ICF International reaffirms FY25 non-GAAP EPS view flat-down 10%

John Wasson, chair and CEO said “ICF’s diversified business model is enabling us to manage through a dynamic federal government business environment, while remaining agile to capture future business opportunities.We are maintaining the guidance framework we provided at the time of our Q4 of FY24 earnings release, namely for ICF’s 2025 total revenues, GAAP EPS and Non-GAAP EPS to range from flat to down 10% from last year’s levels. A 10% decline represents the floor we foresee from the loss of business primarily from federal government clients during this first year of the new administration. Supporting this framework is our projection that ICF’s revenues from commercial energy, state and local and international government clients will grow at least 15% in the aggregate for the year, offsetting or partially offsetting lower revenues from our federal government clients due to potential funding curtailments and a slower pace of new RFPs. This framework does not contemplate an extensive government shutdown this year, nor a prolonged period of pauses in funding modifications to existing contracts or new procurements. Our Q1 margin performance reflects the successful implementation of our planned efforts to manage expenses in 2025 to maintain adjusted EBITDA margins similar to those of 2024. Our GAAP and Non-GAAP EPS framework for 2025 is exclusive of the special tax benefit accrued in this year’s Q1 which benefited EPS by 13c. Our operating cash flow projection for the full year continues to be approximately $150M. We repurchased 313,000 shares in the Q1, demonstrating our confidence in ICF’s long-term growth outlook and our intention to deliver value to shareholders. We appreciate the support of our professional staff, who have shown a strong commitment to ICF and our clients and have helped us navigate challenging business conditions.”