Market Overview - The U.S. stock market experienced a significant rebound on November 21, 2025, with major indexes closing higher, recovering from earlier losses driven by optimism regarding potential interest rate cuts by the Federal Reserve [1][4] - The Dow Jones Industrial Average (DJI) rose 1.4%, adding 650 points, while the S&P 500 (SPX) gained 1.4%, closing at 6,590 points, and the Nasdaq Composite (IXIC) increased by 1.5% [2] Federal Reserve Influence - New York Federal Reserve President John Williams indicated support for a potential interest rate cut "in the near term," which shifted market expectations significantly, raising the likelihood of a rate cut at the December meeting to 73.1% from 39.1% [4] Corporate Performance - Nvidia (NVDA) reported a 62% year-over-year revenue increase to $57 billion, but its shares fell 3.2% on Thursday and 1.7% on Friday due to concerns over AI valuations [5] - Walmart (WMT) saw its stock decline by approximately 2% on Friday after a strong performance on Thursday, where it had jumped 6.5% following better-than-expected third-quarter results [6] - Retailers like Gap (GPS) and Ross Stores (ROST) had positive performances, with Gap surging 9.5% and Ross jumping 8.5% due to strong earnings [7] Notable Stock Movements - Alphabet (GOOGL) increased by over 3%, while Meta Platforms (META) added 1%. In contrast, Microsoft (MSFT) shares fell approximately 1%, and Oracle (ORCL) slid more than 4% [8] Upcoming Earnings and Economic Data - Several companies, including BJ's Wholesale Club Holdings (BJ) and IES Holdings (IESC), reported earnings after the market closed, with BJ's EPS at $1.16 against a forecast of $1.10 [9][10] - The upcoming week will feature key economic data releases, including the Producer Price Index (PPI) and Retail Sales for September, which were delayed due to a government shutdown [12]

IES HOLDINGS, INC. (NASDAQ: IESC) | Fourth Quarter Fiscal 2025 Update | September 30, 2025 Disclosures Forward-Looking Statements Certain statements in this release may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statemen ...

Employee Information - As of September 30, 2025, the Company had 10,283 employees, with 10,262 being full-time employees[76] - The Company has established two residential education centers to enhance employee training in technical skills for residential contracting[80] - The Company is committed to diversity and inclusion, prohibiting discrimination based on various protected statuses[77] - The Company has a strong safety culture, with safety performance exceeding industry averages[81] Financial Performance - Total revenues for the year ended September 30, 2025, were $3,371,468, an increase of 17% from $2,884,358 in 2024[304] - Gross profit for the same period was $859,497, representing a gross margin of approximately 25.5%[304] - Net income attributable to IES Holdings, Inc. for 2025 was $305,975, up 39.5% from $219,116 in 2024[304] - Basic earnings per share increased to $15.22 in 2025, compared to $10.02 in 2024, reflecting a growth of 52%[304] - Operating income for 2025 was reported at $383,529, which is a 27% increase from $300,876 in 2024[304] - Cash provided by operating activities rose to $286,096 in 2025, up from $234,404 in 2024, indicating a year-over-year increase of 22%[308] - Total stockholders' equity increased from $361,288 in 2022 to $883,955 in 2025, representing a growth of 144% over the three-year period[306] Assets and Liabilities - Total current assets rose to $1,085,481 in 2025, a 24% increase from $871,694 in 2024[302] - Total liabilities increased to $707,699 in 2025, up from $591,917 in 2024, indicating a growth of 19.5%[302] - Total assets increased to $1,595,661 in 2025 from $1,244,026 in 2024, representing a 28% growth[394] - Accounts payable and accrued expenses totaled $456,646 as of September 30, 2025, up from $363,582 in 2024, indicating a 25.6% increase[373] Revenue Recognition - The company recognized revenue on construction contracts over time, using costs incurred as a percentage of estimated total costs at completion[290] - The company recognizes revenue on construction contracts over time using the percentage of completion method, with contract costs including all direct material, labor, and insurance costs[324] - Remaining performance obligations as of September 30, 2025, were valued at $1,686,583, with an expected revenue recognition of approximately $1,029,713 over the next 12 months[367] - The Company recognized revenue of $147,995 related to contract liabilities for the year ended September 30, 2025, compared to $98,564 in 2024[366] Investments and Securities - The Company reported an unrealized gain of $7.5 million from marketable securities for the year ended September 30, 2025, with a total fair value of $104.6 million in these investments[278] - A 10% change in the market value of the Company's investments in marketable securities would result in a $10.5 million impact on pre-tax income[278] - The total unrealized gain on trading securities for the year ended September 30, 2025, was $7,485, compared to $1,789 in 2024[413] - The company’s total fair value of equity securities increased to $104,587 in 2025 from $31,639 in 2024, marking a substantial growth[417] Taxation - Total provision for income taxes increased to $96,805 in 2025 from $72,165 in 2024, representing a 34% increase year-over-year[10] - The company had approximately $3,785 million of federal net tax operating loss carry forward as of September 30, 2025[387] - Unrecognized tax benefits decreased to $5,975 in 2025 from $16,881 in 2024, a reduction of 65%[388] Acquisitions and Investments - The company completed three acquisitions in fiscal year 2025 for a total cash consideration of $51,826, contributing $17,478 in revenue and $1,910 in operating income[436][438] - The company purchased the remaining 20 percent noncontrolling interest in Bayonet for $32 million on June 28, 2024, and in Edmonson for $40 million on July 1, 2025[337] - The acquisition of Gulf Island Fabrication, Inc. is set at $12.00 per share, totaling an aggregate equity value of approximately $192 million[444] Debt and Financing - The Company had no borrowings outstanding under its revolving credit facility as of September 30, 2025[279] - The company had no outstanding borrowings as of September 30, 2025, with $294,455 available under its revolving credit facility[377] - The Fourth Amended and Restated Credit Agreement increased the revolver amount from $150,000 to $300,000 and extended the maturity date to January 21, 2030[375] Stock and Equity - The Company authorized an additional 750,000 shares under the Equity Incentive Plan, extending its term to February 19, 2035[396] - The average repurchase price for shares was $174.25 and $136.34 for the years ended September 30, 2025 and 2024, respectively, with 173,262 and 289,284 shares repurchased[399] - The Company issued 94,799 shares of treasury stock to employees during the year ended September 30, 2025[400] Miscellaneous - The Company expects increased compliance costs due to new climate-related regulations, particularly in California[84] - The Company is exposed to fluctuations in commodity prices, including copper, aluminum, and steel, which may impact operational results due to fixed contract nature[277] - The company maintained effective internal control over financial reporting as of September 30, 2025, based on COSO criteria[294]

Core Insights - IES Holdings, Inc. reported record earnings for fiscal 2025, with consolidated revenue increasing by 17% year-over-year and operating income rising by 27% due to strategic investments and strong demand in key markets [4][5]. Financial Performance - Fourth quarter revenue reached $898 million, a 16% increase from $776 million in the same quarter of fiscal 2024 [6]. - Operating income for the fourth quarter was $104.3 million, up 39% from $75.0 million year-over-year [6]. - Net income attributable to IES for the fourth quarter was $101.8 million, a 61% increase compared to $63.1 million in the same quarter of fiscal 2024 [6]. - For fiscal 2025, total revenue was $3.37 billion, a 17% increase from $2.88 billion in fiscal 2024 [6]. - Operating income for fiscal 2025 was $383.5 million, up 27% from $300.9 million in fiscal 2024 [6]. Segment Performance - The Communications segment generated $1.14 billion in revenue for fiscal 2025, a 47% increase driven by demand in the data center market [7]. - The Residential segment's revenue was $1.30 billion, reflecting a 6% decrease due to challenges in the housing market [8]. - Infrastructure Solutions segment revenue increased by 42% to $498.7 million, benefiting from strong demand for custom engineered solutions [9]. - The Commercial & Industrial segment saw revenue rise by 16% to $427.7 million, driven by activity in education and healthcare markets [10]. Future Outlook - The company anticipates continued growth in its Communications, Infrastructure Solutions, and Commercial & Industrial segments, particularly in the data center market [5]. - A definitive agreement to acquire Gulf Island Fabrication, Inc. has been announced, aimed at increasing capacity for custom manufactured products [5]. Capital Allocation - IES ended the fiscal year with $127.2 million in cash and $104.6 million in marketable securities, with no debt [12]. - Capital allocation highlights include $52.4 million invested in acquisitions and $67.3 million in capital expenditures [18].

Market Sentiment - The CNN Money Fear and Greed index increased, remaining in the "Extreme Fear" zone with a current reading of 6.5, down from a prior reading of 14.9 [1][6][7] Stock Performance - U.S. stocks closed lower, with the Dow Jones dropping approximately 387 points to 45,752.26, the S&P 500 declining 1.56% to 6,538.76, and the Nasdaq Composite falling 2.15% to 22,078.05 [4] - Walmart Inc. shares rose over 6% after exceeding earnings expectations and raising guidance [3] - Palo Alto Networks Inc. shares fell more than 7% following its first-quarter financial results and the announcement of acquiring Chronosphere [3] Economic Indicators - A stronger-than-expected U.S. jobs report showed non-farm payrolls increased by 119,000 in September, significantly above the forecast of 50,000, which dampened expectations for a December rate cut [2] - Markets now estimate a 64% probability that the Federal Reserve will maintain current rates in December [2] Sector Performance - Most sectors in the S&P 500 ended negatively, with information technology, consumer discretionary, and industrials experiencing the largest losses, while consumer staples stocks performed positively [4] Upcoming Earnings - Investors are anticipating earnings results from BJ's Wholesale Club Holdings Inc., IES Holdings Inc., and MINISO Group Holding Ltd. [5]

With U.S. stock futures trading higher this morning on Friday, some of the stocks that may grab investor focus today are as follows:Wall Street expects BJ’s Wholesale Club Holdings Inc. (NYSE:BJ) to report quarterly earnings at $1.09 per share on revenue of $5.35 billion before the opening bell, according to data from Benzinga Pro. BJ’s Wholesale shares fell 0.6% to $90.06 in after-hours trading.Veeva Systems Inc. (NYSE:VEEV) posted upbeat results for the third quarter after Thursday’s closing bell. Veeva a ...

Core Viewpoint - IES Holdings, Inc. is set to release its fiscal 2025 fourth quarter and year-end results on November 21, 2025, before market opening [1] Company Overview - IES Holdings, Inc. specializes in designing and installing integrated electrical and technology systems, as well as providing infrastructure products and services across various end markets, including data centers, residential housing, and commercial and industrial facilities [2] - The company employs over 10,000 individuals and serves clients throughout the United States [2]

Core Viewpoint - IES Holdings, Inc. has announced the acquisition of Gulf Island Fabrication, Inc. for $12.00 per share, totaling approximately $192 million, which represents a 52% premium over Gulf Island's trading price as of November 6, 2025 [1][4]. Company Overview - IES Holdings, Inc. designs and installs integrated electrical and technology systems, serving various end markets including data centers, residential housing, and commercial and industrial facilities, with over 10,000 employees in the United States [6]. - Gulf Island Fabrication, Inc. is a leading fabricator of complex steel structures and provides specialty services to the industrial, energy, and government sectors, with operations primarily in Houma, Louisiana, and Houston, Texas [7][9]. Strategic Rationale - The acquisition is expected to enhance IES's capabilities in delivering complex steel structures and specialty services, particularly in the data center market and U.S. infrastructure rebuilding efforts [4][8]. - Gulf Island's Houma facility, which spans 450,000 square feet on 160 acres, complements IES's existing footprint and expands its service capabilities [8]. Transaction Details - The transaction has been approved by the boards of directors of both companies and is anticipated to close by March 31, 2026, pending shareholder and regulatory approvals [2]. - Approximately 20% of Gulf Island's shareholders have entered into voting agreements to support the transaction, and IES holds about 3.5% of Gulf Island's shares [2].

Core Insights - LRT Capital Management's "LRT Global Opportunities Strategy" reported a net return of -8.00% for September 2025 and a year-to-date return of -0.17%, indicating a challenging month amid a market surge driven by overvalued mega-cap stocks [1] Company Overview - IES Holdings, Inc. (NASDAQ:IESC) is a US-based engineering and construction company that specializes in integrated electrical and technology systems, providing infrastructure products and services [2] - The company has a market capitalization of $7.856 billion, with its stock closing at $395.66 per share on October 7, 2025 [2] Performance Metrics - IES Holdings, Inc. achieved a one-month return of 3.80% and a remarkable 52-week gain of 91.97% [2] Business Segments - IES Holdings operates through four segments: Communications, Infrastructure Solutions, Commercial & Industrial, and Residential, which allows it to serve diverse end markets and reduce cyclicality risks [3] - The company's structure positions it to capitalize on high-growth trends, particularly in the development of the nation's digital infrastructure [3]

Company Overview - IES Holdings, Inc. is a 28-year-old company with a strong foundation in electrical contracting [1] - The company operates as a diversified infrastructure services provider across various markets in the US, with operations in over 130 locations [1] Market Focus - IES Holdings primarily serves sectors such as housing, data centers, power, and industrial markets [1]