ICF Reports Second Quarter 2025 Results

Second Quarter in Line with Expectations Led by 27% Revenue Growth in Commercial Energy–

Margins Continue to Benefit From Favorable Mix–

Maintains Full Year 2025 Guidance Framework with Improved Business Outlook–

Expects a Return to Revenue and Earnings Growth in 2026–

Second Quarter Highlights:

— Revenue Was $476 Million

— Net Income Was $24 Million; GAAP EPS Was $1.28

— Non-GAAP EPS1 Was $1.66

— EBITDA1 Was $53.1 Million; Adjusted EBITDA1 Was $52.9 Million, or 11.1% of Total Revenues

— Contract Awards Were $621 Million for a Quarterly Book-to-Bill Ratio of 1.30

ICF (NASDAQ: ICFI), a leading global solutions and technology provider, reported results for the second quarter ended June 30, 2025.

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Commenting on the results, John Wasson, chair and chief executive officer, said, “Second quarter results were in line with our expectations, demonstrating the benefits of our diversified client base, our agility in adapting to dynamic market conditions and ICF's deep domain expertise and crosscutting capabilities that underpin our business development opportunities.

“Revenues from commercial, state and local and international government clients increased 13.8% and accounted for 57% of total second quarter revenues. This performance was led by continued robust growth in revenues from commercial energy clients, reflecting ICF's market leadership in developing and implementing energy efficiency programs for utilities, as well as increased demand for our expertise in flexible load management, electrification and grid optimization. The capabilities that we have built through investments in these high-growth markets are well aligned with the needs of our utility clients as they address increasing electricity demand.

“As a result of the strong growth in our non-federal government client work, we delivered second quarter revenues at 2.4% below first quarter levels, after absorbing a 14.6% sequential decline in revenues from federal government clients.

“We are executing exceedingly well on our plan to maintain similar margins to those of 2024, while continuing to invest in growth markets and expanding our capabilities in AI and other technologies. Second quarter Adjusted EBITDA margin expanded by approximately 20 basis points year-on-year, reflecting the increased mix of higher-margin commercial energy revenues and a 15.5% reduction in subcontractor and other direct costs. Margins also benefitted from cost management initiatives and a higher percentage of fixed price and time and material contracts, which accounted for 93% of our second quarter revenues, up from 88% last year, while cost reimbursement contracts were under 7%.

“This was a strong quarter for contract awards, which reached $621 million for a second quarter book-to-bill ratio of 1.30. Year-to-date our contract wins amounted to almost $1.1 billion, despite delays in new procurements in the federal government business. Our business development pipeline was $9.2 billion, supporting our confidence in ICF's future performance.”

Second Quarter 2025 Results

Second quarter 2025 total revenue was $476.2million, compared to $512.0 million reported in the second quarter of 2024 and $487.6 million in this year's first quarter. Subcontractor and other direct costs were 23.6% of total revenues, compared to 25.9% in the comparable prior year period. Revenues excluding subcontractor and other direct costs decreased 4.0% as compared to last year's second quarter. Gross margin increased 160 basis points to 37.3%, driven by the favorable change in business mix. Operating income was $40.0 million, compared to $42.4 million last year, and operating margin on total revenue was 8.4%, up from 8.3% in the second quarter of 2024. Net income totaled $23.7 million, versus $25.6 million in the prior year. Diluted EPS was $1.28 per share, compared to $1.36 a year ago. The company's effective tax rate was 21.0% compared to 26.3% in the 2024 second quarter.

Non-GAAP EPS was $1.66 per share, versus $1.69 per share reported in the comparable period in 2024. EBITDA was $53.1 million, compared to $55.6 million reported in the year-ago quarter. Adjusted EBITDA was $52.9 million, and Adjusted EBITDA margin on total revenues was 11.1%, 20 basis points above the 2024 second quarter.

Cash flows from operations were $52 million in the second quarter and the company reduced its debt by $40 million, reflecting the continued strong cash generation of the business.

Backlog and New Business

Total backlog was $3.4 billion at the end of the second quarter of 2025. Funded backlog was $1.8 billion, or approximately 54% of the total backlog. The total value of contracts awarded in the 2025 second quarter was $621million, representing a book-to-bill ratio of 1.30.

Government Revenue Second Quarter 2025 Highlights

Revenue from government clients was $319.6million during the quarter.

— U.S. federal government revenue was $204.7 million, compared to $273.5 million in the second quarter of 2024, and $239.6 million in this year's first quarter. Year-on-year revenue comparisons were impacted by contract funding curtailments and a slower pace of project and procurement activity. Federal government revenue accounted for 43.0% of total revenue, versus 53.4% of total revenue in the second quarter of 2024.

— U.S. state and local government revenue was $85.6 million, similar to the $84.8 million reported in last year's second quarter. State and local government clients represented 18.0% of total revenue, up from 16.6% in the second quarter of 2024.

— International government revenue was $29.3 million, similar to the $28.7 million reported in the 2024 second quarter. Year-on-year revenue comparisons have been impacted by the slower-than-expected ramp up of recently won contracts. International government revenue represented 6.1% of total revenue, up from 5.6% in the prior year.

Key Government Contracts Awarded in the Second Quarter of 2025

Notable government contract awards won in the second quarter of 2025 included:

IT Modernization/Digital Transformation

— Two recompete contracts with a combined value of $167.3 million with a department of the U.S. federal government to develop and manage a comprehensive digital system of care and enhance an inspection management system for programs to meet the needs of military families.

— A contract modification with a value of $70.0 million with a federal agency within the U.S. Department of Health and Human Services (HHS) to continue to provide digital modernization services.

Energy and Environment

— A new subcontract with a value of $40.1 million to support a statewide building energy efficiency program for a state energy commission.

— A new contract with a value of $7.8 million with a county of a Western U.S. state to deliver customized energy efficiency programs related to agriculture operations.

— Several new task orders with a combined value of $5.0 million with a departmental public body in the United Kingdom to provide environmental research, monitoring and evaluation services.

Disaster Management

— A contract modification with a value of $5.0 million with the government of a U.S. territory to continue to implement its disaster recovery grants management program.

— A new contract with a value of $4.5 million with the public utilities commission of a Southwestern U.S. state to provide legal and regulatory advisory services.

Health and Social Programs

— A recompete IDIQ contract with a value of $66.5 million with a U.S. federal agency to provide technical, engineering and programmatic support services.

— A contract extension with a value of $18.0 million with an institute of the U.S. National Institutes of Health to provide comprehensive scientific and technical services related to public health.

— Several recompete contracts and contract modifications with a combined value of $9.6 million with state and local health departments to administer health behavior surveys.

— Several contract modifications with a combined value of $7.2 million with a federal agency within HHS to continue to provide training and technical assistance services.

Commercial Revenue Second Quarter 2025 Highlights

Commercial revenue was $156.6million, up 25.2% year-over-year.

— Commercial revenue accounted for 32.9% of total revenue, up from 24.4% of total revenue in the second quarter of 2024.

— Energy markets revenue, which includes energy efficiency programs, increased 27.4% year-over-year and represented 88.3% of commercial revenue.

Key Commercial Contracts Awarded in the Second Quarter of 2025

Notable commercial awards won in the second quarter of 2025 included:

— A contract modification with a multimillion-dollar value with a Northeastern U.S. utility to continue to provide implementation services for its portfolio of energy efficiency programs.

— A new contract with a Midwestern U.S. utility to serve as administrator for its pilot program supporting the utility's residential and commercial and industrial (C&I) programs.

— A sole-source recompete contract with a Southeastern U.S. utility to administer its C&I energy efficiency program.

— A recompete master services agreement with a U.S. energy company to provide environmental support services.

— A new contract with a Mid-Atlantic U.S. electric generation and transmission cooperative to implement its demand-side management program for mobile home retrofits.

Dividend Declaration

On July 31, 2025, ICF declared a quarterly cash dividend of $0.14 per share, payable on October 10, 2025, to shareholders of record on September 5, 2025.

Summary and Outlook

“ICF's diversified business model and agility have enabled us to navigate an evolving federal government business environment while driving strong growth in other areas of our portfolio.

“We are maintaining the guidance framework for 2025 that we provided at the time of our fourth quarter 2024 earnings release, while noting our improved business outlook. Based on year-to-date results and our current visibility, we do not foresee full year 2025 revenues declining by as much as 10% from 2024 levels, which was the floor indicated by our original guidance. We continue to expect adjusted EBITDA margins to be similar to those of 2024, and our reported GAAP and Non-GAAP EPS are likely to be at the higher end of our guidance framework. This guidance framework does not contemplate an extensive government shutdown this year, nor a prolonged period of pauses in funding modifications to existing contracts or new procurements. We continue to expect operating cash flow for 2025 to be approximately $150 million.

“Our increased confidence in ICF's 2025 year-on-year comparisons is underpinned by our expectation for continued robust demand from our commercial energy clients, stable revenues from state and local government clients and the increasing ramp-up of recently won contracts by international government clients, together with the agility and resourcefulness that we have demonstrated in serving federal government clients.

“We are looking ahead to ICF's return to revenue and earnings growth in 2026 supported by continued growth from our non-federal government clients, improvement from portions of our federal government business, and the continued support of our professional staff, who have shown a tremendous commitment to ICF and to our clients and have helped us manage through challenging industry conditions,” Mr. Wasson concluded.

1Non-GAAP EPS, EBITDA and Adjusted EBITDA are Non-GAAP measurements. A reconciliation of all Non-GAAP measurements to the most applicable U.S. GAAP number is set forth below. Special charges are items that were included within our consolidated statements of comprehensive income but are not indicative of ongoing performance and have been presented net of applicable U.S. GAAP taxes. The presentation of Non-GAAP measurements may not be comparable to other similarly titled measures used by other companies.

About ICF ICF is a leading global solutions and technology provider with approximately 9,000 employees. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more aticf.com.

Caution Concerning Forward-looking Statements Statements that are not historical facts and involve known and unknown risks and uncertainties are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts withU.S.federal government agencies; and our ability to acquire and successfully integrate businesses. These and other factors that could cause our actual results to differ from those indicated in forward-looking statements that are included in the “Risk Factors” section of our securities filings with theSecurities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and we specifically disclaim any obligation to update these statements in the future.

Note on Forward-Looking Non-GAAP Measures The company does not reconcile its forward-looking Non-GAAP financial measures to the correspondingU.S.GAAP measures, due to the variability and difficulty in making accurate forecasts and projections and because not all of the information necessary for a quantitative reconciliation of these forward-looking Non-GAAP financial measures (such as the effect of share-based compensation or the impact of future extraordinary or non-recurring events like acquisitions) is available to the company without unreasonable effort. For the same reasons, the company is unable to estimate the probable significance of the unavailable information. The company provides forward-looking Non-GAAP financial measures that it believes will be achievable, but it cannot accurately predict all of the components of the adjusted calculations, and theU.S.GAAP financial measures may be materially different than the Non-GAAP financial measures.

Investor Contacts:

Lynn Morgen, ADVISIRY PARTNERS, lynn.morgen@advisiry.com +1.212.750.5800 David Gold, ADVISIRY PARTNERS, david.gold@advisiry.com+1.212.750.5800

Company Information Contact: Lauren Dyke, ICF, lauren.dyke@ICF.com +1.571.373.5577

ICF International, Inc. and SubsidiariesConsolidated Statements of Comprehensive Income(Unaudited) Three Months Ended Six Months Ended June 30, June 30,(in thousands, except per share amounts) 2025 2024 2025 2024Revenue $ 476,155 $ 512,029 $ 963,773 $ 1,006,465Direct costs 298,425 329,331 600,967 639,864Operating costs and expenses:Indirect and selling expenses 123,017 127,091 254,908 256,185Depreciation and amortization 14,702 13,200 29,497 27,065Total operating costs and expenses 137,719 140,291 284,405 283,250Operating income 40,011 42,407 78,401 83,351Interest, net (8,422) (7,703) (15,759) (15,941)Other (expense) income (1,639) 36 (2,691) 1,666Income before income taxes 29,950 34,740 59,951 69,076Provision for income taxes 6,289 9,129 9,439 16,148Net income $ 23,661 $ 25,611 $ 50,512 $ 52,928Earnings per Share:Basic $ 1.29 $ 1.37 $ 2.74 $ 2.82Diluted $ 1.28 $ 1.36 $ 2.72 $ 2.80Weighted-average Shares:Basic 18,403 18,738 18,454 18,748Diluted 18,459 18,861 18,546 18,912Cash dividends declared per common share $ 0.14 $ 0.14 $ 0.28 $ 0.28Other comprehensive income (loss), net of tax 6,158 (343) 3,445 341Comprehensive income, net of tax $ 29,819 $ 25,268 $ 53,957 $ 53,269ICF International, Inc. and SubsidiariesReconciliation of Non-GAAP financial measures (2)(Unaudited) Three Months Ended Six Months Ended June 30, June 30,(in thousands, except per share amounts) 2025 2024 2025 2024Reconciliation of EBITDA and Adjusted EBITDA (3)Net income $ 23,661 $ 25,611 $ 50,512 $ 52,928Interest, net 8,422 7,703 15,759 15,941Provision for income taxes 6,289 9,129 9,439 16,148Depreciation and amortization 14,702 13,200 29,497 27,065EBITDA 53,074 55,643 105,207 112,082Acquisition and divestiture-related expenses (4) 195 – 454 66Severance and other costs related to staff realignment (5) – 370 2,550 735Charges and adjustments related to facility consolidations and office closures (6) (394) – (138) -Pre-tax gain from divestiture of a business (7) – – – (1,715)Total Adjustments (199) 370 2,866 (914)Adjusted EBITDA $ 52,875 $ 56,013 $ 108,073 $ 111,168Net Income Margin Percent on Revenue (8) 5.0% 5.0% 5.2% 5.3%EBITDA Margin Percent on Revenue (9) 11.1% 10.9% 10.9% 11.1%Adjusted EBITDA Margin Percent on Revenue (9) 11.1% 10.9% 11.2% 11.0%Reconciliation of Non-GAAP Diluted EPS (3)U.S. GAAP Diluted EPS $ 1.28 $ 1.36 $ 2.72 $ 2.80Acquisition and divestiture-related expenses – – 0.01 -Severance and other costs related to staff realignment – 0.02 0.14 0.04Charges and adjustments related to facility consolidations and office closures (10) (0.02) – (0.01) 0.04Pre-tax gain from divestiture of a business – – – (0.09)Amortization of intangible assets acquired in business combinations (11) 0.50 0.44 1.01 0.88Income tax effects of the adjustments (12) (0.10) (0.13) (0.26) (0.21)Non-GAAP Diluted EPS $ 1.66 $ 1.69 $ 3.61 $ 3.46(2) These tables provide reconciliations of Non-GAAP financial measures to the most applicable U.S. GAAP numbers. While we believe that these Non-GAAP financial measures may be useful in evaluating our financial information, they should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with U.S. GAAP. Other companies may define similarly titled Non-GAAP measures differently and, accordingly, care should be exercised in understanding how we define these measures.(3) Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted EPS were calculated using numbers as reported in U.S. GAAP.(4) These are primarily third-party costs related to acquisitions and integration of acquisitions.(5) These costs are due to involuntary employee termination benefits for (i) our officers and (ii) group of employees who have been notified that they will be terminated as part of a business reorganization or exit.(6) These charges and adjustments are related to a previously exited leased facility which we will continue to pay until the contractual obligations are satisfied but with no economic benefit to us, and the closure of certain international offices.(7) Pre-tax gain related to the 2023 divestiture of our U.S. commercial marketing business which includes contingent gains realized in the first quarter of 2024.(8) Net Income Margin Percent on Revenue was calculated by dividing net income by revenue.(9) EBITDA Margin Percent and Adjusted EBITDA Margin Percent on Revenue were calculated by dividing the Non-GAAP measure by the corresponding revenue.(10) These are office closure charges and adjustments previously included in Adjusted EBITDA and accelerated depreciation related to fixed assets for planned office closures.(11) The amortization of intangible assets acquired from business combinations totaled $9.2 million and $8.3 million for the three months ended June30, 2025 and 2024, respectively, and $18.7 million and $16.6 million for the six months ended June30, 2025 and 2024, respectively.(12) Income tax effects were calculated using the effective tax rate, adjusted for certain discrete items, if any, of 21.0% and 26.3% for the three months ended June30, 2025 and 2024, respectively, and 23.1% and 23.4% for the six months ended June30, 2025 and 2024, respectively.ICF International, Inc. and SubsidiariesConsolidated Balance Sheets(Unaudited)(in thousands, except share amounts) June 30, 2025 December 31, 2024ASSETSCurrent Assets:Cash and cash equivalents $ 6,981 $ 4,960Restricted cash 19,907 13,857Contract receivables, net 212,829 256,923Contract assets 236,227 188,941Prepaid expenses and other assets 22,148 21,133Income tax receivable 8,136 6,260Total Current Assets 506,228 492,074Property and Equipment, net 62,094 66,503Other Assets:Goodwill 1,253,025 1,248,855Other intangible assets, net 95,618 111,701Operating lease – right-of-use assets 111,701 115,531Deferred tax assets 13,234 1,603Other assets 32,091 30,086Total Assets $ 2,073,991 $ 2,066,353LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Accounts payable $ 123,835 $ 159,522Contract liabilities 23,913 24,580Operating lease liabilities 20,708 20,721Finance lease liabilities 2,657 2,612Accrued salaries and benefits 90,194 105,773Accrued subcontractors and other direct costs 48,383 49,271Accrued expenses and other current liabilities 83,809 86,701Total Current Liabilities 393,499 449,180Long-term Liabilities:Long-term debt 462,319 411,743Operating lease liabilities – non-current 148,631 155,935Finance lease liabilities – non-current 9,921 11,261Other long-term liabilities 59,229 55,775Total Liabilities 1,073,599 1,083,894Commitments and ContingenciesStockholders' Equity:Preferred stock, par value $.001; 5,000,000 shares authorized; none issued – -Common stock, par value $.001; 70,000,000 shares authorized; 24,336,393 and 24,186,962 shares 24 24issued at June30, 2025 and December31, 2024, respectively; 18,428,490 and 18,666,290 sharesoutstanding at June30, 2025 and December31, 2024, respectivelyAdditional paid-in capital 454,425 443,463Retained earnings 920,135 874,772Treasury stock, 5,907,903 and 5,520,672 shares at June30, 2025 and December31, 2024, respectively (361,891) (320,054)Accumulated other comprehensive loss (12,301) (15,746)Total Stockholders' Equity 1,000,392 982,459Total Liabilities and Stockholders' Equity $ 2,073,991 $ 2,066,353ICF International, Inc. and SubsidiariesConsolidated Statements of Cash Flows(Unaudited) Six Months Ended June30,(in thousands) 2025 2024Cash Flows from Operating ActivitiesNet income $ 50,512 $ 52,928Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses (505) 1,552Deferred income taxes and unrecognized income tax benefits (14,084) (10,233)Non-cash equity compensation 8,438 8,225Depreciation and amortization 29,497 27,066Gain on divestiture of a business – (1,715)Other operating adjustments, net 3,604 470Changes in operating assets and liabilities, net of the effects of acquisitions:Net contract assets and liabilities (43,619) (23,561)Contract receivables 47,300 (5,828)Prepaid expenses and other assets (2,226) 3,787Operating lease assets and liabilities, net (3,556) (399)Accounts payable (36,534) (23,569)Accrued salaries and benefits (16,256) 5,905Accrued subcontractors and other direct costs (2,502) 7,335Accrued expenses and other current liabilities 1,675 13,075Income tax receivable and payable (1,749) (3,633)Other liabilities (1,072) (770)Net Cash Provided by Operating Activities 18,923 50,635Cash Flows from Investing ActivitiesPayments for purchase of property and equipment and capitalized software (9,202) (10,392)Proceeds from divestiture of a business – 1,715Other investing, net 403 -Net Cash Used in Investing Activities (8,799) (8,677)Cash Flows from Financing ActivitiesAdvances from working capital facilities 755,651 660,396Payments on working capital facilities (705,626) (657,420)Proceeds from other short-term borrowings 7,605 36,783Repayments of other short-term borrowings (15,365) (46,933)Receipt of restricted contract funds – 1,269Payment of restricted contract funds – (3,583)Dividends paid (5,199) (5,257)Net payments for stock issuances and share repurchases (39,313) (30,618)Other financing, net (1,297) (1,145)Net Cash Used in Financing Activities (3,544) (46,508)Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 1,491 (131)Net Change in Cash, Cash Equivalents, and Restricted Cash 8,071 (4,681)Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 18,817 9,449Cash, Cash Equivalents, and Restricted Cash, End of Period $ 26,888 $ 4,768Supplemental Disclosure of Cash Flow InformationCash paid during the period for:Interest $ 14,904 $ 15,270Income taxes $ 25,837 $ 31,107ICF International, Inc. and SubsidiariesSupplemental Schedule (13)Revenue by client market Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024Energy, environment, infrastructure, and disaster recovery 52% 46% 51% 46%Health and social programs 33% 38% 34% 38%Security and other civilian & commercial 15% 16% 15% 16%Total 100% 100% 100% 100%Revenue by client type Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024U.S. federal government 43% 53% 46% 55%U.S. state and local government 18% 17% 17% 16%International government 6% 6% 6% 5%Total Government 67% 76% 69% 76%Commercial 33% 24% 31% 24%Total 100% 100% 100% 100%Revenue by contract mix Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024Time-and-materials 43% 43% 43% 42%Fixed-price 50% 46% 49% 46%Cost-based 7% 11% 8% 12%Total 100% 100% 100% 100%(13) As is shown in the supplemental schedule, we track revenue by key metrics that provide useful information about the nature of our operations. Client markets provide insight into the breadth of our expertise. Client type is an indicator of the diversity of our client base. Revenue by contract mix provides insight in terms of the degree of performance risk that we have assumed.

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