Overview

• U.S. solutions and technology provider's Q1 revenue fell YoY and missed analyst expectations

• Adjusted EPS for Q1 missed analyst expectations, while adjusted EBITDA beat estimates

• Company says Q1 revenue was impacted by $12 mln project timing shift, with recovery expected later in 2026

Outlook

• ICF reaffirms 2026 revenue guidance of $1.89 bln to $1.96 bln, 3% growth at midpoint

• Company expects 2026 GAAP EPS of $5.95-$6.25 and non-GAAP EPS of $6.95-$7.25

• ICF forecasts operating cash flow of $135 mln to $150 mln for 2026

Result Drivers

• PROJECT TIMING - Co said Q1 revenue was about $12 mln lower than expected due to timing of project work for commercial energy and international government clients, with recovery expected later in 2026

• FEDERAL GOVERNMENT GROWTH - Sequential revenue growth from federal government clients was driven by technology modernization work

• INTERNATIONAL CONTRACT WINS - International government revenues rose over 17% year-on-year, supported by recent contract wins from U.K. and European Union clients

Company press release: ID:nPn7NwmSDa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "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 is $108.50, about 47.5% above its May 6 closing price of $73.58

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

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