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ICF International, Inc. ICFI reported impressive first-quarter 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same.
The earnings beat failed to impress the market, as the stock did not move much since the earnings release on May 1.
Quarterly earnings per share of $1.94 beat the Zacks Consensus Estimate by 11.5% and gained 9.6% from the year-ago reported figure. Total revenues of $487.7 million marginally missed the Zacks Consensus Estimate and decreased 1.4% year over year.
ICF International, Inc. Price, Consensus and EPS Surprise
ICF International, Inc. price-consensus-eps-surprise-chart | ICF International, Inc. Quote
ICFI’s Segmental Revenues
Revenues from government clients increased 12.6% from the year-ago quarter’s level to $343.6 million, below our estimate of $364.7 million. The U.S. state and local government revenues of $76.9 million, representing 15.8% of total revenues, lagged our prediction of $90.7 million and declined 0.13% year over year.
International government revenues reached $27.1 million, representing 5.6% of the total revenues, lagging our anticipated $30.4 million. However, it increased 7.2% from the year-ago quarter’s actual.
U.S. federal government revenues of $239.6 million contributed 49.1% to the total revenues, which missed our estimate of $243.6 million but decreased 12.6% on a year-over-year basis.
Commercial revenues, representing 29.5% of the total revenues, amounted to $144.1 million. The figure outpaced our expectation of $121.8 million, up 3.1% from the year-ago quarter.
Operating Performance of ICFI
Adjusted EBITDA rose 0.08% year over year to 55.2 million. The current adjusted EBITDA margin of 11.3% increased 10 basis points from the year-ago quarter.
ICFI’s Balance Sheet and Cash Flow
ICF International exited the quarter with cash and cash equivalents of $5.7 billion compared with $5 billion in the previous quarter. Long-term debt at the end of the quarter was $502 million, up from $411.7 million in the previous quarter.
ICFI used $33 million in cash from operating activities. CapEx was $3.5 million.
Guidance by ICFI
For the second quarter of 2025, ICFI expects revenues to be similar to those of the first quarter of 2025.
For 2025, GAAP EPS is anticipated to range from flat to down 10% from last year's levels.
The company continues to expect full-year operating cash flow to be approximately $150 million, and capital expenditures are anticipated to be approximately $26 million to $28 million. The full-year tax rate is now expected to be approximately 18.5%.