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.