IES Holdings Reports Fiscal 2025 Second Quarter Results

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$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$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$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$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$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].