ICF reported resilient performance in Q4 2025, capping a year of navigating a challenging federal business environment. The company saw strong growth in commercial, state & local, and international government segments, which offset declines in federal revenue, and maintained margins through effective cost management and a favorable business mix. Guidance for 2026 indicates a return to revenue and earnings growth.
Revenues from commercial, state & local and international government clients increased 16% in Q4 and 14% for the full year, reaching 57% of annual revenues.
positiveCommercial energy clients drove revenue growth of 23% in Q4 and 24% for the full year.
positiveFull year 2025 gross margin expanded 60 basis points to 37.2%, driven by favorable business mix.
positiveContract awards totaled $2.2 billion for a book-to-bill ratio of 1.19 for the full year 2025.
positiveOperating cash flow was $142 million for the full year 2025.
positiveTotal revenue for Q4 2025 was $443.7 million, down from $496.3 million in Q4 2024, impacted by the government shutdown.
attentionU.S. federal government revenue was $167.8 million in Q4 2025, down 35.1% year-over-year, impacted by contract funding curtailments, slower RFPs, and the government shutdown.
negativeOperating income in Q4 2025 was $28.6 million, down from $36.5 million in Q4 2024, with operating margin at 6.5% compared to 7.3%.
attentionNon-GAAP EPS was $1.47 in Q4 2025, down from $1.87 in Q4 2024.
negativeAdjusted EBITDA margin on total revenue was 10.4% in Q4 2025, down from 11.3% in Q4 2024.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Energy, environment, infrastructure, and disaster recovery | N/A | — | — | — |
Health and social programs | N/A | — | — | — |
Security and other civilian & commercial | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our fourth quarter results were in line with our guidance and capped a year of resilient performance given the challenging federal business environment.
ICF continued to experience robust demand from our commercial energy clients, driving revenue growth in this client category of 23% in the fourth quarter and 24% for the full year.
We succeeded in maintaining full year 2025 margins that were similar to those of 2024, despite the revenue decline.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.