On this page of StockholderLetter.com we present the latest annual shareholder letter from ICF International, Inc. — ticker symbol ICFI. Reading current and past ICFI letters to shareholders can bring important insights into the investment thesis.
Message from Chair, President and CEO John Wasson 2023 was another successful and rewarding year for ICF. ICF employees established a new hybrid model of operations as we continued to provide our clients with superior solutions and support. Our growth continued unabated as we established new records for revenue and earnings, which are detailed below. We also were able to substantially reduce our long-term debt while simultaneously investing in future growth. Along the way, we focused the company s portfolio by selling our Commercial Marketing Group to a new owner, and we wish our former colleagues every success. This past year once again demonstrated the success of our long-term strategy. ICF will continue to serve clients in the public and private sectors, bringing them valuable expertise which is increasingly combined with technology and engagement solutions. This strategy leverages five key growth drivers Digital Transformation, Federal Health, Climate, Utility Services, and Disaster Management that now represent 80% of our revenue and have collectively grown by 10%, fueling our overall performance. ICF s approximately 9,000 employees, throughout the US and worldwide, work every day to fulfill our purpose: To build a more prosperous and resilient world for all 2023 Performance 2023 was another year of growth and success for ICF. x Our gross revenue increased 10.3% to $1.96 billion, reflecting a mix of organic growth and a full year of revenues from the mid-2022 acquisition of SemanticBits. x We were awarded contracts valued at over $2.3 billion, at essentially the same level as the record set in 2022. These awards yielded a book-to-bill ratio of 1.18, supporting future growth. x We delivered $4.35 in diluted U.S. GAAP earnings per share (U.S. GAAP Diluted EPS), up 28.7% from 2022, and $6.50 in Non-GAAP diluted earnings per share (Non-GAAP Diluted EPS)1, up 12.7% from 2022. A reconciliation of Non-GAAP Diluted EPS to the U.S. GAAP Diluted EPS can be found on Page 49 of the Company s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission on February 28, 2024. The presentation of non-GAAP measurements may not be comparable to other similarly titled measures used by other companies. 1
ICF remained focused on delivering value for our clients, opportunities for our people, and returns to our shareholders in a changing world. Our performance in 2023 continued to show the benefit of our approach to delivering impact in multiple markets. x Our work for the U.S. Federal government grew, as ICF continued to support many of the nation s most important civilian missions. ICF won significant new business awards and numerous important recompetes, reflecting our Federal clients confidence in our technological and mission expertise. x Our work for state and local clients continues to support critical missions and programs, from transportation and energy decarbonization to environmental services and infrastructure improvements. Our disaster management business continues to support communities devastated by major hurricanes and wildfires as they rebuild, while at the same time ensuring that other communities are better-prepared for and less vulnerable to future disasters. x Our commercial energy business continued growth as it accelerated its design and delivery of innovative electrification, low-income, and demand-side management programs. We also grew our support to renewable energy developers and other enterprises engaged in the clean energy transition. Combining utility expertise with cutting-edge analytics and innovative program design, our experts help utility customers save money and help the energy system decarbonize. x ICF s work for international clients was stable, due primarily to the ending of a one-time pandemic-related contract for a European government client in early 2022. European Union clients continue to value our combined program consulting and communications delivery expertise. x In 2023 we completed the divestiture of our Commercial Marketing Business, which had become non-core to ICF, thereby increasing our focus and freeing up resources for future investment. In 2021, the passage of the Bipartisan Infrastructure Law (IIJA) provided support for public investment that could indirectly sustain some of ICF s important markets. In 2022, the passage of the Inflation Reduction Act (IRA) introduced wide-ranging tax credits and a variety of grant programs designed to speed the adoption of low-carbon technologies. In 2023 we saw meaningful opportunities to support clients that were directly or indirectly impacted by these pieces of legislation, and we believe that these laws and the public policy decisions that have accompanied them will drive growth and market opportunities in the coming years. Work That Makes Us Proud ICF is proud of the work we do. While the breadth of our client services makes a comprehensive description impossible here, below are a few highlights of the ways we make a difference to our clients and to society: x ICF has substantially grown our technology delivery capability that serves numerous clients around the US Government. The solutions we provide help clients do everything from modernize outdated business processes and their associated technology platforms to implement cutting-edge missions across the government. One example of this work is the system used by the Centers for Medicare and Medicaid Services to track health data from kidney transplant centers across the country, which ICF moved to the Cloud and modernized. x ICF continues to enhance our work in support of the nation s Public Health enterprise. Among
many other awards, in 2023 we won a recompete contract to continue to support the operation, maintenance, and modernization of ClinicalTrials.gov, the nation s central database for information from clinical trials testing investigational drugs for serious or life-threatening diseases. x Our disaster management business has been assisting U.S. residents to return to storm-damaged homes for almost two decades. In 2023, we won a contract from the State of Oregon to manage the state's first-ever federally-funded housing recovery programs designed to move wildfire survivors into safer, more energy efficient and resilient homes and to support infrastructure, planning and economic development initiatives. x ICF has worked for years in support of the US Global Change Research Program (USGCRP), the coordinating effort for all Federal Climate Change research. This year, that work included the final release of the Fifth National Climate Assessment, a comprehensive report which integrates findings across the program and analyzes the current effects and trends of climate change in and on natural and man-made systems. ICF experts also partnered with Virgin Atlantic on the firstever flight using 100% sustainable aviation fuel critical for the decarbonization of global aviation. x The combination of the IIJA, IRA, and Federal policy has accelerated the deployment of new renewable electricity generation. ICF has continued to support the deployment of carbon-free electricity generation though our environmental services and energy advisory work. In 2023, ICF deployed pioneering digital tools to help renewable energy developers find the best sites for new projects and most efficiently move those projects through the pipeline to deployment. We also announced the acquisition of CMY Solutions, a leading power and energy engineering firm, which adds to our expertise and capabilities in next-generation grid modernization and data analytics. x ICF has grown our work supporting utilities across North America as they work to manage demand and advance their efforts to decarbonize the energy mix. This work includes managing programs to encourage utility customers to deploy new technologies in their homes and businesses that replace fossil-powered devices with electrified ones, and to store and manage electricity in a way that reduces customer costs and stress on the grid. x In Europe, ICF was proud to continue supporting a variety of communications campaigns across the European Union, enhancing social cohesion and supporting a variety of specific program and mission goals. Environment, Social, and Governance (ESG) Commitment Much of ICF s ESG data, and explanations of how ICF employees contribute positively to our societies and our world, can be found in our award-winning Corporate Citizenship Report published mid-year: https://www.icf.com/company/about/corporate-citizenship. The report also serves as the reporting vehicle for data aligned to both the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). ICF continued and extended our commitment to ESG principles in 2023. ICF s corporate giving totaled $828,000, driven by our employees choices of causes and their own donations; employees personally volunteered thousands of hours and donated $655,000 to a variety of causes and philanthropic initiatives. Our employees generosity is an inspiration and example for us all. Each year ICF takes inventory of our carbon emissions. To sustain ICF s 17-year commitment to carbon neutrality, in 2023 we purchased 100% net renewable electricity for U.S. operations via renewable
energy certificates that are Green-e certified while mitigating the remainder of our Scope 1 and some Scope 3 emissions (including those from business travel and employee commuting, which are the three sources of greatest impact) with high-quality offsets (including carbon removal). ICF continues to employ many sustainability tactics such as reducing our real estate footprint, prioritizing leases in green buildings (notably including our new HQ), providing online collaboration tools to reduce the need for business travel, and promoting a commuter transit benefit. Our 2023 and upcoming 2024 Proxy Statements include data showing ICF s progress in reducing emissions, both per employee and on an absolute basis. In 2023, we were pleased to have been awarded the Climate Leadership Award from the Climate Registry for reducing carbon pollution and addressing climate change in both our social actions and client work. ICF was recognized for aggressive emissions reduction goals and for exemplifying "extraordinary leadership" in our response to climate change and engagement of supply chain peers and partners. This includes achieving a 93% reduction in greenhouse gas emissions against a 2013 baseline. In 2023, ICF was ranked #14 among Forbes America s Top 500 Employers for Diversity, and we continued to mature our Diversity, Equity, Inclusion, and Belonging program. Our eight (8) Employee Community Networks (ECNs) support under-represented communities (nearly 27% of our employees are involved in at least one (1) ECN), and in 2023 they held over sixty (60) events on topics as wide-ranging as employee development, cultural expression, talent acquisition, and charitable giving. We are just as proud to be recognized by Forbes in 2023 for being among the Best Employers For Women. ICF believes that fulfilling our purpose can only occur if all ICFers are in an environment to do their best work and succeed without barriers. Our People I am proud to lead the amazing team here at ICF. Every week we welcome new colleagues who join us to help deliver great results for our clients, our communities, and our shareholders. I know they will be as committed as the longest-standing ICFer in advancing our values and fulfilling our purpose. Wishing you all success in 2024, and continued health and safety for you and yours! John Wasson Chair, President and Chief Executive Officer
 • shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/21/2023 ICFI Stockholder Letter
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ICFI Shareholder/Stockholder Letter Transcript:



Message from Chair, President and CEO John
Wasson
2023 was another successful and rewarding year for ICF.
ICF employees established a new hybrid model of
operations as we continued to provide our clients with
superior solutions and support. Our growth continued
unabated as we established new records for revenue and
earnings, which are detailed below. We also were able to
substantially reduce our long-term debt while
simultaneously investing in future growth. Along the way,
we focused the company   s portfolio by selling our
Commercial Marketing Group to a new owner, and we
wish our former colleagues every success.
This past year once again demonstrated the success of our long-term strategy. ICF will continue to serve
clients in the public and private sectors, bringing them valuable expertise which is increasingly combined
with technology and engagement solutions. This strategy leverages five key growth drivers     Digital
Transformation, Federal Health, Climate, Utility Services, and Disaster Management     that now
represent 80% of our revenue and have collectively grown by 10%, fueling our overall performance.
ICF   s approximately 9,000 employees, throughout the US and worldwide, work every day to fulfill our
purpose:
   To build a more prosperous and resilient world for all   
2023 Performance
2023 was another year of growth and success for ICF.
x
Our gross revenue increased 10.3% to $1.96 billion, reflecting a mix of organic growth and a full
year of revenues from the mid-2022 acquisition of SemanticBits.
x
We were awarded contracts valued at over $2.3 billion, at essentially the same level as the record
set in 2022. These awards yielded a book-to-bill ratio of 1.18, supporting future growth.
x
We delivered $4.35 in diluted U.S. GAAP earnings per share (U.S. GAAP Diluted EPS), up 28.7%
from 2022, and $6.50 in Non-GAAP diluted earnings per share (Non-GAAP Diluted EPS)1, up
12.7% from 2022.

A reconciliation of Non-GAAP Diluted EPS to the U.S. GAAP Diluted EPS can be found on Page 49 of the
Company   s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and
Exchange Commission on February 28, 2024. The presentation of non-GAAP measurements may not be comparable
to other similarly titled measures used by other companies.
1

ICF remained focused on delivering value for our clients, opportunities for our people, and returns to our
shareholders in a changing world. Our performance in 2023 continued to show the benefit of our
approach to delivering impact in multiple markets.
x
Our work for the U.S. Federal government grew, as ICF continued to support many of the
nation   s most important civilian missions. ICF won significant new business awards and
numerous important recompetes, reflecting our Federal clients    confidence in our technological
and mission expertise.
x
Our work for state and local clients continues to support critical missions and programs, from
transportation and energy decarbonization to environmental services and infrastructure
improvements. Our disaster management business continues to support communities devastated
by major hurricanes and wildfires as they rebuild, while at the same time ensuring that other
communities are better-prepared for and less vulnerable to future disasters.
x
Our commercial energy business continued growth as it accelerated its design and delivery of
innovative electrification, low-income, and demand-side management programs. We also grew
our support to renewable energy developers and other enterprises engaged in the clean energy
transition. Combining utility expertise with cutting-edge analytics and innovative program
design, our experts help utility customers save money and help the energy system decarbonize.
x
ICF   s work for international clients was stable, due primarily to the ending of a one-time
pandemic-related contract for a European government client in early 2022. European Union
clients continue to value our combined program consulting and communications delivery
expertise.
x
In 2023 we completed the divestiture of our Commercial Marketing Business, which had become
non-core to ICF, thereby increasing our focus and freeing up resources for future investment.
In 2021, the passage of the Bipartisan Infrastructure Law (IIJA) provided support for public investment
that could indirectly sustain some of ICF   s important markets. In 2022, the passage of the Inflation
Reduction Act (IRA) introduced wide-ranging tax credits and a variety of grant programs designed to
speed the adoption of low-carbon technologies. In 2023 we saw meaningful opportunities to support
clients that were directly or indirectly impacted by these pieces of legislation, and we believe that these
laws and the public policy decisions that have accompanied them will drive growth and market
opportunities in the coming years.
Work That Makes Us Proud
ICF is proud of the work we do. While the breadth of our client services makes a comprehensive
description impossible here, below are a few highlights of the ways we make a difference to our clients
and to society:
x
ICF has substantially grown our technology delivery capability that serves numerous clients
around the US Government. The solutions we provide help clients do everything from modernize
outdated business processes and their associated technology platforms to implement cutting-edge
missions across the government. One example of this work is the system used by the Centers for
Medicare and Medicaid Services to track health data from kidney transplant centers across the
country, which ICF moved to the Cloud and modernized.
x
ICF continues to enhance our work in support of the nation   s Public Health enterprise. Among

many other awards, in 2023 we won a recompete contract to continue to support the operation,
maintenance, and modernization of ClinicalTrials.gov, the nation   s central database for
information from clinical trials testing investigational drugs for serious or life-threatening
diseases.
x
Our disaster management business has been assisting U.S. residents to return to storm-damaged
homes for almost two decades. In 2023, we won a contract from the State of Oregon to manage
the state's first-ever federally-funded housing recovery programs designed to move wildfire
survivors into safer, more energy efficient and resilient homes and to support infrastructure,
planning and economic development initiatives.
x
ICF has worked for years in support of the US Global Change Research Program (USGCRP), the
coordinating effort for all Federal Climate Change research. This year, that work included the
final release of the Fifth National Climate Assessment, a comprehensive report which integrates
findings across the program and analyzes the current effects and trends of climate change in and
on natural and man-made systems. ICF experts also partnered with Virgin Atlantic on the firstever flight using 100% sustainable aviation fuel     critical for the decarbonization of global
aviation.
x
The combination of the IIJA, IRA, and Federal policy has accelerated the deployment of new
renewable electricity generation. ICF has continued to support the deployment of carbon-free
electricity generation though our environmental services and energy advisory work. In 2023, ICF
deployed pioneering digital tools to help renewable energy developers find the best sites for new
projects and most efficiently move those projects through the pipeline to deployment. We also
announced the acquisition of CMY Solutions, a leading power and energy engineering firm,
which adds to our expertise and capabilities in next-generation grid modernization and data
analytics.
x
ICF has grown our work supporting utilities across North America as they work to manage
demand and advance their efforts to decarbonize the energy mix. This work includes managing
programs to encourage utility customers to deploy new technologies in their homes and
businesses that replace fossil-powered devices with electrified ones, and to store and manage
electricity in a way that reduces customer costs and stress on the grid.
x
In Europe, ICF was proud to continue supporting a variety of communications campaigns across
the European Union, enhancing social cohesion and supporting a variety of specific program and
mission goals.
Environment, Social, and Governance (ESG) Commitment
Much of ICF   s ESG data, and explanations of how ICF employees contribute positively to our societies
and our world, can be found in our award-winning Corporate Citizenship Report published mid-year:
https://www.icf.com/company/about/corporate-citizenship. The report also serves as the reporting
vehicle for data aligned to both the Sustainability Accounting Standards Board (SASB) and the Task
Force on Climate-related Financial Disclosures (TCFD).
ICF continued and extended our commitment to ESG principles in 2023. ICF   s corporate giving totaled
$828,000, driven by our employees    choices of causes and their own donations; employees personally
volunteered thousands of hours and donated $655,000 to a variety of causes and philanthropic initiatives.
Our employees    generosity is an inspiration and example for us all.
Each year ICF takes inventory of our carbon emissions. To sustain ICF   s 17-year commitment to carbon
neutrality, in 2023 we purchased 100% net renewable electricity for U.S. operations via renewable

energy certificates that are Green-e   certified while mitigating the remainder of our Scope 1 and some
Scope 3 emissions (including those from business travel and employee commuting, which are the three
sources of greatest impact) with high-quality offsets (including carbon removal). ICF continues to
employ many sustainability tactics such as reducing our real estate footprint, prioritizing leases in green
buildings (notably including our new HQ), providing online collaboration tools to reduce the need for
business travel, and promoting a commuter transit benefit. Our 2023 and upcoming 2024 Proxy
Statements include data showing ICF   s progress in reducing emissions, both per employee and on an
absolute basis. In 2023, we were pleased to have been awarded the Climate Leadership Award from the
Climate Registry for reducing carbon pollution and addressing climate change in both our social actions
and client work. ICF was recognized for aggressive emissions reduction goals and for exemplifying
"extraordinary leadership" in our response to climate change and engagement of supply chain peers and
partners. This includes achieving a 93% reduction in greenhouse gas emissions against a 2013 baseline.
In 2023, ICF was ranked #14 among Forbes    America   s Top 500 Employers for Diversity, and we
continued to mature our Diversity, Equity, Inclusion, and Belonging program. Our eight (8) Employee
Community Networks (ECNs) support under-represented communities (nearly 27% of our employees are
involved in at least one (1) ECN), and in 2023 they held over sixty (60) events on topics as wide-ranging
as employee development, cultural expression, talent acquisition, and charitable giving. We are just as
proud to be recognized by Forbes in 2023 for being among the Best Employers For Women. ICF believes
that fulfilling our purpose can only occur if all ICFers are in an environment to do their best work and
succeed without barriers.
Our People
I am proud to lead the amazing team here at ICF. Every week we welcome new colleagues who join us to
help deliver great results for our clients, our communities, and our shareholders. I know they will be as
committed as the longest-standing ICFer in advancing our values and fulfilling our purpose.
Wishing you all success in 2024, and continued health and safety for you and yours!
John Wasson
Chair, President and Chief Executive Officer



shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 

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