Efforts to Improve Digital Experiences for Citizens Across the State RESTON, Va., Dec. 15, 2025 /PRNewswire/ -- ICF (NASDAQ: ICFI), a leading global solutions and technology provider, has been selected as one of eight prime awardees under the state of Maryland's $300 million ceiling digital experience contract. The new contract has a term of nine years, including a five-year base and two two-year options. The statewide indefinite delivery, indefinite quantity vehicle, Agile Digital Experience Product Trans ...

Summary of ICF International Conference Call - December 10, 2025 Company Overview - **Company Name**: ICF International (Ticker: ICFI) - **Annual Revenue**: Approximately $1.9 billion - **Employee Count**: Approximately 9,000 professionals - **Client Base**: Diverse, including commercial, state, local, international, and U.S. government clients - **Revenue Breakdown**: - 55% from commercial and non-federal government clients, expected to grow in the mid-teens for 2025 [6][8] - Key markets: - Energy, infrastructure, disaster recovery, and environment (51% of revenues) - Health and social programs (34% of revenues) - Security and other (15% of revenues) [6][7] Growth Drivers - **Non-Federal Client Revenue Growth**: Expected to grow approximately 15% in 2025, driven by: - Commercial business (34% of revenues) - State and local business (18% of revenues) - International business (6.2% of revenues) [9][10] - **Commercial Energy Sector**: - Growth driven by data center construction, electrification, and grid modernization [12][13] - 75% of commercial energy business is with utilities, focusing on energy efficiency programs [13][14] - Anticipated continued demand for energy efficiency and demand-side management programs [14][15] Renewable Energy and Climate Services - **Shift in Focus**: Increased activity in state and local governments for climate-related services due to changing federal priorities [16][17] - **Commercial Sector Demand**: Strong demand from sectors vulnerable to climate risk, including airlines, tourism, and pharmaceuticals [17][18] Disaster Recovery Services - **Current Engagements**: Supporting over 90 disaster recovery programs in 20 states, with significant contracts in Puerto Rico and Texas [20][21] - **Federal Funding**: Congress appropriated nearly $12 billion for disaster recovery funding, with ongoing procurement opportunities [21][22] - **State Government Interest**: Increased interest in disaster case management as states prepare for potential new responsibilities [22] Revenue Mix and Future Projections - **Revenue Mix Shift**: Non-federal revenue expected to increase from 55% to over 60% by 2026, driven by growth in energy and international business [24] - **Federal Revenue Impact**: Anticipated recovery of lost federal revenues due to government shutdown, with a return to normalcy expected in Q4 2025 and Q1 2026 [26][28] Profitability and Investments - **Adjusted EBITDA Margin**: Targeting to maintain a margin of 11.2% while investing in growth areas [37] - **Investment Focus**: - Growth in energy efficiency and AI technology [39] - Streamlining back-office systems for efficiency [39] Capital Allocation and M&A Strategy - **Capital Allocation**: Consistent approach with dividends, share repurchases, and debt reduction prioritized [41] - **Acquisition Pipeline**: Focus on energy sector opportunities and disaster recovery infrastructure, with less likelihood of federal space acquisitions due to market challenges [42][43] Conclusion - ICF International is well-positioned for growth in various sectors, particularly in energy efficiency and disaster recovery, while navigating changes in federal priorities and market dynamics. The company aims to maintain profitability and explore strategic acquisitions to enhance its capabilities and market presence.

Recognition Highlights a Culture of Growth and Impact RESTON, Va., Dec. 8, 2025 /PRNewswire/ -- ICF (NASDAQ:ICFI), a leading global solutions and technology provider, has been named to U.S. News & World Report's 2025-2026 Best Company to Work For list. The ranking reflects ICF's longstanding commitment to career growth, collaboration and employee well-being. "At ICF, our goal is simple: to create an environment where people can do the best work of their careers," said John Wasson, ICF chair and chief exec ...

RESTON, Va.,Dec. 3, 2025/PRNewswire/ -- ICF (NASDAQ:[ICFI](#financial-modal)), a leading global solutions and technology provider,today announced its participation at the Sidoti Year End Virtual Investor Conference. ICF's Chief Operating Officer James Morgan and Chief Financial Officer Barry Broadus will participate in a virtual fireside chat at 9:15 a.m. Eastern Time on Wednesday, December 10.A live webcast of the fireside chat will be available at[https://sidoti.zoom.us/webinar/register/WN\_lTMklVQvRzmDA5 ...

Core Insights - ICF International, Inc. reported disappointing third-quarter 2025 results, with both earnings and revenues missing the Zacks Consensus Estimate, leading to a 5.6% decline in share price since the earnings release on October 30 [1] Financial Performance - Quarterly EPS was $1.67, missing the Zacks Consensus Estimate by 4.6% and declining 21.6% year-over-year [2] - Total revenues amounted to $465.4 million, missing estimates by 3.5% and decreasing 10% year-over-year [2][10] Segmental Revenues - Revenues from government clients decreased 20.4% year-over-year to $308.8 million, below the estimate of $388.1 million [3] - U.S. state and local government revenues were $81.7 million, representing 17.6% of total revenues, lagging behind the prediction of $107 million but increasing 3.7% year-over-year [3] - International government revenues reached $29 million, representing 6.2% of total revenues, below the anticipated $34.4 million but up 8.2% year-over-year [4] - U.S. federal government revenues were $198 million, contributing 42.6% to total revenues, missing the estimate of $246.7 million and decreasing 29.8% year-over-year [4] - Commercial revenues, which accounted for 33.7% of total revenues, amounted to $156.6 million, exceeding expectations of $88.5 million and increasing 20.9% year-over-year [5] Operating Performance - Adjusted EBITDA fell 9.2% year-over-year to $53.2 million, with an adjusted EBITDA margin of 11.4%, which increased by 10 basis points from the previous year [6] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $3.99 billion, down from $4.96 billion at the end of December 2024 [7] - Long-term debt increased to $449.4 million from $411.7 million in December 2024 [7] - Cash used in operating activities was $66.24 million, with capital expenditures of $5.5 million [7] Guidance - For 2025, the company expects full-year cash flow to range between $125 million and $150 million, with capital expenditures anticipated between $23 million and $25 million [8] - The full-year tax rate is now expected to be approximately 18.5% [8]

Core Insights - ICF International is experiencing favorable conditions under the Trump administration, which is described as a significant advantage for the company [1] Company Overview - ICF International is positioned to benefit from government support, indicating a positive outlook for its operations and potential growth [1] Analyst Background - The equity analyst leading the research has extensive experience in the restaurant industry and covers various sectors including consumer discretionary and food & beverage, focusing on micro and small-cap companies [2]

Core Insights - ICF International reported quarterly earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.75 per share, and down from $2.13 per share a year ago, representing an earnings surprise of -4.57% [1] - The company posted revenues of $465.41 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.51%, and down from $517 million year-over-year [2] Company Performance - Over the last four quarters, ICF has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] - ICF shares have declined approximately 28.2% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of management's commentary on the earnings call [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.71 on revenues of $472.42 million, and for the current fiscal year, it is $7.06 on revenues of $1.92 billion [7] Industry Context - The Government Services industry, to which ICF belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of ICF's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Financial Data and Key Metrics Changes - Third quarter revenues totaled $465.4 million, down from $517 million in the same quarter of 2024, and relatively stable compared to $476.2 million in the second quarter of 2025 [20] - Year-to-date revenues decreased by 6.2%, with revenues excluding subcontractor and other direct costs declining by 4.3% [20] - Adjusted EBITDA was $53.2 million, compared to $58.5 million in the previous year's third quarter, with adjusted EBITDA margins expanding by 10 basis points to 11.4% [24][26] - Net income totaled $23.8 million, or $1.28 per diluted share, down from $32.7 million, or $1.73 per diluted share in the third quarter of 2024 [26] Business Line Data and Key Metrics Changes - Revenues from commercial, state and local, and international clients increased by 13.8% year-on-year, led by a 24.3% increase in the commercial energy business [20][21] - Federal government revenues declined by 29.8% year-on-year, with a 3% sequential decline in the third quarter [5][21] - The commercial energy business represented 30% of third quarter revenues, up from 22% in the previous year [10] Market Data and Key Metrics Changes - Revenues from state and local government clients increased by 3.8% in the third quarter, primarily due to growth in technology work in disaster recovery [14] - International client revenues increased by 8% year-on-year, although the ramp-up of new contracts has been slower than anticipated [16][17] Company Strategy and Development Direction - The company is focused on maintaining margins despite reduced revenue, with a book-to-bill ratio of 1.53 for the third quarter, supporting a return to growth in 2026 [4][32] - The company is investing in organic growth, pursuing strategic acquisitions, and maintaining a disciplined approach to capital allocation [28][29] - The management is optimistic about the potential for growth in the commercial energy sector, despite challenges in the renewables area due to the current administration's policies [45] Management's Comments on Operating Environment and Future Outlook - Management expects the government shutdown to reduce revenues by approximately $8 million and gross profit by $2.5 million in October, with a total estimated impact of $25 million in revenues for the quarter [9][36] - The company remains confident in its ability to return to revenue and earnings growth in 2026, supported by a strong pipeline of opportunities and growth from non-federal clients [32][42] Other Important Information - The CFO announced retirement, with James Morgan taking on the additional role of CFO while continuing as COO [18][60] - The company has a backlog of $3.5 billion, with 52% funded, and a new business development pipeline of $8.4 billion [26] Q&A Session Summary Question: What is the expected decline in federal business for the fourth quarter? - Management did not provide a specific estimate but indicated that federal revenues would be down more than in the third quarter due to the government shutdown [34] Question: How is the government shutdown impacting project progress? - Some projects continue to progress without government interaction, but there are significant impacts on others, particularly in health and human services [36][39] Question: What are the growth expectations for the commercial energy business? - The commercial energy business is expected to continue strong growth, with double-digit growth anticipated next year [44][49] Question: What is the company's approach to acquisitions? - The company is focused on opportunities in the energy sector and disaster recovery, with a disciplined approach to capital allocation and debt repayment [51][53]

Revenue Performance - Revenue for Q3 2025 was $465.4 million, a decrease of 10.0% from $517.0 million in Q3 2024, primarily due to a reduction of $83.9 million from U.S. federal government clients[87][89]. - Revenue for the nine months ended September 30, 2025 decreased by $94.3 million, or 6.2%, to $1,429.2 million compared to $1,523.5 million in 2024[101]. Income and Earnings - Net income for Q3 2025 was $23.8 million, down 27.3% from $32.7 million in Q3 2024[87]. - Operating income for the nine months ended September 30, 2025 was $116.8 million, a decrease of $12.5 million, or 9.7%, from $129.4 million in 2024[101]. - Net income for the nine months ended September 30, 2025 was $74.3 million, down $11.3 million, or 13.2%, from $85.6 million in 2024[101]. - U.S. GAAP Diluted EPS for Q3 2025 was $1.28, down 26% from $1.73 in Q3 2024; Non-GAAP Diluted EPS was $1.67, down 22% from $2.13[120]. - For the nine months ended September 30, 2025, U.S. GAAP Diluted EPS was $4.01, a decrease of 11.5% from $4.53 in 2024; Non-GAAP Diluted EPS was $5.30, down 5% from $5.58[120]. Costs and Expenses - Direct costs decreased by $34.5 million, with total direct costs as a percentage of revenue at 62.4% for Q3 2025, compared to 62.9% in Q3 2024[92]. - Indirect and selling expenses decreased by $10.6 million, or 7.9%, with these expenses representing 26.3% of revenue in Q3 2025[93]. - Direct costs decreased by $73.4 million, or 7.6%, totaling $891.5 million for the nine months ended September 30, 2025, primarily due to terminated U.S. federal government contracts[105]. - Indirect and selling expenses decreased by $11.8 million, or 3.0%, totaling $377.2 million for the nine months ended September 30, 2025[106]. Taxation - The effective income tax rate increased to 18.1% for the nine months ended September 30, 2025, compared to 20.0% for the same period in 2024[110]. - The effective tax rate for Q3 2025 was 22.7%, compared to 13.8% in Q3 2024, reflecting a significant increase in tax burden[122]. Backlog and Market Conditions - The company experienced a reduction of $418.2 million in backlog due to termination notices primarily in the first and second quarters of fiscal year 2025[84]. - Health and Social Programs client market revenues decreased by $44.8 million, or 22.8%, driven by declines from U.S. federal government clients[91]. - The federal government shutdown in October 2025 is estimated to result in a revenue reduction of $7.6 million for that month[86]. Strategic Initiatives - The company aims to enhance client relationships and seek larger engagements while evaluating strategic acquisition opportunities to broaden service offerings[82]. - The company’s future results will depend on the successful integration of strategic acquisitions and the ability to replicate its business model in selective geographies[82]. - The company is well-positioned to provide disaster recovery services, leveraging experience from past major disasters[80]. Cash Flow and Financial Position - Net cash provided by operating activities for the nine months ended September 30, 2025 was $66.2 million, a decrease of $9.9 million from $76.2 million in 2024[127]. - Total dividend payments for the nine months ended September 30, 2025 were $7.8 million, with a consistent quarterly dividend of $0.14 per share[127]. - As of September 30, 2025, the company had $501.6 million available under its Credit Facility for operations, acquisitions, dividends, and share repurchases[123]. - The company entered into interest rate swap agreements with a total notional value of $175.0 million to hedge a portion of its floating-rate Credit Facility[124]. - The net change in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025 was an increase of $35.1 million, compared to a decrease of $1.8 million in 2024[127]. - The company experienced a $46.4 million change in cash used in financing activities, primarily due to increased net borrowings and share repurchases[128]. Amortization and EBITDA - Amortization of intangible assets acquired in business combinations increased by $3.0 million, or 12.0%, totaling $27.9 million for the nine months ended September 30, 2025[107]. - Amortization of intangible assets for Q3 2025 totaled $9.2 million, compared to $8.3 million in Q3 2024; for the nine months, it was $27.9 million versus $24.9 million[121]. - EBITDA for the nine months ended September 30, 2025 was $158.0 million, down from $170.3 million in 2024[115]. - Adjusted EBITDA for the nine months ended September 30, 2025 was $161.2 million, compared to $169.7 million in 2024[115].

Financial Performance - Total revenue for Q3 2025 was $465 million, a decrease of 10% from $517 million in Q3 2024[10] - Net income was $24 million, with GAAP EPS at $1.28, down from $1.73 in the prior year[7] - Revenue for Q3 2025 was $465,405,000, a decrease of 9.9% from $516,998,000 in Q3 2024[35] - Net income for Q3 2025 was $23,766,000, down 27.3% compared to $32,679,000 in Q3 2024[35] - Adjusted EBITDA for Q3 2025 was $53,159,000, a decrease of 9.3% from $58,526,000 in Q3 2024[37] - Basic earnings per share (EPS) for Q3 2025 was $1.29, down from $1.74 in Q3 2024, representing a decline of 26.0%[35] - The net income margin percent on revenue for Q3 2025 was 5.1%, down from 6.3% in Q3 2024[37] - The company reported a comprehensive income of $22,033,000 for Q3 2025, compared to $31,728,000 in Q3 2024[35] - Net income for the nine months ended September 30, 2025, was $74,278,000, a decrease of 15.9% compared to $85,607,000 in 2024[43] - Cash provided by operating activities for the nine months ended September 30, 2025, was $66,244,000, down from $76,184,000 in 2024, reflecting a decline of 13.1%[43] Revenue Sources - Revenues from commercial clients increased by 14%, accounting for 57% of total Q3 revenues, with commercial energy clients up 24%[3] - U.S. federal government revenue was $198 million, down 29.8% year-on-year, while state and local government revenue increased by 3.8% to $81.7 million[17] - Commercial revenue accounted for 33.7% of total revenue, up from 25.1% in Q3 2024, with energy markets revenue increasing by 24.3% year-over-year[21] - Revenue from the energy, environment, infrastructure, and disaster recovery sector increased to 51% of total revenue for the nine months ended September 30, 2025, up from 46% in 2024[45] - The U.S. federal government accounted for 45% of total revenue for the nine months ended September 30, 2025, down from 55% in 2024[45] - The proportion of revenue from health and social programs decreased to 34% for the nine months ended September 30, 2025, down from 38% in 2024[45] Financial Position - Total current assets increased to $568,980,000 as of September 30, 2025, compared to $492,074,000 at the end of 2024[41] - Total assets rose to $2,113,570,000 as of September 30, 2025, up from $2,066,353,000 at the end of 2024[41] - Long-term debt increased to $449,404,000 as of September 30, 2025, compared to $411,743,000 at the end of 2024[41] - Cash, cash equivalents, and restricted cash at the end of the period increased to $53,926,000 as of September 30, 2025, compared to $7,635,000 at the end of the same period in 2024[43] Dividends and Shareholder Returns - A quarterly cash dividend of $0.14 per share was declared, payable on January 9, 2026[25] - Cash dividends declared per common share remained stable at $0.14 for both Q3 2025 and Q3 2024[35] Future Outlook - The company expects a return to revenue and earnings growth in 2026, supported by a robust pipeline of opportunities[28] Contract and Backlog Information - Contract awards totaled $714 million for a quarterly book-to-bill ratio of 1.53, a 2.4% increase year-on-year[8] - Total backlog was $3.5 billion, with funded backlog at $1.9 billion, representing approximately 52% of total backlog[12] - Fixed-price contracts represented 49% of total revenue for the nine months ended September 30, 2025, an increase from 46% in 2024[45] Cash Flow and Financing Activities - Cash paid for interest during the nine months ended September 30, 2025, was $20,045,000, a decrease from $24,388,000 in 2024[43] - The company reported a net cash used in financing activities of $18,226,000 for the nine months ended September 30, 2025, a significant improvement from $64,598,000 in 2024[43] - The company experienced a net change in cash of $35,109,000 for the nine months ended September 30, 2025, compared to a decrease of $1,814,000 in 2024[43]