ICF International announced it had been selected as one of eight prime awardees for Maryland’s $300 million digital experience contract, a nine‑year IDIQ vehicle that will transform legacy systems into user‑centered platforms for state and local agencies.
The contract, named ADEPT, carries a $300 million ceiling and includes a five‑year base and two two‑year options. Work orders will be issued as needed, so revenue will accrue over time, but the award signals a significant long‑term opportunity and diversification from federal contracts.
The win comes after ICF reported Q3 2025 revenue of $465.4 million, a 10% year‑over‑year decline, and non‑GAAP EPS of $1.67, missing estimates of $1.73. The decline was driven by a sharp drop in federal government revenue, while commercial energy and other commercial segments offset the loss. The contract is expected to help offset federal headwinds by adding a new source of state‑level work.
Management highlighted the award as part of a broader strategy to broaden its public‑sector footprint. CEO John Wasson said the state contract “reinforces our ability to deliver high‑quality digital services across a range of government agencies, while expanding our presence beyond the federal market.” The award also aligns with ICF’s focus on human‑centered design and agile delivery, core strengths that have attracted other state and local clients.
Analysts note that while the contract does not guarantee immediate revenue, it provides a pipeline of potential work orders that could materialize over the next nine years. The award also signals confidence in ICF’s digital modernization capabilities, which have been a key driver of its commercial energy growth and overall margin expansion.
The contract’s impact on ICF’s financial outlook remains incremental in the short term, but it strengthens the company’s balance against federal funding uncertainties and supports its guidance that revenue will decline no more than 10% from 2024 levels while maintaining profitability.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.