ICF Reports Third Quarter 2026 Results

John Wasson, Chair and chief executive officer of ICF

“Our third quarter performance demonstrated the return to year-on-year revenue growth that we anticipated would begin in the second half of this year and benefited from our diversified and integrated business model.”

John Wasson, Chair and chief executive officer of ICF

“A key highlight of the third quarter was our strong margin performance, benefiting from efficient contract delivery and favorable contract mix.”

John Wasson, Chair and chief executive officer of ICF

“Third quarter revenues from commercial energy clients were considerably below our expectations due to a confluence of factors, most notably a sharp fall-off in contract add-on activity that historically has bolstered second half revenues in our utility programs category.”

John Wasson, Chair and chief executive officer of ICF

“There was a material increase in political and regulatory pressure on utilities in Q3 to develop affordable solutions for their customers, which has caused a slowdown and/or shift in incremental spending priorities for certain existing utility programs.”

John Wasson, Chair and chief executive officer of ICF

“Also, we experienced slower than expected ramp-ups on new contracts.”

John Wasson, Chair and chief executive officer of ICF

“As a result, ICF's revenues from commercial energy clients are expected to increase at a low- to mid-single-digit rate for 2026.”

John Wasson, Chair and chief executive officer of ICF

“We continue to see commercial energy as a long-term growth driver for ICF.”

John Wasson, Chair and chief executive officer of ICF

“This also was a strong quarter for companywide contract awards, which increased 4.5% year-on-year to $746 million.”

John Wasson, Chair and chief executive officer of ICF

“Over 60% of our third quarter awards represented new business, a good indication of how well ICF's capabilities and expertise are aligned with our clients' priorities.”

John Wasson, Chair and chief executive officer of ICF

“Following this solid performance, our business development pipeline stood at $8.2 billion at the end of the third quarter and was well diversified across our client set.”

John Wasson, Chair and chief executive officer of ICF

“ICF is on the path to second half year-on-year revenue growth, and we see positive momentum as we head into 2027.”

John Wasson, Chair and chief executive officer of ICF

“The adjusted EBITDA margin expansion we achieved in the third quarter was notable, our new contract awards were strong, and our business development pipeline is robust, all indications of the underlying strength of our business and effective cost management.”

John Wasson, Chair and chief executive officer of ICF

“Additionally, given ICF's diversified portfolio, we see the midterm election results as a tailwind for our business.”

John Wasson, Chair and chief executive officer of ICF

“For full year 2026, we are expecting revenues to be similar to 2025 levels, with GAAP EPS of approximately $5.95, inclusive of $.11 of special charges.”

John Wasson, Chair and chief executive officer of ICF

“We are maintaining the midpoint of our Non-GAAP EPS guidance range of $7.10, representing 4.9% year-on-year growth and benefiting from improved margins, a lower interest rate and reduced share count.”

John Wasson, Chair and chief executive officer of ICF

“Operating cash flow is expected to range from $135 million to $150 million, excluding the impact of restricted cash.”

John Wasson, Chair and chief executive officer of ICF

“We continue to benefit from the energy of our people, who have shown tremendous dedication and commitment to our clients and embody the strong corporate culture that ICF is known for.”