Data Center Stock IES Nears A Break Out Ahead Of Earnings | Investor's Business DailyBREAKING: [Futures Rise Amid Huge Earnings]---Electrical contracting firm IES Holdings (IESC) is one of the latest data center stocks to climb toward a breakout. Shares of IES, which services data centers extensively, briefly broke out on Tuesday, when the stock rose above its buy point of 482.35. After dipping Wednesday, the stock closed essentially flat at 475.04, still in striking distance of the entry. Cashing…## Relate ...

Core Insights - Golden Triangle Ventures is undergoing a significant transition, focusing on legacy cleanup, balance sheet strengthening, and operational momentum across its core businesses [1][2][3] Financial Improvements - The company has successfully removed millions of dollars in historical debt, significantly enhancing its financial position and reducing legacy constraints [2][6] - Upcoming Q4 financial results are expected to reflect these improvements, showcasing a clear change in direction and operational execution [3][6] Core Operating Businesses - Key businesses include Go Fast Sports & Beverages, which is expanding its retail presence, and Snapt Beverages, which is actively engaging with manufacturing partners [4][5] - Snapt Beverages is in the final stages of a partnership that is anticipated to close soon, indicating growing demand for its manufacturing capabilities [5][6] Leadership and Strategy - The leadership emphasizes a fundamental reset in the company's structure and operations, focusing on execution, accountability, and long-term value creation [6][7] - The company plans to maintain transparency and communicate material developments as it progresses into 2026 [7] Company Overview - Golden Triangle Ventures operates a diversified portfolio across construction, energy, and consumer goods, aiming for profitability and innovation through its subsidiaries [8]

Financial Data and Key Metrics Changes - Dycom Industries reported record revenue of $1.45 billion for Q3 FY 2026, a 14.1% increase compared to Q3 FY 2025 [4][20] - Adjusted EBITDA reached $219 million, marking a 28.5% increase year-over-year, with an adjusted EBITDA margin of 15.1%, up 169 basis points from the previous year [4][21] - The company’s backlog hit an all-time high of $8.2 billion, with $4.99 billion expected to be completed in the next 12 months [5][21] Business Line Data and Key Metrics Changes - Organic revenue growth was reported at 7.2%, driven by fiber-to-the-home programs, wireless activity, and maintenance services [20] - The service and maintenance business continues to grow, with additional agreements totaling over $500 million executed after the quarter [9][22] Market Data and Key Metrics Changes - The demand for fiber infrastructure to support data center growth is increasing significantly, with a projected $20 billion addressable market for outside plant data center network construction over the next five years [6][7] - The NTIA has approved final BEAD deployment plans for 15 states, with $29.5 billion in total spending expected, of which $26 billion will be used for fiber or HFC infrastructure [8][9] Company Strategy and Development Direction - The acquisition of Power Solutions is expected to enhance Dycom's capabilities in the digital infrastructure market, providing comprehensive services from core networks to data centers [12][13] - The company aims to capitalize on the growing demand for digital infrastructure driven by hyperscalers and technology companies, with a focus on long-term shareholder value [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for telecommunications services and the ongoing growth of fiber-to-home builds, projecting continued acceleration in the coming years [5][6] - The company anticipates that the construction of new outside plant data center networks will ramp up significantly in 2026, leading to substantial growth [6][17] Other Important Information - The total purchase price for Power Solutions is $1.95 billion, expected to be immediately accretive to Dycom's adjusted EBITDA margin and diluted EPS [13][24] - The acquisition is anticipated to provide a clear path to deleveraging to two times net leverage within 12 to 18 months [26][28] Q&A Session Summary Question: Improvement in DSOs and future expansion of Power Solutions - Management noted that the 14-day improvement in DSOs reflects strong cash management efforts and expressed optimism about maintaining this improvement going forward [31] - Regarding Power Solutions, the focus will be on leveraging skilled workforce capabilities to meet the growing demands of hyperscalers [32] Question: Customer relationships and growth opportunities with Power Solutions - Power Solutions primarily works with general contractors, but there is significant overlap with hyperscaler end users, providing opportunities for customer diversification [35][36] Question: Fourth quarter guidance and backlog context - The wider revenue range for Q4 is attributed to seasonal factors and the ongoing growth in fiber-to-the-home programs [45] - Power Solutions has a backlog of over $1 billion, with contracts typically spanning 6 to 12 months [47] Question: Future market expansion and M&A opportunities - Management emphasized a strategic approach to growth, focusing on the proven DMV market while also considering future M&A opportunities in other regions [51][52] Question: Data center market concentration and future M&A - The data center contracting space remains fragmented, presenting opportunities for future acquisitions, while Dycom aims to leverage its scale in both telecommunications and data center services [63]

Financial Highlights - Total contract revenues increased by 14.1% year-over-year, from $1.272 billion in Q3 2025 to $1.4518 billion in Q3 2026[6] - Organic revenue growth was 7.2%[6] - Adjusted EBITDA increased by 28.5% year-over-year, from $170.7 million in Q3 2025 to $219.4 million in Q3 2026[6] - Adjusted EBITDA margin improved by 169 basis points, from 13.4% in Q3 2025 to 15.1% in Q3 2026[6] - Adjusted diluted EPS increased by 35.4% year-over-year, from $2.68 in Q3 2025 to $3.63 in Q3 2026[6] Backlog and Debt - Total backlog increased by 4.7% year-over-year[16] - Next 12 Months Backlog increased 11.8% year-over-year[16] - The company executed additional service and maintenance agreements totaling over $500 million subsequent to the quarter[16] - Total notional amount of debt was $945 million in Q3 2026, compared to $1.035 billion in Q2 2026[17] Power Solutions Acquisition - Dycom is set to acquire Power Solutions for a total purchase price of $1.95 billion[36] - Power Solutions' annual revenue is expected to be approximately $1.0 billion for CY2025, with a 4-year revenue CAGR of approximately 15%[36] - Power Solutions has consistently delivered Adjusted EBITDA margins in the mid-to-high teens, which is expected to be sustained in CY2026[36] Fiscal 2026 Outlook - The company is increasing the midpoint of its revenue guidance and now expects total contract revenues for fiscal 2026 to range from $5.350 billion to $5.425 billion, representing a range of 13.8% to 15.4% total growth over the prior year[22]

Core Insights - Alaris Equity Partners has completed three investments totaling US$52.7 million, contributing an incremental US$6.6 million or 4.3% growth to its run rate partner distributions [1][2] - The Board of Trustees has approved a 9% increase in the distribution, raising the quarterly distribution to $0.37 per trust unit and the annual distribution to $1.48 [2] - Alaris has a strong track record, having invested over $2.9 billion in 43 portfolio companies since its founding in 2004, generating a 16% IRR from exited investments [3][4] Investment Details - The investments include a US$27.0 million initial investment in McCoy Roofing Holdings LLC, along with follow-on investments in Cresa LLC and Carey Electric Contracting Inc [1][10][11] - Alaris' investment in McCoy consists of US$19.0 million in preferred equity and US$8 million in common equity, with an initial annualized distribution of $2.7 million, yielding 14% [7] - If McCoy meets its growth targets, Alaris may fund an additional US$32.0 million in preferred equity [8] Partner Updates - Cresa received an additional US$20.5 million investment, increasing its annualized distribution by 69% to US$7.1 million [10] - Carey received an additional US$5.2 million investment, increasing its annualized distribution by 16% to US$2.2 million [11] - Ohana Growth Partners acquired a Planet Fitness franchisee, enhancing its competitive position and cash flow [12] Market Position and Future Outlook - Alaris is well-positioned in the $3 trillion North American private equity market, with a diversified portfolio and a strong pipeline of investment opportunities [3][14] - The company aims to continue its growth track record while returning excess cash to unitholders through potential future distribution increases and buybacks [5]

Company Overview - IES Holdings, Inc. is a 28-year-old company with a strong foundation in electrical contracting [1] - The company operates as a diversified infrastructure services provider across various markets in the US, with operations in over 130 locations [1] Market Focus - IES Holdings primarily serves sectors such as housing, data centers, power, and industrial markets [1]

Core Insights - Golden Triangle Ventures, Inc. has signed a Letter of Intent to acquire a Texas-based electrical contracting firm with over $6 million in annual revenue and consistent profit margins [1] - The acquisition aligns with the company's strategy of disciplined growth by acquiring profitable and operationally strong companies [4] - The contractor has a solid client base, including major organizations, and operates cash-flow positive with no debt, enhancing GoldenEra Development's competitive position [2] Company Overview - GoldenEra Development is the wholly owned construction subsidiary of Golden Triangle Ventures, focusing on residential, commercial, and industrial projects [5] - The company aims to become a leading multi-trade construction firm in the United States through acquisitions and vertical integration [5] - Golden Triangle Ventures operates in multiple industries, including construction, health & beverage, and manufacturing & distribution, with a focus on sustainable shareholder value [6] Acquisition Details - The leadership team and workforce of the acquired firm will remain in place, supported by a five-year milestone-based compensation plan to ensure alignment and performance [3] - The acquisition is expected to position GoldenEra Development as a vertically integrated construction platform capable of executing complex projects efficiently [4]

Financial Performance - Shimmick Corporation reported revenue of $128 million, a 42% year-over-year increase, with $113 million from Shimmick Projects[8] - The company reported a gross margin of $8 million, a 126% year-over-year improvement compared to a gross margin of $(31) million in Q2 2024[8] - Shimmick Projects contributed a gross margin of $15 million, while Non-Core Projects had a gross margin of $(7) million[8] - The company recognized a net loss of $8 million and an Adjusted EBITDA of $(0.2) million, primarily due to Non-Core Projects[8] Backlog and Future Growth - The company's backlog is approximately $652 million as of July 4, 2025, with over 88% being Shimmick Projects[8] - $70 million in New Awards were added to Backlog in July 2025, and the company was selected as the preferred bidder on $164 million for a Transit Center & River Pump Station[8, 12] - Shimmick Projects revenue is expected to be in the range of $405 million to $415 million for the full fiscal year ending January 2, 2026, with an overall gross margin between 9% and 12%[31] - Non-Core Projects revenue is expected to be in the range of $80 million to $90 million, with an overall gross margin between (15%) and (5%)[31] Strategic Initiatives - The company launched Axia Electric, a dedicated electrical subsidiary, targeting growth segments including industrial, data center, and advanced manufacturing[8] - The addressable market for electrical contracting services is $100 billion per year[15]

Core Insights - White Mountains Partners has acquired a majority interest in Enterprise Electric, LLC, a leading provider of specialty electrical contracting services, founded in 2003 and headquartered in Nashville, Tennessee [1][2] - Enterprise Solutions specializes in designing, engineering, prefabricating, and installing electrical infrastructure for various commercial and institutional markets, including healthcare, manufacturing, education, and data centers [1][3] - The acquisition is seen as a strategic move for White Mountains Partners to extend its long-term, value-oriented approach into attractive sectors beyond insurance [2][4] Company Overview - Enterprise Solutions is characterized as an electrical engineering and construction merit shop, providing a comprehensive range of services from electrical design and construction to fabrication and sustainability [3] - The company has built a strong reputation for innovative solutions and efficient execution of technically complex projects [2] Strategic Intent - The partnership aims to accelerate Enterprise Solutions' growth strategy by entering new geographies, expanding into adjacent markets, and executing bolt-on acquisitions [2] - White Mountains Partners is focused on providing institutional capital to family, founder, and entrepreneur-owned businesses in essential services, light industrial, and specialty consumer sectors [4]