ICF International Falls Short of Q2 Revenue Estimates, Adjusted EPS Beats Consensus

ICF International reported Q2 revenue of $476.2 million, a 7% YoY decline and a 1% miss of analyst estimates. Non-GAAP profit was $1.66 per share, 5.2% above estimates. The company's backlog reached $3.4 billion, and its market capitalization is $1.52 billion. ICF International provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.

ICF International (NASDAQ: ICFI) has reported its second-quarter 2025 financial results, reflecting a mixed performance amidst evolving market conditions. The company reported total revenue of $476.2 million, a 7% year-over-year (YoY) decline, and a 1% miss of analyst estimates [1].

The quarterly net income was $23.7 million, with a non-GAAP EPS of $1.66 per share, which was 5.2% above analyst estimates. The company's backlog reached $3.4 billion, and its market capitalization stood at $1.52 billion [1].

ICF's commercial energy segment saw robust growth, with revenues increasing by 27.4% YoY, driven by strong demand for energy efficiency programs and grid optimization solutions [1]. The company's government revenue, however, declined due to contract funding curtailments and slower project activity. The federal government revenue was $204.7 million, down 25% from the same period last year [1].

The company's Adjusted EBITDA margin expanded by 20 basis points year-over-year to 11.1%, reflecting the increased mix of higher-margin commercial energy revenues and a 15.5% reduction in subcontractor and other direct costs [1]. ICF also declared a quarterly cash dividend of $0.14 per share, payable on October 10, 2025 [1].

ICF maintains its full-year 2025 guidance framework, with an improved business outlook. The company expects adjusted EBITDA margins to be similar to those of 2024 and reported GAAP and Non-GAAP EPS to be at the higher end of its guidance framework. ICF's diversified business model and agility have enabled it to navigate an evolving federal government business environment while driving strong growth in other areas of its portfolio [1].

References:
[1] https://www.marketscreener.com/news/icf-reports-second-quarter-2025-results-ce7c5fddd08bf223