ICF Reports First Quarter 2026 Results
Rhea-AI Summary
ICF (NASDAQ: ICFI) reported Q1 2026 results: revenue $437.5M, net income $20.5M, GAAP EPS $1.12 and non-GAAP EPS $1.50. Contract awards were $450M (book-to-bill 1.03). Company reaffirmed 2026 guidance: revenue $1.89B–$1.96B and GAAP EPS $5.95–$6.25.
Management said ~$12M of revenue shifted timing, with half expected in Q2 and the remainder in H2; quarterly dividend of $0.14 declared.
AI-generated analysis. Not financial advice.
Positive
- Reaffirmed 2026 guidance: $1.89B–$1.96B revenue range
- Contract awards $450M in Q1; trailing 12‑month book‑to‑bill 1.21
- Adjusted EBITDA margin maintained at 11.2%
Negative
- Total revenue declined to $437.5M from $487.6M (Q1 2025)
- U.S. federal revenue fell 23.7% year‑over‑year to $182.3M
- GAAP EPS declined to $1.12 from $1.44; Q1 tax rate rose to 25.1%
Key Figures
Market Reality Check
Peers on Argus
ICFI was down 1.27% pre‑release while only one peer in momentum (DGNX) was up 4.83%, indicating stock-specific dynamics rather than a broad consulting-sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4/FY 2025 earnings | Positive | +4.3% | Reported FY 2025 results, 2026 growth guidance, dividend and $3.4B backlog. |
| Oct 30 | Q3 2025 earnings | Positive | -6.1% | Q3 2025 revenue, strong commercial growth, dividend and maintained 2025 guidance. |
| Jul 31 | Q2 2025 earnings | Positive | +5.4% | Q2 2025 results with strong commercial energy growth and solid awards. |
| May 01 | Q1 2025 earnings | Positive | -6.4% | Q1 2025 results showing federal softness but strong commercial energy growth. |
| Feb 27 | Q4/FY 2024 earnings | Positive | -20.7% | Strong 2024 growth driven by commercial energy and a robust award pipeline. |
Earnings releases often show mixed-to-negative price reactions: 3 of the last 5 earnings events with generally positive metrics saw negative next-day moves.
Across recent earnings, ICF has reported revenues in the mid‑$400M range, adjusted EBITDA margins around 11%, and a consistent backlog near $3.4 billion. Prior reports emphasized strong commercial energy growth, diversification away from federal exposure, and steady dividends of $0.14 per share. Management has repeatedly guided to a return to revenue and EPS growth in 2026. Today’s Q1 2026 results and reaffirmed full‑year guidance fit into that ongoing narrative of near‑term pressure with a planned 2026 inflection.
Historical Comparison
Over the last five earnings releases, ICFI’s average next‑day move was -4.68%, showing a tendency toward post‑earnings weakness despite generally constructive updates.
Recent earnings have highlighted resilient margins near 11%, a stable backlog around $3.4B, and a multi‑period storyline centered on absorbing federal softness while targeting a return to revenue and EPS growth in 2026 and beyond.
Market Pulse Summary
This announcement details Q1 2026 revenue of $437.5M, net income of $20.5M, GAAP EPS of $1.12 and adjusted EBITDA of $48.9M with an 11.2% margin. Management reaffirmed 2026 guidance for revenues of $1.89–$1.96B, GAAP EPS of $5.95–$6.25, Non‑GAAP EPS of $6.95–$7.25, and operating cash flow of $135–$150M. A backlog of $3.4B, a $0.14 dividend, and share repurchases of 217,500 shares frame capital allocation and future execution risks to monitor.
Key Terms
ebitda financial
adjusted ebitda financial
book-to-bill ratio financial
backlog financial
AI-generated analysis. Not financial advice.
Reaffirms Full Year Guidance for a Return to Growth in 2026
―First Quarter Revenue Performance Reflects Shift of Approximately
―Revenues From Federal Government Clients Increased
―Delivered Strong Margin Performance―
First Quarter Highlights:
- Revenue Was
$438 Million - Net Income Was
$20.5 Million $1.12 $0.07 - Non-GAAP EPS1 Was
$1.50 $0.09 - EBITDA1 Was
$47.3 Million $48.9 Million 11.2% of Total Revenues - Contract Awards Were
$450 Million
Management Commentary
John Wasson, chair and chief executive officer, said, "We continue to execute effectively across our diversified client set, and we are pleased to report that revenues from federal government clients increased considerably on a sequential basis, in line with our expectations. Additionally, revenues from international government clients increased over
"Our total quarterly revenue performance was
"Gross margin advanced 10 basis points year-on-year, and adjusted EBITDA margin was
"This was a solid quarter of contract awards for ICF. We were awarded
First Quarter Business Highlights in Key Growth Markets
ICF reported
ICF continues to experience strong underlying demand from utility clients for its market-leading energy efficiency, flexible load management, electrification, affordability and grid optimization programs. ICF ended 2025 with a
State and local government revenues were flat year-on-year for the first quarter; we expect mid-single digit growth for the full year. ICF is a recognized leader in the development and implementation of disaster recovery and mitigation programs, which represents approximately
First Quarter 2026 Financial Results
First quarter 2026 total revenue was
Non-GAAP EPS totaled
Backlog and New Business
Total backlog was
Commercial Revenue First Quarter 2026 Highlights
Commercial revenue was
- Commercial revenue accounted for
33.4% of total revenue up from29.6% of total revenue in the 2025 first quarter. - Commercial energy revenue, which includes energy efficiency programs, increased
1.9% and represented87.7% of commercial revenue.
Key Commercial Contracts Awarded in the First Quarter of 2026
Notable commercial awards won in the first quarter of 2026 included:
- A recompete contract with a
Northeastern U.S. utility to implement energy efficiency and demand response programs across its residential portfolio. - A new contract with a
Northeastern U.S. utility to support its FEMA hazard mitigation programs, including technical, financial and program management services. - A contract extension with an
Eastern U.S. utility to provide marketing and customer engagement services supporting its energy efficiency and energy management programs. - A new contract with a
Southwestern U.S. utility to provide residential energy efficiency assessments and related program delivery services. - A recompete subcontract to support a Midwestern
U.S. utility's residential multifamily program. - A contract modification with a
Northeastern U.S. utility to continue serving as its marketing agency of record and supporting its customer programs. - A subcontract modification with a Midwestern
U.S. utility to support its residential retail energy efficiency program. - Two contract modifications with two Mid-Atlantic
U.S. utilities to provide marketing and customer engagement services supporting its energy efficiency programs. - A contract modification with a
Southern U.S. utility to provide program implementation and customer engagement services for its electric technology program.
Government Revenue First Quarter 2026 Highlights
Revenue from government clients was
U.S. federal government revenue was$182.3 million 23.7% compared to the$239.0 million 8.6% above the$167.8 million 41.7% of total revenue, compared to49.0% of total revenue in the first quarter of 2025.U.S. state and local government revenue was$77.0 million $77.1 million 17.6% of total revenue, up from15.8% in the first quarter of 2025.- International government revenue was
$31.8 million 17.5% from the$27.1 million 7.3% of total revenue, compared to5.6% in the first quarter of 2025.
Key Government Contracts Awarded in the First Quarter of 2026
Notable government contract awards won in the first quarter of 2026 included:
- A contract with a value of
$23.0 million - Five contract modifications with a combined value of
$17.1 million U.S. Centers for Medicare and Medicaid Services to continue to provide technology modernization services for its programs. - A new contract with a value of
$14.2 million U.S. federal agency to provide data analytics and analytical support services. - A recompete contract with a ceiling value of
$15.7 million U.S. Department of Labor (DOL) Employment and Training Administration and other DOL agencies. - A recompete contract with a value of
$13.9 million - A new contract with a value of
$8.3 million
Dividend Declaration
On May 7, 2026, ICF declared a quarterly cash dividend of
Summary and Outlook
"ICF exited 2025 as a more diversified, more efficient and more agile company, and we continue to effectively execute our strategy and position the company to capture growth opportunities in our key growth markets, while pursuing new business that aligns with our cross-cutting capabilities in technology, program management and engagement.
"We are pleased to reaffirm our guidance for a return to revenue and EPS growth in 2026, with our revenues expected to range from
"Demonstrating our confidence in ICF's long-term prospects, we repurchased 217,500 shares in the first quarter. As we look to the future, we are well positioned to capture more than our fair share of opportunities in our key growth markets which we expect will enable us to return to mid to high single digit growth in 2027 and continued growth beyond. Underpinning this confidence is the dedication of our professional staff to ICF and our clients, which has long been a growth driver for our company as well as a source of resilience," Mr. Wasson concluded.
1 Non-GAAP EPS, EBITDA and Adjusted EBITDA are non-GAAP measurements. A reconciliation of all non-GAAP measurements to the most applicable GAAP number is set forth below. Special charges are items that were included within our consolidated statements of comprehensive income but are not indicative of ongoing performance and have been presented net of applicable |
About ICF
ICF is a leading global solutions and technology provider. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more at icf.com.
Caution Concerning Forward-looking Statements
Statements that are not historical facts and involve known and unknown risks and uncertainties are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts with
Note on Forward-Looking Non-GAAP Measures
The company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to the variability and difficulty in making accurate forecasts and projections and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures (such as the effect of share-based compensation or the impact of future extraordinary or non-recurring events like acquisitions) is available to the company without unreasonable effort. For the same reasons, the company is unable to estimate the probable significance of the unavailable information. The company provides forward-looking non-GAAP financial measures that it believes will be achievable, but it cannot accurately predict all of the components of the adjusted calculations, and the U.S. GAAP financial measures may be materially different than the non-GAAP financial measures.
Investor Contacts:
Lynn Morgen, ADVISIRY PARTNERS, lynn.morgen@advisiry.com +1.212.750.5800
David Gold, ADVISIRY PARTNERS, david.gold@advisiry.com +1.212.750.5800
Company Information Contact:
Lauren Dyke, ICF, lauren.dyke@ICF.com +1.571.373.5577
ICF International, Inc. and Subsidiaries | ||||
Consolidated Statements of Comprehensive Income | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, | ||||
(in thousands, except per share amounts) | 2026 | 2025 | ||
Revenue | $ 437,500 | $ 487,618 | ||
Direct Costs | 270,637 | 302,542 | ||
Operating costs and expenses: | ||||
Indirect and selling expenses | 118,827 | 131,891 | ||
Depreciation and amortization | 13,180 | 14,795 | ||
Total operating costs and expenses | 132,007 | 146,686 | ||
Operating income | 34,856 | 38,390 | ||
Interest, net | (6,709) | (7,337) | ||
Other expense | (757) | (1,052) | ||
Income before income taxes | 27,390 | 30,001 | ||
Provision for income taxes | 6,868 | 3,150 | ||
Net income | $ 20,522 | $ 26,851 | ||
Earnings per Share: | ||||
Basic | $ 1.12 | $ 1.45 | ||
Diluted | $ 1.12 | $ 1.44 | ||
Weighted-average Shares: | ||||
Basic | 18,242 | 18,506 | ||
Diluted | 18,347 | 18,613 | ||
Cash dividends declared per common share | $ 0.14 | $ 0.14 | ||
Other comprehensive loss, net of tax | (669) | (2,713) | ||
Comprehensive income, net of tax | $ 19,853 | $ 24,138 | ||
ICF International, Inc. and Subsidiaries | ||||
Reconciliation of Non-GAAP financial measures (2) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, | ||||
(in thousands, except per share amounts) | 2026 | 2025 | ||
Reconciliation of EBITDA and Adjusted EBITDA (3) | ||||
Net income | $ 20,522 | $ 26,851 | ||
Interest, net | 6,709 | 7,337 | ||
Provision for income taxes | 6,868 | 3,150 | ||
Depreciation and amortization | 13,180 | 14,795 | ||
EBITDA | 47,279 | 52,133 | ||
Acquisition and divestiture-related expenses (4) | 649 | 259 | ||
Severance and other costs related to staff realignment (5) | — | 2,550 | ||
Charges and adjustments related to facility consolidations and office closures (6) | 972 | 256 | ||
Total Adjustments | 1,621 | 3,065 | ||
Adjusted EBITDA | $ 48,900 | $ 55,198 | ||
Net Income Margin Percent on Revenue (7) | 4.7 % | 5.5 % | ||
EBITDA Margin Percent on Revenue (8) | 10.8 % | 10.7 % | ||
Adjusted EBITDA Margin Percent on Revenue (8) | 11.2 % | 11.3 % | ||
Reconciliation of Non-GAAP Diluted EPS (3) | ||||
$ 1.12 | $ 1.44 | |||
Acquisition and divestiture-related expenses | 0.04 | 0.01 | ||
Severance and other costs related to staff realignment | — | 0.14 | ||
Charges and adjustments related to facility consolidations and office closures | 0.06 | 0.01 | ||
Amortization of intangible assets acquired in business combinations (9) | 0.41 | 0.51 | ||
Income tax effects of the adjustments (10) | (0.13) | (0.17) | ||
Non-GAAP Diluted EPS | $ 1.50 | $ 1.94 | ||
(2) These tables provide reconciliations of Non-GAAP financial measures to the most applicable | ||||
(3) Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted EPS were calculated using numbers as reported in | ||||
(4) These are primarily third-party costs related to potential and/or closed acquisitions and integration of closed acquisitions. | ||||
(5) These costs are due to involuntary employee termination benefits for (i) our officers and (ii) group of employees who have been notified that they will be terminated as part of a business reorganization or exit. | ||||
(6) These charges and adjustments are related to previously exited leased facilities and the closure of certain international offices. | ||||
(7) Net Income Margin Percent on Revenue was calculated by dividing net income by revenue. | ||||
(8) EBITDA Margin Percent and Adjusted EBITDA Margin Percent on Revenue were calculated by dividing the Non-GAAP measure by the corresponding revenue. | ||||
(9) The amortization of intangible assets acquired from business combinations totaled | ||||
(10) Income tax effects were calculated using the effective tax rate, adjusted for certain discrete items, if any, of | ||||
ICF International, Inc. and Subsidiaries | ||||
Consolidated Balance Sheets | ||||
March 31, 2026 | December 31, 2025 | |||
(in thousands, except share amounts) | (Unaudited) | |||
ASSETS | ||||
Cash and cash equivalents | $ 3,883 | $ 5,297 | ||
Restricted cash | 49,357 | 47,984 | ||
Accounts receivable, net | 239,999 | 237,996 | ||
Contract assets | 192,231 | 186,684 | ||
Prepaid expenses and other current assets | 19,920 | 18,390 | ||
Income tax receivable | 19,055 | 18,087 | ||
Total Current Assets | 524,445 | 514,438 | ||
Property and Equipment, net | 55,393 | 58,357 | ||
Goodwill | 1,251,427 | 1,252,207 | ||
Other intangible assets, net | 73,644 | 81,555 | ||
Operating lease - right-of-use assets | 102,844 | 106,274 | ||
Other assets | 45,223 | 37,340 | ||
Total Assets | $ 2,052,976 | $ 2,050,171 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | $ 93,252 | $ 123,524 | ||
Contract liabilities | 44,635 | 43,444 | ||
Lease liabilities - current | 19,652 | 21,491 | ||
Accrued salaries and benefits | 65,694 | 95,578 | ||
Accrued subcontractors and other direct costs | 45,673 | 48,900 | ||
Accrued expenses and other current liabilities | 86,100 | 71,340 | ||
Total Current Liabilities | 355,006 | 404,277 | ||
Debt | 439,184 | 401,355 | ||
Lease liabilities - non-current | 143,466 | 148,493 | ||
Deferred income taxes | 15,375 | 6,837 | ||
Other long-term liabilities | 68,036 | 60,727 | ||
Total Liabilities | 1,021,067 | 1,021,689 | ||
Commitments and Contingencies | ||||
Stockholders' Equity: | ||||
Preferred stock, par value | — | — | ||
Common stock, par value | 24 | 24 | ||
Additional paid-in capital | 470,476 | 465,779 | ||
Retained earnings | 974,042 | 956,077 | ||
Treasury stock, 6,396,094 and 6,130,912 shares at March 31, 2026 and December 31, 2025, respectively | (398,536) | (379,970) | ||
Accumulated other comprehensive loss | (14,097) | (13,428) | ||
Total Stockholders' Equity | 1,031,909 | 1,028,482 | ||
Total Liabilities and Stockholders' Equity | $ 2,052,976 | $ 2,050,171 | ||
ICF International, Inc. and Subsidiaries | ||||
Consolidated Statements of Cash Flows | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, | ||||
(in thousands) | 2026 | 2025 | ||
Cash Flows from Operating Activities | ||||
Net income | $ 20,522 | $ 26,851 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for credit losses | 541 | (92) | ||
Deferred income taxes and unrecognized income tax benefits | 8,166 | (2,594) | ||
Non-cash equity compensation | 4,697 | 4,186 | ||
Depreciation and amortization | 13,180 | 14,795 | ||
Other operating adjustments, net | 839 | 1,435 | ||
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||||
Net contract assets and liabilities | (5,093) | (34,610) | ||
Accounts receivable | (2,846) | 21,340 | ||
Prepaid expenses and other current assets | (1,174) | (1,314) | ||
Operating lease assets and liabilities, net | (2,711) | (1,862) | ||
Accounts payable | (30,122) | (37,674) | ||
Accrued salaries and benefits | (29,754) | (30,465) | ||
Accrued subcontractors and other direct costs | (2,895) | 2,064 | ||
Accrued expenses and other current liabilities | 15,809 | 80 | ||
Income tax receivable and payable | (984) | 5,235 | ||
Other liabilities | 8,683 | (409) | ||
Net Cash Used in Operating Activities | (3,142) | (33,034) | ||
Cash Flows from Investing Activities | ||||
Payments for purchase of property and equipment and capitalized software | (2,830) | (3,452) | ||
Net Cash Used in Investing Activities | (2,830) | (3,452) | ||
Cash Flows from Financing Activities | ||||
Advances from working capital facilities | 307,122 | 512,430 | ||
Payments on working capital facilities | (269,569) | (422,406) | ||
Proceeds from other short-term borrowings | 8,961 | 2,780 | ||
Repayments of other short-term borrowings | (9,808) | (9,172) | ||
Dividends paid | (2,553) | (2,620) | ||
Payments for share repurchases | (18,348) | (39,342) | ||
Other financing, net | (668) | (646) | ||
Net Cash Provided by Financing Activities | 15,137 | 41,024 | ||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | (232) | 737 | ||
Net Change in Cash, Cash Equivalents, and Restricted Cash | 8,933 | 5,275 | ||
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 56,324 | 18,817 | ||
Cash, Cash Equivalents, and Restricted Cash, End of Period | $ 65,257 | $ 24,092 | ||
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid during the period for: | ||||
Interest | $ 5,926 | $ 4,544 | ||
Income taxes, net of refunds | $ 82 | $ 1,095 | ||
ICF International, Inc. and Subsidiaries | ||||
Supplemental Schedule (11) | ||||
Revenue by client market | Three Months Ended | |||
March 31, | ||||
2026 | 2025 | |||
Energy, environment, infrastructure, and disaster recovery | 53 % | 49 % | ||
Health and social programs | 33 % | 35 % | ||
Security and other civilian & commercial | 14 % | 16 % | ||
Total | 100 % | 100 % | ||
Revenue by client type | Three Months Ended | |||
March 31, | ||||
2026 | 2025 | |||
42 % | 49 % | |||
18 % | 16 % | |||
International government | 7 % | 5 % | ||
Total Government | 67 % | 70 % | ||
Commercial | 33 % | 30 % | ||
Total | 100 % | 100 % | ||
Revenue by contract mix | Three Months Ended | |||
March 31, | ||||
2026 | 2025 | |||
Time-and-materials | 44 % | 43 % | ||
Fixed-price | 49 % | 49 % | ||
Cost-based | 7 % | 8 % | ||
Total | 100 % | 100 % | ||
(11) As is shown in the supplemental schedule, we track revenue by key metrics that provide useful information about the nature of our operations. Client market provide insight into the breadth of our expertise. Client type is an indicator of the diversity of our client base. Revenue by contract mix provides insight in terms of the degree of performance risk that we have assumed. |
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SOURCE ICF