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IES Holdings, Inc. Reports 16% Revenue Increase in Q1 2026

IES Holdings, Inc. has reported its fiscal 2026 first quarter results, with several key highlights and developments. The company's revenue for the first quarter of fiscal 2026 was $871 million, marking a 16% increase from the same quarter of fiscal 2025, which recorded revenue of $750 million. Operating income also saw a significant uptick, reaching $97.7 million for the first quarter of fiscal 2026, a 31% increase from $74.6 million in the same quarter of fiscal 2025.

Net income attributable to IES for the first quarter of fiscal 2026 was $91.4 million, reflecting a substantial 62% rise from the $56.3 million reported for the same quarter of fiscal 2025. Diluted earnings per share attributable to common stockholders increased to $4.51 for the first quarter of fiscal 2026, up from $2.72 in the same quarter of fiscal 2025.

Notably, adjusted net income attributable to IES, a non-GAAP financial measure, surged to $75.2 million for the first quarter of fiscal 2026, a 38% increase from $54.6 million for the same period in fiscal 2025. Diluted adjusted earnings per share attributable to common stockholders also rose to $3.71 for the first quarter of fiscal 2026, up from $2.64 for the same quarter of fiscal 2025.

The company's remaining performance obligations as of December 31, 2025, stood at approximately $1.8 billion, and its backlog, a non-GAAP financial measure, was approximately $2.6 billion as of the same date.

The press release also highlighted the completion of the acquisition of Gulf Island Fabrication, Inc. subsequent to the quarter end, which is expected to enhance IES's capacity, skilled labor, and expanded capabilities.

IES's President and CEO, Matt Simmes, emphasized the strong start to fiscal 2026, attributing the growth to robust demand in key end markets, particularly related to data centers, which continued to drive growth in the communications, infrastructure solutions, and commercial & industrial segments.

The company's residential segment faced challenges in the housing market, resulting in a decrease in revenue and earnings for the first quarter of fiscal 2026 compared with the prior year. However, the communications segment's revenue increased significantly by 51%, driven by continued strong demand in the data center market.

IES's infrastructure solutions segment also experienced growth, with a 30% increase in revenue, while the commercial & industrial segment saw a 7% rise in revenue for the first quarter of fiscal 2026 compared with the same period in fiscal 2025.

Tracy McLauchlin, the company's Chief Financial Officer, highlighted capital allocation as a top priority, noting $46.6 million in capital expenditures to support the growth of the operating business and the use of $48.6 million of excess cash to purchase marketable securities during the first quarter of fiscal 2026.

The press release also included non-GAAP financial measures and other adjustments, providing useful information to investors and facilitating easier comparisons of financial performance with prior and future periods.

For further details on the company’s financial results, investors were encouraged to refer to the company’s quarterly report on Form 10-Q for the fiscal quarter ended December 31, 2025, to be filed with the Securities and Exchange Commission by January 30, 2026. Today the company's shares have moved 6.33% to a price of $460.09. For the full picture, make sure to review IES's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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