Financial Data and Key Metrics Changes - The company's first quarter revenues declined by 1.4% year over year to $487.6 million, which is within the guidance range [17] - Adjusted EBITDA margin on total revenues expanded by 10 basis points to 11.3%, reflecting careful cost management [6][21] - Non-GAAP EPS increased by 9.6% year over year to $1.90, significantly outpacing revenue performance [22] Business Line Data and Key Metrics Changes - Revenues from commercial clients increased by 22.1% year over year, accounting for 29.5% of total revenues, up from 23.9% in the previous year [6][18] - Revenues from commercial energy clients rose by 21%, driven by strong demand for energy efficiency programs [5][7] - Revenues from state and local government clients remained stable year on year, with disaster management revenues experiencing lower pass-through revenues [11][12] - International government client revenues increased by 7.2% in the first quarter, aided by new task orders from the European Union and UK government [12][13] Market Data and Key Metrics Changes - The company reported that revenues from commercial, state and local, and international government clients collectively accounted for 51% of first quarter revenues, up from approximately 45% a year ago [5][18] - Federal client revenues declined by 12.6% year over year, impacted by contract funding curtailments and a slower pace of new RFPs [13][15] Company Strategy and Development Direction - The company aims to maintain adjusted EBITDA margins comparable to 2024 levels while navigating a dynamic federal government business environment [15][30] - The focus remains on capturing growth opportunities in commercial energy, state and local, and international government sectors, with expectations of at least 15% growth in these areas for the full year [29] - The company is also exploring strategic acquisitions, particularly in the energy sector, while remaining cautious in the federal arena due to uncertainty [74] Management's Comments on Operating Environment and Future Outlook - Management indicated that the federal business environment remains fluid and unsettled, with expectations of continued activity but not significantly more impactful than the first quarter [33] - The company reaffirmed its revenue guidance for 2025, projecting a decline of flat to 10% from last year, primarily due to federal government revenue losses [15][29] - Management expressed confidence in the growth prospects for the commercial energy business, citing increased budgets from utility clients for energy efficiency programs [10][16] Other Important Information - The backlog at the end of the first quarter was $3.4 billion, with $1.9 billion funded, indicating stability in the business [23] - The company repurchased 313,000 shares for a total of $35 million during the first quarter, demonstrating confidence in its long-term outlook [25][26] Q&A Session Summary Question: Guidance on the impact of federal government changes - Management expects Q2 and Q3 to have similar impacts as Q1, with no significant increase in federal activity [33] Question: Update on stop work orders - The figure for stop work orders has increased to approximately $375 million [34] Question: Contribution of Applied Energy Group to revenues - Specific revenue figures for Applied Energy Group were not disclosed, but integration and performance have been positive [36][37] Question: Outlook for IT modernization business - The IT modernization business is expected to decline by 5% to 10% due to delays in awards, with no significant cuts observed yet [41][42] Question: Growth outlook for disaster recovery business - The disaster recovery business is expected to grow, supported by a robust pipeline of opportunities [60] Question: Potential for acquisitions - Future acquisitions are likely to focus on the energy sector, with smaller tuck-in acquisitions being more probable [74][76]

Financial Data and Key Metrics Changes - First quarter revenues declined by 1.4% year over year to $487.6 million, within guidance range [17] - Adjusted EBITDA margin on total revenues expanded by 10 basis points to 11.3% [6][21] - Non-GAAP EPS increased by 9.6% year over year to $1.90, significantly ahead of revenue comparisons [22] Business Line Data and Key Metrics Changes - Revenues from commercial clients increased by 22.1% year over year, accounting for 29.5% of total revenues [6][18] - Revenues from commercial energy clients rose by 21% year over year, driven by energy efficiency and customer engagement programs [5][7] - Revenues from state and local government clients remained stable year on year, with disaster management revenues experiencing lower pass-through revenues [10][11] - Revenues from international government clients increased by 7.2% in the first quarter [12] Market Data and Key Metrics Changes - Revenues from federal clients declined by 12.6% compared to the previous year, impacted by contract funding curtailments [14] - Approximately $115 million of estimated 2025 revenues have been affected by stop work orders and contract terminations [15] Company Strategy and Development Direction - The company expects revenues from commercial energy, state and local, and international government clients to grow at least 15% in aggregate for the year [29] - The company plans to maintain adjusted EBITDA margins similar to 2024 levels despite revenue challenges [15][30] - Focus on organic growth initiatives and strategic acquisitions in targeted markets, particularly in energy [26][74] Management's Comments on Operating Environment and Future Outlook - The federal government business environment remains fluid, with expectations of continued activity but not significantly more impactful than Q1 [33] - The company is optimistic about growth prospects in commercial energy and disaster recovery despite challenges in federal contracts [10][12][29] - Management believes that the diversified business model will help navigate through challenging conditions and position for growth in 2026 [16][30] Other Important Information - Backlog at the end of the first quarter was $3.4 billion, with $1.9 billion funded [23] - The company repurchased 313,000 shares for an aggregate purchase price of $35 million [25] Q&A Session Summary Question: Guidance on federal business impact - Management expects Q2 and Q3 to have similar impacts as Q1, with no significant increase in federal business impact [33] Question: Update on contract terminations - The figure for contract terminations has increased to approximately $375 million [35] Question: Contribution of Applied Energy Group to revenues - Specific revenue contributions from Applied Energy Group were not disclosed, but integration and performance are satisfactory [36] Question: Outlook for IT modernization business - IT modernization is expected to decline by 5% to 10% due to delays in awards, but opportunities are anticipated in the second half of the year [42][68] Question: Growth outlook for disaster recovery business - The disaster recovery business is expected to grow, supported by a robust pipeline of opportunities [60] Question: Acquisition strategy - Future acquisitions are likely to focus on the energy sector, with smaller tuck-in acquisitions being more probable [74]

Financial Data and Key Metrics Changes - The company's first quarter revenues declined by 1.4% year over year to $487.6 million, which is within the guidance range [16] - Adjusted EBITDA margin on total revenues expanded by 10 basis points to 11.3%, reflecting careful cost management [6][19] - Non-GAAP EPS increased by 9.6% year over year to $1.90, significantly outpacing revenue performance [21] Business Line Data and Key Metrics Changes - Revenues from commercial clients increased by 22.1% year over year, accounting for 29.5% of total first quarter revenues, up from 23.9% in the previous year [6][17] - Revenues from commercial energy clients rose by 21% year over year, driven by strong demand for energy efficiency programs [5][6] - Revenues from state and local government clients remained stable year on year, with disaster management revenues experiencing lower pass-through revenues [11] - Revenues from international government clients increased by 7.2% in the first quarter, aided by recent contract wins with the European Union and the UK government [12][13] Market Data and Key Metrics Changes - The company reported that revenues from commercial, state and local, and international government clients collectively accounted for 51% of total revenues, up from approximately 45% in the prior year [17] - Federal client revenues declined by 12.6% year over year, impacted by contract funding curtailments and a slower pace of new RFPs [13][14] Company Strategy and Development Direction - The company aims to maintain its adjusted EBITDA margins at levels comparable to 2024 margins while navigating a dynamic federal government business environment [14][29] - The company expects revenues from commercial energy, state and local, and international government clients to grow at least 15% in aggregate for the year, partially offsetting lower revenues from federal clients [27][28] - The company is focused on organic growth initiatives and strategic acquisitions in targeted markets, particularly in the energy sector [24][73] Management's Comments on Operating Environment and Future Outlook - Management indicated that the federal business environment remains fluid and unsettled, with expectations for continued activity in the coming quarters [32] - The company reaffirmed its revenue guidance for 2025, projecting a decline of flat to 10% from last year, primarily due to federal government revenue losses [14][27] - Management expressed confidence in the growth prospects for the commercial energy business, citing increased budgets from utility clients for energy efficiency programs [10][29] Other Important Information - The company completed the integration of AEG, a leading energy technology and advisory firm, which is expected to enhance growth opportunities [9] - The backlog at the end of the first quarter was $3.4 billion, with $1.9 billion funded, indicating stability in the business [22] - The company repurchased 313,000 shares for an aggregate purchase price of $35 million, demonstrating confidence in its long-term outlook [24] Q&A Session Summary Question: Guidance on the impact of federal business - Management expects Q2 and Q3 to have similar impacts as Q1, with no significant increase in federal business impact [32] Question: Update on stop work orders - The figure for stop work orders has increased to approximately $375 million [33] Question: Contribution of Applied Energy Group to revenues - The contribution of Applied Energy Group was not disclosed separately, but management expressed satisfaction with its integration and performance [35][36] Question: Outlook for IT modernization business - The IT modernization business is expected to decline by 5% to 10% for the year due to delays in awards [40] Question: Growth outlook for commercial energy - Management expects commercial energy to continue being a strong performer with high margins [46] Question: Insights on disaster recovery business - The disaster recovery business is expected to grow this year, supported by a robust pipeline of opportunities [60] Question: Potential for acquisitions - Future acquisitions are likely to focus on the energy sector, with smaller tuck-in acquisitions being more probable [73]

Financial Performance - Total revenue for Q1 2025 was $487.6 million, a decrease from $494.4 million in Q1 2024[8] - Net income was $26.9 million, with GAAP EPS at $1.44, consistent with the prior year[8] - Adjusted EBITDA was $55.2 million, with an adjusted EBITDA margin of 11.3%, up 10 basis points from Q1 2024[9] - Net income for the three months ended March 31, 2025, was $26,851,000, a slight decrease from $27,317,000 in the same period of 2024[35] - Adjusted EBITDA for the same period was $55,198,000, compared to $55,155,000 in 2024, reflecting a stable performance[35] - The net income margin on revenue remained consistent at 5.5% for both 2025 and 2024[35] - Non-GAAP diluted EPS improved to $1.94 for the three months ended March 31, 2025, compared to $1.77 in 2024[35] Revenue Breakdown - Revenue from commercial energy clients increased by 21% year-on-year, representing 87% of commercial revenues[5] - Federal government revenue decreased by 12.6% to $239.6 million, accounting for 49.1% of total revenue[13] - Commercial revenue accounted for 29.5% of total revenue, up from 23.9% in Q1 2024[19] - Revenue from the energy, environment, infrastructure, and disaster recovery sector increased to 49% of total revenue, up from 45% in 2024[42] - The percentage of revenue from U.S. federal government clients decreased to 49% from 55% year-over-year[42] Backlog and Contracts - Total backlog at the end of Q1 2025 was $3.4 billion, with funded backlog at $1.9 billion[10] - Contract awards in Q1 2025 totaled $467 million, resulting in a book-to-bill ratio of 0.96[7] Guidance and Dividends - The company maintains its 2025 guidance, projecting total revenues and EPS to range from flat to down 10% from last year[23] - A quarterly cash dividend of $0.14 per share was declared, payable on July 11, 2025[21] Assets and Liquidity - Total assets increased to $2,075,098,000 as of March 31, 2025, up from $2,066,353,000 at the end of 2024[38] - Cash and cash equivalents rose to $5,718,000 from $4,960,000, indicating improved liquidity[38] - The company reported a net cash used in operating activities of $33,034,000 for the three months ended March 31, 2025, compared to $10,001,000 in 2024[40] Debt and Leverage - Long-term debt increased to $502,044,000 from $411,743,000, indicating a rise in leverage[38]

| Date: | Thursday, May 1, 2025 | | --- | --- | | Time: | 4:30 p.m. Eastern Time | | Audio-only Webcast: | https://edge.media-server.com/mmc/p/w57qgdwz | | Participant | https://register-conf.media | | Registration: | server.com/register/BI9504088ad3834e789bb0473b16ef5d9b | RESTON, Va., March 31, 2025 /PRNewswire/ -- ICF (NASDAQ:ICFI), a global consulting and technology services provider, will release its first quarter 2025 results on Thursday, May 1, 2025, after the market close. The Company plans to host ...

Group 1 - A large Southern electric utility has awarded ICF two recompete contracts valued at over $35 million to deliver demand-side management (DSM) programs [1][2] - ICF's proprietary cloud-based, AI-powered customer analytics platform will support all stages of the utility's DSM programs, enhancing energy savings and performance tracking [2][4] - ICF has launched over 25 innovation pilots to improve program delivery and customer experience for the utility [3][4] Group 2 - ICF is recognized for its extensive energy experience and cutting-edge technology solutions, helping utilities meet rising energy demands effectively [4] - The company partners with top utilities, federal agencies, and energy organizations, providing comprehensive services across the energy value chain [4] - ICF is one of the largest electrification implementers in the U.S., delivering hundreds of active DSM and electrification programs across North America [4]

Core Insights - ICF has appointed Caroline Angoorly to its board of directors, bringing extensive experience in energy, power markets, infrastructure, and environmental sectors [1][2] - Angoorly's background includes founding GreenTao LLC and serving as COO of NY Green Bank, overseeing a $1 billion investment fund [2] - ICF's growth momentum in utility, commercial energy, and infrastructure services is expected to benefit from Angoorly's expertise in developing profitable strategies and identifying market opportunities [2][3] Company Overview - ICF is a global consulting and technology services company with approximately 9,000 employees, combining industry expertise with digital strategies [4] - The company has a long-standing commitment to addressing global energy challenges through innovative, market-driven approaches [3][4] - ICF has seen strong performance in the commercial energy market, particularly in demand side management and grid resilience technologies [3]

Core Insights - ICF has secured two significant contracts with a combined ceiling value exceeding $210 million from the European Commission and the U.K. Government, awarded in Q1 2025 and Q4 2024 respectively, with a performance period of four years [1][2][3] Company Performance - The recent contracts underscore ICF's growing momentum in the European market, leveraging its expertise in policy analysis, communications, research, technology, digital engagement, and advanced analytics [2][4] - ICF's balanced portfolio allows the company to capture growth opportunities driven by increasing demand for multidisciplinary services, integrating industry expertise with advanced technology to deliver tailored solutions [4] Strategic Positioning - ICF's strategic investments and commitment to innovation have positioned the company to support a diverse range of international sectors, including energy, disaster management, environment, infrastructure, IT modernization, digital transformation, and health [3][4] - The company operates offices in London, Brussels, and other locations across Europe and Asia, collaborating with international governments, businesses, and organizations to implement transformative projects [3]

Revenue Sources - The company derived approximately 54%, 55%, and 55% of its revenue from federal government contracts in 2024, 2023, and 2022, respectively[97]. - The company also generated around 21% of its revenue from state and local government contracts in each of the years 2024, 2023, and 2022[97]. - Approximately 25% of the company's revenue in 2024 came from commercial clients outside the U.S., consistent with 24% in 2023 and 2022[116]. - In 2024, 46% of the company's total revenue was derived from fixed-price contracts, compared to 45% in both 2023 and 2022[114]. - Approximately 7% of the company's revenue was generated from international operations, with a potential 10% fluctuation in the U.S. dollar affecting revenue by approximately $15.1 million[248]. Risks and Challenges - The company faces risks related to government budgeting and spending priorities, which could lead to delays or cancellations of expected funding, impacting revenue and profit[95]. - Competitive bidding processes for contracts can impose substantial costs and risks, potentially affecting profit margins and revenue[106]. - The company’s backlog is subject to uncertainties, and there is a risk of not receiving the expected revenue, which could adversely affect operating results[109]. - Contracts may contain provisions allowing clients to terminate them at their convenience, which could lead to revenue loss[112]. - Relationships with other contractors are crucial, and disruptions could result in reputational damage and contract terminations[113]. - The company’s revenue from government clients may be affected by changes in spending priorities and budget constraints, leading to potential contract terminations or payment delays[97]. - The company faces potential contract cost overruns due to various factors, which could materially impact business and earnings[115]. - The company has experienced growth in disaster recovery services, which may increase the risk of claims, audits, and investigations[120]. - The company faces risks related to health epidemics and pandemics, which may adversely affect demand for services and global supply chains[149]. Financial Position - Goodwill and purchased intangibles accounted for approximately 60% and 4% of the company's total assets, respectively, as of December 31, 2024[132]. - As of December 31, 2024, the company had an outstanding indebtedness of $411.7 million, maturing on May 6, 2027[134]. - A 1% increase in interest rates would increase interest expense by approximately $4.8 million, impacting annual net income and operating cash flows by a comparable amount[246]. - The company has seven interest rate swap agreements with a total notional amount of $275.0 million to hedge against interest rate changes[246]. - The company may not pay special or regular dividends in the future, as the declaration of dividends is subject to the Board's discretion based on future earnings and cash flows[137]. Operational and Strategic Considerations - The company’s growth strategy includes expanding services to new clients and geographic locations, which may increase operational demands and risks[100]. - The company’s ability to secure future contracts is heavily reliant on maintaining client relationships and professional reputation[103]. - The company may face integration challenges and increased liabilities from strategic acquisitions, which could adversely affect revenue and operating results[130]. - The company has been the target of cyberattacks in the past and anticipates continued threats, necessitating additional resources for cybersecurity[125]. - The company’s reliance on cyclical industries for commercial work may lead to substantial revenue and profit variations[116]. - The company's ability to attract and retain qualified employees is critical, as failure to do so may increase costs and affect service delivery[138]. - Changes in U.S. tax laws could adversely affect the company's financial condition and results of operations[140]. - The company relies on key senior management, and effective succession planning is essential for long-term success[139]. - The company’s charter documents contain provisions that may deter potential acquisition bids, potentially affecting the market price of its common stock[133]. Regulatory and Compliance Issues - The company is subject to various privacy and data protection laws, with potential fines up to 4% of annual worldwide revenue under the GDPR for non-compliance[126]. - The company is exposed to fluctuations in foreign exchange rates, which could impact revenue and profits due to operations in currencies other than the U.S. dollar[247].

ICF International, Inc. (ICFI) reported impressive fourth-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate.See the Zacks Earnings Calendar to stay ahead of market-making news.Quarterly earnings per share of $1.87 beat the Zacks Consensus Estimate by 0.5% and gained 11.3% from the year-ago reported figure. Total revenues of $496.3 million topped the Zacks Consensus Estimate by 0.5% and increased 3.8% year over year.The company’s shares have declined 35.4% in the traili ...