- Outlook -11.3 vs +4.6 prior
- Revenue +1.3 vs +8.2 prior
- Employment +2.2 vs -0.1 prior
- Six months outlook -0.6 vs +13.3 prior
- Six months revenue +30.9 vs +43.9 prior
- Capex +11.9 vs +20.3 prior
Comments in the report:
Management of companies and enterprises
- We are a bank, our net interest margin last year was down as our
deposit rates were up and prime loan rates down. This year our margins
should be a little better. Our investment cash flow and reinvestment
rates are better.
Professional, scientific and technical services
- Partners servicing clean energy clients supported by federal
grants are scaling back —rapidly. Uneconomic projects are being
shelved. - Most of our work is in the private sector. It is our hope that the
reduction in government spending reduces interest rates. We are also
hopeful that a reduction in regulations spurs private sector growth. - Our clients are laying off people, such as our non-profit clients who relied on USAID money and others.
- We are a CPA firm that has ongoing dealings with the IRS, SBA and
Social Security Administration. The government personnel cutbacks will
significantly affect our ability to address issues with these agencies. - The slashing of so many programs and funding around anything deemed DE&I will cut off a portion of our business.
- Unfortunately, the federal workforce reduction is getting rid of
the good and the bad, high performers as well as the low performers. We
see a lot of good workers, especially those who have valuable
experience and institutional knowledge, leaving the government. With
uncertainly on the rise, we are lowering our projections and are
concerned that private sector consultants will be assuming additional
risks. - Uncertainty is affecting our investment decisions. Having no idea
what tomorrow will bring (on a daily basis) is not conducive to
capital investment.
Rental and leasing services
- We think uncertainty about tariffs has given our suppliers an excuse to raise their prices.
Administrative and support services
- We are seeing more emotional reactions as opposed to real,
substantive financial impact to the chaotic and shifting federal policy
decisions. It’s a relatively dramatic change from what we were seeing
in early January 2025.
Real estate
- Many of our poorest apartment residents rely on charities to
subsidize their rent. As soon as the charities were cut off, our rental
income dropped, and more evictions are becoming necessary.
Insurance carriers and related activities
- At the end of last year, we saw an uptick in the small businesses
we service. They began buying insurance again and hiring more employees
instead of cutting. We believe a number of small businesses won’t
weather the storm ahead and others will be dropping employees.
Securities, commodity contracts and other financial investments and related activities
- Reduced government spending and policy uncertainty will likely affect our clients, which will reduce spending and investment.
Credit intermediation and related activities
- We are concerned about the possible impacts digital money systems may have on traditional banking.
Support activities for transportation
- Tariffs are still a major concern, and also if government cancels
the Office of Refugee Resettlement budget we would be highly affected.
Accommodation
- We have already experienced a large government conference cancelation due to the news coming out of D.C.
