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Icf International (ICFI)
NASDAQ:ICFI
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Icf International (ICFI) AI Stock Analysis

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ICFI

Icf International

(NASDAQ:ICFI)

Rating:74Outperform
Price Target:
$102.00
▲(10.55% Upside)
ICF International's stock score is driven by solid financial performance and positive technical indicators. The company's strategic growth in non-federal segments and effective cost management are significant strengths. However, challenges in federal revenues and recent declines in revenue and cash flow growth slightly temper the overall outlook.
Positive Factors
Commercial Energy Performance
The company’s commercial energy markets business continued to be a standout performer, as its revenue increased 21% year-over-year, driven by strong demand from utility clients.
Earnings Performance
Non-GAAP EPS increased 10% year-over-year to $1.94, better than the estimate of $1.70 and the consensus of $1.73.
Future Outlook
Management’s positive update to the 2025 outlook and growth expectations for 2026 suggests a favorable view on the company's future.
Negative Factors
Federal Business Challenges
Federal government client market, which constitutes 49% of revenue, experienced a revenue decline of -12.6% year-over-year, impacted by contract funding curtailments and fewer new contract opportunities.
Near-Term Outlook
The near-term outlook for ICF remains murky, as stop work orders and contract cancellations in the federal business more than offset the strength in commercial energy.
Revenue Impact
Approximately $115 million of estimated 2025 revenue has been impacted by stop-work orders and contract terminations in the federal market.

Icf International (ICFI) vs. SPDR S&P 500 ETF (SPY)

Icf International Business Overview & Revenue Model

Company DescriptionICF International, Inc. provides management, marketing, technology, and policy consulting and implementation services to government and commercial clients in the United States and internationally. It researches critical policy, industry, stakeholder issues, trends, and behaviors; measures and evaluates results and their impact; and provides strategic planning and advisory services to its clients on how to navigate societal, market, business, communication, and technology challenges. The company also identifies, defines, and implements policies, plans, programs, and business tools through a range of standard and customized methodologies for its clients; conducts survey research; collects and analyzes various data to understand critical issues and options for its clients; and provides actionable business intelligence, as well as information and data management solutions that allow integrated and purpose-driven data usage. In addition, it provides solutions to optimize the customer and citizen experience; modernizes IT systems; and cyber security solutions that support the range of cyber security missions and protect IT infrastructures in the face of relentless threats, as well as designs, develops, and implements technology systems and business tools that are principal to its clients' mission or business performance. Further, the company informs and engages its clients' constituents, customers, and employees through public relations, branding and marketing, multichannel and strategic communications, and reputation issues management. It serves energy, environment, and infrastructure; health, education, and social programs; safety and security; and consumer and financial markets. The company was formerly known as ICF Consulting Group Holdings, LLC and changed its name to ICF International, Inc. in 2006. ICF International, Inc. was founded in 1969 and is headquartered in Fairfax, Virginia.
How the Company Makes MoneyICF International primarily generates revenue through service contracts with government and commercial clients. The company operates under a consulting and solutions-based revenue model, with key revenue streams stemming from long-term contracts and projects in various sectors such as energy, environment, and public health. ICF's earnings are significantly influenced by its ability to secure government contracts, given its strong presence in the public sector. Additionally, the company benefits from strategic partnerships and alliances that enhance its service offerings and technological capabilities, further contributing to its revenue growth.

Icf International Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 9.99%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong growth in commercial and non-federal government segments offsetting significant declines in federal revenues. The company demonstrated effective cost management and maintained a strong book-to-bill ratio, indicating a stable future outlook. However, challenges in the federal market and uncertainties in disaster management pose potential risks.
Q2-2025 Updates
Positive Updates
Stable Revenue and Growth in Non-Federal Segments
Second quarter revenue was stable and in line with expectations. Revenues from commercial, state and local government, and international government clients increased by 13.8% in aggregate and accounted for 57% of second quarter revenues.
Commercial Energy Client Growth
Revenue from commercial energy clients increased by 27% year-on-year due to strong demand for energy efficiency programs, electrification, and grid resilience.
Adjusted EBITDA Margin Expansion
Adjusted EBITDA margin expanded by approximately 20 basis points year-on-year, reflecting favorable business mix and cost management initiatives.
Strong Book-to-Bill Ratio
The second quarter book-to-bill ratio was strong at 1.3, indicating positive business outlook for 2025.
Growth in Environment and Planning Services
Strong demand for environment and planning services for commercial clients was driven by renewable and transmission permitting and new project awards.
Negative Updates
Decline in Federal Revenues
Revenues from federal government clients declined 9.8% sequentially and 25.2% from the previous year's second quarter.
Federal Procurement and Contract Delays
Slower pace of federal program and procurement activity affected federal revenue comparisons.
Uncertainty in Disaster Management
Ongoing uncertainty with the future role of FEMA and potential shifts in disaster recovery responsibilities could impact future revenues in this segment.
Higher Debt Levels
Net interest expense increased due to a higher debt balance, partially attributed to acquisition activities and share repurchases.
Company Guidance
During the second quarter of 2025, ICF demonstrated strong performance, marked by a stable revenue stream and strategic growth in various sectors. Revenues from commercial, state and local government, and international government clients rose by 13.8%, contributing to 57% of total revenues. Notably, revenue from commercial energy clients surged by 27% year-on-year, driven by increased demand for energy efficiency programs. Adjusted EBITDA margin improved by 20 basis points year-on-year due to a favorable business mix and cost management initiatives. Despite a 9.8% sequential decline in federal government revenues, ICF maintained a strong second quarter book-to-bill ratio of 1.3, bolstering confidence in a positive business outlook for 2025. The company's backlog stood at $3.4 billion, with 54% funded, while the new business pipeline was robust at $9.2 billion. ICF also launched ICF Fathom, a new AI solution suite aimed at enhancing federal agency operations. The guidance for 2025 remains optimistic, with expectations for revenue not to decline by as much as 10% from 2024 levels, and EPS likely at the higher end of the guidance framework.

Icf International Financial Statement Overview

Summary
ICF International exhibits strong revenue growth and profitability with stable net profit margins and a healthy balance sheet. However, cash flow growth shows inconsistency, indicating room for improvement.
Income Statement
80
Positive
ICF International has demonstrated a strong revenue growth over the years, with revenue increasing from $1.50 billion in 2020 to $2.01 billion in TTM 2025. The gross profit margin has also shown improvement, reaching 51.1% in TTM, indicating effective cost management. The net profit margin is stable at around 5.4%, reflecting consistent profitability. However, the EBIT margin has seen fluctuations but remains healthy at 8.1% in TTM. The EBITDA margin is also stable at 10.4%, showcasing solid operational performance.
Balance Sheet
75
Positive
The company's balance sheet highlights a moderate debt-to-equity ratio of 0.71 in TTM, which suggests a balanced leverage position. The return on equity (ROE) is strong at 11.3%, indicating efficient use of equity to generate profits. However, the equity ratio is at 46.7%, pointing to a moderate level of equity financing relative to assets. Overall, the balance sheet is stable with manageable debt levels.
Cash Flow
70
Positive
ICF International has shown a positive trend in its free cash flow, although the growth rate has been inconsistent. The operating cash flow to net income ratio of 1.35 in TTM indicates robust cash generation relative to net income. However, the free cash flow to net income ratio has decreased slightly, reflecting increased capital expenditure needs. Despite these fluctuations, the company's cash flow position remains solid with consistent generation of free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.98B2.02B1.96B1.78B1.55B1.51B
Gross Profit733.98M737.77M698.22M645.54M573.48M534.47M
EBITDA214.25M221.12M196.97M157.18M150.81M122.04M
Net Income107.75M110.17M82.61M64.24M71.13M54.96M
Balance Sheet
Total Assets2.07B2.07B2.01B2.09B1.85B1.67B
Cash, Cash Equivalents and Short-Term Investments26.89M4.96M9.45M11.26M8.25M13.84M
Total Debt644.24M602.27M642.67M776.39M648.31M452.18M
Total Liabilities1.07B1.08B1.09B1.24B1.05B920.33M
Stockholders Equity1.00B982.46M917.59M853.21M803.47M746.96M
Cash Flow
Free Cash Flow119.59M150.11M130.05M137.73M90.27M155.46M
Operating Cash Flow139.83M171.54M152.38M162.21M110.20M173.15M
Investing Cash Flow-74.93M-74.81M-3.67M-258.84M-194.48M-270.95M
Financing Cash Flow-43.93M-86.90M-152.59M90.37M23.23M169.96M

Icf International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price92.27
Price Trends
50DMA
85.83
Positive
100DMA
85.33
Positive
200DMA
106.05
Negative
Market Momentum
MACD
1.14
Negative
RSI
67.47
Neutral
STOCH
74.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICFI, the sentiment is Positive. The current price of 92.27 is above the 20-day moving average (MA) of 86.29, above the 50-day MA of 85.83, and below the 200-day MA of 106.05, indicating a neutral trend. The MACD of 1.14 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 74.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICFI.

Icf International Risk Analysis

Icf International disclosed 31 risk factors in its most recent earnings report. Icf International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Icf International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.24B22.8829.05%1.01%9.28%44.19%
75
Outperform
$2.23B23.0021.55%8.99%35.56%
74
Outperform
$1.67B15.7611.09%0.62%-0.47%10.03%
74
Outperform
$5.44B23.6512.33%-0.89%-23.72%
64
Neutral
$10.64B16.025.48%2.12%2.70%-24.91%
52
Neutral
$195.79M-44.74%-9.11%-6082.17%
50
Neutral
$156.36M-61.29%10.56%-16.27%-589.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ICFI
Icf International
92.27
-62.87
-40.52%
CRAI
Cra International
187.15
34.98
22.99%
FORR
Forrester Research
10.16
-7.90
-43.74%
FCN
FTI Consulting
168.22
-51.63
-23.48%
HURN
Huron Consulting
133.00
29.44
28.43%
RGP
Resources Connection
4.64
-4.83
-51.00%

Icf International Corporate Events

Business Operations and Strategy
ICF International to Attend Canaccord Genuity Conference
Neutral
Aug 6, 2025

ICF International announced its participation in the Canaccord Genuity 45th Annual Growth Conference on August 13, 2025, in Boston. The company’s CEO, John Wasson, and EVP, Anne Choate, will engage in a fireside chat, which will be accessible via a live webcast, highlighting ICF’s ongoing engagement with industry stakeholders.

The most recent analyst rating on (ICFI) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Icf International stock, see the ICFI Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
ICF International Declares Quarterly Dividend Amid Revenue Growth
Positive
Jul 31, 2025

On July 31, 2025, ICF International’s Board of Directors declared a quarterly dividend of $0.14 per share, payable on October 10, 2025. The company’s second quarter results for 2025 showed a 27% revenue growth in commercial energy, with total revenue reaching $476 million. Despite a decline in federal government revenue, ICF maintained strong performance in non-federal sectors, leading to a robust contract award total of $621 million. The company continues to invest in growth markets and expand capabilities in AI and other technologies, with a positive outlook for future revenue and earnings growth.

The most recent analyst rating on (ICFI) stock is a Hold with a $155.00 price target. To see the full list of analyst forecasts on Icf International stock, see the ICFI Stock Forecast page.

Executive/Board ChangesShareholder Meetings
ICF International Holds Annual Stockholders Meeting
Neutral
Jun 5, 2025

On June 4, 2025, ICF International, Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s leadership and financial oversight. The stockholders elected three directors for terms expiring in 2028, approved executive compensation, and appointed Grant Thornton LLP as the independent registered public accountant for the fiscal year 2025. These decisions are expected to influence the company’s governance and financial strategies moving forward.

The most recent analyst rating on (ICFI) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Icf International stock, see the ICFI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025