ICF International (NASDAQ:ICFI) Releases Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• ICF International beat quarterly EPS expectations, reporting $1.86 versus the $1.65 consensus and $1.66 a year earlier. Revenue of $474.5 million was slightly below estimates and declined 0.3% year over year.
• Management reaffirmed 2026 guidance of $1.89 billion–$1.96 billion in revenue and $6.95–$7.25 in adjusted EPS, citing growth in commercial and international markets and a $9.3 billion pipeline.
• Federal business remained a weakness, with revenue down 9.5% year over year and quarterly book-to-bill at 0.85, although improved profitability, lower net debt, a $100 million buyback authorization and a $0.14 quarterly dividend supported the outlook.

ICF International (NASDAQ:ICFI - Get Free Report) released its quarterly earnings data on Thursday. The business services provider reported $1.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.65 by $0.21, FiscalAI reports. The firm had revenue of $474.50 million for the quarter, compared to the consensus estimate of $478.30 million. ICF International had a net margin of 4.86% and a return on equity of 11.59%. The company's quarterly revenue was down .3% on a year-over-year basis. During the same period last year, the firm earned $1.66 earnings per share. ICF International updated its FY 2026 guidance to 6.950-7.250 EPS.

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

• Full-year guidance was reaffirmed, with 2026 revenue expected at $1.89 billion–$1.96 billion and non-GAAP EPS at $6.95–$7.25; management expects sequential revenue growth in both remaining quarters and a return to year-over-year growth beginning in Q3.
• Commercial and international markets remained key growth drivers: commercial revenue increased 6% year over year, commercial energy efficiency revenue rose 6.7%, and international government revenue jumped 35% as previously awarded contracts ramped.
• Profitability and balance-sheet metrics improved, with adjusted EBITDA margin rising 10 basis points to 11.2%, net interest expense declining nearly 20%, core operating cash flow reaching $56.7 million, and net debt falling to $403 million.
• Federal revenue declined 9.5% year over year, while procurement delays, agency variability, and more frequent protests constrained federal awards; quarterly book-to-bill was 0.85, with federal activity the primary drag.
• Management cited a $9.3 billion pipeline, more than $200 million in contract awards since quarter-end, and strong positioning in commercial energy, technology modernization, and disaster management; it also expects mid- to high-single-digit company growth in 2027.

ICF International Stock Up 11.4%

Shares of ICFI traded up $9.69 during midday trading on Friday, hitting $95.00. 464,434 shares of the company's stock traded hands, compared to its average volume of 229,569. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 19.67 and a beta of 0.51. ICF International has a 1 year low of $58.83 and a 1 year high of $101.71. The firm's fifty day moving average is $75.37 and its 200-day moving average is $74.71.

ICF International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.6%. ICF International's dividend payout ratio is presently 12.12%.

Insider Buying and Selling at ICF International

In related news, CEO John Wasson sold 12,411 shares of the company's stock in a transaction dated Monday, July 13th. The stock was sold at an average price of $80.08, for a total transaction of $993,872.88. Following the transaction, the chief executive officer directly owned 27,511 shares of the company's stock, valued at $2,203,080.88. This represents a 31.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Handel Michael J. Van purchased 8,000 shares of the stock in a transaction on Friday, May 15th. The stock was acquired at an average cost of $61.39 per share, with a total value of $491,120.00. Following the acquisition, the director owned 24,254 shares of the company's stock, valued at approximately $1,488,953.06. This represents a 49.22% increase in their position. The SEC filing for this purchase provides additional information. 1.71% of the stock is owned by insiders.

Institutional Trading of ICF International

A number of institutional investors have recently bought and sold shares of ICFI. EverSource Wealth Advisors LLC increased its position in shares of ICF International by 2,121.1% in the second quarter. EverSource Wealth Advisors LLC now owns 422 shares of the business services provider's stock valued at $36,000 after buying an additional 403 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of ICF International by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 458,175 shares of the business services provider's stock valued at $39,089,000 after buying an additional 2,535 shares in the last quarter. Captrust Financial Advisors purchased a new position in shares of ICF International during the 2nd quarter valued at approximately $246,000. Jump Financial LLC grew its stake in ICF International by 195.3% in the 4th quarter. Jump Financial LLC now owns 6,756 shares of the business services provider's stock valued at $576,000 after acquiring an additional 4,468 shares during the period. Finally, Third Avenue Management LLC grew its stake in ICF International by 12.4% in the 4th quarter. Third Avenue Management LLC now owns 52,864 shares of the business services provider's stock valued at $4,509,000 after acquiring an additional 5,840 shares during the period. 94.12% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting ICF International

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

• Positive Sentiment: Adjusted EPS exceeded expectations. ICF reported second-quarter non-GAAP EPS of $1.86, up from $1.66 a year earlier and above analyst estimates of approximately $1.65-$1.69. Net income was $27 million, while adjusted EBITDA reached $53.4 million, or 11.2% of revenue. ICF Reports Second Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its full-year outlook. ICF maintained 2026 adjusted EPS guidance of $6.95-$7.25 and revenue guidance of $1.9-$2.0 billion, broadly consistent with analyst expectations. Reaffirmation reduces the risk of a near-term forecast cut. ICF International Declares Dividend, Reaffirms 2026 Outlook
• Positive Sentiment: Future demand indicators were constructive. The business development pipeline reached $9.3 billion at quarter-end, and the company highlighted potential reacceleration in commercial energy and an inflection in federal growth. William Blair maintained a Buy rating, citing these opportunities. ICF International Transitional Quarter Sets Stage for Growth
• Positive Sentiment: ICF declared a quarterly dividend of $0.14 per share, payable October 9 to shareholders of record September 4. The dividend supports shareholder returns, though its annualized yield is modest at roughly 0.6%.
• Neutral Sentiment: Revenue was mixed. Second-quarter revenue of $474.5 million was essentially flat year over year and below the $478.3 million consensus estimate. The quarterly book-to-bill ratio was 0.85, although the trailing-12-month ratio remained healthier at 1.09. ICF Q2 Earnings Metrics Versus Estimates
• Negative Sentiment: Growth remains subdued. The sales shortfall and flat year-over-year revenue underscore slower near-term expansion, while the company described the quarter as transitional and pointed to gradual rather than immediate growth.

ICF International declared that its Board of Directors has initiated a share repurchase program on Thursday, June 25th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the business services provider to repurchase up to 8.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ICFI. Wall Street Zen upgraded ICF International from a "hold" rating to a "strong-buy" rating in a report on Saturday. Weiss Ratings reiterated a "sell (d+)" rating on shares of ICF International in a report on Friday, July 24th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $102.33.

About ICF International

ICF International NASDAQ: ICFI, commonly known as ICF, is a global consulting and digital services provider specializing in the intersection of strategy, technology, and policy. The firm delivers integrated services and solutions to government and commercial clients in areas such as energy and environment, health and social programs, transportation, infrastructure, technology, and marketing and communications. ICF's offerings span strategic planning, data analytics, program evaluation, digital transformation, and implementation support.

Founded in 1969 and headquartered in Reston, Virginia, ICF has grown through both organic expansion and targeted acquisitions to broaden its capabilities and geographic reach.

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