ICF Achieves Resilient Financial Results in Fourth Quarter and Full Year 2025

ICF Reports Q4 and Full Year Results for 2025

ICF International, a prominent solutions and technology provider, announced its financial results for the fourth quarter and the full year ended December 31, 2025. The company demonstrated significant revenue growth, particularly in its commercial, state, local, and international government sectors, which collectively rose by 16% in Q4 and 14% for the full year. As a result, these segments accounted for a substantial 62% of the total revenue in the fourth quarter.

Fourth Quarter Highlights

In Q4, ICF's total revenue reached $444 million, with a net income of $17 million, leading to a GAAP earnings per share (EPS) of $0.94. Notably, the non-GAAP EPS was reported at $1.47, showcasing robust performance despite earlier market uncertainties. The EBITDA was reported at $43 million, while the adjusted EBITDA amounted to $46 million, constituting 10.4% of the total revenues. The quarterly book-to-bill ratio stood at 0.95, with contract awards totaling $422 million.

Full Year Performance

For the full year 2025, ICF reported total revenue of $1.9 billion, marking a 7.3% decline from the previous year's $2.02 billion. However, the company's net income was $92 million, leading to a GAAP EPS of $4.95 and a non-GAAP EPS of $6.77. Throughout the year, ICF maintained margins similar to those of 2024, with an adjusted EBITDA margin of 11.1%. The growth in higher-margin commercial energy revenues, along with effective cost management, contributed to this stable margin performance.

Resilience Amid Challenges

ICF's results reflect its ability to navigate a challenging federal business environment, particularly following a six-week government shutdown that adversely affected revenues from federal government contracts. Despite this, ICF recorded a notable 23% increase in revenues from commercial energy clients in Q4 and a 24% increase overall for the year, further highlighting the company's strategic focus on energy efficiency and grid management solutions.

The company benefited significantly from projects aimed at enhancing utility clients' energy efficiency, electrification, and load management. Approximately 80% of the revenue from commercial energy clients was attributed to these critical initiatives in 2025, highlighting the importance of providing robust solutions to meet rising electricity demand and enhance grid resilience.

Outlook for 2026

Looking ahead, ICF is confident in its growth prospects, with guidance indicating a return to revenue and earnings growth in 2026. The company expects revenue to range from $1.89 billion to $1.96 billion, reflecting approximately 3% growth compared to the previous year. ICF anticipates achieving a renewed double-digit revenue growth rate from non-federal government clients, who are projected to contribute more than 60% of total revenues in 2026, while also seeing improvement in certain areas of its federal government business.

To bolster investor confidence, ICF repurchased around 564,000 shares of its common stock in 2025. With a solid backlog of $3.4 billion and a business development pipeline of $8.6 billion, the company remains well-poised for continued success.

Conclusion

Through successful execution of existing contracts and continual investment in growth initiatives and emerging technologies, ICF is committed to navigating the complexities of the market and enhancing its service offerings to meet current and future demands effectively. CEO John Wasson confidently expressed optimism for the company’s future, citing ICF's commitment to exceptional client service as critical to achieving anticipated growth.