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].

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]