IES Holdings 2025 Q4 Earnings Record Net Income Surges 61% as Revenue Grows 16%

IES Holdings (IESC) reported fiscal 2025 Q4 earnings on Nov 21, 2025, with revenue rising 15.7% to $897.8M and net income surging 61% to $102.28M. The company exceeded expectations, with Q4 revenue beating estimates by $55M and adjusted EPS of $3.77 surpassing forecasts. Guidance for 2026 remains optimistic, citing sustained demand in data centers and strategic investments.

Revenue

IES Holdings’ Q4 revenue growth was driven by strong performance in data center-related segments. The Communications segment achieved a 47% year-over-year increase to $1.14B, fueled by demand from data centers and tech manufacturing. Infrastructure Solutions revenue rose 42% to $498.7M, while the Commercial & Industrial segment grew 16% to $427.7M. The Residential segment, however, declined 6% to $1.30B due to housing affordability challenges.

Earnings/Net Income

Earnings surged across the board, with EPS jumping 62.1% to $5.13 and net income reaching a 20-year high of $102.28M. The company’s profitability was bolstered by improved project execution and operational efficiencies. This marks a significant improvement in financial performance, with adjusted net income rising 44% to $77.3M.

Post-Earnings Price Action Review

The stock price of IES Holdings gained 2.89% in the latest trading day, 1.78% over the prior week, and 3.11% month-to-date. Post-earnings, the stock surged 5.79% to $378.67, driven by record revenue and operating income growth. Analysts highlighted the company’s strategic focus on data center expansion and the Gulf Island acquisition as key catalysts.

CEO Commentary

CEO Matt Simmes attributed the results to strategic investments in business and people, emphasizing growth in data center-driven segments. Challenges in the Residential segment were acknowledged, but the Gulf Island acquisition was positioned as a strategic move to expand manufacturing capacity and enter new markets.

Guidance

The company expects continued growth in Communications, Infrastructure Solutions, and Commercial & Industrial segments, driven by sustained data center demand. Capital spending will increase in 2026 to support growth, with a 90% year-over-year backlog increase in the Commercial & Industrial segment signaling extended revenue visibility.

Additional News

IES Holdings announced the acquisition of Gulf Island Fabrication, a steel fabricator, to expand custom manufacturing capacity. The company also repurchased 173,262 shares for $30.2M under its stock buyback plan. Meanwhile, insider selling activity, including 185,467 shares sold by Executive Chairman Jeffrey Gendell, raised questions about alignment with investor sentiment.

The Gulf Island acquisition underscores IES Holdings’ strategic pivot toward industrial and energy sectors, complementing its data center-focused growth. With a debt-free balance sheet and $127.2M in cash, the company is well-positioned to execute its capital allocation strategy. Investors remain optimistic about long-term prospects despite near-term Residential segment challenges.