Core Viewpoint - IES Holdings, Inc. is set to release its fiscal 2025 second quarter results on May 2, 2025, before market opening [1] Company Overview - IES Holdings, Inc. designs and installs integrated electrical and technology systems, providing infrastructure products and services across various end markets, including data centers, residential housing, and commercial and industrial facilities [2] - The company employs over 9,000 individuals and serves clients throughout the United States [2]

Group 1 - The article discusses the process of identifying stocks for investment by running a simple screening method to find potential candidates for deeper analysis [1] - The author has extensive experience in various investment vehicles including commodities, stocks, options, and futures contracts, leading to a successful trading career [1] Group 2 - There is a disclosure regarding a beneficial long position in the shares of IESC, indicating a personal investment interest [2] - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3]

Company Overview - IES Infrastructure Solutions LLC, a division of IES Holdings, Inc. (NASDAQ: IESC), has acquired Arrow Engine Company, a subsidiary of TriMas Corporation (NASDAQ: TRS) [1][2] - Arrow Engine is a global provider of natural gas-powered engines, compressors, and replacement parts, primarily for oil and natural gas production and other industrial markets [1][2] - IES Holdings designs and installs integrated electrical and technology systems, serving various end markets including data centers and industrial facilities, with over 9,000 employees [3] Industry Insights - Arrow Engine's products are typically used in remote applications such as oil field pump jacks, and the company has a worldwide distribution network focused on the U.S. and Canada [2] - TriMas Corporation manufactures a diverse set of products for consumer products, aerospace, and industrial markets, employing approximately 3,500 people across 13 countries [4] - The acquisition reflects a trend in the industry towards consolidation and the integration of specialized service providers to enhance operational capabilities [1][2][3]

Financial Performance - Revenue for Q1 2025 was $750 million, an 18% increase from $634 million in Q1 2024[6] - Operating income for Q1 2025 was $74.6 million, a 29% increase from $58.0 million in Q1 2024[6] - Net income attributable to IES for Q1 2025 was $56.3 million, a 37% increase from $41.0 million in Q1 2024, with diluted earnings per share of $2.72 compared to $1.87 in Q1 2024[6] - Revenues for the three months ended December 31, 2024, increased to $749.5 million, up 18.2% from $634.4 million in the same period of 2023[23] - Gross profit rose to $178.0 million, representing a 23.7% increase compared to $143.8 million in the prior year[23] - Net income attributable to IES Holdings, Inc. was $56.3 million, a 37.2% increase from $41.0 million in the same quarter of 2023[23] - Basic earnings per share attributable to common stockholders increased to $2.76, up 46.0% from $1.89 in the same period last year[23] - Net income attributable to IES Holdings, Inc. for Q4 2024 was $56.3 million, up from $41.0 million in Q4 2023, representing a 37.8% increase[31] - Adjusted EBITDA for Q4 2024 reached $86.3 million, compared to $64.4 million in Q4 2023, reflecting a 34.1% growth[31] Segment Performance - Communications segment revenue was $232.9 million in Q1 2025, a 36% increase compared to Q1 2024, driven by data center market demand[7] - The Communications segment generated revenues of $232.9 million, a 36.4% increase from $170.7 million in the prior year[29] - Infrastructure Solutions segment revenue was $108.1 million in Q1 2025, a 72% increase from Q1 2024, with Greiner Industries contributing $12.2 million[9] - Infrastructure Solutions segment revenues surged to $108.1 million, up 72.0% from $62.9 million in the same quarter of 2023[29] Future Revenue Indicators - Remaining performance obligations as of December 31, 2024, were approximately $1.2 billion, indicating future revenue to be recognized[6] - Remaining performance obligations as of December 31, 2024, totaled $1,215 million, an increase from $1,073 million a year earlier, marking a 13.2% rise[33] - Backlog as of December 31, 2024, was approximately $1.8 billion, reflecting strong demand[6] - Backlog as of December 31, 2024, was $1,754 million, slightly down from $1,786 million in September 2024, but up from $1,452 million in December 2023, indicating a year-over-year increase of 20.9%[33] Cash and Assets - The company ended Q1 2025 with $59.1 million in cash and $53.0 million in marketable securities, enhancing financial flexibility[13] - Total current assets decreased to $843.9 million from $871.7 million as of September 30, 2024[26] - Total liabilities decreased to $572.7 million from $591.9 million as of September 30, 2024[26] - Net cash provided by operating activities was $37.3 million, compared to $25.0 million in the same period last year[28] - The company reported a net increase in cash and cash equivalents to $59.1 million, down from $100.8 million at the beginning of the period[28] Expenses and Other Financial Metrics - Depreciation and amortization expenses for Q4 2024 were $11.1 million, compared to $7.6 million in Q4 2023, showing a 46.3% increase[31] - The provision for income taxes in Q4 2024 was $20.0 million, up from $15.4 million in Q4 2023, which is a 29.9% increase[31] - Interest and other income, net, showed a loss of $3.1 million in Q4 2024, compared to a loss of $1.0 million in Q4 2023[31] - Non-cash equity compensation expense increased to $2.0 million in Q4 2024 from $1.4 million in Q4 2023, reflecting a 42.9% rise[31] Strategic Initiatives - The company completed the acquisition of Arrow Engine Company, expanding its product offerings and customer base[12] - IES Holdings, Inc. continues to focus on expanding its market presence and enhancing its product offerings to drive future growth[32]

Financial Performance - Consolidated revenues for the three months ended December 31, 2024, were $749.5 million, an increase of 18.1% compared to $634.4 million for the same period in 2023[111] - Gross profit for the same period increased by $34.2 million to $178.0 million, with a gross profit margin of 23.8%, up from 22.7% in the prior year[112] - Operating income for the three months ended December 31, 2024, was $74.6 million, representing a margin of 10.0%, compared to $58.0 million and a margin of 9.1% in the prior year[111] - Net income attributable to IES Holdings, Inc. for the three months ended December 31, 2024, was $56.3 million, an increase of 37.4% from $41.0 million in the same period of 2023[111] Segment Performance - The Communications segment's revenues rose by $62.2 million, or 36.4%, to $233.0 million, driven by increased demand from data center customers[116] - The Residential segment's revenues increased by $4.1 million, or 1.3%, to $320.0 million, with multi-family business revenues up by $7.3 million, or 10.5%[119] - Infrastructure Solutions segment revenues surged by $45.2 million, or 71.9%, to $108.1 million, bolstered by strong demand for custom engineered solutions[122] - Revenues in the Commercial & Industrial segment increased by $3.5 million, or 4.2%, to $88.5 million for the three months ended December 31, 2024, compared to $84.9 million in the same period of 2023[124] - Gross profit for the segment rose by $1.2 million to $15.1 million, with gross profit margin improving from 16.4% to 17.1% due to better project execution and bid margins[125] Expenses and Income Tax - Selling, general and administrative expenses for the three months ended December 31, 2024, were $103.0 million, a 20.0% increase from $85.9 million in the same period last year[114] - Selling, general and administrative expenses increased by $1.2 million, or 17.8%, to $8.1 million, with the percentage of revenue rising from 8.1% to 9.1%[126][127] - Income tax expense rose to $20.0 million for the three months ended December 31, 2024, compared to $15.4 million in the same period of 2023, driven by increased pretax income[132] Cash Flow and Investments - Net cash provided by operating activities was $37.3 million for the three months ended December 31, 2024, compared to $25.0 million in the same period of 2023, attributed to increased earnings and reduced cash used in working capital[154] - Net cash used in investing activities surged to $58.4 million, primarily due to a $44.9 million investment in Jett Texas Company LLC and $13.2 million in capital expenditures[155] - Net cash used in financing activities for Q4 2024 was $20.6 million, up from $7.3 million in Q4 2023, including $15.7 million for stock repurchases[156] Stock Repurchase and Credit Agreement - The company repurchased 21,048 shares during the three months ended December 31, 2024, as part of a $200 million stock repurchase program authorized on July 31, 2024[157] - The company entered into an Amended Credit Agreement, increasing the maximum revolver amount from $150 million to $300 million, with a maturity extension to January 21, 2030[146] Market Risks and Commitments - The company is exposed to fluctuations in commodity prices, including copper and aluminum, which may affect operational results[162] - The company has no outstanding borrowings under its revolving credit facility as of December 31, 2024, but is exposed to interest rate risk from floating rate debt[164] - The company continues to monitor market risks, including labor costs and commodity prices, and employs risk management techniques[161] - As of December 31, 2024, the company had no firm purchase commitments for materials and expects sufficient cash flow to meet cash requirements for at least the next 12 months[159]

Core Insights - IES Holdings, Inc. reported strong financial results for the first quarter of fiscal 2025, with an 18% increase in revenue and a 29% increase in operating income compared to the same quarter of the previous year [3][6] - The company experienced robust demand across its Communications, Infrastructure Solutions, and Commercial & Industrial segments, particularly in the data center market [3][4] - The Residential segment saw a modest revenue increase of 1%, impacted by weather-related demand fluctuations in Florida, but is expected to normalize [4][9] Financial Performance - Total revenue for the first quarter of fiscal 2025 was $750 million, up from $634 million in the same quarter of fiscal 2024 [6][20] - Operating income reached $74.6 million, compared to $58.0 million in the prior year [6][20] - Net income attributable to IES was $56.3 million, a 37% increase from $41.0 million year-over-year, with diluted earnings per share rising to $2.72 from $1.87 [6][20] Segment Performance - The Communications segment generated $232.9 million in revenue, a 36% increase from the previous year, with operating income rising to $28.6 million [3][29] - The Residential segment's revenue was $320.0 million, a slight increase of 1%, with operating income decreasing slightly to $23.8 million [4][29] - The Infrastructure Solutions segment reported revenue of $108.1 million, a significant increase of 72%, with operating income improving to $23.3 million [5][29] - The Commercial & Industrial segment's revenue was $88.5 million, reflecting a 4% increase, with operating income remaining stable at $7.1 million [8][29] Capital Allocation and Investments - The company invested $13.2 million in capital expenditures during the first quarter of fiscal 2025 [11] - IES increased its revolving credit facility from $150 million to $300 million, extending its maturity to 2030 [11] - The company repurchased 21,048 shares of common stock for $4.4 million, with $193.7 million remaining under its stock repurchase authorization [11] Backlog and Future Outlook - Remaining performance obligations were approximately $1.2 billion as of December 31, 2024, indicating future revenue potential [6][13] - The backlog stood at approximately $1.8 billion, reflecting signed agreements and letters of intent [6][13]

Core Viewpoint - IES Holdings, Inc. has acquired Arrow Engine Company to enhance its product offerings and expand into the oil and gas markets, with plans for significant investments to drive long-term growth [1][2]. Company Overview - IES Holdings, Inc. designs and installs integrated electrical and technology systems, providing infrastructure products and services across various end markets, including data centers and residential housing, with over 9,000 employees serving clients in the United States [3]. - Arrow Engine Company, established in 1955, specializes in engines, generator sets, compressors, and replacement parts for oilfield and industrial markets [5]. Acquisition Details - The acquisition includes Arrow's manufacturing facility in Tulsa, which spans 130,000 square feet, and is expected to generate estimated revenue of $20 million in calendar year 2024 [1]. - Arrow will operate under its own name as part of IES's Infrastructure Solutions segment, which focuses on electro-mechanical solutions for industrial operations [1][4]. Strategic Intent - The acquisition is intended to leverage Arrow's strong brand reputation and expertise in stationary engines and gas compression solutions, aiming to combine sales, engineering, and fabrication resources to enhance business growth [2]. - IES plans to invest in expanding Arrow's product line to meet evolving customer needs, supported by a combined manufacturing space of over 1.5 million square feet across existing facilities in Ohio, Oklahoma, and Pennsylvania [2].

Company Overview - IES Holdings, Inc. designs and installs integrated electrical and technology systems, providing infrastructure products and services across various end markets, including data centers, residential housing, and commercial and industrial facilities [2] - The company employs over 9,000 individuals serving clients throughout the United States [2] Upcoming Financial Results - IES Holdings, Inc. is scheduled to release its fiscal 2025 first quarter results before the market opens on February 4, 2025 [1]

Core Viewpoint - IES Holdings, Inc. has amended its Credit and Security Agreement, increasing its revolving credit facility from $150 million to $300 million and extending the maturity date to January 21, 2030, transitioning to a cash flow-based facility for enhanced borrowing capacity [1][2]. Group 1: Credit Facility Details - The commitment amount of the revolving credit facility has been increased to $300 million from $150 million [1]. - The maturity date of the credit facility has been extended to January 21, 2030 [1]. - The amended agreement allows for a transition to a cash flow-based facility, which provides increased borrowing capacity compared to the previous asset-based structure [1]. Group 2: Management Commentary - Jeff Gendell, Chairman and CEO of IES, expressed appreciation for the confidence shown by Wells Fargo, Fifth Third, and new banking partners in the company through this larger and more flexible credit facility [2]. - The new facility is expected to strengthen the company's ability to execute its capital allocation strategy, providing liquidity and flexibility for organic growth, acquisitions, share repurchases, and other investment opportunities [2]. Group 3: Company Overview - IES Holdings, Inc. designs and installs integrated electrical and technology systems, providing infrastructure products and services across various end markets, including data centers, residential housing, and commercial and industrial facilities [3]. - The company employs over 9,000 individuals and serves clients throughout the United States [3].

Revenue Growth - Revenue for Q4 2024 was $776 million, a 20% increase from $649 million in Q4 2023[2] - Fiscal 2024 revenue totaled $2.9 billion, reflecting a 21% increase from $2.4 billion in fiscal 2023[3] - Revenues for the three months ended September 30, 2024, were $775.8 million, an increase from $649.0 million in the same period of 2023, representing a growth of approximately 19.5%[25] - Total revenue for the year ended September 30, 2024, increased to $2,884.4 million, up 21.3% from $2,377.2 million in 2023[29] Profitability - Operating income for Q4 2024 reached $75 million, up 41% from $53.2 million in Q4 2023[2] - Net income attributable to IES for Q4 2024 was $63.1 million, a 67% increase compared to $37.8 million in Q4 2023[2] - Adjusted net income for fiscal 2024 was $213.6 million, a 91% increase from $111.9 million in fiscal 2023[5] - Net income for the year ended September 30, 2024, was $219.1 million, a 102.5% increase compared to $108.3 million in 2023[30] Segment Performance - The Communications segment generated $776.5 million in revenue for fiscal 2024, a 29% increase from fiscal 2023[6] - The Infrastructure Solutions segment's revenue was $351.1 million for fiscal 2024, a 62% increase compared to fiscal 2023[9] - Operating income for the Communications segment increased to $86.9 million for the year ended September 30, 2024, up from $51.5 million in 2023, representing a 68.5% growth[29] Cash and Assets - The company ended fiscal 2024 with a cash balance of $100.8 million, up from $75.8 million at the end of fiscal 2023[11] - Total current assets rose to $871.7 million as of September 30, 2024, compared to $671.3 million a year earlier, reflecting a 30% increase[27] - Cash and cash equivalents at the end of the period were $100.8 million, up from $75.8 million a year earlier, marking a 32.3% increase[28] Backlog and Obligations - Remaining performance obligations as of September 30, 2024, were approximately $1.2 billion[2] - Backlog as of September 30, 2024, was approximately $1.8 billion[2] - Backlog as of September 30, 2024, was $1,786 million, an increase from $1,558 million in the previous year, indicating a 14.6% growth[32] Expenses and Liabilities - Selling, general and administrative expenses for the three months ended September 30, 2024, were $110.9 million, compared to $87.2 million in the prior year, indicating an increase of 27.2%[25] - Total liabilities increased to $591.9 million as of September 30, 2024, compared to $481.7 million in 2023, reflecting a 22.9% rise[27] Earnings Per Share - Basic earnings per share attributable to common stockholders for the three months ended September 30, 2024, were $3.10, up from $1.68 in the same period of 2023, representing an increase of 84.5%[25] - The company’s adjusted earnings per share for the three months ended September 30, 2024, were $2.83, compared to $1.76 in the same period of 2023, showing a growth of 60.8%[26] EBITDA - Adjusted EBITDA for the year ended September 30, 2024, was $330.1 million, up from $171.6 million in 2023, representing a 92.5% increase[30] Tax and Income Tax Provision - The company’s effective tax rate for the three months ended September 30, 2024, was impacted by a provision for income taxes of $14.8 million, compared to $12.4 million in the same period of 2023[25]