On this page of StockholderLetter.com we present the latest annual shareholder letter from ASGN Inc — ticker symbol ASGN. Reading current and past ASGN letters to shareholders can bring important insights into the investment thesis.

 •  4/24/2025 Letter Continued (Full PDF)
 •  4/27/2023 ASGN Stockholder Letter
 •  4/24/2024 ASGN Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  ASGN Benford's Law Stock Score = 87

ASGN Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2 0 2 4

L E T T E R FRO M T HE CHI E F E X E CUT I V E O F F I C E R
Dear Fellow
Stockholders
Theodore S. Hanson
Throughout 2024, we embraced a proactive approach, focusing on
what was within our control to continue to steer ASGN towards
success amidst a challenging macroeconomic landscape.
We remained committed to advancing ASGN   s IT consulting business while maintaining
deep relationships with our Fortune 1000 and key federal defense and intelligence
agency clients across six diverse industries, including: the Consumer & Industrial;
Technology, Media, and Telecom (TMT); Financial Services; Healthcare; Business
Services; and the Federal Government.
As we stayed close to our clients, we continued to make measured, strategic progress toward our
goal of moving up the IT services pyramid into higher-end, high-value IT consulting solutions. For
the year, IT consulting revenues comprised approximately 58 percent of our total revenues, up from
roughly 53 percent in 2023.
DIVER SIF I E D INDUSTRY P ORTFOLI O
% of 2024 revenues
19%
30%
Federal
Government
14%
TMT
11%
Healthcare
11%
Business
Services
ANNUAL REPOR T 2024
15%
Financial
Services
Consumer
& Industrial
1

L E T T E R FRO M T HE CHI E F E X E CUT I V E O F F I C E R
OUR DIFFERENTIATED
GO-TO-MARKET STRATEGY
At ASGN, we believe in the IT
services sector. We believe in
being more consultative, and we
believe in large, industry diverse,
enterprise accounts. These three
foundational pillars are essential to
our business success and propel
our strategic initiatives forward.
In addition, our differentiated go-to-market strategy that
relies on contingent labor, provides a scalable, flexible
solution that sets ASGN apart from traditional consulting
companies that rely on a large, permanent bench. With
technology evolving rapidly, it is difficult to maintain the right
skillsets in a permanent bench or on a full-time basis. By
leveraging our onshore contingent labor force, along with our
nearshore and offshore resources, we can tailor our offerings
and provide our clients with the exact skillsets, competitive
pricing, and industry-based solutions they require.
Also, a pivotal aspect of our model is that our contingent
labor force flexes with revenue, acting as a stabilizer
for gross margin. This feature of our operating model,
along with our variable SG&A cost structure, which is
based on an incentive compensation model that
also flexes with revenue, has been instrumental in
maintaining steadiness in our margins throughout 2024.
Consistently throughout the year, we met or
exceeded quarterly guidance expectations with
respect to profitability. With the ongoing expansion of
our IT consulting revenues both organically and through
strategic acquisitions, we anticipate corresponding
growth in our margins, and there is substantial potential
for further margin enhancement.
2
CONTINUED IT
DEMAND IN A GROWING
ADDRESSABLE MARKET
The need to modernize IT systems continues to grow in
importance, and our commercial enterprise and
federal government customers remain committed to
their long-term digital transformation paths.
Our clients know that advancing their IT roadmaps is
crucial to maintaining their competitive advantage. Strong
commercial and government bookings, particularly in the
final quarter of 2024, underscore our participation in our
clients    long-term IT strategies and are a sign of the pent-up
demand within our customer base as we enter the new year.
As is evident from the increase in our IT consulting
revenues, ASGN   s business is successfully evolving. In May,
the Joint S&P and MSCI Committee responsible for the
GICS Code classification, the system developed to classify
companies into sectors and industries based on their
primary business activities, officially switched ASGN from
the Industrials sector under "Human Resources &
Employment Services," to the Information Technology
sector, under "IT Consulting & Other Services.    This update
to our GICS Code more accurately represents our current
business operations, highlighting ASGN's progression
from its legacy origins to providing higher-end, high-value IT
consulting solutions.
As we move up the IT services pyramid, our total
addressable market has also expanded. In 2024,
our addressable market was approximately $580
billion, including roughly $530 billion in commercial
and government IT consulting and $50 billion in
professional staffing. The market for IT consulting is
therefore nearly 10 times larger than that of professional
staffing. Our IT consulting model has reached about
one-third of our commercial clients which means significant
opportunity remains within our existing client base to
continue to move up the IT services pyramid.

M OV I N G UP THE
P Y R A M I D TO
H I GH E R -EN D ,
H I GH - VA L U E
I T S E RV ICES
I N C R E A SI N G A D R E SSA BL E MA R K E T
Strategy
Architecture
Design
Systems Deployment
Service Centers
Technical Staffing
ASGN's clients are the cornerstone of our business,
and maintaining close relationships with our customer
base has been even more crucial over the past year.
Maintaining our technology partnerships has been equally
as important. Our collaborations with leading technology
providers such as Amazon, Microsoft, Salesforce,
ServiceNow, and Workday, among many others, have been
pivotal in delivering innovative solutions to our clients.
New technologies are enablers of our business. They
create new customer needs, new skillsets, and new
solutions offerings.
A differentiator of our business
model, ASGN strategically pivots
as technology advances. When it
comes to technology, the buzz
surrounding AI is undeniable, and,
like previous shifts in technology    
whether that be from main frames
to on premise or client servers to
the cloud     ASGN is uniquely
positioned to excel in AI.
Although it will likely be several quarters before we see
enterprise-wide AI applications, we are deploying targeted
use cases in generative and agentic AI, helping our clients
leverage AI to drive efficiency and innovation. AI will enable
companies to unlock increased value, but before that
value can be realized, companies must enhance their
technological infrastructure.
Our solutions offerings in data, cloud, and cybersecurity
are integral to IT modernization, and so too are our people.
We are making the right investments in our team,
training and upskilling our professionals in the latest
technological developments, including in key areas such
as cybersecurity, data analytics, cloud, and AI, all with our
customers' needs in mind. Technology is shifting at a rapid
pace, and, just like our clients, it is essential that we stay
ahead of this change to remain competitive.
BALANCED CAPITAL ALLOCATION
STRATEGY ALIGNED WITH
STOCKHOLDER INTERESTS
We are also executing on the right strategic
decisions when it comes to our capital allocation.
Our strong Free Cash Flow provides a strategic advantage
that enables ASGN to fund key growth initiatives,
opportunistically repurchase shares, and invest in M&A, all
while maintaining a healthy balance sheet. In 2024, we
generated $400 million in operating cash flow, resulting in
Free Cash Flow of $364.7 million.
ANNUAL REPOR T 2024
DRIVING INNOVATION THROUGH
TECHNOLOGY PARTNERSHIPS
AND AI INNOVATION
3

L E T T E R FRO M T HE CHI E F E X E CUT I V E O F F I C E R
DR I V I N G LONG- TERM
ST OC K H OLDER VA L U E (in millions)
20 24
400.0

Operating
Cash Flow
456.9

364.7

Free Cash
Flow
327.2

Share
Buyback
20 23

417.0
273.1

Operating
Cash Flow
Free Cash
Flow
Share
Buyback
By following a disciplined and balanced approach to capital
allocation and maintaining an operating model that
generates strong Free Cash Flow, we can invest in
high-return opportunities, while at the same time repurchase
shares and prudently manage our leverage to drive
sustainable long-term value to our stockholders. In early
2024, our Board of Directors authorized the largest
share buyback program in ASGN   s history totaling $750
million. In 2024, we used $327.2 million in Free Cash
Flow to repurchase 3.5 million shares.
We are organic growers first, but we continue to believe
that M&A is our best use of capital. Successful tuck-in
acquisitions are core to enhancing our consulting growth.
In the fourth quarter we initiated due diligence for our
acquisition of TopBloc, a preferred certified Workday
Services Partner and 2025 Workday Business Impact
Partner of the Year. We officially welcomed TopBloc to the
ASGN family in March 2025. The acquisition of TopBloc is a
significant step in our ongoing strategy to align with
in-demand solutions and strong technology alliance partners
and extend their capabilities across ASGN   s deep customer
base. Acquiring TopBloc ideally positions ASGN to enhance
our services and immediately capitalize on these emerging
opportunities in ERP and the Workday marketplace.
4
FORGING AHEAD WITH
CONFIDENCE AND GROWTH
As we begin 2025, we remain acutely focused on
building ASGN for the future. We are achieving our
long-term goals by focusing on our clients    
maintaining deep customer relationships to ensure
that we are able to bring the right solutions capabilities
and the right resource mix to bear.
We have seen bright spots in key industry verticals, such as
TMT and Consumer & Industrials. In addition, in the final
quarter of the year, we began to see some improvement in
big banks, one of the largest purchasers of IT. There is no
doubt in my mind that ASGN is well-positioned to benefit
from our clients    increased IT spend. Importantly, our
unique delivery model remains the fastest and best way for
our clients to accelerate their investments.
Also important to driving the underpinnings of our long-term
strategy is the depth and breadth of our leadership team. As
part of a planned succession, in March of 2025, Rand Blazer
transitioned to the role of Executive Vice Chairman, and we
welcomed Shiv Iyer as our new President.
Shiv brings over two decades of experience in strategy,
industry, and technology consulting services to ASGN, most
recently as a lead executive with Accenture Consulting. With
Shiv on board, our leadership team is well positioned to drive
the business forward and create long-term value for our
clients, employees, and stockholders.
With each market cycle, ASGN evolves and strengthens its
operations. The past year was no exception, and with such
a strong team in place, we are well positioned for the future.
On behalf of the Board of Directors, senior leadership, and
all of our team members, I want to express my gratitude for
your ongoing support of ASGN.
Sincerely,
Theodore S. Hanson
CHIEF EXECUTIVE OFFICER
Free Cash Flow, a non-GAAP measure, is calculated by taking cash flows from operating activities, which totaled $400.0 million and $456.9
million for 2024 and 2023, respectively, minus capital expenditures, which totaled $35.3 million and $39.9 million for 2024 and 2023, respectively. More detail regarding this non-GAAP measure is presented in the Company's quarterly earnings releases and supplemental materials.



 4/24/2025 Letter Continued (Full PDF)