ICF International (NASDAQ:ICFI) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• ICF beat earnings estimates: Third-quarter EPS was $1.98, $0.06 above consensus and up from $1.67 a year earlier. Revenue increased 1.1% to $470.5 million but missed analysts’ $490.8 million estimate.
• Revenue outlook weakened, while EPS guidance held: Utility clients’ pauses in energy-efficiency spending contributed to the shortfall, and ICF lowered its 2026 revenue outlook to about $1.87 billion. It maintained its 2026 non-GAAP EPS midpoint of $7.10.
• Contract indicators remained strong: Awards rose 4.5%, quarterly book-to-bill was 1.59, and backlog totaled $3.5 billion. Shares fell 16.5% on Friday after the results.

ICF International (NASDAQ:ICFI - Get Free Report) posted its earnings results on Thursday. The business services provider reported $1.98 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.92 by $0.06, FiscalAI reports. The company had revenue of $470.50 million during the quarter, compared to analysts' expectations of $490.83 million. ICF International had a net margin of 5.29% and a return on equity of 11.95%. ICF International's quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the company posted $1.67 EPS.

Here are the key takeaways from ICF International's conference call:

• Revenue rose 1.1% to $470.5 million, but utility clients’ pauses on incremental energy-efficiency program spending contributed to a roughly $15 million third-quarter shortfall, with a similar impact expected in Q4. ICF lowered its 2026 revenue outlook to approximately $1.87 billion, roughly flat year over year.
• Despite lower revenue expectations, ICF maintained its 2026 non-GAAP EPS midpoint of $7.10, implying 4.9% annual growth; third-quarter adjusted EBITDA margin expanded 10 basis points to 11.5%. Strong cash generation and lower interest expense also supported debt reduction, with net debt down to $368 million.
• Bookings and forward indicators remained supportive: quarterly awards increased 4.5%, book-to-bill was 1.59, backlog stood at $3.5 billion, and the business development pipeline reached $8.2 billion. Management expects year-over-year revenue growth in Q4 and across all client categories in 2027, but did not provide specific 2027 guidance.
• State and local revenue grew 7.6% and international government revenue rose 12%, while federal revenue increased 3.4% sequentially but declined 3.5% year over year amid procurement delays. Management expects federal year-over-year growth in Q4, while noting that near-term disaster-management activity remains constrained by funding delays and fewer major events.

ICF International Trading Down 16.5%

Shares of ICFI traded down $15.70 during trading hours on Friday, hitting $79.68. 395,084 shares of the stock were exchanged, compared to its average volume of 164,341. ICF International has a fifty-two week low of $58.83 and a fifty-two week high of $100.63. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.39 and a quick ratio of 1.39. The business has a 50-day moving average of $88.29 and a 200-day moving average of $79.00. The firm has a market capitalization of $1.43 billion, a P/E ratio of 15.01 and a beta of 0.45.

ICF International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 8th. Shareholders of record on Friday, December 4th will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Friday, December 4th. ICF International's dividend payout ratio is currently 11.59%.

Wall Street Analysts Forecast Growth

ICFI has been the topic of a number of analyst reports. Wall Street Zen downgraded shares of ICF International from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Weiss Ratings upgraded shares of ICF International from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 2nd. Finally, Barrington Research set a $110.00 price target on shares of ICF International in a report on Friday, August 14th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $105.00.

Key Stories Impacting ICF International

Here are the key news stories impacting ICF International this week:

• Positive Sentiment: Third-quarter non-GAAP EPS was $1.98, beating the $1.92 consensus and rising 19% year over year. Margin gains from efficient contract delivery and a favorable contract mix supported profitability. ICF Reports Third Quarter 2026 Results
• Positive Sentiment: Contract awards totaled $746 million, up 4.5% from a year earlier, with a quarterly book-to-bill ratio of 1.59 and trailing-twelve-month ratio of 1.11—indicators of demand and future work. ICF Reports Third Quarter 2026 Results
• Neutral Sentiment: ICF declared a quarterly dividend of $0.14 per share, equivalent to $0.56 annually. The modest yield provides income but is unlikely to be a major near-term catalyst.
• Negative Sentiment: Revenue was $470.5 million, below analysts’ estimate of about $490.8 million, despite increasing 1% year over year. ICF maintained its 2026 non-GAAP EPS guidance midpoint despite the lower revenue outlook, limiting the scope for a positive forecast surprise. ICFI Q3 Earnings Beat Estimates on Margin Gains, Revenues Miss

Insider Activity

In related news, CEO John Wasson sold 6,400 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $88.32, for a total transaction of $565,248.00. Following the transaction, the chief executive officer owned 6,339 shares in the company, valued at $559,860.48. The trade was a 50.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sergio Ostria sold 2,000 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $88.59, for a total transaction of $177,180.00. Following the transaction, the executive vice president directly owned 24,467 shares in the company, valued at $2,167,531.53. This trade represents a 7.56% decrease in their position. The SEC filing for this sale provides additional information. 1.71% of the stock is owned by corporate insiders.

About ICF International

ICF International, Inc is a global consulting and technology services company that helps government agencies, businesses and nonprofit organizations address complex policy, management and operational challenges. The company combines research, advisory services, data analytics, technology implementation and strategic communications to support clients from program design through execution and evaluation.

ICF's work spans energy and climate, environment, transportation, public health, health care, community development, disaster recovery, workforce programs and public-sector modernization.

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