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Jun 30, 2023
ICF Q2 2023 Earnings Report
ICF reported strong Q2 2023 results with double-digit revenue and EBITDA growth, driven by key growth markets and strategic acquisitions.
Key Takeaways
ICF reported an 18.2% increase in revenue to $500.1 million for Q2 2023. Net income was $20.3 million, with diluted EPS at $1.07. Non-GAAP EPS increased by 18% to $1.57. The company also saw a 28% year-on-year increase in contract awards and a record business development pipeline of $10.3 billion.
Revenue increased by 18.2% to $500.1 million, with 10% organic growth.
Net income reached $20.3 million, and diluted EPS was $1.07, including M&A and severance charges.
Non-GAAP EPS increased by 18% to $1.57, benefiting from revenue growth and tax optimization.
Contract awards increased by 28% year-on-year, with a record business development pipeline of $10.3 billion.
Revenue by Geographic Location
Forward Guidance
ICF reaffirms its full-year 2023 guidance, expecting total revenue between $1.930 billion and $2.0 billion, with subcontractor and other direct costs around 27% of total revenue. EBITDA is projected to range from $210 million to $220 million, and diluted EPS is estimated at $4.75 to $5.05, exclusive of special charges. Non-GAAP EPS is expected to range from $6.15 to $6.45. Operating cash flow is expected to be approximately $150 million in 2023.
Positive Outlook
- Continued strong first-half revenue performance reflects market alignment.
- Investments in people and technology enabled effective contract execution.
- Sale of Commercial Marketing Group streamlines business.
- Acquisition of CMY aligns with increased demand from commercial energy clients.
- Expects to capture a greater share of future growth opportunities.
Challenges Ahead
- Net impact from the sale of the Commercial Marketing Group and the acquisition of CMY is not expected to have a material effect on the guidance ranges we provided for full-year 2023.
- Subcontractor and other direct costs will be approximately 27% of total revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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