ICFI · ICF International, Inc.

ICF International's Q1 2026 results showed revenue of $437.5 million, down from $487.6 million in the prior-year quarter, primarily due to a $12 million revenue shift—$8 million from commercial energy projects and $4 million from international government work—expected to recover half in Q2 and the rest in H2, supporting reaffirmed full-year guidance for 3% revenue growth to $1.89-$1.96 billion. Federal government revenues declined 23.7% year-over-year to $182.3 million due to prior contract cancellations and slower RFPs but rose 8.6% sequentially, driven by technology modernization under fixed-price contracts, with further sequential gains anticipated. Commercial revenues grew to 33.4% of total at $146.3 million, with energy efficiency up 1.9%, while state/local held flat and international government surged 17.5%. Margins held firm, with gross margin at 38.1% (up 10 bps YoY) and adjusted EBITDA margin steady at 11.2%, aided by business mix and cost controls despite a higher 25.1% tax rate from lower equity compensation deductions; full-year tax rate guidance remains 20.5%. Contract wins totaled $450 million (65% new business), yielding a 1.03 quarterly book-to-bill and 1.21 TTM, bolstering $3.4 billion backlog. Management highlighted diversified execution, pipeline strength at $8.5 billion, and share repurchases of 217,500 shares, alongside a $0.14 dividend, signaling confidence in returning to mid-to-high single-digit growth in 2027.