ICF International (ICFI) Stock Forecast & Price Target

ICF International Inc. has demonstrated robust growth in its commercial energy markets business, which accounted for 29% to 30% of total revenue in recent quarters, with year-over-year revenue increases of 27% and 24.3% in Q2 and Q3 of 2025, respectively. The company has achieved significant contract awards, totaling $621 million in Q2 of 2025, indicating strong demand for its professional services, particularly in the areas of energy efficiency, flexible load management, and grid optimization. This positive momentum in revenue, coupled with a growing client base from utility sectors, supports a favorable outlook for ICF's future financial performance.

ICF International's outlook is negatively affected by a substantial decline in revenue from federal government clients, which accounted for 43% of their Q3/25 revenue, decreasing by 29.8% year-over-year due to contract cancellations and reduced project activity. The company's management highlighted that revenue fell approximately $15 million short of expectations, primarily due to a slower-than-anticipated ramp-up of international contracts, notably with the U.K. Furthermore, guidance forecasts indicate flat to a 10% decline in revenue and earnings per share for 2025, coupled with a valuation that remains depressed compared to prior three-year averages, reflecting ongoing challenges in the federal government sector.