Latest news with #JohnWasson
Yahoo
28-05-2025
- Business
- Yahoo
ICF to Present at the Baird 2025 Global Consumer, Technology & Services Conference
RESTON, Va., May 28, 2025 /PRNewswire/ -- ICF (NASDAQ:ICFI), a global consulting and technology services provider, today announced its participation at the Baird 2025 Global Consumer, Technology & Services Conference at the InterContinental New York Barclay. ICF Chief Executive Officer John Wasson and Senior Vice President of Digital Modernization and Experience David Birken will participate in a fireside chat at 9:05 a.m. Eastern Time on Thursday, June 5. About ICFICF is a global consulting and technology services company with approximately 9,000 employees, but we are not your typical consultants. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more at Caution Concerning Forward-looking StatementsStatements that are not historical facts and involve known and unknown risks and uncertainties are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts with U.S. federal government agencies; and our ability to acquire and successfully integrate businesses. These and other factors that could cause our actual results to differ from those indicated in forward-looking statements are included in the "Risk Factors" section of our securities filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and we specifically disclaim any obligation to update these statements in the future. Investor information contact:Lynn Morgen, AdvisIRy Partners, +1.212.750.5800orDavid Gold, AdvisIRy Partners, +1.212.750.5800 Company information contact:Lauren Dyke, ICF, +1.571.373.5577 View original content to download multimedia: SOURCE ICF Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
ICFI Q1 Earnings Call: Commercial Energy Growth Offsets Federal Slowdown, Guidance Maintained
Professional consulting firm ICF International (NASDAQ:ICFI) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.4% year on year to $487.6 million. Its non-GAAP profit of $1.94 per share was 12.1% above analysts' consensus estimates. Is now the time to buy ICFI? Find out in our full research report (it's free). Revenue: $487.6 million vs analyst estimates of $486.5 million (1.4% year-on-year decline, in line) Adjusted EPS: $1.94 vs analyst estimates of $1.73 (12.1% beat) Adjusted EBITDA: $55.2 million vs analyst estimates of $54.04 million (11.3% margin, 2.1% beat) Operating Margin: 7.9%, in line with the same quarter last year Free Cash Flow was -$36.49 million compared to -$15.23 million in the same quarter last year Backlog: $3.4 million at quarter end, down 5.6% year on year Market Capitalization: $1.63 billion ICF International's first quarter performance reflected a shift in business mix, with growth in commercial, state and local, and international government segments partially offsetting a reduction in federal government revenues. Management attributed the quarter's results to ongoing demand for energy efficiency and electrification programs from utility clients, alongside stable trends in state and local disaster recovery and climate initiatives. CEO John Wasson noted, 'Our revenues from commercial, state and local, and international government clients in aggregate accounted for 51% of first quarter revenues, up from about 45% one year ago.' Looking ahead, management's guidance framework for 2025 remains unchanged, reflecting continued uncertainty around federal government contract funding and new request-for-proposal (RFP) activity. The company expects commercial energy, state and local, and international government revenue to grow at least 15% this year, offsetting federal headwinds. CFO Barry Broadus emphasized maintaining profitability, stating that 'we expect to maintain our adjusted EBITDA margins on 2025 revenues at levels comparable to 2024.' ICF International's leadership identified commercial energy strength, changing federal dynamics, and disciplined cost control as key themes shaping Q1 results and the outlook for 2025. Commercial energy demand rising: The company reported continued expansion in utility-funded energy efficiency, electrification, and flexible load management programs, with commercial energy revenues up 21% year-over-year. This demand is supported by utilities seeking to manage rapid load growth and by regulatory support for reducing energy usage. Federal government headwinds: Revenues from federal clients declined 12.6% year-over-year due to contract funding curtailments, fewer new RFPs, and the impact of stop work orders and terminations. Management estimates approximately $115 million in 2025 revenues have been affected by these disruptions so far. State, local, and international growth: The company saw stable trends in state and local government business, with new disaster recovery contracts and ongoing climate and infrastructure work. International government revenues grew 7.2%, driven by execution on recent contract wins in the European Union and U.K. Business mix supports margins: The increasing share of higher-margin commercial business, greater use of fixed-price contracts, and lower subcontracting contributed to an 80-basis-point expansion in gross margin to 38%. AEG acquisition integration: The Applied Energy Group acquisition at the end of 2024 is progressing as planned, enhancing ICF's technology and advisory capabilities for electric and gas utilities and providing opportunities for synergistic growth. Management's outlook for 2025 is shaped by ongoing challenges in federal contracting, but offset by expected growth in commercial, state and local, and international markets. Commercial energy as growth engine: Leadership expects continued expansion in energy efficiency and electrification programs for utility clients, which are forecast to drive the majority of non-federal revenue growth. Federal government funding risk: Stop work orders and contract terminations are anticipated to persist, with management assuming most stop work orders will not be reinstated this year, adding ongoing uncertainty to federal revenue. Margin stability focus: Cost management and favorable business mix are expected to help maintain adjusted EBITDA margins at 2024 levels, even as revenue growth is pressured by the federal segment. Timothy Mulrooney (William Blair): Asked if Q2 would see peak impact from federal contract disruptions; management replied that Q2 and Q3 are likely to resemble Q1, with ongoing fluidity rather than a pronounced peak. Joseph Vafi (Canaccord Genuity): Queried whether commercial energy performance in Q1 sets the pace for the year; CEO John Wasson confirmed that strong growth and margins in commercial energy are expected to continue. Tobey Sommer (Truist Securities): Inquired about the scalability of commercial energy programs and whether clients are adopting multiple large projects; management noted ongoing pilots in flexible load management and electrification, expecting material scaling over time. Kevin Steinke (Barrington Research): Sought clarity on IT modernization outlook; leadership reiterated its forecast of a 5-10% revenue decline for this business in 2025, citing slower procurement but potential for renewed growth in 2026. Marc Riddick (Sidoti): Asked about potential upside in Health and Human Services work and acquisition plans; management pointed to opportunities in children's health and food safety, and said future M&A would likely focus on energy-related tuck-in deals. In upcoming quarters, the StockStory team will monitor (1) the pace of federal government contract modifications and new RFP releases, (2) whether commercial energy and state and local businesses can sustain double-digit growth, and (3) the successful integration of Applied Energy Group, including any synergistic wins. Developments in federal spending priorities and regulatory policy will be important for future performance. ICF International currently trades at a forward P/E ratio of 12.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
01-05-2025
- Business
- Yahoo
ICF International (NASDAQ:ICFI) Reports Q1 In Line With Expectations
Professional consulting firm ICF International (NASDAQ:ICFI) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.4% year on year to $487.6 million. Its non-GAAP profit of $1.94 per share was 12.1% above analysts' consensus estimates. Is now the time to buy ICF International? Find out in our full research report. Revenue: $487.6 million vs analyst estimates of $486.5 million (1.4% year-on-year decline, in line) Adjusted EPS: $1.94 vs analyst estimates of $1.73 (12.1% beat) Adjusted EBITDA: $55.2 million vs analyst estimates of $54.04 million (11.3% margin, 2.1% beat) Operating Margin: 7.9%, in line with the same quarter last year Free Cash Flow was -$36.49 million compared to -$15.23 million in the same quarter last year Backlog: $3.4 billion at quarter end, up 94,344% year on year Market Capitalization: $1.56 billion Commenting on the results, John Wasson, chair and chief executive officer, said "First quarter revenues were in line with our expectations. Revenues from our commercial, state and local and international government clients increased 12.6% in the aggregate to now account for approximately 51% of first quarter revenues. This performance essentially offset a 12.6% decline in federal government revenue due to changes in spending priorities by the new administration. Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $2.01 billion in revenue over the past 12 months, ICF International is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, ICF International grew its sales at a decent 6.1% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. ICF International's recent performance shows its demand has slowed as its annualized revenue growth of 4.3% over the last two years was below its five-year trend. This quarter, ICF International reported a rather uninspiring 1.4% year-on-year revenue decline to $487.6 million of revenue, in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to decline by 4.9% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. ICF International was profitable over the last five years but held back by its large cost base. Its average operating margin of 7% was weak for a business services business. On the plus side, ICF International's operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, ICF International generated an operating profit margin of 7.9%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. ICF International's EPS grew at a spectacular 13.2% compounded annual growth rate over the last five years, higher than its 6.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into ICF International's earnings quality to better understand the drivers of its performance. As we mentioned earlier, ICF International's operating margin was flat this quarter but expanded by 1.5 percentage points over the last five years. On top of that, its share count shrank by 3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. In Q1, ICF International reported EPS at $1.94, up from $1.77 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ICF International's full-year EPS of $7.63 to shrink by 9.3%. We enjoyed seeing ICF International beat analysts' EPS expectations this quarter despite in-line revenue. Overall, this quarter wasn't perfect, but it was solid. The stock remained flat at $85.28 immediately following the results. ICF International may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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