ICF International Reports 2025 Financial Decline Amid Federal Contract Terminations and Tax Changes
ICFI sits 15% above its 52-week low of $72.026 on elevated volume (2.6× avg).
Summary
ICF International reported a decline in 2025 revenue, net income, and diluted EPS, primarily due to federal contract terminations, partially offset by commercial growth. The company also noted a significant tax impact from new legislation.
Key Events · Earnings and Guidance · ICFI
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2025 Financial Performance Decline
Revenue decreased by $146.9 million to $1,872.9 million in 2025 from $2,019.8 million in 2024. Net income fell by $18.6 million to $91.6 million, and diluted EPS decreased to $4.95 from $5.82 in 2024.
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Federal Government Contract Impact
U.S. federal government revenue declined by $279.5 million in 2025, primarily due to terminated contracts and disruptions in the procurement cycle, partially offset by a $117.2 million increase in commercial revenue.
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Total Backlog Reduction
Total backlog decreased by $381.3 million to $3,405.0 million at year-end 2025 from $3,786.3 million in 2024.
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Tax Law Changes Impact Deferred Assets
The 'One Big Beautiful Bill Act' (OB3 Act), signed July 4, 2025, resulted in a $32.0 million reversal of deferred tax assets related to capitalized research expenses.
Analysis · ICFI · Trade & Services
ICF International's 2025 annual report confirms a significant decline in key financial metrics, primarily driven by a substantial reduction in U.S. federal government contracts. While commercial revenue showed growth, it was insufficient to offset the federal segment's underperformance. The company also recorded a material non-cash impact from new tax legislation. Despite these challenges, ICF maintains strong liquidity and continues its share repurchase program, indicating a focus on shareholder returns and financial stability amidst operational headwinds. This filing provides the full audited details following a preliminary 8-K disclosure.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 30.2% of the 1625 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.52%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ICFI was trading at $83.13 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $72.03 to $102.05. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.