T-Mobile at Citi’s 2026 Global TMT Conference: growth bets widen

On September 9, 2026, ICF International (ICFI) presented its growth plan at the Jefferies Global Industrials Conference. The company aims to achieve steady growth through federal modernization, commercial energy, and disaster recovery. Currently, 60% of ICF's revenue comes from non-federal markets, while 40% is derived from federal work. Management anticipates a shift towards commercial and state and local businesses in the coming years.

ICFI identifies three growth drivers: commercial energy, IT modernization, and disaster recovery. The company leverages AI tools and fixed-price, outcome-based contracts to deliver work faster and enhance competitiveness. ICF aims to return to double-digit revenue growth and mid-to-high teens earnings growth by 2028-2029. With $2 billion in annual revenue and 9,000 employees, ICF remains undervalued with a market capitalization of $1.56 billion and a P/E ratio of 17.95.

The company comprises a professional services and technology services firm with a long history of revenue growth and margin expansion. Historically, ICF's revenue grew at an average rate of 13-14% annually, and adjusted EBITDA margins expanded by 10-20 basis points per year over the past decade.

ICFI's business mix has become more balanced, with non-federal work accounting for the majority of revenue. The company expects this mix to continue shifting as opportunities in the non-federal market remain stronger. Currently, 30% of total revenue comes from commercial energy, making it the most profitable and fastest-growing business line. IT modernization accounts for about 20% of revenue, while international business represents 7% of revenue and is growing at over 20% annually.

In recent quarters, ICF repurchased 435,000 shares, a record for the company. It has completed approximately 35 acquisitions over the past 20 years and plans to continue searching for tuck-in deals, primarily in its growth areas. The company's most recent revenue of $1.82 billion for the last 12 months reflects a 7.9% decline year-over-year, underscoring ICF's focus on returning to the historical 13-14% growth trajectory.

Despite recent federal disruptions, ICF maintains a healthy free cash flow yield of 13%, providing flexibility for capital allocation. The company has adapted to changes in government demand by reallocating staff and capabilities to commercial, state and local, and international markets. This flexibility helped offset the impact of federal disruptions in 2025.

Management highlighted the company's use of AI tools across various departments, including marketing, proposal development, finance, and project delivery. AI-enabled processes can complete work 25-30% faster than traditional methods. However, project fees have remained stable as ICF continues to deliver value. ICF's technology modernization efforts in federal projects account for slightly more than half of its revenue, with 80% structured as outcome-based or fixed-price contracts.

ICFI is expanding into cloud infrastructure, data layer development, and AI fabric implementation. The company is also building more work in state and local regulated markets, including utilities. John Wasson, chairman and CEO, emphasized that a significant backlog of government systems still needing modernization remains. He believes this backlog can be cleared more quickly, potentially within 7-15 years, despite the projects' size.