ICF International (ICFI) investor relations material

Executive summary

• Q3 revenue rose 1.1% YoY to $470.497m; operating income increased 13.6% to $43.647m and net income rose 33.5% to $31.733m.

• Adjusted EBITDA margin expanded 10 bps to 11.5%; non-GAAP diluted EPS rose 18.6% to $1.98.

• Awards totaled $746m, backlog was $3.5B and pipeline was $8.2B; management expects broader growth in 2027, subject to budget and utility-spending visibility.

Financial highlights

• Q3 revenue was $470.497m versus $465.405m; commercial revenue rose 1.5% to $158.8m.

• Gross margin expanded 50 bps to 38.1%; Adjusted EBITDA rose to $54.169m from $53.159m, with margin up 10 bps to 11.5%.

• Q3 net income rose to $31.733m from $23.766m; diluted GAAP EPS was $1.76 and non-GAAP diluted EPS was $1.98.

• 9M revenue declined 3.3% to $1,382.492m; operating income was $118.390m and net income was $79.203m.

• Q3 operating cash flow was $35.2m, or $45.5m excluding restricted cash, versus $17.3m on the same adjusted basis; 9M operating cash flow was $131.7m.

Outlook and guidance

• FY26 revenue is expected near $1.87B, similar to FY25, assuming low-to-mid-single-digit commercial energy growth.

• FY26 non-GAAP EPS guidance midpoint remains $7.10; GAAP EPS guidance is $5.95, including $0.11 of YTD special charges.

• FY26 operating cash flow guidance remains $135m-$150m excluding restricted cash; the expected tax rate is ~19%, down from prior guidance of 20.5%.

• Q4 revenue growth is expected across client categories, with commercial energy growth at mid-to-high single digits; utility-program impacts are expected to continue through year-end.

• Growth is expected across federal, commercial, state/local and international categories in 2027; specific FY27 guidance awaits budget and utility-spending visibility.