IES HOLDINGS, INC. (NASDAQ: IESC) | Second Quarter Fiscal 2025 Update | MARCH 31, 2025 Disclosures Forward-Looking Statements Certain statements in this release may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements b ...

Financial Performance - Revenue for Q2 2025 was $834 million, an 18% increase from $706 million in Q2 2024[6] - Operating income for Q2 2025 was $92.7 million, a 19% increase from $77.7 million in Q2 2024[6] - Net income attributable to IES for Q2 2025 was $70.7 million, a 34% increase from $52.9 million in Q2 2024, with diluted earnings per share of $3.50 compared to $2.29[6] - Revenues for the three months ended March 31, 2025, were $834.0 million, a 18.1% increase from $705.8 million in the same period of 2024[26] - Gross profit for the six months ended March 31, 2025, was $386.9 million, up 22.6% from $315.4 million in the prior year[26] - Net income attributable to IES Holdings, Inc. for the three months ended March 31, 2025, was $70.7 million, representing a 33.8% increase compared to $52.9 million in the same period of 2024[26] - Adjusted net income attributable to common stockholders for the six months ended March 31, 2025, was $120.1 million, a 38.8% increase from $86.5 million in the same period of 2024[27] - Basic earnings per share attributable to common stockholders for the three months ended March 31, 2025, was $3.54, compared to $2.32 for the same period in 2024, reflecting a 52.9% increase[26] - Net income for the six months ended March 31, 2025, increased to $130.3 million, up from $100.4 million in the same period of 2024, representing a growth of 29.5%[31] - Total revenue for the six months ended March 31, 2025, reached $1,583.5 million, compared to $1,340.2 million in the prior year, reflecting a year-over-year increase of 18.1%[33] - Adjusted EBITDA for the six months ended March 31, 2025, was $192.1 million, up from $147.5 million in the same period of 2024, marking a growth of 30.2%[35] Backlog and Future Revenue - Remaining performance obligations as of March 31, 2025, were approximately $1.2 billion, indicating future revenue to be recognized[6][16] - Backlog as of March 31, 2025, was approximately $1.8 billion, reflecting strong demand[6][16] - Remaining performance obligations as of March 31, 2025, totaled $1,226 million, compared to $1,176 million in September 2024, indicating an increase of 4.3%[37] - Backlog as of March 31, 2025, was $1,813 million, up from $1,786 million in September 2024, showing a growth of 1.5%[37] Segment Performance - Communications segment revenue was $273.1 million in Q2 2025, a 41% increase from Q2 2024, driven by demand in the data center market[7] - Infrastructure Solutions segment revenue was $117.6 million in Q2 2025, a 55% increase from Q2 2024, with contributions from recent acquisitions[9] - Commercial & Industrial segment revenue was $125.4 million in Q2 2025, a 29% increase from Q2 2024, reflecting solid demand[11] - The Communications segment generated revenues of $506.0 million for the six months ended March 31, 2025, up from $364.3 million in the same period of 2024, representing a growth of 38.8%[33] Cash Flow and Investments - Cash flows from operating activities for the six months ended March 31, 2025, amounted to $62.1 million, compared to $58.7 million in the prior year, reflecting a growth of 5.8%[31] - Net cash used in investing activities for the six months ended March 31, 2025, was $97.1 million, significantly higher than $11.4 million in the same period of 2024[31] - The company reported a net increase in cash and cash equivalents of $(78.4) million for the six months ended March 31, 2025, compared to an increase of $30.2 million in the prior year[31] Shareholder Information - The company repurchased 118,314 shares of common stock for $20.4 million, with $173.3 million remaining under the stock repurchase authorization[14] - The company has a controlling shareholder, which may influence decisions that are not aligned with other shareholders[21] Assets and Equity - Total assets as of March 31, 2025, were $1,364.6 million, an increase from $1,244.0 million as of September 30, 2024[29] - Total stockholders' equity increased to $705.8 million as of March 31, 2025, compared to $611.1 million as of September 30, 2024[29] - Cash and cash equivalents decreased to $22.4 million as of March 31, 2025, from $100.8 million as of September 30, 2024[29] Profitability Metrics - The company reported a gross profit margin of 25.1% for the three months ended March 31, 2025, compared to 24.3% for the same period in 2024[26] - Operating income for the six months ended March 31, 2025, was $167.3 million, compared to $135.7 million in the same period of 2024, an increase of 23.3%[33]

Financial Performance - Consolidated revenues for the three months ended March 31, 2025, were $833.96 million, an increase of 18.2% compared to $705.73 million for the same period in 2024[110] - Gross profit for the three months ended March 31, 2025, increased to $208.87 million, representing a gross profit margin of 25.0%, up from 24.3% in the prior year[111] - Net income attributable to IES Holdings, Inc. for the three months ended March 31, 2025, was $70.65 million, an increase of 33.7% from $52.91 million in the prior year[109] - For the six months ended March 31, 2025, consolidated revenues were $1.58 billion, an increase of 18.2% compared to $1.34 billion for the same period in 2024[114] - The overall gross profit percentage for the six months ended March 31, 2025, increased to 24.4%, compared to 23.5% in the same period in 2024[115] Segment Performance - The Communications segment's revenues increased by $79.5 million, or 41.1%, during the three months ended March 31, 2025, driven by strong demand in the data center market[117] - Residential segment revenues decreased by $21.4 million, or 6.3%, to $317.966 million for the three months ended March 31, 2025, compared to $339.372 million for the same period in 2024[123] - Infrastructure Solutions segment revenues increased by $41.8 million, or 55.2%, to $117.620 million for the three months ended March 31, 2025, driven by strong demand and acquisitions[128] - Commercial & Industrial segment revenues increased by $28.3 million, or 29.1%, to $125.358 million for the three months ended March 31, 2025, driven by strong demand in data center and education markets[134] Profitability and Expenses - Selling, general and administrative expenses for the three months ended March 31, 2025, were $116.04 million, a 21.8% increase from $95.27 million in the same period in 2024[113] - Gross profit in the Residential segment decreased by $9.0 million, or 10.1%, to $79.672 million, with gross profit as a percentage of revenue declining to 25.1% from 26.1% year-over-year[124] - Selling, general and administrative expenses in the Residential segment increased by $1.9 million, or 3.4%, to $57.151 million, raising the percentage of revenue to 18.0% from 16.3%[124] - Gross profit in the Infrastructure Solutions segment increased by $15.6 million, or 65.5%, to $39.301 million, with gross profit as a percentage of revenue rising to 33.4% from 31.3%[129] - Selling, general and administrative expenses in the Infrastructure Solutions segment increased by $4.9 million, or 63.7%, to $12.487 million, with the percentage of revenue increasing to 10.6% from 10.1%[130] - Gross profit in the Commercial & Industrial segment increased by $6.6 million, or 32.5%, to $26.853 million, with gross profit as a percentage of revenue increasing to 21.4% from 20.9%[135] - Selling, general and administrative expenses in the Commercial & Industrial segment increased by $2.3 million, or 26.6%, to $11.024 million, while the percentage of revenue decreased to 8.8% from 9.0%[136] Cash Flow and Investments - Net cash provided by operating activities increased to $62.1 million for the six months ended March 31, 2025, up from $58.7 million in the same period of 2024, driven by increased earnings[166] - Net cash used in investing activities rose significantly to $97.1 million for the six months ended March 31, 2025, compared to $11.4 million in the prior year, including $44.9 million for acquiring a membership interest in Jett Texas Company LLC[167] - Net cash used in financing activities increased to $43.4 million for the six months ended March 31, 2025, compared to $17.1 million in the same period of 2024, primarily due to $36.3 million used for stock repurchases[168] - The company repurchased 139,362 shares under its stock repurchase program during the six months ended March 31, 2025[169] Future Outlook and Strategic Initiatives - The company expects an increase in multi-family bid activity in the second half of fiscal 2025, which is anticipated to benefit revenues in fiscal 2026[106] - The company plans to reduce reliance on leasing by increasing the purchase of vehicles and equipment, reflecting a strategic shift in capital expenditure management[173] - Capital expenditures for the fiscal year ending September 30, 2025, are expected to range from $70 million to $80 million, a substantial increase from $45.2 million for the year ended September 30, 2024[173] Backlog and Performance Obligations - Backlog across all business segments remains high, indicating strong demand in key end markets, particularly for data centers[106] - Remaining performance obligations as of March 31, 2025, totaled $1,225.9 million, compared to $1,214.8 million as of December 31, 2024[152] - Backlog increased to $1,812.7 million as of March 31, 2025, from $1,753.9 million as of December 31, 2024[152] Tax and Interest Expenses - Income tax expense for the six months ended March 31, 2025, was $46.1 million, up from $34.8 million in the same period of 2024, driven by increased pretax income[147] - Total interest expense for the six months ended March 31, 2025, was $0.8 million, a slight decrease from $0.8 million in the same period of 2024[144] Marketable Securities and Risk Exposure - As of March 31, 2025, the company had investments in marketable securities with a fair value of $65.8 million, with a potential $6.6 million impact on pre-tax income from a hypothetical 10% change in market value[176] - The company is exposed to interest rate risk due to floating rate debt under its revolving credit facility, with no borrowings outstanding as of March 31, 2025[177] - An unrealized gain of $7.8 million was recorded in the six months ended March 31, 2025, due to changes in the market value of investments[176]

Core Insights - IES Holdings, Inc. reported an 18% increase in revenue and a 19% increase in operating income for the second quarter of fiscal 2025 compared to the same quarter in fiscal 2024, driven by strong demand in its Communications, Infrastructure Solutions, and Commercial & Industrial segments, particularly in the data center market [3][5][7]. Financial Performance - Revenue for the second quarter of fiscal 2025 was $834 million, up from $706 million in the same quarter of fiscal 2024 [5]. - Operating income increased to $92.7 million for the second quarter of fiscal 2025, compared to $77.7 million for the same quarter of fiscal 2024 [5]. - Net income attributable to IES was $70.7 million for the second quarter of fiscal 2025, a 34% increase from $52.9 million in the same quarter of fiscal 2024 [5]. - Diluted earnings per share attributable to common stockholders rose to $3.50 for the second quarter of fiscal 2025, compared to $2.29 for the same quarter of fiscal 2024 [5]. Segment Performance - The Communications segment generated revenue of $273.1 million, a 41% increase from $193.6 million in the second quarter of fiscal 2024, with operating income rising to $39.6 million from $21.9 million [3][7]. - The Residential segment's revenue was $317.9 million, a decrease of 6% from $339.3 million in the same quarter of fiscal 2024, with operating income dropping to $22.7 million from $34.7 million [4][27]. - The Infrastructure Solutions segment reported revenue of $117.6 million, a 55% increase from $75.8 million in the second quarter of fiscal 2024, with operating income increasing to $26.5 million from $16.1 million [7][27]. - The Commercial & Industrial segment's revenue was $125.4 million, a 29% increase from $97.0 million in the same quarter of fiscal 2024, with operating income rising to $15.8 million from $11.7 million [8][27]. Capital Allocation and Investments - The company ended the quarter with $22.4 million in cash and $65.8 million in marketable securities [10]. - Capital expenditures amounted to $30.1 million during the quarter [11]. - IES completed the acquisition of Arrow Engine Company to enhance its Infrastructure Solutions offerings [11]. - The company repurchased 118,314 shares of common stock for $20.4 million, with $173.3 million remaining under its stock repurchase authorization [11]. Future Outlook - The company anticipates continued growth in its multi-family business, expecting increased bid activity to benefit revenues in fiscal 2026 and 2027 [3]. - Despite challenges in the Residential segment due to high mortgage rates and inflation, the company remains optimistic about long-term demand driven by positive demographic trends [3].

HOUSTON, April 29, 2025 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or "IES" or the "Company") (NASDAQ: IESC) today announced that it will release fiscal 2025 second quarter results before the market opens on Friday, May 2, 2025. About IES Holdings, Inc. IES designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 9,000 emplo ...

Group 1 - The article discusses the process of identifying stocks for investment by running a simple screening method to find potential candidates for deeper analysis [1] - The author has extensive experience in various investment vehicles including commodities, stocks, options, and futures contracts, leading to a successful trading career [1] Group 2 - There is a disclosure regarding a beneficial long position in the shares of IESC, indicating a personal investment interest [2] - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3]

Company Overview - IES Infrastructure Solutions LLC, a division of IES Holdings, Inc. (NASDAQ: IESC), has acquired Arrow Engine Company, a subsidiary of TriMas Corporation (NASDAQ: TRS) [1][2] - Arrow Engine is a global provider of natural gas-powered engines, compressors, and replacement parts, primarily for oil and natural gas production and other industrial markets [1][2] - IES Holdings designs and installs integrated electrical and technology systems, serving various end markets including data centers and industrial facilities, with over 9,000 employees [3] Industry Insights - Arrow Engine's products are typically used in remote applications such as oil field pump jacks, and the company has a worldwide distribution network focused on the U.S. and Canada [2] - TriMas Corporation manufactures a diverse set of products for consumer products, aerospace, and industrial markets, employing approximately 3,500 people across 13 countries [4] - The acquisition reflects a trend in the industry towards consolidation and the integration of specialized service providers to enhance operational capabilities [1][2][3]

Financial Performance - Revenue for Q1 2025 was $750 million, an 18% increase from $634 million in Q1 2024[6] - Operating income for Q1 2025 was $74.6 million, a 29% increase from $58.0 million in Q1 2024[6] - Net income attributable to IES for Q1 2025 was $56.3 million, a 37% increase from $41.0 million in Q1 2024, with diluted earnings per share of $2.72 compared to $1.87 in Q1 2024[6] - Revenues for the three months ended December 31, 2024, increased to $749.5 million, up 18.2% from $634.4 million in the same period of 2023[23] - Gross profit rose to $178.0 million, representing a 23.7% increase compared to $143.8 million in the prior year[23] - Net income attributable to IES Holdings, Inc. was $56.3 million, a 37.2% increase from $41.0 million in the same quarter of 2023[23] - Basic earnings per share attributable to common stockholders increased to $2.76, up 46.0% from $1.89 in the same period last year[23] - Net income attributable to IES Holdings, Inc. for Q4 2024 was $56.3 million, up from $41.0 million in Q4 2023, representing a 37.8% increase[31] - Adjusted EBITDA for Q4 2024 reached $86.3 million, compared to $64.4 million in Q4 2023, reflecting a 34.1% growth[31] Segment Performance - Communications segment revenue was $232.9 million in Q1 2025, a 36% increase compared to Q1 2024, driven by data center market demand[7] - The Communications segment generated revenues of $232.9 million, a 36.4% increase from $170.7 million in the prior year[29] - Infrastructure Solutions segment revenue was $108.1 million in Q1 2025, a 72% increase from Q1 2024, with Greiner Industries contributing $12.2 million[9] - Infrastructure Solutions segment revenues surged to $108.1 million, up 72.0% from $62.9 million in the same quarter of 2023[29] Future Revenue Indicators - Remaining performance obligations as of December 31, 2024, were approximately $1.2 billion, indicating future revenue to be recognized[6] - Remaining performance obligations as of December 31, 2024, totaled $1,215 million, an increase from $1,073 million a year earlier, marking a 13.2% rise[33] - Backlog as of December 31, 2024, was approximately $1.8 billion, reflecting strong demand[6] - Backlog as of December 31, 2024, was $1,754 million, slightly down from $1,786 million in September 2024, but up from $1,452 million in December 2023, indicating a year-over-year increase of 20.9%[33] Cash and Assets - The company ended Q1 2025 with $59.1 million in cash and $53.0 million in marketable securities, enhancing financial flexibility[13] - Total current assets decreased to $843.9 million from $871.7 million as of September 30, 2024[26] - Total liabilities decreased to $572.7 million from $591.9 million as of September 30, 2024[26] - Net cash provided by operating activities was $37.3 million, compared to $25.0 million in the same period last year[28] - The company reported a net increase in cash and cash equivalents to $59.1 million, down from $100.8 million at the beginning of the period[28] Expenses and Other Financial Metrics - Depreciation and amortization expenses for Q4 2024 were $11.1 million, compared to $7.6 million in Q4 2023, showing a 46.3% increase[31] - The provision for income taxes in Q4 2024 was $20.0 million, up from $15.4 million in Q4 2023, which is a 29.9% increase[31] - Interest and other income, net, showed a loss of $3.1 million in Q4 2024, compared to a loss of $1.0 million in Q4 2023[31] - Non-cash equity compensation expense increased to $2.0 million in Q4 2024 from $1.4 million in Q4 2023, reflecting a 42.9% rise[31] Strategic Initiatives - The company completed the acquisition of Arrow Engine Company, expanding its product offerings and customer base[12] - IES Holdings, Inc. continues to focus on expanding its market presence and enhancing its product offerings to drive future growth[32]

Financial Performance - Consolidated revenues for the three months ended December 31, 2024, were $749.5 million, an increase of 18.1% compared to $634.4 million for the same period in 2023[111] - Gross profit for the same period increased by $34.2 million to $178.0 million, with a gross profit margin of 23.8%, up from 22.7% in the prior year[112] - Operating income for the three months ended December 31, 2024, was $74.6 million, representing a margin of 10.0%, compared to $58.0 million and a margin of 9.1% in the prior year[111] - Net income attributable to IES Holdings, Inc. for the three months ended December 31, 2024, was $56.3 million, an increase of 37.4% from $41.0 million in the same period of 2023[111] Segment Performance - The Communications segment's revenues rose by $62.2 million, or 36.4%, to $233.0 million, driven by increased demand from data center customers[116] - The Residential segment's revenues increased by $4.1 million, or 1.3%, to $320.0 million, with multi-family business revenues up by $7.3 million, or 10.5%[119] - Infrastructure Solutions segment revenues surged by $45.2 million, or 71.9%, to $108.1 million, bolstered by strong demand for custom engineered solutions[122] - Revenues in the Commercial & Industrial segment increased by $3.5 million, or 4.2%, to $88.5 million for the three months ended December 31, 2024, compared to $84.9 million in the same period of 2023[124] - Gross profit for the segment rose by $1.2 million to $15.1 million, with gross profit margin improving from 16.4% to 17.1% due to better project execution and bid margins[125] Expenses and Income Tax - Selling, general and administrative expenses for the three months ended December 31, 2024, were $103.0 million, a 20.0% increase from $85.9 million in the same period last year[114] - Selling, general and administrative expenses increased by $1.2 million, or 17.8%, to $8.1 million, with the percentage of revenue rising from 8.1% to 9.1%[126][127] - Income tax expense rose to $20.0 million for the three months ended December 31, 2024, compared to $15.4 million in the same period of 2023, driven by increased pretax income[132] Cash Flow and Investments - Net cash provided by operating activities was $37.3 million for the three months ended December 31, 2024, compared to $25.0 million in the same period of 2023, attributed to increased earnings and reduced cash used in working capital[154] - Net cash used in investing activities surged to $58.4 million, primarily due to a $44.9 million investment in Jett Texas Company LLC and $13.2 million in capital expenditures[155] - Net cash used in financing activities for Q4 2024 was $20.6 million, up from $7.3 million in Q4 2023, including $15.7 million for stock repurchases[156] Stock Repurchase and Credit Agreement - The company repurchased 21,048 shares during the three months ended December 31, 2024, as part of a $200 million stock repurchase program authorized on July 31, 2024[157] - The company entered into an Amended Credit Agreement, increasing the maximum revolver amount from $150 million to $300 million, with a maturity extension to January 21, 2030[146] Market Risks and Commitments - The company is exposed to fluctuations in commodity prices, including copper and aluminum, which may affect operational results[162] - The company has no outstanding borrowings under its revolving credit facility as of December 31, 2024, but is exposed to interest rate risk from floating rate debt[164] - The company continues to monitor market risks, including labor costs and commodity prices, and employs risk management techniques[161] - As of December 31, 2024, the company had no firm purchase commitments for materials and expects sufficient cash flow to meet cash requirements for at least the next 12 months[159]

Core Insights - IES Holdings, Inc. reported strong financial results for the first quarter of fiscal 2025, with an 18% increase in revenue and a 29% increase in operating income compared to the same quarter of the previous year [3][6] - The company experienced robust demand across its Communications, Infrastructure Solutions, and Commercial & Industrial segments, particularly in the data center market [3][4] - The Residential segment saw a modest revenue increase of 1%, impacted by weather-related demand fluctuations in Florida, but is expected to normalize [4][9] Financial Performance - Total revenue for the first quarter of fiscal 2025 was $750 million, up from $634 million in the same quarter of fiscal 2024 [6][20] - Operating income reached $74.6 million, compared to $58.0 million in the prior year [6][20] - Net income attributable to IES was $56.3 million, a 37% increase from $41.0 million year-over-year, with diluted earnings per share rising to $2.72 from $1.87 [6][20] Segment Performance - The Communications segment generated $232.9 million in revenue, a 36% increase from the previous year, with operating income rising to $28.6 million [3][29] - The Residential segment's revenue was $320.0 million, a slight increase of 1%, with operating income decreasing slightly to $23.8 million [4][29] - The Infrastructure Solutions segment reported revenue of $108.1 million, a significant increase of 72%, with operating income improving to $23.3 million [5][29] - The Commercial & Industrial segment's revenue was $88.5 million, reflecting a 4% increase, with operating income remaining stable at $7.1 million [8][29] Capital Allocation and Investments - The company invested $13.2 million in capital expenditures during the first quarter of fiscal 2025 [11] - IES increased its revolving credit facility from $150 million to $300 million, extending its maturity to 2030 [11] - The company repurchased 21,048 shares of common stock for $4.4 million, with $193.7 million remaining under its stock repurchase authorization [11] Backlog and Future Outlook - Remaining performance obligations were approximately $1.2 billion as of December 31, 2024, indicating future revenue potential [6][13] - The backlog stood at approximately $1.8 billion, reflecting signed agreements and letters of intent [6][13]