IES Holdings, Inc. (NASDAQ: IESC) reported fiscal 2025 results that surpassed expectations, with consolidated revenue of $3.37 billion—an increase of 17% from the $2.81 billion reported in 2024. The growth was driven by a 46.9% surge in the Communications segment, which now accounts for 34% of total revenue, and a 23.2% gross margin in that segment. The Infrastructure Solutions segment also contributed $498.7 million in revenue and posted a 34.4% gross margin, reinforcing the company’s shift toward higher‑margin data‑center and industrial markets.
Operating income rose to $383.5 million, a 27% increase from $298.5 million in 2024, reflecting both revenue growth and a 25.5% overall gross margin expansion. The margin expansion was largely due to the higher mix of high‑margin Communications and Infrastructure Solutions work, while the Residential segment’s margin contracted to 25.8% amid a 6.1% revenue decline, illustrating pricing pressure in the housing market.
The company reiterated its fiscal 2026 guidance, projecting revenue growth of 16–18% and a net‑income margin target of 8–10%. Management emphasized that the capital‑light model and an active M&A pipeline—most notably the pending Gulf Island Fabrication acquisition—position IES for continued data‑center‑led growth. The Gulf Island deal, announced on November 7, 2025, values the company at $12.00 per share, or approximately $192 million in equity value, with an expected closing in the quarter ending March 31, 2026.
Cash on hand stood at $127 million, and a $300 million credit facility was arranged to support the Gulf Island acquisition. The facility is not a current balance‑sheet item but provides financial flexibility for future acquisitions and capital expenditures.
CEO Matt Simmes said, “We are pleased to report record earnings for fiscal 2025. Year‑over‑year consolidated revenue increased 17% and operating income increased 27% as we benefited from the investments we’ve made in our business and people over the past several years, positioning the Company for strong growth in the future.” The statement underscores the company’s confidence in sustaining profitability while expanding into high‑margin markets.
Analysts noted the earnings beat and strong performance in data‑center segments, citing the company’s disciplined cost management and strategic focus on high‑growth verticals as key drivers of the positive results.
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