IES Holdings Reports 18.1% Revenue Growth to $749.5 Million in Q1 Fiscal 2025

IES Holdings, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2025, with consolidated revenues reaching $749.5 million, an 18.1% increase from $634.4 million in the same period last year. The company’s net income attributable to common stockholders was $55.2 million, translating to earnings per share of $2.76, compared to $38.2 million and $1.89 per share in the prior year. This growth was driven by strong demand across all four operating segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Gross profit increased by $34.2 million to $178.0 million, with a gross profit margin of 23.8%, up from 22.7% a year earlier. Selling, general, and administrative expenses rose to $103.0 million, reflecting a 20% increase, but remained consistent as a percentage of revenue. The increase in expenses was attributed to higher personnel costs and administrative expenses necessary to support the company's growth.

Strategically, IES Holdings made significant operational moves, including the acquisition of a 12.5% membership interest in Jett Texas Company LLC for $44.9 million, aimed at enhancing its capabilities in the storage solutions market. The company also continued its stock repurchase program, buying back 21,048 shares during the quarter. As of December 31, 2024, IES had 20,006,630 shares of common stock outstanding, with a market capitalization reflecting its growth trajectory.

Operationally, IES Holdings reported a backlog of $1.75 billion, indicating strong future revenue potential. The company’s Communications segment saw revenues increase by 36.4% to $233.0 million, driven by demand from data center customers. The Infrastructure Solutions segment experienced a 71.9% revenue increase, bolstered by the acquisition of Greiner Industries, which contributed $12.2 million in revenues. The Residential segment's revenues grew modestly by 1.3%, while the Commercial & Industrial segment reported a 4.2% increase.

Looking ahead, IES Holdings remains optimistic about its growth prospects, despite potential challenges in the housing market due to elevated mortgage rates and inflationary pressures. The company anticipates continued strong demand in key markets, particularly in data centers, while acknowledging the need to manage labor availability and material costs effectively. The recent increase in its revolving credit facility to $300 million, along with a maturity extension to January 2030, positions the company well for future investments and operational needs.