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Sep 30, 2025
ICF Q3 2025 Earnings Report
ICF reported its third quarter 2025 results, highlighting strong growth in commercial, state & local, and international government revenues, alongside margin expansion driven by favorable business mix and cost management.
Key Takeaways
ICF delivered a resilient third quarter in 2025, with total revenue of $465.4 million and GAAP EPS of $1.28. The company achieved significant year-on-year revenue growth from commercial, state & local, and international government clients, particularly in commercial energy. Adjusted EBITDA margin expanded to 11.4%, reflecting effective cost management and a favorable business mix. Contract awards were robust at $714 million, resulting in a book-to-bill ratio of 1.53, despite federal government procurement delays.
Total revenue for Q3 2025 was $465.4 million, a decrease from the prior year, but with strong growth in non-federal segments.
GAAP diluted EPS was $1.28, and Non-GAAP diluted EPS was $1.67, inclusive of a negative tax adjustment.
Adjusted EBITDA reached $53.2 million, with an adjusted EBITDA margin of 11.4% on total revenues, showing a 10 basis point expansion year-over-year.
Contract awards totaled $714 million, leading to a strong book-to-bill ratio of 1.53, indicating future business growth.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
ICF maintains its original guidance framework for 2025 revenues and Non-GAAP EPS, expecting results to be within the previously stated maximum downside risk of a 10% decline from 2024 levels, even with a potential extended government shutdown. The company anticipates a return to revenue and earnings growth in 2026.
Positive Outlook
- Maintains original guidance framework for 2025 revenues and Non-GAAP EPS despite current challenges.
- Expects a return to revenue and earnings growth in 2026.
- Outlook supported by continued growth from non-federal government clients.
- Anticipates improvement from portions of the federal government business.
- Recent contract wins and a robust pipeline of opportunities support future growth.
Challenges Ahead
- Estimates an $8 million reduction in revenues for October due to the government shutdown.
- Estimates a $2.5 million reduction in gross profit for October due to the government shutdown.
- Year-on-year decline in fourth quarter revenues and Non-GAAP EPS expected to be similar to Q3.
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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