ICF Reports Strong Third Quarter 2025 Financial Results

ICF's Third Quarter 2025 Financial Overview

On October 30, 2025, ICF (NASDAQ: ICFI), a premier global solutions and technology provider, announced its financial results for the third quarter ending September 30, 2025. The report highlighted several key metrics indicating a solid performance amidst ongoing challenges in the market, particularly within government contracting.

Key Financial Highlights

- Total Revenue: ICF reported total revenue of $465 million, experiencing a decrease from the $517 million reported in Q3 2024 but displaying a slight increase from $476 million in the previous quarter.
- Net Income: The net income for Q3 stood at $24 million, translating to a GAAP EPS of $1.28, which is a decline from the $1.73 reported in the previous year. Non-GAAP EPS was $1.67, slightly lower than $2.13 in Q3 2024, primarily affected by a negative tax adjustment.
- EBITDA: The company reported an EBITDA of $52.8 million, with an adjusted EBITDA of $53.2 million, maintaining a margin of 11.4%, up from the previous year's 11.3%.

Revenue Breakdown

ICF's performance is characterized by significant growth in revenue derived from commercial clients and government sectors, which collectively accounted for 57% of total revenues. Here’s a breakdown of revenue sources:

- Commercial Revenue: Increased by 20.9% year-on-year, totaling $156.6 million, representing 33.7% of total revenue, up from 25.1% in Q3 2024. The surge in commercial revenue was largely attributed to the energy sector, with commercial energy client revenue increasing by 24%, highlighting ICF’s continued commitment to energy efficiency programs and innovations.
- Government Revenue: Revenue from government clients was $308.8 million. This was impacted by a notable 29.8% decrease in federal government revenue, down to $198 million. This decline is attributed to funding curtailments and delays in new Requests for Proposals (RFPs). In contrast, state and local government revenues exhibited a 3.8% increase, while international clients generated $29 million, representing an 8.2% growth.

Contract Awards and Outlook

During the third quarter, ICF secured $714 million in new contracts, resulting in an impressive quarterly book-to-bill ratio of 1.53. Approximately 50% of these contract awards were new, a positive indicator of market recognition of ICF's capabilities, particularly in IT modernization.
The company continues to anticipate a return to revenue and earnings growth in 2026, bolstered by an extensive business development pipeline valued at $8.4 billion. The recent contracts and a strategic focus on non-federal government clients play a crucial role in paving the way for future growth.

Executive Leadership Changes

In a related announcement, ICF revealed leadership changes to bolster its forward momentum. James Morgan was appointed as the new CFO, succeeding Barry Broadus, who retired after a distinguished 40-year career, while Anne Choate was appointed as president. These shifts are aimed at enhancing ICF’s strategic capabilities in navigating market complexities and driving growth initiatives.

Conclusion

As the company navigates through a dynamic market landscape, the third-quarter results reflect a clear resilience and adaptability in ICF's approach, showcasing its ability to enhance service offerings and pursue growth amidst challenging conditions. Despite some setbacks, ICF remains committed to its strategic objectives, optimistic about future revenue recovery, and focused on maintaining its position as a leader in the solutions and technology sector.

For more information about ICF, visit icf.com.

The figures and performance metrics discussed are based on ICF’s official disclosures from Q3 2025. Please refer to ICF's financial statements for detailed data and information.