ICF International sees FY23 non-GAAP EPS $6.15-$6.45, consensus $6.08

John Wasson, chair and CEO, said, "Q4 results represented a strong finish to another record year for ICF, and together with our robust backlog and business development pipeline provide considerable positive momentum for 2023. Specifically, we expect FY23 Service Revenue to be in the range of $1.405B-$1.465B, representing year-on-year growth of 11.6% at the midpoint. Pass-through revenues are anticipated at approximately 28% of total revenue in 2023, implying total revenue of $1.930B-$2.0B. EBITDA is estimated to range from $210M-$220M, and adjusted EBITDA on Service Revenue is expected to be approximately 15%. GAAP EPS is projected at $4.75-$5.05, exclusive of special charges, and non-GAAP EPS is expected to range from $6.15-$6.45, representing increases of 45% and 9.2%, respectively over 2022 at the midpoints. Operating cash flow is expected to be approximately $150M in 2023. As anticipated, we were able to utilize our robust cash flow to repay approximately $145M of debt in the Q4, bringing our Adjusted Leverage Ratio down to 2.86 at year-end and increasing the fixed-rate hedged percentage of our outstanding debt. Additionally, we are implementing multi-year tax strategies that we anticipate will allow us to maintain an annual tax rate of approximately 23.5%. These initiatives support our future growth plans as we build upon our expanded capabilities to capture the significant opportunities on the horizon. At ICF, our business, environmental and social responsibilities are intertwined. In 2022, over 85% of the company’s revenues represented our work on programs that create a direct positive impact on society-from our services supporting energy savings, carbon reduction and disaster recovery to those supporting health, education, and social justice programs. We are proud of the positive impact that ICF is making every day and encourage our shareholders to visit our website to learn more about our commitments," Wasson concluded."