Icf International Stock Earnings Reports

ICF reported a solid start to 2026 despite a 10.3% year-over-year revenue decline driven primarily by timing shifts on ~$12 million of commercial energy and international work and difficult comparisons from federal contract cancellations in 2025. Federal revenues improved sequentially (+8.6% to $182.3M), international government revenues grew 17% YoY, and commercial energy advisory grew mid-teens on the quarter. Book-to-bill remained healthy (1.21) with $450M in Q1 awards, backlog of $3.4B (51% funded) and a business development pipeline of $8.5B. Margins stayed strong: gross margin 38.1%, adjusted EBITDA margin 11.2% (Q1 adjusted EBITDA $48.9M) with management targeting 10–20 bps of full-year adjusted EBITDA margin expansion. Management reiterated full-year guidance: revenue $1.89B–$1.96B (≈3% growth at midpoint), GAAP EPS $5.95–$6.25, non-GAAP EPS $6.95–$7.25 (≈5% growth at midpoint), and a full-year tax rate of ~20.5% (Q1 tax was elevated at 25.1% due to equity-comp timing). Balance sheet and capital allocation highlights: net debt $436M (down from prior year), adjusted leverage ~2.23x, opportunistic share repurchases (217,500 shares in Q1), dividend maintained ($0.14/share declared), and an increased willingness to pursue disciplined M&A—with emphasis on commercial energy—to accelerate growth. Management sees durable secular tailwinds (energy transition, disaster resilience, federal technology/AI modernization) and expects to return to mid- to high-single-digit organic growth in 2027, with upside from accretive acquisitions.