. With respect to R&D... we continue to invest in the future of Heidrick. At the core of this investment is IP that powers all our businesses, including Search..."

This reflects:

• A balance between investing in innovation and maintaining cost discipline.
• Recognition that technology and IP investments underpin the future competitiveness of the Search business.

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Summary

Heidrick & Struggles presents Executive Search as a strong, growing, and highly profitable core segment that benefits from regional diversification and productivity gains. The company integrates Search with consulting and on-demand talent services to offer comprehensive leadership solutions. Strategic investments in technology and intellectual property support this integrated model, while the firm maintains a disciplined approach to costs and margin expansion. The emphasis on trusted client relationships and leadership insights positions Search not just as a transactional service but as a critical element of broader leadership strategy advisory.

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Representative quote:

"Executive Search continues to produce strong profitability with adjusted EBITDA of $54.6 million and an adjusted EBITDA margin of 22.9%... Clients continue to benefit from our ability to address urgent needs, which complements our Search business and enhances our ability to serve clients comprehensively."

This encapsulates the financial strength and strategic role of Search within Heidrick & Struggles’ portfolio.