IES Holdings(US:IESC)2026-01-30 12:49Financial Performance - Consolidated revenues for the three months ended December 31, 2025, were $870.96 million, an increase of 16.2% compared to $749.55 million for the same period in 2024[108][109] - Gross profit for the three months ended December 31, 2025, increased to $220.02 million, representing a gross profit margin of 25.3%, up from 23.8% in the prior year[108][110] - Operating income for the three months ended December 31, 2025, was $97.73 million, representing an operating margin of 11.2%, compared to 10.0% in the same period of 2024[108] - Net income attributable to IES Holdings, Inc. for the three months ended December 31, 2025, was $91.44 million, or 10.5% of revenues, compared to $56.30 million, or 7.5%, in the prior year[108] Segment Performance - The Communications segment's revenues rose by $119.0 million, or 51.1%, to $351.92 million, driven by strong demand in the data center market[112] - The Residential segment's revenues decreased by $35.9 million, or 11.2%, to $284.04 million, impacted by housing affordability challenges and economic uncertainty[115] - Infrastructure Solutions segment revenues increased by $32.1 million, or 29.6%, to $140.18 million, primarily due to strong demand for custom engineered solutions[118] - Revenues in the Commercial & Industrial segment increased by $6.3 million, or 7.2%, to $94.8 million for the three months ended December 31, 2025, compared to $88.5 million for the same period in 2024[122] - Gross profit for the segment rose by $5.0 million, or 33.3%, to $20.2 million, with gross profit as a percentage of revenue increasing to 21.3% from 17.1% year-over-year[123] Expenses - Selling, general and administrative expenses for the three months ended December 31, 2025, were $121.82 million, an increase of 18.2% from $103.04 million in the prior year[111] - Selling, general and administrative expenses as a percentage of revenue increased from 13.7% in the prior year to 14.0% for the three months ended December 31, 2025[111] - Selling, general and administrative expenses increased by $2.5 million, or 30.4%, to $10.5 million, with expenses as a percentage of revenue rising to 11.1% from 9.1%[124] Cash Flow and Investments - Net cash provided by operating activities was $27.7 million for the three months ended December 31, 2025, down from $37.3 million in the same period of 2024[150] - Net cash used in investing activities was $46.2 million for the three months ended December 31, 2025, compared to $58.4 million in the same period of 2024[151] - Net cash used in financing activities was $19.8 million for the three months ended December 31, 2025, compared to $20.6 million in the same period of 2024[152] - Total interest and other income, net, was $18.2 million for the three months ended December 31, 2025, compared to $3.0 million for the same period in 2024, driven by a net gain on marketable securities of $16.9 million[126][127] - An unrealized gain of $17.0 million was recorded in the three months ended December 31, 2025, from investments in marketable securities[158] - The fair value of investments in marketable securities was $169.9 million as of December 31, 2025[158] Tax and Obligations - Income tax expense increased to $28.4 million for the three months ended December 31, 2025, up from $20.0 million in the same period of 2024, primarily due to increased pretax income[129] - Remaining performance obligations as of December 31, 2025, were $1.8 billion, with backlog increasing to $2.6 billion from $2.4 billion as of September 30, 2025[134] Capital and Commitments - Working capital, excluding cash and equivalents, increased by $80.5 million during the three months ended December 31, 2025, reflecting a $62.7 million increase in current assets[136] - The Board authorized a stock repurchase program for up to $200.0 million of the Company's common stock[153] - As of December 31, 2025, the Company had firm commitments of $17.0 million for material purchases in the next 12 months[155] - The Company expects cash and cash equivalents, cash flow from operations, and availability under the revolving credit facility to be sufficient for cash requirements over the next 12 months[155] Risk Factors - The Company is exposed to fluctuations in commodity prices, including copper and aluminum, which may impact operational results[157] - Floating rate debt exposes the Company to interest rate risk, with borrowings under the revolving credit facility structured on floating rate terms[159] - The Company had no borrowings outstanding under the revolving credit facility as of December 31, 2025[159] - The Amended Credit Agreement uses SOFR as the benchmark for establishing interest rates on borrowings[159]