ICF Q3 revenue misses estimates on commercial energy slowdown; lowers 2026 outlook
ICFI•ICF's third-quarter revenue rose 1% year over year to $470 million, below the $490.83 million estimate, while adjusted EPS of $1.98 beat estimates. The company now expects 2026 revenue to be similar to 2025 levels and maintained its $7.10 midpoint for 2026 non-GAAP EPS guidance.
1. Quarterly results
ICF reported third-quarter revenue of $470 million, up 1% year over year and below the $490.83 million analyst estimate. Adjusted EPS rose 19% to $1.98, beating the $1.92 estimate. Net income was $32 million, and adjusted EBITDA was $54.20 million, below the $55.96 million estimate.
2. Revenue outlook lowered
ICF lowered its 2026 revenue outlook and now expects revenue to be similar to 2025 levels. It maintained the midpoint of its 2026 non-GAAP EPS guidance at $7.10 and forecast operating cash flow of $135 million to $150 million.
3. Factors affecting results
Revenue from commercial energy clients fell short because of fewer contract add-ons, regulatory pressure on utilities and slower ramp-ups on new contracts. ICF attributed margin expansion to efficient contract delivery and a higher proportion of fixed-price contracts. Federal government clients grew sequentially, while state, local and international government clients increased year over year.
