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ICFI Stock Shows Limited Movement Despite Q1 Earnings Beat

Core Viewpoint - ICF International, Inc. reported strong earnings for Q1 2025, exceeding the Zacks Consensus Estimate, but revenues fell short, leading to minimal market reaction post-earnings release [1]. Financial Performance - Quarterly earnings per share were $1.94, beating the Zacks Consensus Estimate by 11.5% and increasing 9.6% year-over-year [2]. - Total revenues amounted to $487.7 million, slightly missing the Zacks Consensus Estimate and decreasing 1.4% year-over-year [2]. Segmental Revenues - Revenues from government clients rose 12.6% year-over-year to $343.6 million, but fell short of the estimate of $364.7 million [3]. - U.S. state and local government revenues were $76.9 million, representing 15.8% of total revenues, which was below the expected $90.7 million and declined 0.13% year-over-year [3]. - International government revenues reached $27.1 million, accounting for 5.6% of total revenues, lagging behind the anticipated $30.4 million but increasing 7.2% year-over-year [4]. - U.S. federal government revenues were $239.6 million, contributing 49.1% to total revenues, missing the estimate of $243.6 million and decreasing 12.6% year-over-year [4]. - Commercial revenues, which made up 29.5% of total revenues, amounted to $144.1 million, exceeding expectations of $121.8 million and rising 3.1% year-over-year [5]. Operating Performance - Adjusted EBITDA increased by 0.08% year-over-year to $55.2 million, with an adjusted EBITDA margin of 11.3%, up 10 basis points from the previous year [6]. Balance Sheet and Cash Flow - At the end of the quarter, cash and cash equivalents stood at $5.7 billion, up from $5 billion in the previous quarter [7]. - Long-term debt increased to $502 million from $411.7 million in the prior quarter [7]. - The company utilized $33 million in cash from operating activities, with capital expenditures of $3.5 million [7]. Guidance - For Q2 2025, ICFI expects revenues to be similar to Q1 2025 levels [8]. - GAAP EPS for 2025 is projected to be flat to down 10% compared to last year [8]. - Full-year operating cash flow is anticipated to be around $150 million, with capital expenditures expected to be between $26 million and $28 million [8]. - The full-year tax rate is now expected to be approximately 18.5% [8].