IES Holdings Q3 2025 slides: revenue jumps 16%, backlog hits record $2.1B

Introduction & Market Context

IES Holdings Inc (NASDAQ:IESC) released its third quarter fiscal 2025 results on August 1, 2025, revealing strong overall performance despite mixed results across its business segments. The company’s stock responded positively in premarket trading, rising 4.8% to $370, approaching its 52-week high of $370.88.

IES Holdings, which employs more than 9,000 people, continues to demonstrate resilience and growth in the electrical and infrastructure solutions market, with its backlog reaching an all-time high, signaling potential for continued growth in future quarters.

Quarterly Performance Highlights

IES reported third-quarter revenue of $890 million, representing a 16% increase compared to the same period in fiscal 2024. Operating income grew even faster, rising 24% year-over-year to $111.9 million. Earnings per share reached $3.81, up 43% from $2.67 in the prior year period, while adjusted earnings per share increased 45% to $3.95.

As shown in the following chart comparing quarterly and year-to-date performance metrics:

For the first nine months of fiscal 2025, IES generated revenue of $2.47 billion, a 17% increase from the comparable period in 2024. Year-to-date operating income reached $279 million, up 24%, while earnings per share rose 47% to $10.03.

The company’s backlog, a key indicator of future revenue potential, reached a record $2.1 billion as of June 30, 2025, up from $1.7 billion a year earlier. Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts, stood at $1.3 billion.

The following chart illustrates the consistent growth in backlog over the past five quarters:

Segment Performance Analysis

IES Holdings’ performance varied significantly across its four business segments, with Communications and Infrastructure Solutions showing remarkable growth while the Residential segment experienced declines.

The Communications segment was the standout performer, with revenue increasing 56% to $299.2 million and operating income more than doubling with a 128% increase to $47.8 million in Q3 2025. Year-to-date, this segment has seen revenue growth of 45% and operating income growth of 80%.

The Infrastructure Solutions segment also performed strongly, with revenue up 27% to $129.5 million and operating income increasing 65% to $32.6 million for the quarter.

In contrast, the Residential segment, which remains IES’s largest revenue contributor, saw revenue decline 8% to $346.1 million and operating income fall 24% to $33.4 million. This suggests challenges in the housing market may be affecting this portion of the business.

The Commercial & Industrial segment showed mixed results with revenue growing 19% to $115.4 million while operating income remained essentially flat with a 1% decrease to $12.9 million.

The detailed segment breakdown is illustrated in the following chart:

Financial Position and Outlook

IES Holdings maintains a strong financial position with $175.2 million in cash and marketable securities as of June 30, 2025, compared to $44.9 million a year earlier. Total (EPA:TTEF) assets increased to $1.47 billion from $1.16 billion in the prior year period.

The company’s balance sheet shows total liabilities of $647.3 million and equity of $781.4 million. Net cash and marketable securities less debt stood at $155.2 million, indicating a strong liquidity position.

The company’s adjusted EBITDA for the third quarter was $125.7 million, up from $97.7 million in the same period of fiscal 2024, representing a 29% increase. For the nine months ended June 30, 2025, adjusted EBITDA reached $317.9 million, up 30% from $245.2 million in the prior year period.

The record backlog of $2.1 billion suggests strong revenue visibility for upcoming quarters, particularly in the Communications and Infrastructure Solutions segments that have shown the strongest growth trajectories.

Market Response

Investors responded positively to IES Holdings’ third-quarter results, with the stock rising 4.8% to $370 in premarket trading on August 1, 2025. The stock has shown remarkable performance over the past year, with a 52-week range of $129.16 to $370.88, indicating that the share price has nearly tripled at its peak.

The strong financial results, particularly the significant growth in earnings per share and record backlog, appear to be driving investor confidence despite the challenges in the Residential segment. The company’s diversified business model has allowed it to offset weakness in housing-related operations with strength in communications and infrastructure solutions.

With its solid balance sheet, growing backlog, and strong performance in key segments, IES Holdings appears well-positioned to continue its growth trajectory through the remainder of fiscal 2025 and beyond.

Full presentation:

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