ICF International, Inc. (ICFI) reported fourth‑quarter 2025 revenue of $443.7 million, a 10.6% year‑over‑year decline, and full‑year revenue of $1.87 billion, down 7.3% from 2024. Net income for the quarter was $17.3 million and $91.6 million for the year, translating to diluted earnings per share of $0.94 and $4.95, respectively. Adjusted EBITDA reached $46.0 million in Q4 and $207.2 million for the year, with adjusted EBITDA margins of 10.4% and 11.1%.
Revenue growth was driven by a 16% increase in commercial, state/local, and international government client revenue, which accounted for 62% of total revenue. Federal revenue fell 35.1% in Q4 and 25.7% for the full year, a sharper decline than the 29.8% figure originally reported. Commercial energy revenue grew 23% in the quarter and 24% for the year, underscoring the strength of ICF’s high‑margin commercial segment.
Compared with Q4 2024, ICF’s revenue fell 10.6% to $443.7 million from $496.3 million, while net income remained flat at $17.3 million. Diluted EPS for the quarter was $0.94 versus $1.87 in Q4 2024, reflecting the impact of the federal revenue decline and a shift in cost mix. Full‑year EPS of $4.95 was down from $7.45 in 2024, consistent with the overall revenue contraction.
Gross margin contracted to 35.7% in Q4 from 36.1% in the prior year, driven by a shift in cost mix and higher fringe expenses. Adjusted EBITDA margin fell to 10.4% from 11.3% in Q4 2024, while the full‑year margin of 11.1% was essentially flat against 11.2% in 2024. The mix shift toward higher‑margin commercial energy contracts helped offset the margin compression caused by the federal revenue decline.
ICF guided for 2026 revenue of $1.89 billion to $1.96 billion, GAAP EPS of $5.95 to $6.25, and non‑GAAP EPS of $6.95 to $7.25. Management expressed confidence that the recovery in federal work and continued growth in commercial segments will support the outlook, noting that the company’s backlog of $3.4 billion and pipeline of $8.6 billion provide strong earnings visibility.
CEO John Wasson said, "Our fourth quarter results were in line with our guidance and capped a year of resilient performance given the challenging federal business environment." CFO Barry Broadus added, "Total revenue in the fourth quarter was $443.7 million compared to $496.3 million in last year's fourth quarter and $465.4 million in this year's third quarter. The 10.6% year‑over‑year decline was consistent with the guidance we provided on our third quarter call."
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