IES Holdings Reports Fiscal 2026 First Quarter Results

Core Insights - IES Holdings, Inc. reported a strong start to fiscal 2026 with a 16% increase in revenue and a 31% increase in operating income compared to the same quarter in fiscal 2025, driven by robust demand in key markets, particularly data centers [3][5] - The company acquired Gulf Island Fabrication, enhancing its capacity and capabilities in the Infrastructure Solutions segment, which aligns with its strategy to support U.S. infrastructure development [3][5] Financial Performance - Total revenue for the first quarter of fiscal 2026 was $871 million, up from $750 million in the same quarter of fiscal 2025, marking a 16% increase [5][21] - Operating income reached $97.7 million, a 31% increase from $74.6 million year-over-year [5][21] - Net income attributable to IES was $91.4 million, reflecting a 62% increase compared to $56.3 million in the prior year [5][21] - Diluted earnings per share attributable to common stockholders increased to $4.51 from $2.72 year-over-year [5][21] Segment Performance - Communications segment revenue was $351.9 million, a 51% increase from $232.9 million in the prior year, with operating income rising to $57.4 million from $28.6 million [4][31] - Residential segment revenue decreased to $284.1 million, an 11% decline from $320 million, with operating income dropping to $8.9 million from $23.8 million due to a challenging housing market [5][31] - Infrastructure Solutions segment revenue increased by 30% to $140.2 million, with operating income rising to $35.6 million from $23.3 million [7][31] - Commercial & Industrial segment revenue grew by 7% to $94.8 million, with operating income increasing to $9.7 million from $7.1 million [8][31] Capital Allocation and Investments - The company ended the quarter with $88.8 million in cash, no debt, and $169.9 million in marketable securities, positioning it well for future investments [10] - IES invested $46.6 million in capital expenditures and utilized $48.6 million of excess cash to purchase marketable securities [12][10] - The acquisition of Gulf Island was completed for an aggregate equity value of $192 million, funded through cash and borrowings [10][5] Backlog and Future Outlook - Remaining performance obligations stood at approximately $1.8 billion, indicating future revenue potential from current contracts [5][14] - The backlog was approximately $2.6 billion, reflecting signed agreements and letters of intent [5][14]