Core Viewpoint - ICF, a leading global solutions and technology provider, is set to release its fourth quarter and full year 2025 financial results on February 26, 2026, after market close [1]. Group 1: Financial Results Announcement - The company will host a webcast call at 4:30 p.m. Eastern time on February 26, 2026, to discuss its financial results for the quarter [2]. - Earnings results will be available on the investor relations website prior to the call [2]. Group 2: Call Access Process - Analysts and institutional investors can register online to participate in the call, receiving dial-in information and a unique PIN upon registration [3]. - General listeners can access the live webcast through a provided link [3]. Group 3: Webcast Replay - A replay of the webcast will be available for one year following the live event on the investor relations website [4]. Group 4: Company Overview - ICF employs approximately 9,000 individuals, combining expertise from business analysts, policy specialists, digital strategists, data scientists, and creatives to address complex challenges [5]. - The company has been assisting public and private sector clients since 1969 in navigating change and shaping the future [5].

Core Insights - ICF has secured two major contracts with European institutions to deliver public communication campaigns across all 27 EU Member States, with a combined ceiling value of nearly $300 million USD and a performance period of up to five years [1][2]. Group 1: Contract Details - The contracts include one single-award and one multiple-award, indicating a significant commitment from European institutions to engage ICF for these services [1]. - The campaigns aim to clarify and relate EU priorities to the public, utilizing ICF's extensive network and advanced AI technology for real-time performance optimization [2]. Group 2: Company Expertise and Strategy - ICF's senior vice president emphasized the importance of ensuring that messages resonate with citizens amidst information overload and shifting public trust, showcasing the company's policy expertise and innovative approach [3]. - The company operates across various sectors, including energy, disaster management, environment, infrastructure, IT modernization, digital transformation, and health, indicating a diverse portfolio and capability to address complex challenges [3][4]. Group 3: Company Overview - ICF is a leading global solutions and technology provider with approximately 9,000 employees, combining industry expertise with advanced engagement capabilities [4]. - The company has a long history of working with public and private sector clients since 1969, helping them navigate change and shape the future [4].

Core Insights - ICF has been awarded a $300 million digital experience contract by the state of Maryland, which spans nine years with a five-year base and two two-year options [1][2]. Group 1: Contract Details - The contract is an indefinite delivery, indefinite quantity vehicle aimed at enhancing digital experiences across Maryland's state and local digital properties [2]. - ICF will utilize agile methodologies, human-centered design, and digital product management to modernize government services and improve citizen interactions [3]. Group 2: Company Commitment - ICF aims to deliver reliable and scalable platforms that align with Maryland's vision for a more efficient government, focusing on measurable impacts [4]. - The company combines technology solutions with local expertise to enhance citizen services and has a history of achieving results in building resilient communities [4]. Group 3: Company Overview - ICF is a global solutions and technology provider with approximately 9,000 employees, specializing in addressing complex challenges for public and private sector clients since 1969 [5].

Summary of ICF International Conference Call - December 10, 2025 Company Overview - **Company Name**: ICF International (Ticker: ICFI) - **Annual Revenue**: Approximately $1.9 billion - **Employee Count**: Approximately 9,000 professionals - **Client Base**: Diverse, including commercial, state, local, international, and U.S. government clients - **Revenue Breakdown**: - 55% from commercial and non-federal government clients, expected to grow in the mid-teens for 2025 [6][8] - Key markets: - Energy, infrastructure, disaster recovery, and environment (51% of revenues) - Health and social programs (34% of revenues) - Security and other (15% of revenues) [6][7] Growth Drivers - **Non-Federal Client Revenue Growth**: Expected to grow approximately 15% in 2025, driven by: - Commercial business (34% of revenues) - State and local business (18% of revenues) - International business (6.2% of revenues) [9][10] - **Commercial Energy Sector**: - Growth driven by data center construction, electrification, and grid modernization [12][13] - 75% of commercial energy business is with utilities, focusing on energy efficiency programs [13][14] - Anticipated continued demand for energy efficiency and demand-side management programs [14][15] Renewable Energy and Climate Services - **Shift in Focus**: Increased activity in state and local governments for climate-related services due to changing federal priorities [16][17] - **Commercial Sector Demand**: Strong demand from sectors vulnerable to climate risk, including airlines, tourism, and pharmaceuticals [17][18] Disaster Recovery Services - **Current Engagements**: Supporting over 90 disaster recovery programs in 20 states, with significant contracts in Puerto Rico and Texas [20][21] - **Federal Funding**: Congress appropriated nearly $12 billion for disaster recovery funding, with ongoing procurement opportunities [21][22] - **State Government Interest**: Increased interest in disaster case management as states prepare for potential new responsibilities [22] Revenue Mix and Future Projections - **Revenue Mix Shift**: Non-federal revenue expected to increase from 55% to over 60% by 2026, driven by growth in energy and international business [24] - **Federal Revenue Impact**: Anticipated recovery of lost federal revenues due to government shutdown, with a return to normalcy expected in Q4 2025 and Q1 2026 [26][28] Profitability and Investments - **Adjusted EBITDA Margin**: Targeting to maintain a margin of 11.2% while investing in growth areas [37] - **Investment Focus**: - Growth in energy efficiency and AI technology [39] - Streamlining back-office systems for efficiency [39] Capital Allocation and M&A Strategy - **Capital Allocation**: Consistent approach with dividends, share repurchases, and debt reduction prioritized [41] - **Acquisition Pipeline**: Focus on energy sector opportunities and disaster recovery infrastructure, with less likelihood of federal space acquisitions due to market challenges [42][43] Conclusion - ICF International is well-positioned for growth in various sectors, particularly in energy efficiency and disaster recovery, while navigating changes in federal priorities and market dynamics. The company aims to maintain profitability and explore strategic acquisitions to enhance its capabilities and market presence.

Core Insights - ICF has been recognized in U.S. News & World Report's 2025-2026 Best Company to Work For list, highlighting its commitment to career growth, collaboration, and employee well-being [1][2] - The company aims to create an environment where employees can excel in their careers while delivering innovative solutions for clients [2] - ICF provides a wide range of employee resources, including flexible work-life balance, mental health support, enhanced medical plans, and professional development opportunities [3] Employee Programs and Resources - ICF offers programs that focus on mental health and well-being, community support through corporate giving, and various professional development opportunities [3] - Training includes harnessing AI to improve productivity and client delivery, emphasizing skill-building and innovative idea exchange [3] Company Impact and Recognition - ICF drives transformative solutions to address pressing challenges, leveraging domain expertise and advanced technology to deliver high-impact outcomes for clients [4] - The company was also recognized by Fortune as one of America's Most Innovative Companies for 2025, further solidifying its reputation in the industry [4] Company Overview - ICF is a leading global solutions and technology provider with approximately 9,000 employees, combining industry expertise with digital strategies to solve complex challenges [5] - Since its establishment in 1969, ICF has worked with public and private sector clients to navigate change and shape the future [5]

Group 1 - ICF, a leading global solutions and technology provider, will participate in the Sidoti Year End Virtual Investor Conference on December 10, 2025 [1] - The virtual fireside chat will feature ICF's Chief Operating Officer James Morgan and Chief Financial Officer Barry Broadus at 9:15 a.m. Eastern Time [1] - A live webcast of the fireside chat will be available, with a replay accessible for 90 days following the conference [1] Group 2 - ICF employs approximately 9,000 individuals, combining business analysts, policy specialists, digital strategists, data scientists, and creatives [1] - The company has been assisting public and private sector clients since 1969 to navigate change and shape the future [1]

Core Insights - ICF International, Inc. reported disappointing third-quarter 2025 results, with both earnings and revenues missing the Zacks Consensus Estimate, leading to a 5.6% decline in share price since the earnings release on October 30 [1] Financial Performance - Quarterly EPS was $1.67, missing the Zacks Consensus Estimate by 4.6% and declining 21.6% year-over-year [2] - Total revenues amounted to $465.4 million, missing estimates by 3.5% and decreasing 10% year-over-year [2][10] Segmental Revenues - Revenues from government clients decreased 20.4% year-over-year to $308.8 million, below the estimate of $388.1 million [3] - U.S. state and local government revenues were $81.7 million, representing 17.6% of total revenues, lagging behind the prediction of $107 million but increasing 3.7% year-over-year [3] - International government revenues reached $29 million, representing 6.2% of total revenues, below the anticipated $34.4 million but up 8.2% year-over-year [4] - U.S. federal government revenues were $198 million, contributing 42.6% to total revenues, missing the estimate of $246.7 million and decreasing 29.8% year-over-year [4] - Commercial revenues, which accounted for 33.7% of total revenues, amounted to $156.6 million, exceeding expectations of $88.5 million and increasing 20.9% year-over-year [5] Operating Performance - Adjusted EBITDA fell 9.2% year-over-year to $53.2 million, with an adjusted EBITDA margin of 11.4%, which increased by 10 basis points from the previous year [6] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $3.99 billion, down from $4.96 billion at the end of December 2024 [7] - Long-term debt increased to $449.4 million from $411.7 million in December 2024 [7] - Cash used in operating activities was $66.24 million, with capital expenditures of $5.5 million [7] Guidance - For 2025, the company expects full-year cash flow to range between $125 million and $150 million, with capital expenditures anticipated between $23 million and $25 million [8] - The full-year tax rate is now expected to be approximately 18.5% [8]

Core Insights - ICF International is experiencing favorable conditions under the Trump administration, which is described as a significant advantage for the company [1] Company Overview - ICF International is positioned to benefit from government support, indicating a positive outlook for its operations and potential growth [1] Analyst Background - The equity analyst leading the research has extensive experience in the restaurant industry and covers various sectors including consumer discretionary and food & beverage, focusing on micro and small-cap companies [2]

Core Insights - ICF International reported quarterly earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.75 per share, and down from $2.13 per share a year ago, representing an earnings surprise of -4.57% [1] - The company posted revenues of $465.41 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.51%, and down from $517 million year-over-year [2] Company Performance - Over the last four quarters, ICF has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] - ICF shares have declined approximately 28.2% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of management's commentary on the earnings call [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.71 on revenues of $472.42 million, and for the current fiscal year, it is $7.06 on revenues of $1.92 billion [7] Industry Context - The Government Services industry, to which ICF belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of ICF's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Financial Data and Key Metrics Changes - Third quarter revenues totaled $465.4 million, down from $517 million in the same quarter of 2024, and relatively stable compared to $476.2 million in the second quarter of 2025 [20] - Year-to-date revenues decreased by 6.2%, with revenues excluding subcontractor and other direct costs declining by 4.3% [20] - Adjusted EBITDA was $53.2 million, compared to $58.5 million in the previous year's third quarter, with adjusted EBITDA margins expanding by 10 basis points to 11.4% [24][26] - Net income totaled $23.8 million, or $1.28 per diluted share, down from $32.7 million, or $1.73 per diluted share in the third quarter of 2024 [26] Business Line Data and Key Metrics Changes - Revenues from commercial, state and local, and international clients increased by 13.8% year-on-year, led by a 24.3% increase in the commercial energy business [20][21] - Federal government revenues declined by 29.8% year-on-year, with a 3% sequential decline in the third quarter [5][21] - The commercial energy business represented 30% of third quarter revenues, up from 22% in the previous year [10] Market Data and Key Metrics Changes - Revenues from state and local government clients increased by 3.8% in the third quarter, primarily due to growth in technology work in disaster recovery [14] - International client revenues increased by 8% year-on-year, although the ramp-up of new contracts has been slower than anticipated [16][17] Company Strategy and Development Direction - The company is focused on maintaining margins despite reduced revenue, with a book-to-bill ratio of 1.53 for the third quarter, supporting a return to growth in 2026 [4][32] - The company is investing in organic growth, pursuing strategic acquisitions, and maintaining a disciplined approach to capital allocation [28][29] - The management is optimistic about the potential for growth in the commercial energy sector, despite challenges in the renewables area due to the current administration's policies [45] Management's Comments on Operating Environment and Future Outlook - Management expects the government shutdown to reduce revenues by approximately $8 million and gross profit by $2.5 million in October, with a total estimated impact of $25 million in revenues for the quarter [9][36] - The company remains confident in its ability to return to revenue and earnings growth in 2026, supported by a strong pipeline of opportunities and growth from non-federal clients [32][42] Other Important Information - The CFO announced retirement, with James Morgan taking on the additional role of CFO while continuing as COO [18][60] - The company has a backlog of $3.5 billion, with 52% funded, and a new business development pipeline of $8.4 billion [26] Q&A Session Summary Question: What is the expected decline in federal business for the fourth quarter? - Management did not provide a specific estimate but indicated that federal revenues would be down more than in the third quarter due to the government shutdown [34] Question: How is the government shutdown impacting project progress? - Some projects continue to progress without government interaction, but there are significant impacts on others, particularly in health and human services [36][39] Question: What are the growth expectations for the commercial energy business? - The commercial energy business is expected to continue strong growth, with double-digit growth anticipated next year [44][49] Question: What is the company's approach to acquisitions? - The company is focused on opportunities in the energy sector and disaster recovery, with a disciplined approach to capital allocation and debt repayment [51][53]