Technology
ICF Reports Fourth Quarter and Full Year 2024 Results
Published
1 year agoon
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―Fourth Quarter Results Led by Strong Demand From Commercial Energy Clients―
―Full Year Profitability Gains Driven By Favorable Mix, Higher Utilization and Lower Interest Expense―
―Recent Acquisition Expands ICF’s Capabilities to Serve Utility and State & Local Government Clients―
―Repurchased 395,000 Shares From Mid-November 2024 To-date―
―Provides Framework for Full Year 2025 and First Quarter 2025 Guidance―
Fourth Quarter Highlights:
Revenue Increased 4% to $496 MillionNet Income Was $24.6 Million, Up 11%; GAAP EPS Was $1.30, Up 12%, Inclusive of $0.23 Per Share in Tax-Effected Special ChargesNon-GAAP EPS1 Increased 11% to $1.87EBITDA1 Was $50.8 Million; Adjusted EBITDA1 Was $56.3 MillionContract Awards Were $504 Million for a Quarterly Book-to-Bill Ratio of 1.02
Full Year Highlights:
Revenue Increased 3% to $2.0 Billion; Up 6% Excluding DivestituresNet Income Was $110 Million, Up 33%; Diluted EPS Was $5.82, Up 34%, Inclusive of $0.24 Per Share in Tax-Effected Special ChargesNon-GAAP EPS Was $7.45, Up 15%EBITDA Was $221.1 Million, Up 12%; Adjusted EBITDA Was $226.0 Million, Up 6%Contract Awards Were $2.5 Billion for a Book-to-Bill Ratio of 1.24Operating Cash Flow Was $172 Million
RESTON, Va., Feb. 27, 2025 /PRNewswire/ — ICF (NASDAQ: ICFI), a global consulting and technology services provider, reported results for the fourth quarter and full year ended December 31, 2024.
Commenting on the results, John Wasson, chair and chief executive officer, said, “This was another strong year for ICF in which we achieved solid revenue growth, delivered strong profitability, and reported forward-looking metrics that point to continued growth in our commercial, state and local and international businesses. Our broad-based energy advisory work and program implementation for commercial clients was an important contributor to fourth quarter and full year revenue growth, reflecting robust demand for our energy efficiency work, grid resilience solutions, flexible load management plans and electrification programs. Revenues from commercial, state and local and international government clients, together with our IT modernization/digital transformation work for federal government clients, accounted for approximately 75% of ICF’s 2024 revenues and remain areas of continued investment.
“The increasing contribution from our higher margin commercial work, together with high utilization across ICF and scale benefits, were key drivers of adjusted EBITDA growth in 2024. Adjusted EBITDA margin on total revenues expanded by 30 basis points year-on-year to 11.2%, and lower interest expense drove a 33% increase in net income for the year. Operating cash flow generation was another financial highlight of 2024, surpassing our guidance to reach $172 million.
“We were pleased to announce in early January 2025 the acquisition of Applied Energy Group (AEG) that was completed on December 31, 2024. AEG is a leading energy technology and advisory services company with over 100 utility management and demand-side energy experts. AEG brings a highly trusted energy technology platform that is cloud-based and offers real-time business intelligence to electric and gas utilities, state and local governments, and state energy offices nationwide and provides best-in-class advisory services. AEG generated approximately $30 million in annual revenue in 2024 at margins comparable to our commercial energy business and its 2025 revenues are expected to increase at a mid-teens rate. The transaction is anticipated to be immediately accretive to ICF’s Non-GAAP EPS.”
Fourth Quarter 2024 Results
Fourth quarter 2024 total revenue was $496.3 million, a 3.8% increase from the $478.4 million reported in the fourth quarter of 2023. Subcontractor and other direct costs were 25.4% of total revenues compared to 27.0% in last year’s fourth quarter. Operating income was $36.5 million compared to $36.9 million last year, and operating margin on total revenue was 7.3%, compared to 7.7% in the fourth quarter of 2023. Net income totaled $24.6 million, representing a 10.8% year-on-year increase over the $22.2 million reported in the fourth quarter of 2023. Diluted EPS was $1.30 per share, up 12.1% from the $1.16 reported in the fourth quarter of 2023, which included $5.5 million, or $0.23 per share, of tax-effected special charges primarily related to M&A expenses and facility reductions. The company’s effective tax rate was 20.9% in the 2024 fourth quarter compared to 25.6% in the 2023 fourth quarter.
Non-GAAP EPS increased 11.3% to $1.87 per share, from $1.68 per share reported in the comparable period in 2023. EBITDA was $50.8 million, compared to $53.9 million reported in the year-ago period. Adjusted EBITDA amounted to $56.3 million, compared to the $57.0 million reported for the comparable period in 2023.
Full Year 2024 Results
2024 total revenue was $2.02 billion, an increase of 2.9% from $1.96 billion reported in the previous year and 6.1% higher when adjusting for the 2023 divestitures. Subcontractor and other direct costs were 25.1% of total revenues compared to 27.2% in 2023. Operating income for the full year 2024 was $165.8 million compared to $132.3 million last year, and operating margin on total revenue was 8.2% compared to 6.7% for the full year 2023. Full year 2024 net income was $110.2 million, or $5.82 per diluted share, inclusive of $5.7 million, or $0.24 per share of tax-effected special charges primarily related to M&A expenses and facility reductions. Net income and Diluted EPS increased 33.4% and 33.8%, respectively, over net income of $82.6 million, or $4.35 per diluted share reported in 2023. The company’s effective tax rate was 20.2% for 2024 compared to 14.4% in 2023.
Non-GAAP EPS was $7.45 per share, up 14.6% from $6.50 per share. EBITDA increased 12.3% to $221.1 million, compared to $197.0 million reported in 2023. Adjusted EBITDA was $226.0 million, representing a 6.0% increase over $213.2 million in 2023.
Operating cash flow was $171.5 million in 2024, an increase of 12.6% from $152.4 million in the prior year.
Backlog and New Business
Total backlog was $3.8 billion at the end of the fourth quarter of 2024. Funded backlog was $1.9 billion, or approximately 50% of the total backlog. The total value of contracts awarded in the 2024 fourth quarter was $504 million for a quarterly book-to-bill ratio of 1.02, and trailing twelve-month contract awards totaled $2.51 billion, up 7% year-on-year for a book-to-bill ratio of 1.24.
Government Revenue Fourth Quarter 2024 Highlights
Revenue from government clients was $363.1 million, down 1.6% year-over-year.
U.S. federal government revenue was $257.7 million, a decrease of 2.4% compared to the $263.9 million reported in the fourth quarter of 2023 and was impacted by a year-over-year decline in subcontractor and other direct costs estimated at $14 million in the quarter. Federal government revenue accounted for 51.9% of total revenue, compared to 55.2% of total revenue in the fourth quarter of 2023.U.S. state and local government revenue was $75.5 million, slightly below the $76.3 million reported in the year-ago quarter. State and local government clients represented 15.2% of total revenue, down from 15.9% in the fourth quarter of 2023.International government revenue was $30.0 million, up 4.2% from the $28.8 million reported in the year-ago quarter. International government revenue represented 6.0% of total revenue, unchanged from the fourth quarter of 2023.
Key Government Contracts Awarded in the Fourth Quarter 2024
Notable government contract awards won in the fourth quarter of 2024 included:
IT Modernization
A new subcontract and task order with a value of $9.7 million with a department of the U.S. federal government to provide digital modernization services. A recompete task order with a value of $9.6 million with a department of the U.S. federal government to provide digital modernization services.A contract extension with a value of $8.0 million with a department of the U.S. federal government to continue to provide digital modernization services for a comprehensive system of care to meet the needs of military families.
Energy and Environment
A new blanket purchase agreement with a ceiling of $30.0 million with a U.S. federal agency to provide technical support for economic research and analysis.A contract modification with a value of $10.4 million with a large U.S. municipality to continue to provide decarbonization technical services in support of enhanced building standards.A recompete master services agreement with a ceiling of $11.0 million with a Western U.S. state transportation agency to provide environmental support services.A contract modification with a value of $6.2 million with a large U.S. state to continue to update a water quality control plan for a large watershed.
Non-U.S. Government
A new multiple-award framework contract with a ceiling of $88.0 million with a directorate general (DG) of the European Commission (EC) to provide thematic communication services.A new subcontract with a ceiling of $22.0 million to provide thematic communication services to an EC DG.A multiple-award recompete framework contract with a ceiling of $15.0 million with an EC DG to provide impact assessments, evaluations and related studies in the area of communications.A recompete subcontract with a ceiling of $35.2 million to provide digital communication services and social media support to an EC DG.A recompete framework contract with a ceiling of $7.7 million with an EC DG to provide technical and logistical support related to migration.
Disaster Management and Mitigation
Several contracts with towns and counties in North and South Carolina to provide comprehensive disaster assessments and recovery support in the aftermath of Hurricane Helene.
Health and Social Programs
A new subcontract with a value of $4.5 million to provide training and technical assistance services for a department of the U.S. federal government.A contract modification with a value of $4.5 million to provide training and technical assistance services to a department of the U.S. federal government.A recompete subcontract with a value of $3.8 million to provide evaluation technical assistance services for a department of the U.S. federal government.A recompete subcontract with a value of $3.8 million to support data management efforts related to health studies for a U.S. federal government agency.
Commercial Revenue Fourth Quarter 2024 Highlights
Commercial revenue was $133.2 million, up 21.8% compared to $109.4 million reported in the fourth quarter of 2023.
Commercial revenue accounted for 26.8% of total revenue up from 22.9% of total revenue in the 2023 fourth quarter.Energy markets revenue, which includes energy efficiency programs, increased 22.6% and represented 88.2% of commercial revenue.
Key Commercial Contracts Awarded in the Fourth Quarter of 2024
Notable commercial awards won in the fourth quarter of 2024 included:
Several recompete contracts and contract modifications with a large Midwestern U.S. electric and natural gas utility to deliver residential and commercial energy efficiency programs.A recompete contract and two new contracts with a Mid-Atlantic U.S. utility to serve as agency of record for the utility’s energy efficiency programs and to develop and execute a brand campaign.A contract modification with a Mid-Atlantic utility to continue to deliver implementation services for its residential energy efficiency portfolio.A recompete contract with a Southeastern U.S. utility to deliver residential, commercial and industrial energy efficiency programs.Several new contracts with a Western U.S. utility to provide a variety of and planning and permitting-related services.One new contract and one contract modification with a Midwestern U.S. utility to deliver energy efficiency programs.
Dividend Declaration
On February 27, 2025, ICF declared a quarterly cash dividend of $0.14 per share, payable on April 14, 2025, to shareholders of record on March 28, 2025.
Summary and Outlook
“2024 was a year of growth and substantial profitability for ICF. Our results continued to benefit from our diversified business model that enables us to be agile in shifting emphasis and resources to those areas that are expected to have the greatest growth potential. This agility will be essential in 2025 as we navigate changes in federal government spending priorities, and our strong financial position gives us the flexibility to take advantage of opportunities as they arise.
“Looking ahead, we expect ICF’s 2025 total revenues, GAAP EPS and Non-GAAP EPS to range from flat to down 10% from 2024 levels, with a 10% decline representing the maximum downside risk we foresee from the loss of business primarily from federal government clients during this transition year. Underpinning this expectation is our projection that ICF’s revenues from commercial energy, state and local and international government clients will grow at least 15% in the aggregate, and that revenues from our federal government clients will be challenged in 2025 by potential funding curtailments and a slower pace of new RFPs. Within this environment, we plan to manage expenditures to maintain similar adjusted EBITDA margins to those of 2024. This framework does not contemplate an extensive government shutdown this year, nor a prolonged period of pauses in funding modifications to existing contracts or new procurements. Operating cash flow in 2025 is projected to be approximately $150 million.
“First quarter 2025 revenues are expected to range from $480 million to $500 million, with GAAP EPS anticipated between $1.35 and $1.45 and Non-GAAP EPS within the range of $1.70 and $1.80, similar to results in the first quarter of 2024.
“ICF has a proven track record of effectively managing through dynamic business environments by conservatively assessing challenges and remaining agile to capture opportunities. From mid-November 2024 to-date, we repurchased 395,000 shares, demonstrating our confidence in ICF’s long-term outlook and our commitment to delivering value to shareholders. Our ability to navigate volatility is underpinned by the dedication of our professional staff, who are committed to providing the highest quality services to our clients. We appreciate the contributions of ICF’s employees to our success to-date and count on their continued support in 2025 and beyond,” Mr. Wasson concluded.
1 Non-GAAP EPS, EBITDA, and Adjusted EBITDA are non-GAAP measurements. A reconciliation of all non-GAAP measurements to the most applicable GAAP number is set forth below. Special charges are items that were included within our consolidated statements of comprehensive income but are not indicative of ongoing performance and have been presented net of applicable U.S. GAAP taxes. The presentation of non-GAAP measurements may not be comparable to other similarly titled measures used by other companies.
About ICF
ICF 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 icf.com.
Caution Concerning Forward-looking Statements
Statements 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 that 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.
Note on Forward-Looking Non-GAAP Measures
The company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to the variability and difficulty in making accurate forecasts and projections and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures (such as the effect of share-based compensation or the impact of future extraordinary or non-recurring events like acquisitions) is available to the company without unreasonable effort. For the same reasons, the company is unable to estimate the probable significance of the unavailable information. The company provides forward-looking non-GAAP financial measures that it believes will be achievable, but it cannot accurately predict all of the components of the adjusted calculations, and the U.S. GAAP financial measures may be materially different than the non-GAAP financial measures.
Investor Contacts:
Lynn Morgen, ADVISIRY PARTNERS, lynn.morgen@advisiry.com +1.212.750.5800
David Gold, ADVISIRY PARTNERS, david.gold@advisiry.com +1.212.750.5800
Company Information Contact:
Lauren Dyke, ICF, lauren.dyke@ICF.com +1.571.373.5577
ICF International, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in thousands, except per share amounts)
2024
2023
2024
2023
Revenue
$496,324
$478,352
$2,019,787
$1,963,238
Direct costs
317,105
303,545
1,282,016
1,265,018
Operating costs and expenses:
Indirect and selling expenses
129,452
123,354
518,453
505,162
Depreciation and amortization
5,181
6,225
20,484
25,277
Amortization of intangible assets
8,118
8,307
32,992
35,461
Total operating costs and expenses
142,751
137,886
571,929
565,900
Operating income
36,468
36,921
165,842
132,320
Interest, net
(6,454)
(9,535)
(29,590)
(39,681)
Other income
1,040
2,407
1,806
3,908
Income before income taxes
31,054
29,793
138,058
96,547
Provision for income taxes
6,489
7,631
27,888
13,935
Net income
$ 24,565
$ 22,162
$ 110,170
$ 82,612
Earnings per Share:
Basic
$ 1.31
$ 1.18
$ 5.88
$ 4.39
Diluted
$ 1.30
$ 1.16
$ 5.82
$ 4.35
Weighted-average Shares:
Basic
18,733
18,823
18,747
18,802
Diluted
18,897
19,025
18,925
18,994
Cash dividends declared per common share
$ 0.14
$ 0.14
$ 0.56
$ 0.56
Other comprehensive loss, net of tax
(3,251)
(1,516)
(3,861)
(3,752)
Comprehensive income, net of tax
$ 21,314
$ 20,646
$ 106,309
$ 78,860
ICF International, Inc. and Subsidiaries
Reconciliation of Non-GAAP financial measures (2)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in thousands, except per share amounts)
2024
2023
2024
2023
Reconciliation of Revenue, Adjusted for Impact of Exited Business
Revenue
$ 496,324
$ 478,352
$ 2,019,787
$ 1,963,238
Less: Revenue from exited business (3)
—
(194)
—
(59,908)
Total Revenue, Adjusted for Impact of Exited Business
$ 496,324
$ 478,158
$ 2,019,787
$ 1,903,330
Reconciliation of EBITDA and Adjusted EBITDA (4)
Net income
$ 24,565
$ 22,162
$ 110,170
$ 82,612
Interest, net
6,454
9,535
29,590
39,681
Provision for income taxes
6,489
7,631
27,888
13,935
Depreciation and amortization
13,299
14,532
53,476
60,738
EBITDA
50,807
53,860
221,124
196,966
Impairment of long-lived assets (5)
3,583
3,860
3,583
7,666
Acquisition and divestiture-related expenses (6)
1,108
74
1,313
4,759
Severance and other costs related to staff realignment (7)
351
1,911
1,535
6,366
Charges for facility consolidations and office closures (8)
464
608
464
3,187
Pre-tax gain from divestiture of a business (9)
—
(3,287)
(2,013)
(5,712)
Total Adjustments
5,506
3,166
4,882
16,266
Adjusted EBITDA
$ 56,313
$ 57,026
$ 226,006
$ 213,232
Net Income Margin Percent on Revenue (10)
4.9 %
4.6 %
5.5 %
4.2 %
EBITDA Margin Percent on Revenue (11)
10.2 %
11.3 %
10.9 %
10.0 %
Adjusted EBITDA Margin Percent on Revenue (11)
11.3 %
11.9 %
11.2 %
10.9 %
Reconciliation of Non-GAAP Diluted EPS (4)
U.S. GAAP Diluted EPS
$ 1.30
$ 1.16
$ 5.82
$ 4.35
Impairment of long-lived assets
0.19
0.20
0.19
0.40
Acquisition and divestiture-related expenses
0.06
—
0.07
0.25
Severance and other costs related to staff realignment
0.02
0.10
0.08
0.33
Expenses related to facility consolidations and office closures (12)
0.02
0.10
0.06
0.24
Pre-tax gain from divestiture of a business
—
(0.17)
(0.11)
(0.30)
Amortization of intangibles
0.43
0.44
1.74
1.87
Income tax effects of the adjustments (13)
(0.15)
(0.15)
(0.40)
(0.64)
Non-GAAP Diluted EPS
$ 1.87
$ 1.68
$ 7.45
$ 6.50
(2) These tables provide reconciliations of non-GAAP financial measures to the most applicable GAAP numbers. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Other companies may define similarly titled non-GAAP measures differently and, accordingly, care should be exercised in understanding how we define these measures.
(3) Revenue from the exited U.K. commercial marketing business (June 30, 2023), U.S. commercial marketing business (September 11, 2023), and Canadian mobile text aggregation business (November 1, 2023).
(4) Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted EPS were calculated using numbers as reported in U.S. GAAP.
(5) Represents impairment of operating lease right-of-use and leasehold improvement assets associated with exit from certain facilities, and an intangible asset associated with exit of a business.
(6) These are primarily third-party costs related to acquisitions and potential acquisitions, integration of acquisitions, and separation of discontinued businesses or divestitures.
(7) These costs are mainly due to involuntary employee termination benefits for our officers, and employees who have been notified that they will be terminated as part of a business reorganization or exit.
(8) These are exit costs associated with terminated leases or full office closures that we either (i) will continue to pay until the contractual obligations are satisfied but with no economic benefit to us, or (ii) paid upon termination and ceasing to use the leased facilities.
(9) Includes pre-tax gain from the divestitures of our U.S. commercial marketing and Canadian mobile text aggregation businesses.
(10) Net Income Margin Percent on Revenue was calculated by dividing net income by revenue.
(11) EBITDA Margin Percent and Adjusted EBITDA Margin Percent on Revenue were calculated by dividing the non-GAAP measure by the corresponding revenue.
(12) These are exit costs related to actual office closures (previously included in Adjusted EBITDA) and accelerated depreciation related to fixed assets for planned office closures.
(13) Income tax effects were calculated using the effective tax rate, adjusted for certain discrete items, if any, of 20.9% and 21.1% for the three months ended December 31, 2024 and 2023, respectively, and 20.2% and 22.8% for the twelve months ended December 31, 2024 and 2023, respectively.
ICF International, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share amounts)
December 31, 2024
December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents
$ 4,960
$ 6,361
Restricted cash
13,857
3,088
Contract receivables, net
256,923
205,484
Contract assets
188,941
201,832
Prepaid expenses and other assets
21,133
28,055
Income tax receivable
6,260
2,337
Total Current Assets
492,074
447,157
Property and Equipment, net
68,118
75,948
Other Assets:
Goodwill
1,248,855
1,219,476
Other intangible assets, net
88,262
94,904
Operating lease – right-of-use assets
115,531
132,807
Deferred tax asset
1,603
—
Other assets
51,910
41,480
Total Assets
$ 2,066,353
$ 2,011,772
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt
$ —
$ 26,000
Accounts payable
159,522
134,503
Contract liabilities
24,580
21,997
Operating lease liabilities
20,721
20,409
Finance lease liabilities
2,612
2,522
Accrued salaries and benefits
105,773
88,021
Accrued subcontractors and other direct costs
49,271
45,645
Accrued expenses and other current liabilities
86,701
79,129
Total Current Liabilities
449,180
418,226
Long-term Liabilities:
Long-term debt
411,743
404,407
Operating lease liabilities – non-current
155,935
175,460
Finance lease liabilities – non-current
11,261
13,874
Deferred income taxes
—
26,175
Other long-term liabilities
55,775
56,045
Total Liabilities
1,083,894
1,094,187
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock, par value $.001; 5,000,000 shares authorized; none issued
—
—
Common stock, $.001 par value; 70,000,000 shares authorized; 24,186,962 and 23,982,132 shares issued; and 18,666,290 and 18,845,521 shares outstanding at December 31, 2024 and 2023, respectively
24
24
Additional paid-in capital
443,463
421,502
Retained earnings
874,772
775,099
Treasury stock, 5,520,672 and 5,136,611 shares at December 31, 2024 and 2023, respectively
(320,054)
(267,155)
Accumulated other comprehensive loss
(15,746)
(11,885)
Total Stockholders’ Equity
982,459
917,585
Total Liabilities and Stockholders’ Equity
$ 2,066,353
$ 2,011,772
ICF International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Years ended
December 31,
(in thousands)
2024
2023
Cash Flows from Operating Activities
Net income
$ 110,170
$ 82,612
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses
1,673
1,164
Deferred income taxes and unrecognized income tax benefits
(24,336)
(17,634)
Non-cash equity compensation
16,722
14,861
Depreciation and amortization
53,476
60,738
Gain on divestiture of a business
(2,009)
(7,590)
Other operating, net
4,647
8,294
Changes in operating assets and liabilities, net of the effects of acquisitions:
Net contract assets and liabilities
14,668
(38,422)
Contract receivables
(49,538)
20,939
Prepaid expenses and other assets
3,496
18,579
Operating lease assets and liabilities, net
(4,755)
3,544
Accounts payable
24,152
(1,489)
Accrued salaries and benefits
18,048
2,175
Accrued subcontractors and other direct costs
4,353
(269)
Accrued expenses and other current liabilities
8,361
(4,757)
Income tax receivable and payable
(5,391)
9,277
Other liabilities
(2,193)
361
Net Cash Provided by Operating Activities
171,544
152,383
Cash Flows from Investing Activities
Payments for purchase of property and equipment and capitalized software
(21,430)
(22,337)
Payments for business acquisitions, net of cash acquired
(55,007)
(32,664)
Proceeds from divestiture of a business
1,985
51,328
Other investing, net
(353)
—
Net Cash Used in Investing Activities
(74,805)
(3,673)
Cash Flows from Financing Activities
Advances from working capital facilities
1,227,926
1,245,198
Payments on working capital facilities
(1,247,791)
(1,372,474)
Proceeds from other short-term borrowings
62,080
48,532
Repayments of other short-term borrowings
(66,408)
(41,653)
Receipt of restricted contract funds
1,251
7,672
Payment of restricted contract funds
(3,267)
(8,084)
Dividends paid
(10,507)
(10,537)
Net payments for stock issuances and share repurchases
(47,767)
(19,083)
Other financing, net
(2,415)
(2,159)
Net Cash Used in Financing Activities
(86,898)
(152,588)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash
(473)
359
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
9,368
(3,519)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period
9,449
12,968
Cash, Cash Equivalents, and Restricted Cash, End of Period
$ 18,817
$ 9,449
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest
$ 30,046
$ 34,093
Income taxes
$ 60,221
$ 26,190
Non-cash investing and financing transactions:
Tenant improvements funded by lessor
$ —
$ 568
Acquisition of property and equipment through finance lease
$ —
$ 337
ICF International, Inc. and Subsidiaries
Supplemental Schedule (14)
Revenue by client markets
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Energy, environment, infrastructure, and disaster recovery
48 %
44 %
46 %
41 %
Health and social programs
37 %
41 %
38 %
42 %
Security and other civilian & commercial
15 %
15 %
16 %
17 %
Total
100 %
100 %
100 %
100 %
Revenue by client type
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
U.S. federal government
52 %
55 %
54 %
55 %
U.S. state and local government
15 %
16 %
16 %
16 %
International government
6 %
6 %
5 %
5 %
Total Government
73 %
77 %
75 %
76 %
Commercial
27 %
23 %
25 %
24 %
Total
100 %
100 %
100 %
100 %
Revenue by contract mix
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Time-and-materials
43 %
41 %
42 %
41 %
Fixed-price
47 %
46 %
46 %
45 %
Cost-based
10 %
13 %
12 %
14 %
Total
100 %
100 %
100 %
100 %
(14) As is shown in the supplemental schedule, we track revenue by key metrics that provide useful information about the nature of our operations. Client markets provide insight into the breadth of our expertise. Client type is an indicator of the diversity of our client base. Revenue by contract mix provides insight in terms of the degree of performance risk that we have assumed.
View original content to download multimedia:https://www.prnewswire.com/news-releases/icf-reports-fourth-quarter-and-full-year-2024-results-302387909.html
SOURCE ICF
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Technology
New Atlas Maps Carbon Storage Opportunities Across Eastern Canada — From Industrial-Scale Hubs to Local CCS Solutions
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10 minutes agoon
April 21, 2026By
CALGARY, AB, April 21, 2026 /CNW/ – Canadian Discovery Ltd. (CDL) is pleased to announce the upcoming release of the Geological Carbon Storage Atlas of Eastern Canada on April 28, 2026. Co-funded by Natural Resources Canada (NRCan), carbon removal project developer Deep Sky, and CDL, this project was led and delivered by CDL in collaboration with NRCan CanmetENERGY. The Atlas delivers a comprehensive regional assessment of carbon dioxide (CO₂) storage potential across Quebec and Atlantic Canada, providing detailed analysis of storage opportunities, costs, and geological risks to support the development of carbon capture and storage (CCS) projects. While previous studies have examined parts of Eastern Canada, this is the first to provide a fully integrated regional assessment of CO₂ storage in deep saline aquifers and depleted hydrocarbon reservoirs.
Effective CO₂ storage is essential to achieving Canada’s climate objectives, with the International Energy Agency estimating that up to 95% of captured CO₂ worldwide will need to be permanently stored.1 Recognizing the importance of advancing carbon storage knowledge, the Government of Canada announced more than $11 million in funding for cutting-edge, made-in-Canada carbon utilization and storage projects during the 2025 G7 Presidency. The Geological Carbon Storage Atlas of Eastern Canada was selected as one of the projects supported through this investment.
As Canada seeks solutions to reduce emissions, the research conducted in this Atlas reveals that Eastern Canada possesses meaningful and geologically credible CO₂ storage potential. Across the basins assessed, significant variability was observed in prospective CO2 storage resource size, sealing capacity, reservoir quality and estimated storage costs. These differences reflect the diverse geological settings, geographical variability and data maturity across the region. Some storage complexes are well suited to large-scale, hub-style CCS developments with substantial capacity and strong containment, while others are better aligned with smaller, bespoke projects targeting localized emitters and more modest storage volumes.
The Atlas provides project developers with geological context to scope appraisal programs, regulators with a scientific reference for evaluating proposed operations, and policymakers with the spatial intelligence needed to design effective incentive frameworks. Equally, by presenting data transparently and accessibly, this Atlas supports inclusive dialogue with Indigenous communities, municipalities, industry, and governments responsible for CCS development demands.
“Quebec and Atlantic Canada represent an enormous opportunity for carbon storage, and this Atlas is a landmark step in unlocking it. By combining comprehensive subsurface analysis with cost and economic modelling, we’re giving stakeholders across industry, government, and communities the tools they need to move from ambition to action — and positioning Eastern Canada as a serious player in the global decarbonization landscape.” said Matt Scorah, CDL’s VP of Decarbonization.
“Deep Sky was proud to support this work because rigorous, detailed subsurface data strengthens the entire carbon removal ecosystem. The Atlas provides valuable regional insight for Eastern Canada and helps inform the next phase of site-specific technical assessments required to advance safe, durable carbon storage. This comes at an important time as Québec advances the development of its carbon storage framework,” said Mathieu Bouchard, vice-president of public policy and regulatory affairs for Québec at Deep Sky.
The Atlas is publicly available and can be downloaded from the official project website. The comprehensive datasets and shapefiles compiled and produced during the Atlas’ development can be licensed through CDL upon request.
CDL brings extensive experience in CCS projects across North America and is proud to add the Geological Carbon Storage Atlas of Eastern Canada to this growing body of work. Project findings will be shared through a two-part webinar series on April 28 and May 5, followed by a presentation at GeoConvention in Calgary on May 13. Additional presentations are planned throughout the summer and fall. Details and registration are available at canadiandiscovery.com.
About Canadian Discovery Ltd.
Canadian Discovery Ltd. (CDL) is a global leader in subsurface intelligence, headquartered in Calgary, Alberta. For over 35 years, we’ve combined geoscience and engineering expertise to deliver reservoir- to basin-scale evaluations — assessing subsurface geology, pressure, fluid flow, fluid chemistry, and geomechanics for clients worldwide.
Today, CDL is at the forefront of the energy transformation, applying our deep subsurface knowledge to Carbon Capture, Utilization and Storage (CCUS), geothermal energy, critical minerals, hydrogen production, and water solutions. We don’t just understand what’s beneath the surface — we unearth the opportunities within it.
About Deep Sky
Montreal-based Deep Sky is the world’s first tech-agnostic carbon removal project developer aiming to remove gigatons of carbon from the atmosphere and permanently store it underground. As a project developer, Deep Sky brings together the most promising direct air carbon capture companies under one roof to bring the largest supply of high-quality carbon credits to the market, commercializing and catalyzing carbon removal and storage solutions like never before. With $130M in funding, Deep Sky is backed by world class investors including Investissement Québec, Brightspark Ventures, Whitecap Venture Partners, OMERS Ventures, BDC Climate Fund, BMO, National Bank of Canada, Breakthrough Energy Catalyst, and more. For more information, visit deepskyclimate.com.
1 IEA (2021). Net Zero by 2050. https://www.iea.org/reports/net-zero-by-2050
SOURCE Canadian Discovery Ltd
Technology
Convergent Research and ARIA Launch Two New UK Focused Research Organizations
Published
10 minutes agoon
April 21, 2026By
Meridial and Echo Labs aim to build new scientific infrastructure for living-brain connectivity mapping and ecological intelligence
LONDON, April 21, 2026 /PRNewswire/ — Convergent Research, a mission control for frontier technology, and the United Kingdom’s Advanced Research and Invention Agency (ARIA) today announced the launch of two new UK Focused Research Organizations, or FROs: Meridial and Echo Labs. Developed through Convergent’s UK FRO Founder Residency with ARIA, the two organisations represent a new way to build scientific institutions around specific technical bottlenecks that are too engineering-heavy, operationally complex, or long-horizon for conventional labs or startups to address effectively. Convergent’s FRO Founder residency programme was piloted through Convergent’s role as an Activation Partner to ARIA, with the aim of identifying and refining FRO-shaped projects aligned with ARIA opportunity spaces and building the capability to launch and support new FROs in the UK.
Focused Research Organizations are nonprofit, startup-like scientific organisations built to tackle clearly defined scientific or technological bottlenecks over a fixed period of time, often by creating public goods such as tools, datasets, platforms, methods, and technical infrastructure that can unlock broader downstream progress. Convergent has used this model to launch ten FROs in the US, and the UK residency with ARIA extended that playbook into a cohort-based format designed to source, incubate, launch, and support ambitious new UK organisations. The UK is Convergent’s first major expansion outside the US.
“Building the right institution can matter as much as having the right idea,” said Pippy James, Deputy CEO at ARIA. “ARIA is working to expand what’s possible for high-risk, high-reward science, and FROs are a powerful way of doing that. Meridial and Echo Labs are tackling the kinds of bottlenecks and opportunities this approach is designed to address, and we’re excited to see what new capabilities they make possible.”
Each of the two new organisations is tackling a different bottleneck, but both are built around the same core premise: that some forms of scientific progress require purpose-built organisations, not just new grants or new labs. Both organisations align with a distinct ARIA opportunity space, targeting areas where new infrastructure could unlock significant progress.
These new organisations are:
Meridial, launching with an initial £14 million award from ARIA and aligned with its Scalable Neural Interfaces opportunity space, is building a microscopy platform designed to map and track synaptic connections in living animals over time. By making it possible to observe how brain connectivity changes across development, disease, learning, and therapeutic intervention, Meridial aims to help bridge an important gap between molecular mechanisms and circuit-level function. Over its funded period, the organisation will work to develop and operate a platform capable of mapping and longitudinally tracking synaptic connections across local and long-range brain circuits over extended time periods.
“Many of the most important questions in neuroscience and brain health relate to how living circuits change over time. Today, when we seek to observe such changes with high resolution, we are often limited by scale, or must infer dynamics from static snapshots of extracted tissue. Meridial is being built to overcome these challenges with a platform for mapping and tracking synaptic connections in living animals over extended periods. We think infrastructure like this could help open up new ways of understanding development, disease, learning, and therapeutic intervention,” said Mehmet Fisek, Founder and CEO of Meridial.
“Progress in brain science and brain health has been constrained for too long by the limits of our tools. Meridial is exciting because it is building infrastructure that could let researchers observe how neural circuits change over time, rather than inferring those changes indirectly after the fact. That kind of capability could open up important new routes for understanding disease, development, and recovery,” said Jacques Carolan, Programme Director at ARIA.
Echo Labs, launching with an initial £7 million award from ARIA and aligned with its Scoping Our Planet opportunity space, is building new infrastructure to represent the natural world and make it legible enough to model, compare, and forecast. If the state of an ecosystem can be measured as a dynamic system, the implications extend beyond observation. Just as weather and human health became understandable through shared measurements and modeling, ecosystem condition could become a measurable, continuously updated layer of intelligence.
“Today, ecology generates fragmented observations but lacks the integrated representation needed to understand ecological complexity and translate it into usable signals. Ecosystems underpin our economies and societies, but we still lack the scientific infrastructure to measure and forecast ecological condition with anything like the precision we bring to other natural or engineered systems. We envision a world in which global ecosystem condition is continuously observed, modeled, and useful for science, governance, finance, and stewardship happens before collapse occurs, rather than after,” said Kaja Wasik, PhD, CEO of Echo Labs.
“Responsible stewardship requires sufficiently good understanding. Yet for most species, ecological interactions, and ecosystems, our ability to measure and forecast remains frustratingly limited. Echo Labs aims to build foundational infrastructure for ecological intelligence, enabling intentional action that complements well-established approaches to supporting nature,” said Yannick Wurm, Programme Director at ARIA.
Meridial and Echo Labs join a growing UK FRO landscape that includes Bind Research, a UK-based not-for-profit focused on making disordered proteins druggable. Together, these efforts suggest a broader institutional shift: one in which new scientific organisations are designed not around disciplines alone, but around bottlenecks, capabilities, and the shared infrastructure required to unlock downstream progress.
“Scientific progress is often slowed not by a lack of ideas, but by a lack of institutions designed to turn important ideas into shared capabilities,” said Anastasia Gamick, President and co-founder of Convergent Research. “Focused Research Organizations are built for exactly that gap. We’re excited to see this model continue to take root in the UK through organisations that are technically ambitious, tightly scoped, and built to create public goods with broad downstream value. We can’t wait to share more from these two teams and our ongoing work with ARIA.”
Meridial and Echo Labs are expanding their teams in 2026. More information about each organisation, including information about career opportunities and technology releases, will be available at meridial.org and echolabs.org.
About ARIA
The Advanced Research + Invention Agency (ARIA) is an R&D funding agency created to unlock technological breakthroughs that benefit everyone. Created by an Act of Parliament, and sponsored by the Department for Science, Innovation, and Technology, ARIA funds teams of scientists and engineers to pursue research at the edge of what is scientifically and technologically possible.
About Meridial
Meridial is a UK-based Focused Research Organization building a microscopy platform for mapping and tracking synaptic connections in living animals over time. Its mission is to develop scientific infrastructure that enables researchers to observe how neural connectivity changes across development, disease, learning, and therapeutic intervention. Meridial is supported by Convergent Research and powered by ARIA.
About Echo Labs
Echo Labs is a UK-based Focused Research Organization building scientific infrastructure for ecological monitoring and forecasting. Its mission is to make ecosystem condition more measurable and forecastable through new combinations of environmental data, models, and software. Echo Labs is supported by Convergent Research and powered by ARIA.
About Convergent Research
Convergent Research brings together scientific founders and funders to design, launch and operate Focused Research Organizations (FROs) across a range of fields. Our FROs, like Meridial and Echo Labs, build pivotal infrastructure that bridges gaps to breakthrough scientific research, proving out a new operating model for science that enables a high level of team science and systems engineering for public goods creation.
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Technology
ECRI Spins Out Healthcare Spend Management and Recall Management Solutions
Published
10 minutes agoon
April 21, 2026By
Staritas established with growth investment from Accel-KKR to transform healthcare supply chain through data-driven intelligence
WILLOW GROVE, Pa., April 21, 2026 /PRNewswire/ — ECRI, a global healthcare quality and safety nonprofit organization, today announced that it has spun out its Spend Management and Recall Management solutions as an independent company, Staritas. Powered by investments from Accel-KKR, a global technology-focused investment firm, Staritas will continue to build on its pioneering leadership in healthcare supply chain intelligence.
“For five decades, ECRI’s award-winning Spend Management solutions have helped healthcare supply chain leaders navigate supply disruptions with resiliency, save millions of dollars, and benchmark purchasing decisions using the industry’s most comprehensive, independent datasets,” said Marcus Schabacker, CEO, MD, president of ECRI. “Now, by spinning out Staritas, powered by Accel-KKR to supercharge the power behind the data, improve the user experience, and accelerate innovation, healthcare supply chain leaders can realize even greater value from the platform.”
The healthcare supply chain of the future will no longer be driven by reactive, event-driven decisions, but proactive, continuous strategies, powered by AI and real-time intelligence. As an independent company backed by Accel-KKR, Staritas will expand on the development and delivery of AI-powered solutions and insights that empower leaders to manage the growing complexity of supply chains with greater intelligence.
“We are excited to partner with ECRI and support the launch of Staritas, a new company with a 50- year track record of pioneering work in spend and recall management,” said Park Durrett, Managing Director at Accel-KKR. “Staritas’s unmatched independent datasets and domain expertise create a strong foundation for growth and customer impact. We’re proud to build on Staritas’s legacy and remain committed to the transparency, independence, and objectivity that define its work. We look forward to partnering with the talented Staritas team to keep building on a market-leading platform that delivers greater value to healthcare organizations and stakeholders worldwide.”
Staritas: Making Every Choice Clear
In today’s healthcare environment, leaders face rising costs, margin pressure, supply chain disruptions, and increasing complexity, often making decisions with fragmented information, such as supplier pricing without benchmarks, or investments without a clear view of total cost.
Staritas solves this problem by combining the largest independent source of healthcare supply and capital datasets with deep expertise and advanced analytics to help organizations in over 70 countries understand market trends and better manage their supply chains. Trusted by nearly 90% of the top U.S. hospitals and health systems, Staritas helps customers identify up to $13 billion annually in opportunity savings. With an independent, unbiased view, supply chain leaders can see all their options, seize opportunities through actionable insights, and make confident decisions.
“Staritas is committed to providing data-driven insights and services that help healthcare organizations optimize operations, save money and strengthen decision making,” said Emmet O’Gara, CEO of Staritas. “The data, solutions and people that now make up Staritas are among the best in the field of spend and recall management. We plan to continuously raise the bar in serving healthcare supply chain leaders with next-generation platform and technology advancements that help to protect margins, deliver quality care and boost resiliency.”
Customers will maintain continuity in day-to-day operations, with additional investments planned to enhance platform capabilities and deepen the value delivered across solutions. Users of Staritas products were notified with assurances of a smooth transition and continuity in the personnel and support systems available.
ECRI: Making Healthcare Safer, Stronger, More Resilient
“This move is not a departure, it is a commitment to deepening ECRI’s focus on patient safety, clinical evidence, and system-level change across healthcare,” added ECRI CEO Dr. Schabacker. “ECRI’s services and solutions are now focused exclusively on creating resilient and safe healthcare systems and assessing technologies used in those systems – backed by new investment and commitment to effect transformative change. With this strategic shift, ECRI is investing, at an unprecedented level, in the expert teams, proprietary data assets, and advanced capabilities that allow healthcare organizations to build safety into their culture, their operations, and their systems. Not as a one-time initiative, but as a permanent, self-reinforcing foundation.”
Despite decades of effort nationwide, patient safety in the U.S. is still marked by high rates of preventable harm.
“One in four patient admissions involve an adverse event, and nearly a quarter of those are preventable. That’s tragic and unacceptable,” said Dheerendra Kommala, MD, ECRI Chief Medical Officer. “Through this strategic move, ECRI is now singularly focused on improving patient safety. We plan to expand solutions that can transform healthcare organizations, building on our legacy of advancing evidence-based medicine.”
About ECRI
ECRI is an independent, nonprofit organization improving the safety, quality, and cost-effectiveness of healthcare. With a focus on patient safety, system design and technology evaluation, ECRI is respected and trusted by healthcare leaders and agencies worldwide. For nearly 60 years, ECRI has built its reputation on integrity and disciplined rigor, with an unwavering commitment to independence and evidence-based care. ECRI is the only organization worldwide to conduct independent medical device evaluations, with labs located in North America and Asia Pacific. ECRI is designated an Evidence-based Practice Center by the U.S. Agency for Healthcare Research and Quality and a federally certified Patient Safety Organization by the U.S. Department of Health and Human Services. ECRI acquired The Institute for Safe Medication Practices (ISMP) in 2020 to address one of the most prolific causes of preventable harm in healthcare, medication errors; then acquired The Just Culture Company in 2024 to transform healthcare workplace cultures – thus creating one of the largest healthcare quality and safety entities in the world. Visit ECRI.org to learn more.
About Staritas
Staritas helps healthcare supply chain leaders around the world make more informed decisions so they can understand market trends and better manage all aspects of their supply chain. With Staritas, they can see all the options with the largest independent source of supply and capital data, seize the opportunities with access to deep industry expertise, and achieve their organizational goals. That’s why nearly 90% of the top U.S. hospitals and health systems trust our five decades of expertise for their most important supply chain and recall management decisions. And it’s how our clients find up to $13B dollars in opportunity savings every year. Staritas. Make every choice clear. Learn more at Staritas.com.
About AKKR
Accel-KKR is a technology-focused investment firm with over $23 billion in cumulative capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions, including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across various transaction types, including private company recapitalizations, divisional carve-outs, and going-private transactions. Accel-KKR’s headquarters is in Menlo Park, with offices in London, Atlanta and Chicago. Visit accel-kkr.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/ecri-spins-out-healthcare-spend-management-and-recall-management-solutions-302747800.html
SOURCE ECRI
New Atlas Maps Carbon Storage Opportunities Across Eastern Canada — From Industrial-Scale Hubs to Local CCS Solutions
Convergent Research and ARIA Launch Two New UK Focused Research Organizations
ECRI Spins Out Healthcare Spend Management and Recall Management Solutions
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