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- **Non-Federal Growth**: 13.8% YoY rise in commercial/state/local/international revenues, offsetting 29.8% federal decline.
- **Energy Dominance**: Commercial energy up 24%, now 30% of total revenue, with grid modernization and renewables driving demand.
- **Shutdown Impact**: Q4 revenue down ~10% YoY, $25M/month loss from federal shutdown, but 80% of work unaffected.
- **Leadership Shift**: CFO transition to COO, with focus on 2026 growth via M&A and organic expansion.
- **Profit Resilience**: 11.4% EBITDA margin maintained despite federal headwinds; $66.2M year-to-date cash flow.

**【CEO Opening Remarks】**
- **Resilient Q3 Performance**: Revenues of $465.4M, with 13.8% YoY growth in non-federal clients (commercial, state/local, international). Federal revenues declined 29.8% YoY due to shutdown and cancellations.
- **Commercial Energy Growth**: 24% YoY increase, driven by utility programs, grid resilience, and renewable development. Energy business now 30% of total revenues.
- **Federal Challenges**: $117M revenue impact from cancellations, with $8M/month loss during shutdown. IT modernization work continues, but public health/HHS projects halted.
- **Leadership Transition**: CFO Barry Broadus retiring; COO James Morgan becomes interim CFO, EVP Anne Choate to lead operations in 2026.

**【CFO Financial Review】**
- **Revenue Mix**: 57% non-federal (vs. 46% last year), 37.6% gross margin (up 50bps). Fixed-price contracts 93% of revenue, reducing risk.
- **Margins & Costs**: Adjusted EBITDA 11.4%, up 10bps. Indirect costs down 7.9% due to cost control. Tax rate 22.7% (one-time adjustment).
- **Q4 Guidance**: Revenue down ~10% YoY, EPS $1.28 (non-GAAP $1.67). Shutdown to reduce Q4 revenue by $25M, gross profit $7.5M.
- **Liquidity**: $449M debt, 2.13x leverage. $66.2M year-to-date cash flow, $125-150M full-year target.

**【Q&A Highlights】**
- **Shutdown Impact**: Federal revenues to decline >3Q levels; $25M/Q4 revenue loss. Work halted in public health, but IT modernization continues.
- **Commercial Energy Outlook**: Double-digit growth expected in 2026, driven by grid modernization and renewables (private sector). DOE contracts unaffected.
- **M&A Strategy**: Focus on energy, infrastructure, and state/local opportunities. $40M+ cash savings from tax changes to support acquisitions.
- **Leadership Transition**: James Morgan to combine COO/CFO roles; Anne Choate to drive business development. No immediate M&A, but pipeline active.


ICF International, Inc. (ICFI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ICFI

ICFI fundamentals

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