ICF International (ICFI) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 revenue was $474.5 million, nearly flat year-over-year, with net income rising 13.9% to $26.9 million and sequential revenue growth of 8.5% from Q1 2026.

• Commercial and international government revenues grew strongly, with commercial up 5.9% and international up 35%, partially offsetting declines in U.S. federal and state/local government revenues.

• Federal government revenues declined 9.5% year-over-year due to prior contract cancellations and slower RFP activity.

• Business development pipeline reached $9.3 billion, up 9% sequentially, with over $200 million in new contract awards since quarter-end.

• Diversification across client categories (commercial, state/local, international) now represents 61% of revenues, enhancing resilience and growth opportunities.

Financial highlights

• Total Q2 revenue was $474.5 million, nearly flat with $476.2 million in Q2 2025; net income was $26.9 million ($1.49 per diluted share), up from $23.7 million ($1.28) last year.

• Adjusted EBITDA was $53.4 million (11.2% margin), up 0.9% year-over-year; gross margin held steady at 37.2%.

• Operating income was $39.9 million, with an operating margin of 8.4%.

• Operating cash flow was $99.7 million (including restricted cash), or $56.7 million core cash, both up year-over-year.

• Six-month revenue declined 5.4% year-over-year to $912.0 million, with net income down 6.0% to $47.5 million.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $1.89–$1.96 billion; GAAP EPS $5.95–$6.25, non-GAAP EPS $6.95–$7.25.

• Sequential revenue growth expected in Q3 and Q4, with acceleration in Q4 and a return to year-over-year growth in federal revenues in Q4.

• Full-year operating cash flow expected at $135–$150 million (excluding restricted cash); tax rate ~20.5%.

• More than 90% of required 2026 revenues already in backlog.

• 2027 outlook targets mid-to-high single-digit growth, with non-federal segments expected to deliver high single to low double-digit growth.