Overview

* ICF Q2 revenue misses analyst expectations, but adjusted EPS beats, per LSEG data

* Commercial energy revenue grows 27% yr/yr, boosting margin mix

* Co maintains full-year 2025 guidance, expects growth in 2026

Outlook

* ICF maintains full-year 2025 guidance framework

* Company expects revenue and earnings growth to return in 2026

* ICF does not foresee 2025 revenues declining by 10% from 2024

* Adjusted EBITDA margins expected similar to 2024

Result Drivers

* COMMERCIAL ENERGY - 27% yr/yr revenue growth driven by energy efficiency programs and increased demand for flexible load management

* MARGIN MIX - Favorable margin mix due to higher-margin commercial energy revenues and reduced subcontractor costs

* FEDERAL REVENUE DECLINE - 14.6% sequential decline in federal government revenue due to contract funding curtailments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $476 mln $482.80

Revenue mln (5

Analysts

)

Q2 Beat $1.66 $1.61 (4

Adjusted Analysts

EPS )

Q2 EPS $1.28

Q2 Net $24 mln

Income

Q2 Beat $52.90 $52.70

Adjusted mln mln (5

EBITDA Analysts

)

Q2 $53.10

EBITDA mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for ICF International Inc ( ICFI ) is $96.00, about 13.8% above its July 30 closing price of $82.78

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)