IES Holdings(IESC) - 2025 Q1 - Quarterly Report

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]