HOUSTON, July 31, 2026 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) announced financial results for the quarter ended June 30, 2026.

Third Quarter 2026 Highlights and Recent Developments

• Revenue was $1,243 million in the third quarter of fiscal 2026, up 40% from $890 million in the same quarter of fiscal 2025.
• Operating income was $178.5 million, up 60% from $111.9 million a year earlier.
• Net income attributable to IES was $153.0 million, up 98% from $77.2 million in the third quarter of fiscal 2025.
• Diluted earnings per share attributable to common stockholders were $7.57, compared with $3.81 in the same quarter of fiscal 2025.
• Adjusted net income attributable to IES, a non-GAAP financial measure, was $135.3 million, up 70% from $79.5 million a year earlier.
• Diluted adjusted earnings per share attributable to common stockholders were $6.70, compared with $3.92 in the same quarter of fiscal 2025.
• Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts, were approximately $2.8 billion as of June 30, 2026.
• Backlog, a non-GAAP financial measure, was approximately $4.5 billion as of June 30, 2026.
• The company announced a two-for-one split of its common stock.

President and Chief Executive Officer Matt Simmes said the company delivered a 40% increase in revenue and a 60% increase in operating income versus the third quarter of fiscal 2025.

“[The] disciplined capital allocation strategy we've deployed to strategically expand our operations over the past several years has positioned us to grow revenue and improve margins in today's environment, where our customers' scheduling needs have become increasingly dynamic,” Simmes said.

He said Communications customers continue to engage IES for larger and more complex projects. He added that the company is evaluating opportunities to expand its capabilities to grow with customers and meet changing needs.

Simmes also said the Infrastructure Solutions segment has added approximately one million square feet of production capacity over the past year, including the acquisition of Gulf Island Fabrication, Inc. (“Gulf Island”) in January 2026 and production facilities in Abilene, TX, in April 2026, and Manitowoc, WI, in September 2025. IES is investing in repositioning those underutilized operations and expects them to make a meaningful contribution beginning in fiscal 2027.

In Commercial & Industrial, the company said it has been training additional teams to serve the data center end market to better support customers. Those efforts helped drive backlog to $4.5 billion at June 30, 2026, up 91% since the end of fiscal 2025.

The Residential segment continued to be affected by reduced housing starts, although IES said it is expanding its Plumbing and HVAC offerings and focusing on electrical markets where it sees an opportunity to grow market share. The company also said it has seen growth in its multi-family backlog over the past 12 months, which it expects should benefit fiscal 2027.

Segment Results

Communications

Communications revenue was $453.1 million in the third quarter of fiscal 2026, up $153.9 million, or 51%, from $299.2 million in the prior-year quarter. IES said strong demand in the data center market was the primary driver of the increase. Data center construction has accelerated across the United States as hyperscale cloud providers and enterprises expand computing and storage infrastructure, boosting demand for electrical, lighting, and technology systems installed by companies such as IES. Demand also rose year over year in the distribution center and high-tech manufacturing end markets.

Segment operating income increased to $83.6 million from $47.8 million in the third quarter of fiscal 2025, reflecting higher revenue and strong project execution.

Residential

Residential revenue was $324.1 million in the third quarter of fiscal 2026, down $22.0 million, or 6%, from $346.1 million in the same quarter of fiscal 2025, due to ongoing softness in the housing market. Elevated mortgage rates have weighed on homebuilder activity and single-family housing starts through much of the period, pressuring demand for residential electrical and related services. IES said the weaker demand environment limited its ability to recover higher material costs through pricing actions, which led to lower operating margins year over year.

In the multi-family business, lower revenue in the third quarter of fiscal 2026 reflected the impact of a decline in backlog during fiscal 2025. Segment operating income fell to $16.3 million from $33.4 million in the prior-year quarter.

Infrastructure Solutions

Infrastructure Solutions revenue was $224.1 million in the third quarter of fiscal 2026, up $94.6 million, or 73%, from $129.5 million in the third quarter of fiscal 2025. IES said the increase was driven by strong demand in its custom engineered solutions business, primarily in the data center end market, and its ability to meet that demand through expanded capacity. The company also continued to grow its field services offerings.

Gulf Island, acquired in January 2026, contributed $51.7 million of revenue during the quarter.

Segment operating income rose to $53.4 million from $32.6 million a year earlier. The company said the improvement reflected higher revenue, the effect of capacity investments made over the last several years, and improved pricing and productivity at established operating facilities. Operating income as a percentage of revenue declined year over year because IES continues to invest in newer acquisitions and reposition their operations to serve its current customer base.

Commercial & Industrial

Commercial & Industrial revenue was $241.4 million in the third quarter of fiscal 2026, up $126.0 million, or 109%, from $115.4 million in the third quarter of fiscal 2025. Segment operating income rose to $54.2 million from $12.9 million.

IES said the revenue increase was driven by expanded capabilities in the data center end market, which allowed it to take on larger and more numerous projects. Results also benefited from certain large, quick-turning jobs executed at favorable margins and from continued successful project execution.

Comments From Executive Chairman

Executive Chairman Jeff Gendull said the company remained focused on organic growth and used capital to expand its capabilities for a growing customer base.

He said IES added a 176,000-square-foot production facility in Abilene, TX, to its Infrastructure Solutions business and continued to invest significant capital into the newly acquired Gulf Island operation in Louisiana to expand its manufacturing capabilities.

“As we realize the benefits of investments we made in prior years, we continue to look forward, investing in expanding capacity and capabilities that will enable future growth,” Gendull said. He added that while near-term capital spending will prioritize organic growth, the company continues to evaluate acquisition opportunities, particularly those that expand capacity and capabilities to serve current customers.

Capital Allocation and Stock Split

Chief Financial Officer Tracy McLauchlin said IES repaid borrowings under its credit facility as of June 30, 2026 using cash flow from operations after using the facility in the second quarter of fiscal 2026 to fund the Gulf Island acquisition and significant capital expenditures.

“We ended the quarter with $77.3 million of cash, no debt, and $310.6 million of marketable securities,” McLauchlin said. She added that subsequent to quarter end, the Board of Directors approved a two-for-one split of the company’s common stock, which she said reflects confidence in the business outlook and is expected to improve liquidity in the common stock.

Capital allocation highlights during the third quarter of fiscal 2026 included:

• $19.5 million to acquire the real property and certain related assets of Broadwind Heavy Fabrications, Inc.’s production facility in Abilene, Texas.
• $44.6 million in capital expenditures to support growth in operating businesses.
• $70.4 million of excess cash used for purchases, net of cash received from sales, of marketable securities.
• $52.6 million to purchase transferrable federal income tax credits, which IES expects will reduce its federal income tax obligation by $3.6 million.

On July 29, 2026, the Board of Directors approved a two-for-one split of common stock to be paid as a stock dividend. Shareholders of record at the close of trading on August 14, 2026, will receive one additional share for every share held on the record date after the close of trading on August 21, 2026. After the split, the common stock will continue to have a par value of $0.01 per share. The split doubles the number of outstanding shares while proportionally reducing the price per share, a move companies often use to make shares more accessible to a broader range of investors.

Non-GAAP Financial Measures

This press release includes adjusted net income attributable to IES, adjusted diluted earnings per share attributable to common stockholders, backlog, and, in the non-GAAP reconciliation tables, adjusted net income attributable to common stockholders, EBITDA, adjusted EBITDA and adjusted income from operations before income taxes. These are financial measures not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”).

Management said these measures are intended to provide useful information by distinguishing certain nonrecurring events such as litigation settlements, significant expenses associated with leadership changes, gains or losses from the sale of a business, noncash events such as impairment charges, and items not indicative of quarterly business performance such as gains and losses on investments. Management said backlog is a common industry measure that can help investors better identify underlying operating trends when reconciled to comparable GAAP measures.

Remaining performance obligations represent the unrecognized revenue value of contract commitments. IES said backlog also includes signed agreements and letters of intent that it does not have a legal right to enforce before work starts, and those arrangements are excluded from remaining performance obligations until work begins. The company said its backlog methodology may not be comparable with that of other companies.

For further details, IES referred investors to its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2026, to be filed with the Securities and Exchange Commission (“SEC”) by July 31, 2026, and any amendments thereto.

About IES Holdings, Inc.

IES designs and installs integrated electrical and technology systems and provides infrastructure solutions and services to end markets including data centers, residential housing, and commercial and industrial facilities. The company said its more than 11,000 employees serve clients in the United States.

For more information, visit www.ies-co.com.

Company Contact: Tracy McLauchlin, Chief Financial Officer, IES Holdings, Inc., (713) 860-1500

Investor Relations Contact: Robert Winters, Alpha IR Group, (312) 445-2870, [email protected]

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. These statements are based on estimates and assumptions the company believes to be reasonable as of the date of the release.

The company said forward-looking statements may be identified by terms such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” and “continue,” or comparable terminology. It said these statements involve risks and uncertainties that could cause actual results to differ materially.

The release listed a wide range of risks, including changes in demand, economic conditions, competition, project execution risk, labor availability, commodity costs, contract terms, reliance on customers and third parties, acquisition and integration risk, backlog realization risk, weather and climate impacts, litigation, regulatory changes, cybersecurity incidents, financing conditions, tax changes, covenant compliance, accounting estimates, goodwill and asset impairments, shareholder concentration, stock volatility, dilution, and internal control risks, among others discussed in the company’s annual report on Form 10-K for the year ended September 30, 2025 and other SEC filings.

IES said it undertakes no obligation to update or revise forward-looking statements after the date of the release. It also noted that such statements are provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of the estimates, assumptions, uncertainties, and risks described in the release.

General information about IES Holdings, Inc. is available at under “Investor Relations.” The company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, along with amendments, are available free of charge through its website after filing with the SEC.