ICF International (ICFI) Stock Forecast & Price Target

ICF International Inc. demonstrated robust performance, with its commercial energy markets business, which constitutes a significant portion of revenue, achieving a year-over-year growth rate of 27% in Q2/25 and 24.3% in Q3/25. The company's impressive strength in contract awards, totaling $621 million in Q2/25, reflects strong demand for its core services, particularly in energy efficiency and utilities management. This sustained growth trajectory is further supported by a mid-teens organic growth rate in commercial energy revenue, positioning ICF favorably within the professional services sector.

ICF International's revenue from federal government clients, which comprises 43% of its Q3/25 revenue, experienced a significant decline of 29.8% year-over-year, largely attributed to contract cancellations and a slower pace of project activity. The company also reported a revenue decrease of 25.2% year-over-year in the federal government client market, particularly affecting the Health and Social Programs segment, which has raised concerns over the stability of future earnings. Furthermore, the company's valuation remains depressed compared to its three-year average EV/NTM EBITDA multiple due to persistent headwinds in the federal government market, with guidance indicating flat to a potential 10% decline in revenue and EPS for 2025.