ICF International Inc · Q2 2022 earnings

Briefing

ICF experienced strong growth driven by substantial revenue increases in high-growth markets and a record business development pipeline.

ICF reported a 7.8% increase in total revenue to $423.1 million for the second quarter of 2022. Diluted EPS was $0.97, while Non-GAAP EPS was $1.33, a 12% increase. The company's adjusted EBITDA was $44.1 million, up 10%, with an adjusted EBITDA margin on service revenue of 14.4%. Contract awards were $346 million, and the trailing twelve-month book-to-bill ratio was 1.21. Full year 2022 revenue, Adjusted EBITDA, Non-GAAP EPS and cash flow guidance was raised to include the SemanticBits Acquisition.

• Total revenue increased by 7.8% to $423.1 million.
• Service revenue was $306.3 million, up 9%.
• Non-GAAP EPS increased 12% to $1.33.
• Adjusted EBITDA increased 10% to $44.1 million with a margin on service revenue of 14.4%.

Headline financials

Revenue & EPS history

ICF raised its full year 2022 guidance to reflect the SemanticBits acquisition. Service revenue is expected to range from $1.275 billion to $1.325 billion, implying total revenue of $1.760 billion to $1.820 billion. Adjusted EBITDA is anticipated at $186 million to $198 million, equivalent to an adjusted EBITDA margin on service revenue of 14.8%. Non-GAAP EPS is expected to range from $5.50 to $5.80. Operating cash flow is expected to increase to $140 million in 2022.