Loading...
•
Jun 30, 2025
ICF Q2 2025 Earnings Report
ICF reported second quarter 2025 results, with revenue in line with expectations, led by strong growth in commercial energy and improved margins.
Key Takeaways
ICF's second quarter results were in line with expectations, driven by robust growth in commercial energy revenue and favorable business mix that contributed to margin expansion. Despite a sequential decline in federal government revenue, the company's diversified client base and cost management initiatives helped maintain strong overall performance and cash generation.
Revenue for the second quarter was $476.2 million, with commercial energy revenue increasing by 27.4% year-over-year.
Adjusted EBITDA was $52.9 million, with an Adjusted EBITDA margin of 11.1%, reflecting a 20 basis point expansion year-on-year.
Contract awards reached $621 million, resulting in a strong book-to-bill ratio of 1.30 for the quarter.
The company maintained its full-year 2025 guidance framework, anticipating revenues and earnings to be at the higher end of the previously provided range, and expects a return to revenue and earnings growth in 2026.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
ICF is maintaining its 2025 guidance framework with an improved business outlook, expecting revenues and earnings to be at the higher end of the previously provided range, and anticipates a return to revenue and earnings growth in 2026.
Positive Outlook
- Full year 2025 revenues are not expected to decline by as much as 10% from 2024 levels, which was the original guidance floor.
- Adjusted EBITDA margins are expected to be similar to those of 2024.
- Reported GAAP and Non-GAAP EPS are likely to be at the higher end of the guidance framework.
- Operating cash flow for 2025 is expected to be approximately $150 million.
- Increased confidence in 2025 year-on-year comparisons is underpinned by continued robust demand from commercial energy clients, stable revenues from state and local government clients, and increasing ramp-up of recently won international government contracts.
Challenges Ahead
- The guidance framework does not contemplate an extensive government shutdown this year.
- The guidance framework does not contemplate a prolonged period of pauses in funding modifications to existing contracts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...