ICF International Stock Declines 5.6% Since Q3 Earnings Miss

ICF International, Inc. ICFI reported unimpressive third-quarter 2025 results. Earnings & revenues both missed the Zacks Consensus Estimate.

However, the earnings miss failed to impress the market as the company’s shares have declined 5.6% since the earnings release on Oct. 30.

Quarterly EPS of $1.67 missed the Zacks Consensus Estimate by 4.6% and declined 21.6% from the year-ago reported figure. Total revenues of $465.4 million missed the Zacks Consensus Estimate by 3.5% and decreased 10% 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 decreased 20.4% from the year-ago quarter’s level to $308.8 million, below our estimate of $388.1 million. The U.S. state and local government revenues came in at $81.7 million, representing 17.6% of total revenues, lagging our prediction of $107 million but increasing 3.7% year over year.

International government revenues reached $29 million, representing 6.2% of the total revenues, lagging our anticipated $34.4 million. However, it increased 8.2% from the year-ago quarter’s actual.

U.S. federal government revenues of $198 million contributed 42.6% to the total revenues, which missed our estimate of $246.7 million but decreased 29.8% on a year-over-year basis.

Commercial revenues, representing 33.7% of the total revenues, amounted to $156.6 million. The figure outpaced our expectation of $88.5 million, up 20.9% from the year-ago quarter.

Operating Performance of ICFI

Adjusted EBITDA fell 9.2% year over year to $53.2 million. The current adjusted EBITDA margin of 11.4% 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 $3.99 billion compared with $4.96 billion in the December-end quarter of 2024. Long-term debt at the end of the quarter was $449.4 million, up from $411.7 million in the December-end quarter of 2024.

ICFI used $66.24 million in cash from operating activities. CapEx was $5.5 million.

Guidance by ICFI

For 2025, the company continues to expect full-year cash flow to range between $125 million and $150 million. The capital expenditures are anticipated to be between $23 million and $25 million.

The full-year tax rate is now expected to be approximately 18.5%.

Currently, ICF International carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Omnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a jump of 2.6% in revenues from organic growth.

ManpowerGroup, Inc. MAN reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

Quarterly adjusted earnings per share (EPS) came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year. 

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This article originally published on Zacks Investment Research (zacks.com).

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