On August 1, 2024, ICF International Inc (ICFI, Financial) released its 8-K filing reporting robust financial results for the second quarter of 2024. The company, which provides professional services and technology-based solutions to government and commercial clients, demonstrated significant growth across key financial metrics.
Company Overview
ICF International Inc offers management, marketing, technology, and policy consulting and implementation services. The company supports clients in four key markets: Energy, Environment, Infrastructure and Disaster Recovery; Health and Social Programs; Security; and Other Civilian & Commercial. The majority of its clients are U.S. federal government departments and agencies.
Performance Highlights
ICF International Inc reported a 2% increase in revenue to $512 million, surpassing the analyst estimate of $505.79 million. Adjusted for divestitures, revenue grew by 6%. The company also reported a net income of $25.6 million, with GAAP EPS of $1.36, up 27% year-over-year, exceeding the estimated EPS of $1.16. Non-GAAP EPS was $1.69, an 8% increase from the previous year.
Key Financial Metrics
ICF International Inc's EBITDA increased by 17% to $55.6 million, while adjusted EBITDA rose by 10% to $56.0 million. The company's operating income grew by 32.3% to $42.4 million, with an operating margin expansion to 8.3% from 6.4% in the previous year. The company's total backlog reached $3.8 billion, with a record $810 million in contract awards for the quarter, reflecting a book-to-bill ratio of 1.58.
Government and Commercial Revenue
Revenue from government clients was $387.0 million, a 1.8% increase year-over-year. U.S. federal government revenue was $273.5 million, while U.S. state and local government revenue increased by 4.7% to $84.8 million. International government revenue grew by 9.5% to $28.7 million. Commercial revenue was $125.0 million, up 22.6% from the previous year, driven by a 24.8% increase in energy markets revenue.
Contract Awards and Business Development
ICF International Inc secured several notable contracts in the second quarter, including a $236.8 million recompete contract with the U.S. Agency for International Development Bureau for Global Health and an $87.7 million subcontract for the Centers for Medicare and Medicaid Services Quality Payment Program. The company also won a $16.8 million contract with FEMA to build a cloud-based data exchange platform.
Dividend Declaration
ICF International Inc declared a quarterly cash dividend of $0.14 per share, payable on October 11, 2024, to shareholders of record on September 6, 2024.
Summary and Outlook
ICF International Inc's strong performance in the first half of 2024 has led to an increase in full-year EPS and EBITDA guidance. The company now expects GAAP EPS in the range of $5.60 to $5.90 and Non-GAAP EPS of $6.95 to $7.25. Adjusted EBITDA is projected to be between $225 million and $235 million. The company's growing backlog and record business development pipeline of $10.5 billion support expectations for continued strong growth in 2024.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from ICF International Inc for further details.
