Revenue Growth and Profitability
Revenue from continuing operations increased 6% year-on-year, and revenues from operations less pass-throughs increased 10% year-on-year. The company outperformed across all profitability metrics, including a 160 basis point improvement in gross margin to 37.1%.
Strong Contract Wins and Pipeline
ICF achieved solid third quarter contract wins, resulting in a trailing 12-month book-to-bill ratio of 1.31. The company ended the quarter with a record business development pipeline of $10.6 billion.
Commercial Energy Market Growth
The energy, environment, infrastructure, and disaster recovery client market led revenue growth with a 15.3% increase. Robust growth in higher-margin revenues from commercial energy clients continued to be a key contributor.
Debt Reduction and Improved Cash Flow
Debt was reduced to $419.1 million from $533.9 million at the end of the prior year quarter, reflecting the use of favorable cash flows to pay down debt.
Increased EPS Guidance
The company increased its EPS guidance by $0.35 for the full year due to strong operational performance and tax benefits.