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• Revenue (Q4 2024): $496.3 million, a 3.8% increase year over year.

• Commercial Revenue (Q4 2024): $133.2 million, a 22% increase.

• Federal Government Revenue (Q4 2024): Declined 2.4% due to lower pass-through costs.

• Adjusted EBITDA Margin (2024): 11.2%, a 30 basis point expansion.

• Non-GAAP EPS (2024): $7.45, a 15% increase.

• Net Income (Q4 2024): $24.6 million, a 10.8% increase.

• Diluted EPS (Q4 2024): $1.30, a 12.1% increase.

• Full Year Revenue (2024): $2.02 billion, a 2.9% increase.

• Operating Cash Flow (2024): $171.5 million, exceeding guidance.

• Debt (Year-end 2024): $411.7 million, reduced from $430.4 million in 2023.

• Share Repurchases (Nov 2024 - Feb 2025): 395,000 shares for $48 million.

• Backlog (Year-end 2024): $3.8 billion, with $1.9 billion funded.

• Warning! GuruFocus has detected 5 Warning Sign with ICFI.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ICF International Inc (NASDAQ:ICFI) reported a 15% increase in non-GAAP EPS to $7.45, driven by a 30 basis point expansion in adjusted EBITDA margin to 11.2%.

• The company experienced a 26% revenue increase in its commercial energy sector, attributed to new wins and contract expansions.

• ICF International Inc (NASDAQ:ICFI) completed the acquisition of Applied Energy Group, enhancing its energy technology and advisory services capabilities.

• The company repurchased 395,000 shares, demonstrating confidence in its long-term outlook.

• ICF International Inc (NASDAQ:ICFI) secured significant international contracts with the European Commission and the UK government, valued at over $210 million.

Negative Points

• ICF International Inc (NASDAQ:ICFI) faces potential revenue reductions of up to 10% in 2025 due to changes in federal government spending priorities.

• Approximately $90 million of estimated 2025 revenues have been affected by stop work orders and contract terminations, primarily impacting USAID contracts.

• The federal government business saw a 2.4% decline in revenue in the fourth quarter, driven by lower pass-through costs.

• The company anticipates a transitional year in 2025 for its federal government business, with potential further revenue impacts.

• ICF International Inc (NASDAQ:ICFI) faces uncertainty in the federal market, which could affect its IT modernization and digital transformation services.

Q & A Highlights

Q: Can you provide more details on the maximum downside risk to your programmatic revenue? A: John Wasson, CEO: We provided a range from flat to a maximum downside of minus 10% for 2025. This was based on a detailed project-by-project risk analysis of our federal business, considering the new administration's priorities. We expect IT modernization work to see mid- to high single-digit revenue shrinkage, while programmatic work, particularly at USAID, has already seen significant impacts.