ICF Reports Third Quarter 2026 Results

Margin improvement and a lower share count supported an unchanged non-GAAP earnings guidance midpoint despite a lower revenue outlook.

Rhea-AI Summary

ICF (NASDAQ: ICFI) returned to year-over-year revenue growth in the third quarter of 2026, with revenue reaching $470 million. Revenue rose 1.1% to $470.5 million. Net income increased to $31.7 million from $23.8 million, and GAAP diluted EPS rose to $1.76 from $1.28. Adjusted EBITDA margin reached 11.5%, versus 11.4% a year earlier.

Contract awards increased 4.5% to $746 million; backlog totaled $3.5 billion. Federal revenue rose 3.4% sequentially but fell 3.5% year over year. Commercial energy revenue fell below company expectations amid weaker contract additions and slower new-contract ramp-ups. ICF expects full-year revenue similar to 2025 levels and maintained its $7.10 non-GAAP EPS guidance midpoint, representing 4.9% growth. It expects approximately $5.95 GAAP EPS, including $0.11 of special charges, and operating cash flow of $135 million–$150 million, excluding restricted cash.

29 points · 0 major

PositiveiHow this balance works

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1 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased 1.1% year over year to $470.5 million.
• Moderate pointNet income rose to $31.7 million from $23.8 million; diluted EPS increased to $1.76 from $1.28.
• Moderate pointNon-GAAP EPS increased 18.6% to $1.98, benefiting from a lower tax rate and share count.
• Moderate pointOperating income increased 13.6% to $43.6 million; operating margin expanded to 9.3% from 8.3%.
• Moderate pointContract awards increased 4.5% to $746 million; over 60% represented new business.
• Moderate pointBacklog totaled $3.5 billion, including $1.8 billion funded; the business development pipeline stood at $8.2 billion.
• Moderate pointCommercial revenue increased 1.5% year over year to $158.8 million.
• Moderate pointEnergy advisory revenue increased 14.1% in the quarter and 10.5% year to date.
• Moderate pointState and local government revenue increased 7.6% year over year to $87.9 million.
• Moderate pointInternational government revenue increased 12.0% year over year to $32.5 million.
• Moderate pointNine-month operating cash flow excluding restricted cash increased to $88.7 million from $30.2 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 non-GAAP EPS guidance midpoint remained $7.10, representing expected 4.9% year-over-year growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 operating cash flow is expected at $135 million to $150 million, excluding restricted cash.
• Moderate point$77.8 million federal health recompete secured childcare program technical assistance and training work. 4.5% of market cap
• Moderate pointTwo Los Angeles County work orders carry a combined ceiling value of $70.9 million for energy efficiency programs. 4.1% of market cap
• Moderate pointTwo federal national security contracts total $55.9 million for personnel security technology modernization. 3.2% of market cap

13 minor points

• Minor pointGross margin increased 50 basis points year over year to 38.1%.
• Minor pointEBITDA increased to $53.6 million from $52.8 million a year earlier.
• Minor pointAdjusted EBITDA reached $54.2 million; margin increased to 11.5% from 11.4%.
• Minor pointTrailing twelve-month awards totaled $2.0 billion, with a 1.11 ratio of awards to revenue.
• Minor pointQuarterly operating cash flow excluding restricted cash increased to $45.5 million from $17.3 million.
• Minor pointThree federal health contracts total $36.4 million for communications, marketing and planning services.
• Minor point$36.3 million new federal contract covers survey modernization using digital collection and AI-assisted tools.
• Minor point$22.6 million federal health recompete supports training and technical assistance for early childhood programs.
• Minor point$17.3 million new federal public safety contract covers call center and case management modernization.
• Minor point$17.1 million new federal law enforcement contract covers human resources case management and hiring modernization.
• Minor pointFederal environmental recompete has a $27.6 million ceiling for laboratory, sampling and quality assurance services.
• Minor point$15.4 million federal health and human services recompete supports auditing and technical assistance for care facilities.
• Minor pointCommercial utility awards included new engineering, customer engagement and virtual power plant contracts.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue outlook was lowered; ICF now expects revenue similar to 2025 levels.
• Moderate pointFederal revenue fell 3.5% year over year to $191.3 million, despite increasing 3.4% sequentially.
• Moderate pointCommercial energy revenue fell below company expectations amid weaker contract additions and slower new-contract ramp-ups.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 GAAP EPS outlook of approximately $5.95 includes $0.11 of special charges.
• Minor pointFederal revenue comparisons were affected by 2025 contract cancellations and a slower pace of new proposal requests.

2 minor points

• Minor pointOther commercial energy revenue declined year over year following the wind-down of several wind energy projects.
• Minor point. Forward-looking: it has not happened yet and may not happen.Disaster recovery activity faced near-term constraints from funding delays and a slower pace of major events.

News Explained

ICF declared a quarterly cash dividend of $0.14 per share, payable January 8, 2027, to shareholders of record December 4, 2026, establishing a per-share cash distribution for holders who meet that record-date condition.

Key Figures

Revenue: $470.5 million, up 1.1% GAAP diluted EPS: $1.76 Non-GAAP EPS: $1.98, up 18.6% +5 more

Revenue

$470.5 million, up 1.1%

Third quarter 2026 vs. third quarter 2025

GAAP diluted EPS

$1.76

Third quarter 2026; compared with $1.28 in the prior-year quarter

Non-GAAP EPS

$1.98, up 18.6%

Third quarter 2026

Adjusted EBITDA margin

11.5%, up 10 basis points year-on-year

Third quarter 2026

Contract awards

$746 million, up 4.5%

Third quarter 2026 year-on-year

Quarterly book-to-bill ratio

1.59

Third quarter 2026

2026 non-GAAP EPS guidance midpoint

$7.10, maintained

Company cited 4.9% year-on-year growth

Operating cash flow guidance

$135 million to $150 million

Full year 2026, excluding restricted cash

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Q2 2026 earnings

   24h Move

   +11.4%

   Revenue was $474.5 million, adjusted EBITDA margin was 11.2%, and 2026 guidance was reaffirmed.

2. Oct 30

   Q3 2025 earnings

   24h Move

   -6.1%

   Revenue was $465.4 million, adjusted EBITDA margin was 11.4%, and awards totaled $714 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap EPS, book-to-bill ratio, fixed-price contracts, demand response, +1 more

5 terms

non-gaap EPS financial

"Non-GAAP EPS increased 18.6% to $1.98 per share"

Non-GAAP EPS is a measure of a company's profit per share that excludes certain expenses or income items that are included in standard accounting reports. It is used by investors to get a clearer picture of the company's core performance, much like removing one-time costs from a personal budget to see regular spending habits. This adjusted figure helps investors compare companies more consistently and understand their ongoing profitability.

book-to-bill ratio financial

"a quarterly book-to-bill ratio of 1.59"

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

fixed-price contracts technical

"Fixed-price contracts accounted for 50.2% of our third quarter revenues"

Fixed-price contracts are agreements where a seller or service provider commits to deliver a defined product or service for a set total price, regardless of the actual costs incurred while performing the work. They matter to investors because they create more predictable revenue and clear margin exposure—like agreeing to pay a fixed bill for a meal even if ingredient costs rise—which affects earnings stability, cash flow forecasting, and the company's cost risk.

demand response technical

"including audits/weatherization, demand response and virtual power plants"

Demand response is a program or market mechanism where electricity users are paid or incentivized to reduce or shift their power use when the grid is stressed or prices are high, similar to turning down nonessential appliances during a heat wave to ease a traffic jam. It matters to investors because it can lower peak energy costs, affect utility revenues and market prices, and create opportunities for companies that provide the software, equipment, or services that enable those load changes.

virtual power plants technical

"including audits/weatherization, demand response and virtual power plants"

A virtual power plant is a coordinated network of many small energy sources — like rooftop solar panels, batteries, and flexible demand — that are pooled and controlled to act like a single power plant. Investors care because it creates new revenue and cost-saving opportunities by selling power and grid services, improving reliability and smoothing demand; think of it as combining many backyard generators to behave like a utility-scale asset that can be monetized and scaled.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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―Third Quarter Marks Return to Year-on-Year Revenue Growth―

―Revenue from Federal Government Clients Increased 3.4% Sequentially―

―Margin Expansion Benefited from Efficient Contract Delivery and Favorable Contract Mix―

―Maintains 2026 Non-GAAP EPS Guidance Midpoint on Lower Revenue―

Third Quarter Highlights: 

• Revenue Increased 1% to $470 Million
• Net Income Was $32 Million; GAAP EPS Was $1.76
• Non-GAAP EPS¹ Increased 19% to $1.98
• EBITDA¹ Was $53.6 Million; Adjusted EBITDA¹ Was $54.2 Million, or 11.5% of Total Revenues
• Contract Awards Were $746 Million, 4.5% Ahead of Last Year and Representing a Quarterly Book-to-Bill Ratio of 1.59 and a TTM Book-to-Bill Ratio of 1.11

RESTON, Va., Nov. 5, 2026 /PRNewswire/ -- ICF (NASDAQ: ICFI), a global consulting and technology services provider, reported results for the third quarter ended September 30, 2026.

Management Commentary

John Wasson, chair and chief executive officer, said, "Our third quarter performance demonstrated the return to year-on-year revenue growth that we anticipated would begin in the second half of this year and benefited from our diversified and integrated business model. Revenues from our federal government clients continued to show solid sequential growth in line with our expectations, and revenues from state and local and non-U.S. government clients increased 7.6% and 12.0% year-on-year, respectively.

"A key highlight of the third quarter was our strong margin performance, benefiting from efficient contract delivery and favorable contract mix. Our Adjusted EBITDA margin was 11.5%, expanding by 10 basis points year-on-year and representing a notable sequential increase. Fixed-price contracts accounted for 50.2% of our third quarter revenues, up from 48.7% in the similar period last year, and together with time & material contracts represented 94.3% of this quarter's revenues. We are closely managing corporate costs, while continuing to invest in technology and professional staff to support client programs and capture new business opportunities.

"Third quarter revenues from commercial energy clients were considerably below our expectations due to a confluence of factors, most notably a sharp fall-off in contract add-on activity that historically has bolstered second half revenues in our utility programs category. There was a material increase in political and regulatory pressure on utilities in Q3 to develop affordable solutions for their customers, which has caused a slowdown and/or shift in incremental spending priorities for certain existing utility programs. Also, we experienced slower than expected ramp-ups on new contracts. As a result, ICF's revenues from commercial energy clients are expected to increase at a low- to mid-single-digit rate for 2026. We continue to see commercial energy as a long-term growth driver for ICF. Our year-to-date contract awards have been strong, our win rates are increasing, and we are building a meaningful pipeline in areas where we see utility spending expanding, including audits/weatherization, demand response and virtual power plants.

"This also was a strong quarter for companywide contract awards, which increased 4.5% year-on-year to $746 million. Over 60% of our third quarter awards represented new business, a good indication of how well ICF's capabilities and expertise are aligned with our clients' priorities. Following this solid performance, our business development pipeline stood at $8.2 billion at the end of the third quarter and was well diversified across our client set."

Third Quarter Business Highlights in Key Long-Term Growth Markets

Commercial Energy

ICF manages over 300 energy efficiency programs for 60 utilities in 28 states. Revenues from this part of the company's commercial energy business were similar to last year's levels due to the near-term challenges described above. We continue to see positive underlying momentum supported by year-to-date contract wins and client demand for our expertise as they address affordability issues together with operational imperatives around electrification and data center requirements. Energy advisory revenues increased 14.1% in the quarter and 10.5% year-to-date, with particular strength in our work on grid engineering and planning, transmission and interconnection, integrated power and gas planning, resource adequacy, technical due diligence, and storage. Additionally, our work with hyperscalers is expanding, and we are advising on a broader set of issues created by the scale of data center development, including energy efficiency, community impacts, power supply and reliability. As anticipated, other commercial energy comparisons declined year-on-year due to the wind-down of several wind energy projects through last year's third quarter.

Commercial energy awards represented approximately 26% of year-to-date contract awards, and commercial energy opportunities represent more than $1.6 billion of our pipeline at the end of the third quarter.

ICF's energy work includes programs for federal and state agencies that provide us with greater insight into the regulatory and stakeholder environment, which strengthens our ability to meet and often exceed the milestones of our commercial energy contracts.

Technology Modernization

ICF has built out its technology modernization capabilities over the last six years, which in the third quarter represented approximately 50% of our revenues from federal government clients. Over 80% of ICF's technology modernization work is performed under outcome-based, fixed-price contracts, the preferred contract vehicles for government technology projects. Additionally, we continue to align our federal portfolio around administration priorities, with increased focus on expanding our footprint in the defense and national security arena, while building our brand in government-wide application modernization.

While primarily serving federal agency clients, our technology modernization capabilities are deployed across the company's client categories. Technology modernization opportunities represented approximately $2.4 billion of our pipeline at the end of the third quarter.

State and Local Government/Disaster Recovery

The 7.6% revenue growth from state and local government clients in the third quarter illustrates ICF's ability to leverage its deep domain expertise and robust technology capabilities across its client sets. Several of the projects driving growth in this client category include developing and managing energy efficiency programs in the Northeast and California, providing advanced technology solutions to several states and territories, and offering our rural health services.

During the quarter, ICF supported more than 50 active disaster recovery programs in more than 20 states and territories. While we view the disaster management market as a driver of long-term growth, funding delays and the slower pace of major events have constrained near-term activity in this arena. ICF continues to execute substantial rebuilding and mitigation projects utilizing our environmental and climate expertise, and we are helping our clients prepare to take on a larger role in rebuilding and resilience, having significantly increased our on-call contracts with state and local governments. State and local government opportunities represented approximately $1.1 billion of the total pipeline at the end of the third quarter.

Third Quarter 2026 Financial Results

Third quarter 2026 total revenue was $470.5 million, up 1.1% from the $465.4 million reported in the third quarter of 2025. Subcontractor and other direct costs were 23.6% of total revenues, compared to 24.2% in last year's third quarter. Gross margin was 38.1%, 50 basis points above the prior year period. Operating income was $43.6 million, up 13.6% from $38.4 million, and operating margin expanded by 100 basis points to 9.3% from 8.3% in the prior year period. Net income totaled $31.7 million, or $1.76 per diluted share, up from net income of $23.8 million, or $1.28 per share reported in the third quarter of 2025, benefiting from a tax rate of 15.0% and a lower share count. In the prior year quarter, the company's tax rate was 22.7%.

Non-GAAP EPS increased 18.6% to $1.98 per share, benefiting from the lower tax rate and share count mentioned above. EBITDA was $53.6 million, up from $52.8 million reported in the year-ago quarter. Adjusted EBITDA was $54.2 million, and Adjusted EBITDA margin on total revenues was 11.5%, compared to 11.4% in the third quarter of 2025.

Cash flows from operations were $35.2 million in this year's third quarter. Excluding restricted cash mainly tied to energy efficiency programs, which fluctuates with the timing of incentive payments to utility customers, operating cash flow was $45.5 million, up from $17.3 million reported in the comparable prior year period. For the first nine months of 2026, cash flows from operations were $131.7 million. Excluding restricted cash, year-to-date operating cash flows were $88.7 million, up from $30.2 million in the first nine months of 2025, on a similarly adjusted basis.

Backlog and New Business

Total backlog was $3.5 billion at the end of the third quarter of 2026. Funded backlog was $1.8 billion, or approximately 52% of the total backlog. The total value of contracts awarded in the 2026 third quarter was $746 million for a quarterly book-to-bill ratio of 1.59 and trailing twelve-month contract awards totaled $2.0 billion for a book-to-bill ratio of 1.11.

Commercial Revenue Third Quarter 2026 Highlights

Commercial revenue was $158.8 million during the quarter, up 1.5% year-over-year.

• Commercial revenue accounted for 33.8% of total revenue, similar to 33.6% of total revenue in the 2025 third quarter.
• Commercial energy revenues represented 88.6% of commercial revenue.

Key Commercial Contracts Awarded in the Third Quarter of 2026

Notable commercial contract awards won in the third quarter of 2026 included:

• A contract modification with a Canadian electricity system organization to continue implementing a North American midstream lighting program to expand adoption of energy-efficient technologies by commercial and industrial customers.
• A new contract with a Mid-Atlantic U.S. electric utility to provide detailed engineering for transmission infrastructure.
• A new contract with a Mid-Atlantic U.S. utility to provide marketing and customer engagement services supporting its energy efficiency and energy management programs.
• A recompete contract with a Mid-Atlantic U.S. utility to provide ICF Sightline technology supporting its energy efficiency programs.
• A new contract with a Mid-Atlantic U.S. utility to provide marketing and customer engagement services supporting its customer programs.
• A new contract with a Northeastern U.S. utility to support its virtual power plant and battery energy storage program.

Government Revenue Third Quarter 2026 Highlights

Revenue from government clients was $311.7 million during the quarter.

• U.S. federal government revenue was $191.3 million, 3.4% above the $185.1 million in the second quarter of 2026, and 3.5% below the $198.3 million reported in the year-ago third quarter. Year-on-year revenue comparisons were impacted by contract cancellations that occurred in 2025, and a slower pace of new RFPs. Federal government revenue accounted for 40.7% of total revenue, compared to 42.6% of total revenue in the third quarter of 2025.
• U.S. state and local government revenue was $87.9 million, 7.6% above the $81.7 million reported in the year-ago quarter. State and local government clients represented 18.7% of total revenue, compared to 17.6% in the third quarter of 2025.
• International government revenue was $32.5 million, up 12.0% from the $29.0 million reported in the year-ago quarter. International government revenue represented 6.9% of total revenue, compared to 6.2% in the third quarter of 2025.

Key Government Contracts Awarded in the Third Quarter of 2026

Notable government contract awards won in the third quarter of 2026 included:

• A recompete contract with a value of $77.8 million with a federal health agency to provide technical assistance, training and capacity-building services to support the effective administration and delivery of state and territory childcare programs.
• Two new, multiyear work orders under the County of Los Angeles Energy Support Services Master Agreement with a combined ceiling value of $70.9 million to serve as one of three implementers supporting the Southern California Regional Energy Network's public sector energy efficiency programs.
• Two new contracts with a combined value of $55.9 million with a federal national security agency to modernize technology systems supporting personnel security and vetting operations.
• Three contracts, one new and two recompetes, with a combined value of $36.4 million with a federal health agency to provide communications, marketing and strategic planning for nutrition and physical activity; prostate cancer awareness; and diabetes health education and support.
• A new contract with a value of $36.3 million with a federal agency to modernize a survey instrument by transitioning to digital collection, dashboards and AI-assisted tools while maintaining data security and statistical integrity.
• A recompete contract with a value of $22.6 million with a federal health agency to provide training and technical assistance to strengthen the delivery and effectiveness of early childhood programs serving children and families.
• A new contract with a value of $17.3 million with a federal public safety agency to modernize call center and case management technologies through platform-as-a-service solutions that enhance customer service and mission operations.
• A new contract with a value of $17.1 million with a federal law enforcement agency to modernize its human resources case management and hiring systems.
• A recompete contract with a ceiling value of $27.6 million with a federal environmental agency to provide laboratory, field sampling, data validation and quality assurance services.
• A recompete contract with a value of $15.4 million with a federal health and human services agency to provide compliance auditing, quality assurance and technical assistance services supporting federally funded care facilities.

Dividend Declaration

On November 5, 2026, ICF declared a quarterly cash dividend of $0.14 per share, payable on January 8, 2027, to shareholders of record on December 4, 2026.

Summary and Outlook

"ICF is on the path to second half year-on-year revenue growth, and we see positive momentum as we head into 2027. The adjusted EBITDA margin expansion we achieved in the third quarter was notable, our new contract awards were strong, and our business development pipeline is robust, all indications of the underlying strength of our business and effective cost management. Additionally, given ICF's diversified portfolio, we see the midterm election results as a tailwind for our business.

"For full year 2026, we are expecting revenues to be similar to 2025 levels, with GAAP EPS of approximately $5.95, inclusive of $.11 of special charges. We are maintaining the midpoint of our Non-GAAP EPS guidance range of $7.10, representing 4.9% year-on-year growth and benefiting from improved margins, a lower interest rate and reduced share count. Operating cash flow is expected to range from $135 million to $150 million, excluding the impact of restricted cash.

"We continue to benefit from the energy of our people, who have shown tremendous dedication and commitment to our clients and embody the strong corporate culture that ICF is known for," 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 U.S. GAAP taxes. The presentation of non-GAAP measurements may not be comparable to other similarly titled measures used by other companies.

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, as amended. 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 dependence on contracts with U.S. federal, state and local, and international government clients for the majority of our revenue; failure by Congress or other governmental bodies to approve budgets and appropriations in a timely fashion, reductions in government spending, and the impact of a lengthy federal government shutdown; the current Administration's policy changes, executive orders, and failure to spend Congressionally mandated appropriations, including the resulting effect on government audits and contract terminations; changes in federal government budgeting and spending priorities; our ability to estimate and control costs under our fixed-price contracts; the realization of our backlog; the dependence of our commercial work on sectors of the global economy that are highly cyclical; and our ability to acquire and successfully integrate businesses. These and other factors that could cause our actual results to differ materially from those indicated in our forward-looking statements are described in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025, and in our subsequent filings with the Securities and Exchange Commission. The forward-looking statements included herein are made only as of the date hereof, and we specifically disclaim any obligation to update these statements in the future.

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				Nine Months Ended
		September 30,				September 30,
(in thousands, except per share amounts)		2026		2025		2026		2025
Revenue		$                    470,497		$                 465,405		$              1,382,492		$               1,429,178
Direct Costs		291,310		290,545		859,803		891,512
Operating costs and expenses:
Indirect and selling expenses		125,632		122,261		367,787		377,169
Depreciation and amortization		9,908		14,168		36,512		43,665
Total operating costs and expenses		135,540		136,429		404,299		420,834
Operating income		43,647		38,431		118,390		116,832
Interest, net		(6,372)		(7,861)		(19,846)		(23,620)
Other income (expense)		58		176		(1,041)		(2,515)
Income before income taxes		37,333		30,746		97,503		90,697
Provision for income taxes		5,600		6,980		18,300		16,419
Net income		$                     31,733		$                   23,766		$                  79,203		$                    74,278
Earnings per Share:
Basic		$                         1.77		$                       1.29		$                      4.38		$                        4.03
Diluted		$                         1.76		$                       1.28		$                      4.36		$                        4.01
Weighted-average Shares:
Basic		17,939		18,432		18,063		18,447
Diluted		18,055		18,526		18,174		18,542
Cash dividends declared per common share		$                         0.14		$                       0.14		$                      0.42		$                        0.42
Other comprehensive income (loss), net of tax		3,299		(1,733)		3,908		1,712
Comprehensive income, net of tax		$                     35,032		$                   22,033		$                  83,111		$                    75,990

 

ICF International, Inc. and Subsidiaries
Reconciliation of Non-GAAP financial measures (2)
(Unaudited)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(in thousands, except per share amounts)		2026		2025		2026		2025
Reconciliation of  EBITDA and Adjusted EBITDA (3)
Net income		$                  31,733		$                  23,766		$                79,203		$                74,278
Interest, net		6,372		7,861		19,846		23,620
Provision for income taxes		5,600		6,980		18,300		16,419
Depreciation and amortization		9,908		14,168		36,512		43,665
EBITDA		53,613		52,775		153,861		157,982
Acquisition and divestiture-related expenses (4)		290		25		984		479
Severance and other costs related to staff realignment (5)		255		359		614		2,909
Charges and adjustments related to facility consolidations and office closures (6)		11		—		983		(138)
Total Adjustments		556		384		2,581		3,250
Adjusted EBITDA		$                  54,169		$                  53,159		$              156,442		$              161,232
Net Income Margin Percent on Revenue (7)		6.7 %		5.1 %		5.7 %		5.2 %
EBITDA Margin Percent on Revenue (8)		11.4 %		11.3 %		11.1 %		11.1 %
Adjusted EBITDA Margin Percent on Revenue (8)		11.5 %		11.4 %		11.3 %		11.3 %
Reconciliation of Non-GAAP Diluted EPS (3)
U.S. GAAP Diluted EPS		$                      1.76		$                      1.28		$                    4.36		$                    4.01
Acquisition and divestiture-related expenses		0.02		—		0.05		0.02
Severance and other costs related to staff realignment		0.01		0.02		0.02		0.16
Charges and adjustments related to facility consolidations and office closures		—		—		0.06		(0.01)
Amortization of intangible assets acquired in business combinations (9)		0.23		0.49		1.07		1.50
Income tax effects of the adjustments (10)		(0.04)		(0.12)		(0.22)		(0.38)
Non-GAAP Diluted EPS		$                      1.98		$                      1.67		$                    5.34		$                    5.30

(2) These tables provide reconciliations of Non-GAAP financial measures to the most applicable U.S. GAAP numbers. While we believe that these Non-GAAP financial measures may be useful in evaluating our financial information, they should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with U.S. GAAP. Other companies may define similarly titled Non-GAAP measures differently and, accordingly, care should be exercised in understanding how we define these measures.
(3) Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted EPS were calculated using numbers as reported in U.S. GAAP.
(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) a 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 $4.2 million and $9.2 million for the three months ended September 30, 2026 and 2025, respectively, and $19.4 million and $27.9 million for the nine months ended September 30, 2026 and 2025, respectively.
(10) Income tax effects were calculated using the effective tax rate, adjusted for certain discrete items, if any, of 15.0% and 22.7% for the three months ended September 30, 2026 and 2025, respectively, and 18.8% and 23.0% for the nine months ended September 30, 2026 and 2025, respectively.

 

ICF International, Inc. and Subsidiaries
Consolidated Balance Sheets
		September 30, 2026		December 31, 2025
(in thousands, except share amounts)		(Unaudited)
ASSETS
Cash and cash equivalents		$                       5,138		$                      5,297
Restricted cash		89,955		47,984
Accounts receivable, net		229,810		237,996
Contract assets		213,384		186,684
Prepaid expenses and other current assets		28,273		18,390
Income tax receivable		20,656		18,087
Total Current Assets		587,216		514,438
Property and equipment, net		52,057		58,357
Goodwill		1,251,534		1,252,207
Other intangible assets, net		65,329		81,555
Operating lease - right-of-use assets		98,489		106,274
Other assets		47,257		37,340
Total Assets		$                 2,101,882		$               2,050,171
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable		$                      90,814		$                  123,524
Contract liabilities		39,361		43,444
Lease liabilities - current		18,137		21,491
Accrued salaries and benefits		88,629		95,578
Accrued subcontractors and other direct costs		59,659		48,900
Accrued expenses and other current liabilities		121,879		71,340
Total Current Liabilities		418,479		404,277
Debt		372,122		401,355
Lease liabilities - non-current		136,097		148,493
Deferred income taxes		29,928		6,837
Other long-term liabilities		58,874		60,727
Total Liabilities		1,015,500		1,021,689
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, par value $.001; 5,000,000 shares authorized; none issued		—		—
Common stock, par value $.001; 70,000,000 shares authorized; 24,560,674 and 24,378,749 shares issued at September 30, 2026 and December 31, 2025, respectively; 17,942,455 and 18,247,837 shares outstanding at September 30, 2026 and December 31, 2025, respectively		25		24
Additional paid-in capital		481,249		465,779
Retained earnings		1,027,716		956,077
Treasury stock, 6,618,219 and 6,130,912 shares at September 30, 2026 and December 31, 2025, respectively		(413,088)		(379,970)
Accumulated other comprehensive loss		(9,520)		(13,428)
Total Stockholders' Equity		1,086,382		1,028,482
Total Liabilities and Stockholders' Equity		$                 2,101,882		$               2,050,171

 

ICF International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
		Nine Months Ended
		September 30,
(in thousands)		2026		2025
Cash Flows from Operating Activities
Net income		$                         79,203		$                         74,278
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) credit losses		458		(305)
Deferred income taxes and unrecognized income tax benefits		18,882		20,186
Non-cash equity compensation		13,314		12,915
Depreciation and amortization		36,512		43,665
Other operating adjustments, net		1,932		3,837
Changes in operating assets and liabilities, net of the effects of acquisitions:
Net contract assets and liabilities		(32,368)		(22,676)
Accounts receivable		7,334		26,829
Prepaid expenses and other current assets		(7,996)		(2,470)
Operating lease assets and liabilities, net		(6,197)		(6,774)
Accounts payable		(32,460)		(21,099)
Accrued salaries and benefits		(6,773)		(22,143)
Accrued subcontractors and other direct costs		11,405		(25)
Accrued expenses and other current liabilities		50,598		(9,804)
Income tax receivable and payable		(2,583)		(30,566)
Other liabilities		487		396
Net Cash Provided by Operating Activities		131,748		66,244
Cash Flows from Investing Activities
Payments for purchase of property and equipment and capitalized software		(14,080)		(14,745)
Other investing, net		(322)		403
Net Cash Used in Investing Activities		(14,402)		(14,342)
Cash Flows from Financing Activities
Advances from Credit Facility		1,191,161		1,048,671
Payments on Credit Facility		(1,220,728)		(1,011,838)
Other short-term borrowings, net		295		(5,822)
Dividends paid		(7,605)		(7,775)
Stock repurchases		(33,118)		(42,036)
Issuance of common stock under employee stock purchase plan		2,156		2,524
Payments of debt issuance costs		(4,442)		—
Repayment of finance lease obligations		(2,020)		(1,950)
Net Cash Used in Financing Activities		(74,301)		(18,226)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(183)		1,433
Net Change in Cash, Cash Equivalents, and Restricted Cash		42,862		35,109
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period		56,324		18,817
Cash, Cash Equivalents, and Restricted Cash, End of Period		$                         99,186		$                         53,926
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest		$                         17,948		$                         20,045
Income tax payments, net of refunds		$                           2,575		$                         27,431

 

ICF International, Inc. and Subsidiaries
Supplemental Schedule (11)
Revenue by client market		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
Energy, environment, infrastructure, and disaster recovery		54 %		53 %		53 %		51 %
Health and social programs		32 %		33 %		33 %		34 %
Security and other civilian & commercial		14 %		14 %		14 %		15 %
Total		100 %		100 %		100 %		100 %
Revenue by client type		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
U.S. federal government		41 %		43 %		40 %		45 %
U.S. state and local government		18 %		17 %		18 %		17 %
International government		7 %		6 %		8 %		6 %
Total Government		66 %		66 %		66 %		68 %
Commercial		34 %		34 %		34 %		32 %
Total		100 %		100 %		100 %		100 %
Revenue by contract mix		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
Time-and-materials		44 %		44 %		44 %		44 %
Fixed-price		50 %		49 %		50 %		49 %
Cost-based		6 %		7 %		6 %		7 %
Total		100 %		100 %		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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were ICF's third-quarter 2026 earnings results?

ICF reported $31.7 million in net income and $1.76 in GAAP diluted EPS, compared with $23.8 million and $1.28 a year earlier. Non-GAAP EPS increased 18.6% to $1.98. Earnings benefited from a lower share count and a tax rate of 15.0%, versus 22.7% in the prior-year quarter.

What is ICF's full-year 2026 outlook?

ICF expects revenue similar to 2025 levels, approximately $5.95 GAAP EPS and a maintained $7.10 non-GAAP EPS guidance midpoint. The GAAP outlook includes $0.11 of special charges. Expected operating cash flow is $135 million to $150 million, excluding restricted cash.

When will ICF pay its declared quarterly dividend?

ICF will pay its $0.14-per-share quarterly cash dividend on January 8, 2027, to shareholders of record on December 4, 2026. The dividend was declared on November 5, 2026.

How much commercial energy growth does ICF expect in 2026?

ICF expects commercial energy revenue to increase at a low- to mid-single-digit rate for 2026. The company links the weaker third-quarter performance partly to political and regulatory pressure on utilities to address affordability, which slowed or shifted incremental spending priorities for certain existing programs.

What opportunities are included in ICF's business development pipeline?

ICF's pipeline includes more than $1.6 billion in commercial energy opportunities, approximately $2.4 billion in technology modernization opportunities and approximately $1.1 billion in state and local government opportunities. These amounts describe opportunities at the end of the third quarter, rather than awarded contracts.