Medpace: Record awards lift backlog as 2026 outlook improves

Transcript intelligence

What changed

Compared with Q2, Q3 brought an all-time high in net new awards, a 5.6% increase in backlog to about $3.2 billion, and a modest 2026 guidance raise. Management also highlighted lower reimbursable costs, a new Cincinnati expansion, and a new $1 billion repurchase authorization, while deferring 2027 guidance.

Guidance delta

2026 guidance was modestly raised. Management deferred 2027 revenue and EBITDA guidance until the February Q4 release.

Key takeaways

• Net new awards reached an all-time high, lifting backlog 5.6% to about $3.2 billion.
• Q3 revenue was $716 million and EBITDA was $172.1 million, with a 24% margin.
• Management expects about $1.99 billion of backlog to convert to revenue over the next 12 months.
• The Cincinnati campus expansion supports capacity but is expected to add about $20 million of operating costs in 2027.
• A new $1 billion share-repurchase program replaced the prior authorization.

Management priorities

• Convert backlog while monitoring cancellation trends.
• Continue win-rate improvement initiatives, particularly in oncology.
• Expand capacity through the Cincinnati campus.
• Maintain low turnover and controlled labor costs.