Core Insights - IES reported a significant increase in revenue and net income for Q3 2025, exceeding Wall Street expectations, with revenue growing 16% to $890.2 million and non-GAAP EPS rising 45.2% to $3.95 compared to Q3 2024 [1][2] Financial Performance - Revenue for Q3 2025 reached $890 million, surpassing the consensus estimate of $833 million, and increased from $768 million in Q3 2024, reflecting a year-over-year growth of 15.9% [2] - Non-GAAP EPS was reported at $3.95, significantly higher than the expected $3.55 and up from $2.72 in the prior year, marking a 45.2% increase [2] - Operating income rose to $111.9 million, a 24.1% increase from $90.2 million in Q3 2024 [2] - Net income attributable to IES was $77.2 million, up 24.3% from $62.1 million in the same quarter last year [2] Business Overview - IES operates as a national provider of electrical and infrastructure services across various sectors, including Communications, Residential, Infrastructure Solutions, and Commercial & Industrial [3] - The company has focused on high-growth segments such as technology infrastructure and data centers, investing in capacity and targeted acquisitions [4] Segment Performance - The Communications and Infrastructure Solutions segments benefited from increased demand for data processing and storage, contributing to overall growth [5] - The Residential segment faced challenges, with revenue declining 8% to $346.1 million and operating income decreasing by 24%, attributed to a soft housing market [6] - The Commercial & Industrial segment experienced a 20% revenue growth, driven by activity in education, healthcare construction, and data center projects, although operating income remained flat compared to the previous year [7] Strategic Focus and Investments - IES is investing in technology and infrastructure capabilities, as evidenced by the Qypsys deal in Communications [8] - The company ended the quarter with cash and restricted cash totaling $108.4 million and marketable securities of $66.8 million, maintaining low net long-term debt of $20 million [9] Future Outlook - Management did not provide formal guidance but highlighted a record backlog and strong demand in data center infrastructure as indicators of growth potential [10] - Key areas to monitor include the performance of the Residential segment, margin performance in Commercial & Industrial, and the integration of new acquisitions [11]