Shares of ICF International Inc (NASDAQ: ICFI) plummeted 5.14% in Friday's intraday trading session following the release of the company's first-quarter 2025 earnings report and ongoing concerns about federal contract terminations.

Despite beating analyst expectations with non-GAAP earnings per share of $1.94, compared to the estimated $1.74, ICF reported a 1.4% year-over-year decline in revenue to $487.62 million. The company's federal government business, which has been under pressure due to the new administration's policies, saw a 12.6% decline in revenues compared to the previous year's first quarter.

Adding to investor concerns, ICF disclosed that approximately $375 million worth of contracts have been terminated since the beginning of the year, up from $276 million reported in February. This figure, while spread over multiple years, highlights the ongoing challenges in the company's federal business segment. John Wasson, ICF's CEO, noted that the federal environment remains "fluid and unsettled," with expectations of continued impact over the next several quarters.

Despite the headwinds in its federal business, ICF reported strong growth in its commercial energy sector, with revenues increasing 21% year-over-year. However, this positive performance was not enough to offset investor concerns about the company's federal contract issues and overall revenue decline, leading to the sharp drop in stock price during Friday's trading session.