Overview of Results - IES Holdings, Inc. reported a 16% increase in revenue to $890 million for the third quarter of fiscal 2025 compared to $768 million in the same quarter of fiscal 2024 [6] - Operating income rose by 24% to $111.9 million from $90.2 million year-over-year [6] - Net income attributable to IES increased by 24% to $77.2 million, with diluted earnings per share rising to $3.81 from $2.67 [6][21] Segment Performance - The Communications segment generated revenue of $299.2 million, a 56% increase from $192.3 million in the prior year, with operating income rising to $47.8 million from $21.0 million [4][30] - The Residential segment's revenue decreased by 8% to $346.1 million due to a challenging housing market, with operating income falling to $33.4 million from $43.7 million [5][30] - Infrastructure Solutions segment revenue increased by 27% to $129.5 million, with operating income improving to $32.6 million from $19.8 million [7][30] - The Commercial & Industrial segment saw revenue rise by 20% to $115.4 million, with operating income slightly decreasing to $12.9 million from $13.0 million [8][30] Financial Position - Remaining performance obligations stood at approximately $1.3 billion, indicating future revenue to be recognized from current contracts [6][14] - Backlog was approximately $2.1 billion, reflecting signed agreements and letters of intent [6][14] - The company ended the quarter with $88.4 million in cash and restricted cash, net of debt, and $66.8 million in marketable securities [11] Capital Allocation and Investments - IES Holdings invested $17.1 million in capital expenditures and funded a $7 million deposit for the purchase of an industrial fabrication operation [12] - The company repurchased 33,900 shares of common stock for $5.3 million, with $168.0 million remaining under its stock repurchase authorization [12]

Core Viewpoint - IES Holdings, Inc. is set to release its fiscal 2025 third quarter results on August 1, 2025, before market opening [1] Company Overview - IES Holdings, Inc. specializes in designing and installing integrated electrical and technology systems, along with providing infrastructure products and services [2] - The company serves various end markets, including data centers, residential housing, and commercial and industrial facilities [2] - IES employs over 9,000 individuals and operates primarily within the United States [2]

Core Viewpoint - IES Holdings, Inc. has completed its executive succession plan, appointing Matt Simmes as President and CEO, while Jeff Gendell transitions to Executive Chairman of the Board [1][2] Leadership Changes - Matt Simmes has taken over as President and CEO, expressing commitment to build on the company's growth legacy established under Jeff Gendell's leadership [2] - Jeff Gendell will continue to contribute as Executive Chairman, collaborating with Simmes and the senior leadership team [2] - Jordan Lyman has been appointed as President of IES's Residential segment, bringing over 20 years of experience within the company [2][3] Company Overview - IES Holdings, Inc. specializes in designing and installing integrated electrical and technology systems, serving various end markets including data centers, residential housing, and commercial and industrial facilities [4] - The company employs more than 9,000 individuals across the United States [4]

Core Viewpoint - IES Holdings, Inc. announces the succession of Matthew Simmes as Chief Executive Officer effective July 1, 2025, as part of the company's executive succession plan, with Jeffrey Gendell transitioning to Executive Chairman [1] Group 1: Leadership Transition - Matthew Simmes has over 31 years of experience at IES, having held various senior roles, including President and Chief Operating Officer since 2023 [2] - Jeffrey Gendell, who has been with the company since 2016, will continue to lead the Board of Directors while working closely with Simmes [1][3] Group 2: Strategic Focus - Gendell emphasizes that Simmes' leadership has been crucial for the operational and financial success of IES's four business segments and in executing the company's strategic vision [3] - The company has experienced significant growth over the last five years, positioning Simmes well for the CEO role [3] Group 3: Company Overview - IES designs and installs integrated electrical and technology systems, providing infrastructure products and services across various markets, including data centers and residential housing [4] - The company employs over 9,000 individuals serving clients throughout the United States [4]

Core Insights - IES Holdings, Inc. has appointed Kelly C. Janzen to its Board of Directors, effective May 12, 2025, highlighting her extensive background in finance and public company leadership [1] Group 1: Appointment Details - Kelly C. Janzen brings over 30 years of experience in financial leadership roles [1] - She has served as Executive Vice President and Chief Financial Officer of Vestis Corporation since February 2025 [1] - Janzen's previous roles include Senior Vice President and Chief Financial Officer at BlueLinx Corporation and Chief Accounting Officer at WestRock Company [1] Group 2: Company Overview - IES designs and installs integrated electrical and technology systems, providing infrastructure products and services to various end markets [2] - The company employs over 9,000 individuals and serves clients across the United States [2]

Group 1 - The individual is pursuing an MBA and draws inspiration from renowned investors such as Warren Buffett, Peter Lynch, and Terry Smith, focusing on quality companies at reasonable valuations [1] - The belief is that long-term fundamentals drive share prices, with a focus on predicting a business's earnings per share [1]

Financial Performance - Revenue for the second quarter of fiscal year 2025 reached $834 million, an 18% increase compared to $706 million in the second quarter of fiscal year 2024[7, 9] - Operating income for the second quarter of fiscal year 2025 was $92.7 million, a 19% increase from $77.7 million in the second quarter of fiscal year 2024[7, 9, 16] - Earnings per share for the second quarter of fiscal year 2025 were $3.50, while adjusted earnings per share were $3.30[7] - Year-to-date revenue for fiscal year 2025 totaled $1584 million, an 18% increase from $1340 million in the same period of fiscal year 2024[9, 16] - Year-to-date operating income for fiscal year 2025 was $167.3 million, a 23% increase from $135.7 million in the same period of fiscal year 2024[9, 16] - Year-to-date earnings per share reached $6.22, and adjusted earnings per share were $5.94, representing increases of 50% and 40% respectively[9] Segment Performance - Communications segment revenue for the second quarter of fiscal year 2025 was $273.1 million, a 41% increase from the second quarter of fiscal year 2024, with an 81% increase in operating income to $39.6 million[11, 19] - Infrastructure Solutions segment revenue for the second quarter of fiscal year 2025 was $117.6 million, a 55% increase from the second quarter of fiscal year 2024, with a 65% increase in operating income to $26.5 million[11, 19] Backlog - Remaining performance obligations, a GAAP measure of future revenue, stood at $1.2 billion[7] - Record backlog reached $1.8 billion[7] - Backlog increased from $1.363 billion on March 31, 2024, to $1.813 billion on March 31, 2025[13, 21]

Financial Performance - Revenue for Q2 2025 was $834 million, an 18% increase from $706 million in Q2 2024[6] - Operating income for Q2 2025 was $92.7 million, a 19% increase from $77.7 million in Q2 2024[6] - Net income attributable to IES for Q2 2025 was $70.7 million, a 34% increase from $52.9 million in Q2 2024, with diluted earnings per share of $3.50 compared to $2.29[6] - Revenues for the three months ended March 31, 2025, were $834.0 million, a 18.1% increase from $705.8 million in the same period of 2024[26] - Gross profit for the six months ended March 31, 2025, was $386.9 million, up 22.6% from $315.4 million in the prior year[26] - Net income attributable to IES Holdings, Inc. for the three months ended March 31, 2025, was $70.7 million, representing a 33.8% increase compared to $52.9 million in the same period of 2024[26] - Adjusted net income attributable to common stockholders for the six months ended March 31, 2025, was $120.1 million, a 38.8% increase from $86.5 million in the same period of 2024[27] - Basic earnings per share attributable to common stockholders for the three months ended March 31, 2025, was $3.54, compared to $2.32 for the same period in 2024, reflecting a 52.9% increase[26] - Net income for the six months ended March 31, 2025, increased to $130.3 million, up from $100.4 million in the same period of 2024, representing a growth of 29.5%[31] - Total revenue for the six months ended March 31, 2025, reached $1,583.5 million, compared to $1,340.2 million in the prior year, reflecting a year-over-year increase of 18.1%[33] - Adjusted EBITDA for the six months ended March 31, 2025, was $192.1 million, up from $147.5 million in the same period of 2024, marking a growth of 30.2%[35] Backlog and Future Revenue - Remaining performance obligations as of March 31, 2025, were approximately $1.2 billion, indicating future revenue to be recognized[6][16] - Backlog as of March 31, 2025, was approximately $1.8 billion, reflecting strong demand[6][16] - Remaining performance obligations as of March 31, 2025, totaled $1,226 million, compared to $1,176 million in September 2024, indicating an increase of 4.3%[37] - Backlog as of March 31, 2025, was $1,813 million, up from $1,786 million in September 2024, showing a growth of 1.5%[37] Segment Performance - Communications segment revenue was $273.1 million in Q2 2025, a 41% increase from Q2 2024, driven by demand in the data center market[7] - Infrastructure Solutions segment revenue was $117.6 million in Q2 2025, a 55% increase from Q2 2024, with contributions from recent acquisitions[9] - Commercial & Industrial segment revenue was $125.4 million in Q2 2025, a 29% increase from Q2 2024, reflecting solid demand[11] - The Communications segment generated revenues of $506.0 million for the six months ended March 31, 2025, up from $364.3 million in the same period of 2024, representing a growth of 38.8%[33] Cash Flow and Investments - Cash flows from operating activities for the six months ended March 31, 2025, amounted to $62.1 million, compared to $58.7 million in the prior year, reflecting a growth of 5.8%[31] - Net cash used in investing activities for the six months ended March 31, 2025, was $97.1 million, significantly higher than $11.4 million in the same period of 2024[31] - The company reported a net increase in cash and cash equivalents of $(78.4) million for the six months ended March 31, 2025, compared to an increase of $30.2 million in the prior year[31] Shareholder Information - The company repurchased 118,314 shares of common stock for $20.4 million, with $173.3 million remaining under the stock repurchase authorization[14] - The company has a controlling shareholder, which may influence decisions that are not aligned with other shareholders[21] Assets and Equity - Total assets as of March 31, 2025, were $1,364.6 million, an increase from $1,244.0 million as of September 30, 2024[29] - Total stockholders' equity increased to $705.8 million as of March 31, 2025, compared to $611.1 million as of September 30, 2024[29] - Cash and cash equivalents decreased to $22.4 million as of March 31, 2025, from $100.8 million as of September 30, 2024[29] Profitability Metrics - The company reported a gross profit margin of 25.1% for the three months ended March 31, 2025, compared to 24.3% for the same period in 2024[26] - Operating income for the six months ended March 31, 2025, was $167.3 million, compared to $135.7 million in the same period of 2024, an increase of 23.3%[33]

Financial Performance - Consolidated revenues for the three months ended March 31, 2025, were $833.96 million, an increase of 18.2% compared to $705.73 million for the same period in 2024[110] - Gross profit for the three months ended March 31, 2025, increased to $208.87 million, representing a gross profit margin of 25.0%, up from 24.3% in the prior year[111] - Net income attributable to IES Holdings, Inc. for the three months ended March 31, 2025, was $70.65 million, an increase of 33.7% from $52.91 million in the prior year[109] - For the six months ended March 31, 2025, consolidated revenues were $1.58 billion, an increase of 18.2% compared to $1.34 billion for the same period in 2024[114] - The overall gross profit percentage for the six months ended March 31, 2025, increased to 24.4%, compared to 23.5% in the same period in 2024[115] Segment Performance - The Communications segment's revenues increased by $79.5 million, or 41.1%, during the three months ended March 31, 2025, driven by strong demand in the data center market[117] - Residential segment revenues decreased by $21.4 million, or 6.3%, to $317.966 million for the three months ended March 31, 2025, compared to $339.372 million for the same period in 2024[123] - Infrastructure Solutions segment revenues increased by $41.8 million, or 55.2%, to $117.620 million for the three months ended March 31, 2025, driven by strong demand and acquisitions[128] - Commercial & Industrial segment revenues increased by $28.3 million, or 29.1%, to $125.358 million for the three months ended March 31, 2025, driven by strong demand in data center and education markets[134] Profitability and Expenses - Selling, general and administrative expenses for the three months ended March 31, 2025, were $116.04 million, a 21.8% increase from $95.27 million in the same period in 2024[113] - Gross profit in the Residential segment decreased by $9.0 million, or 10.1%, to $79.672 million, with gross profit as a percentage of revenue declining to 25.1% from 26.1% year-over-year[124] - Selling, general and administrative expenses in the Residential segment increased by $1.9 million, or 3.4%, to $57.151 million, raising the percentage of revenue to 18.0% from 16.3%[124] - Gross profit in the Infrastructure Solutions segment increased by $15.6 million, or 65.5%, to $39.301 million, with gross profit as a percentage of revenue rising to 33.4% from 31.3%[129] - Selling, general and administrative expenses in the Infrastructure Solutions segment increased by $4.9 million, or 63.7%, to $12.487 million, with the percentage of revenue increasing to 10.6% from 10.1%[130] - Gross profit in the Commercial & Industrial segment increased by $6.6 million, or 32.5%, to $26.853 million, with gross profit as a percentage of revenue increasing to 21.4% from 20.9%[135] - Selling, general and administrative expenses in the Commercial & Industrial segment increased by $2.3 million, or 26.6%, to $11.024 million, while the percentage of revenue decreased to 8.8% from 9.0%[136] Cash Flow and Investments - Net cash provided by operating activities increased to $62.1 million for the six months ended March 31, 2025, up from $58.7 million in the same period of 2024, driven by increased earnings[166] - Net cash used in investing activities rose significantly to $97.1 million for the six months ended March 31, 2025, compared to $11.4 million in the prior year, including $44.9 million for acquiring a membership interest in Jett Texas Company LLC[167] - Net cash used in financing activities increased to $43.4 million for the six months ended March 31, 2025, compared to $17.1 million in the same period of 2024, primarily due to $36.3 million used for stock repurchases[168] - The company repurchased 139,362 shares under its stock repurchase program during the six months ended March 31, 2025[169] Future Outlook and Strategic Initiatives - The company expects an increase in multi-family bid activity in the second half of fiscal 2025, which is anticipated to benefit revenues in fiscal 2026[106] - The company plans to reduce reliance on leasing by increasing the purchase of vehicles and equipment, reflecting a strategic shift in capital expenditure management[173] - Capital expenditures for the fiscal year ending September 30, 2025, are expected to range from $70 million to $80 million, a substantial increase from $45.2 million for the year ended September 30, 2024[173] Backlog and Performance Obligations - Backlog across all business segments remains high, indicating strong demand in key end markets, particularly for data centers[106] - Remaining performance obligations as of March 31, 2025, totaled $1,225.9 million, compared to $1,214.8 million as of December 31, 2024[152] - Backlog increased to $1,812.7 million as of March 31, 2025, from $1,753.9 million as of December 31, 2024[152] Tax and Interest Expenses - Income tax expense for the six months ended March 31, 2025, was $46.1 million, up from $34.8 million in the same period of 2024, driven by increased pretax income[147] - Total interest expense for the six months ended March 31, 2025, was $0.8 million, a slight decrease from $0.8 million in the same period of 2024[144] Marketable Securities and Risk Exposure - As of March 31, 2025, the company had investments in marketable securities with a fair value of $65.8 million, with a potential $6.6 million impact on pre-tax income from a hypothetical 10% change in market value[176] - The company is exposed to interest rate risk due to floating rate debt under its revolving credit facility, with no borrowings outstanding as of March 31, 2025[177] - An unrealized gain of $7.8 million was recorded in the six months ended March 31, 2025, due to changes in the market value of investments[176]

Core Insights - IES Holdings, Inc. reported an 18% increase in revenue and a 19% increase in operating income for the second quarter of fiscal 2025 compared to the same quarter in fiscal 2024, driven by strong demand in its Communications, Infrastructure Solutions, and Commercial & Industrial segments, particularly in the data center market [3][5][7]. Financial Performance - Revenue for the second quarter of fiscal 2025 was $834 million, up from $706 million in the same quarter of fiscal 2024 [5]. - Operating income increased to $92.7 million for the second quarter of fiscal 2025, compared to $77.7 million for the same quarter of fiscal 2024 [5]. - Net income attributable to IES was $70.7 million for the second quarter of fiscal 2025, a 34% increase from $52.9 million in the same quarter of fiscal 2024 [5]. - Diluted earnings per share attributable to common stockholders rose to $3.50 for the second quarter of fiscal 2025, compared to $2.29 for the same quarter of fiscal 2024 [5]. Segment Performance - The Communications segment generated revenue of $273.1 million, a 41% increase from $193.6 million in the second quarter of fiscal 2024, with operating income rising to $39.6 million from $21.9 million [3][7]. - The Residential segment's revenue was $317.9 million, a decrease of 6% from $339.3 million in the same quarter of fiscal 2024, with operating income dropping to $22.7 million from $34.7 million [4][27]. - The Infrastructure Solutions segment reported revenue of $117.6 million, a 55% increase from $75.8 million in the second quarter of fiscal 2024, with operating income increasing to $26.5 million from $16.1 million [7][27]. - The Commercial & Industrial segment's revenue was $125.4 million, a 29% increase from $97.0 million in the same quarter of fiscal 2024, with operating income rising to $15.8 million from $11.7 million [8][27]. Capital Allocation and Investments - The company ended the quarter with $22.4 million in cash and $65.8 million in marketable securities [10]. - Capital expenditures amounted to $30.1 million during the quarter [11]. - IES completed the acquisition of Arrow Engine Company to enhance its Infrastructure Solutions offerings [11]. - The company repurchased 118,314 shares of common stock for $20.4 million, with $173.3 million remaining under its stock repurchase authorization [11]. Future Outlook - The company anticipates continued growth in its multi-family business, expecting increased bid activity to benefit revenues in fiscal 2026 and 2027 [3]. - Despite challenges in the Residential segment due to high mortgage rates and inflation, the company remains optimistic about long-term demand driven by positive demographic trends [3].