Strong Growth in ICF's 2024 Q4 Performance Overview

ICF Delivers Impressive Fourth Quarter Financial Results

ICF International Inc. (NASDAQ: ICFI), a global consulting and technology services provider, proudly reported its results for the fourth quarter and the entire year, showcasing robust growth and impressive profitability metrics. The results reflect a strong demand for services from commercial energy clients, signaling the strength of ICF's market position.

Fourth Quarter Highlights

The mark of success for ICF during the fourth quarter is evident in several impressive figures:

• Revenue saw a notable increase of 4%, reaching approximately $496 million.
• Net income climbed to $24.6 million, reflecting an 11% rise, with GAAP earnings per share (EPS) climbing to $1.30, a 12% improvement.
• Furthermore, Non-GAAP EPS recorded an increase to $1.87, marking an 11% rise.
• EBITDA for the quarter stood at an impressive $50.8 million, with adjusted EBITDA accounting for $56.3 million.
• Contract awards were strong at $504 million, yielding a book-to-bill ratio of 1.02.

Full Year Performance

The full-year results equally reflect ICF's commitment to growth:

• Overall revenue increased by 3% to $2 billion, which is an impressive 6% if excluding divestitures.
• Net income for the year represented a 33% increase, tallying up to $110 million. The diluted EPS rose 34% to $5.82.
• Non-GAAP EPS marked a significant 15% rise from the previous year, reaching $7.45.
• EBITDA for the entire year reached $221.1 million, reflecting a 12% increase, while adjusted EBITDA rose 6% to $226 million.
• With a strong operating cash flow of $172 million, ICF showcased its solid financial footing.

Strategic Growth and Expansion

As part of its growth strategy, ICF completed the acquisition of Applied Energy Group (AEG), a leading energy technology and advisory services company with a proven track record in the industry. This strategic move is aimed at expanding ICF's capabilities, enhancing its offerings to utility and government clients, and providing best-in-class advisory services. Expected revenues from AEG are projected to grow at a mid-teens rate, further bolstering ICF's operational strength.

Operational and Market Insights

CEO John Wasson emphasized that ICF’s diversified business model has proven vital in adapting to the changes within the market landscape. With approximately 75% of the company's revenue driven by commercial and government clients in 2024, investments will continue in these robust sectors. The recent acquisition of AEG is expected to drive even more growth, furthering ICF's capabilities in energy solutions and advisory services.

The firm will also leverage its expertise in energy efficiency, grid resilience solutions, and innovative energy management strategies to meet the growing demand for sustainable energy practices.

Guidance for 2025

Looking ahead, ICF anticipates total revenues, GAAP EPS, and Non-GAAP EPS for 2025 to fall within a range of flat to a 10% decrease compared to 2024 levels. This forecast accounts for potential funding curtailments from federal government clients but remains cautiously optimistic due to projected gains from commercial energy and local government sectors, estimated to rise by at least 15%.

For the first quarter of 2025, anticipated revenues are expected to range between $480 million and $500 million, with GAAP EPS likely falling between $1.35 and $1.45.

Frequently Asked Questions

What were ICF's revenue figures for Q4 and the full year?

ICF reported a revenue of $496 million for Q4 and approximately $2 billion for the full year 2024.

How much did ICF's net income increase in 2024?

ICF's net income increased by 33%, reaching $110 million for the year.

What acquisition did ICF complete recently?

ICF completed the acquisition of Applied Energy Group (AEG), enhancing its energy technology and advisory capabilities.

What is ICF's growth forecast for 2025?

ICF expects a decrease in total revenues and EPS by up to 10%, while projecting growth of at least 15% from commercial energy and local government clients.

What impact do lower interest expenses have on ICF's financials?

Lower interest expenses contributed to a significant increase in net income and enhanced profitability margins throughout 2024.

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