IES Holdings(US:IESC)2025-11-21 12:50Employee 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]