IESC

IES Holdings has delivered very strong share price gains over the past five years, yet the latest valuation checks pull in different directions, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to a premium to current cash flow assumptions while market multiples look more forgiving. Over five years the stock has returned roughly 12.6x, which makes today’s entry point far more sensitive to what investors are willing to pay for IES Holdings’ cash flows. Expectations that the company can keep converting its project pipeline into solid cash generation may support current pricing. However, any pressure on execution or margins could quickly challenge the recent run in IES Holdings shares. The value checks give a mixed overall read, with a value score of 3 that points to neither a clear bargain nor a clearly expensive stock. The issue now is whether IES Holdings’ current price leaves enough room between market optimism and the intrinsic value estimate to appeal to long term investors. Compare the sharp 5 year run of IES Holdings with other companies that screen well on both quality and value by scanning the 46 high quality undervalued stocks now. The Discounted Cash Flow (DCF) model estimates what IES Holdings might be worth based on its projected cash generation to shareholders. The model uses a 2 Stage Free Cash Flow to Equity approach and starts from the latest twelve month free cash flow of about $275 million, which is treated as growing over time rather than shrinking. On these assumptions the DCF model points to an intrinsic value of about $263 per share. That sits below the current share price, which implies the stock trades at roughly a 26.9% premium to the model’s cash flow estimate. For readers, the key question is whether IES Holdings can deliver cash flows that exceed these already optimistic inputs. On this Discounted Cash Flow view, IES Holdings stock appears overvalued at today’s price. Our Discounted Cash Flow (DCF) analysis suggests IES Holdings may be overvalued by 26.9%. Discover 46 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for IES Holdings. The P/E ratio is a useful way to see what investors are currently willing to pay for each dollar of IES Holdings earnings. On this measure, IES Holdings trades on about 29.3x earnings. That sits below both the broader construction industry average of around 32.5x and a peer group average near 30.6x. The company specific fair P/E that adjusts for its profile is higher again at about 38.4x. Compared with this fair ratio, the current 29.3x multiple implies investors are paying less than what this framework suggests might be reasonable for IES Holdings earnings power. On the P/E multiple, IES Holdings stock appears undervalued relative to both peers and its modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for IES Holdings give you a structured way to connect the mixed signals from the DCF and P/E checks with the assumptions that would need to hold for the stock to be worth materially more or less than today’s price. These Narratives sit on the company’s Community page. Rather than relying on a single multiple or model, each Narrative lays out the drivers behind its fair value view so you can later compare those expectations with the company’s actual results. Share a narrative on IES Holdings' stock to put your own number-driven view on where its growth, margins and execution go from here. You can be one of the first voices in the Simply Wall St community to set out a clear thesis and then follow how it develops as new results arrive. Do you think there's more to the story for IES Holdings? Head over to our Community to see what others are saying! For IES Holdings, the Discounted Cash Flow (DCF) view points to an intrinsic value that sits below the current share price, while the P/E based view points to an earnings multiple that looks relatively undemanding. That split largely reflects different sensitivities to cash flow timing and capital needs on one side and to market expectations and peer sentiment on the other, especially after such a strong multi year move. With broader checks landing in mixed territory, the key question now is whether IES Holdings can sustain cash generation and margins at a level that keeps justifying the current multiple without leaving only a narrow margin for disappointment. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IESC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

HOUSTON, July 31, 2026 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today announced financial results for the quarter ended June 30, 2026. Third Quarter 2026 Highlights and Recent Developments Revenue of $1,243 million for the third quarter of fiscal 2026, an increase of 40% compared with $890 million for the same quarter of fiscal 2025 Operating income of $178.5 million for the third quarter of fiscal 2026, an increase of 60% compared with $111.9 million for the same quarter of fiscal 2025 Net income attributable to IES of $153.0 million for the third quarter of fiscal 2026, an increase of 98% compared with $77.2 million for the same quarter of fiscal 2025, and diluted earnings per share attributable to common stockholders of $7.57 for the third quarter of fiscal 2026, compared with $3.81 for the same quarter of fiscal 2025 Adjusted net income attributable to IES (a non-GAAP financial measure, as defined below) of $135.3 million for the third quarter of fiscal 2026, an increase of 70% compared with $79.5 million for the same quarter of fiscal 2025, and diluted adjusted earnings per share attributable to common stockholders of $6.70 for the third quarter of fiscal 2026, compared with $3.92 for the same quarter of fiscal 2025 Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts with customers, of approximately $2.8 billion as of June 30, 2026 Backlog (a non-GAAP financial measure, as defined below) of approximately $4.5 billion as of June 30, 2026 Announced a two-for-one split of the Company's common stock Overview of Results “For the third quarter of fiscal 2026, we delivered a 40% increase in revenue and a 60% increase in operating income compared with the third quarter of fiscal 2025," said Matt Simmes, President and Chief Executive Officer. "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. "Within our Communications segment, our customers continue to engage us for larger and more complex projects. As we reliably deliver outstanding project execution, we are evaluating opportunities to expand our capabilities to grow with our customers and meet their evolving needs. Our Infrastructure Solutions segment is also focused on growth, and we have added approximately one million square feet of production capacity over the past year, with the acquisition of Gulf Island Fabrication, Inc. ("Gulf Island") in January 2026 and the production facilities in Abilene, TX and Manitowoc, WI in April 2026 and September 2025, respectively. We are investing in repositioning each of these underutilized operations, and expect them to make a meaningful contribution to our results beginning in fiscal 2027. In our Commercial & Industrial segment, we have been actively working to train additional teams to serve the data center end market in order to better support our customers. These efforts to add capacity and expand capabilities helped drive our backlog to $4.5 billion at June 30, 2026, an increase of 91% since the end of fiscal 2025. Our Residential segment continued to be affected in the third quarter of fiscal 2026 by reduced housing starts. However, we are continuing to expand our Plumbing and HVAC offerings and focus on electrical markets where there is an opportunity to expand our market share. Over the past twelve months we have begun to see growth in our multi-family backlog, which should benefit us in fiscal 2027." Our Communications segment’s revenue was $453.1 million in the third quarter of fiscal 2026, an increase of $153.9 million or 51% compared with the third quarter of fiscal 2025. Consistent with recent quarters, we continued to benefit from strong demand in the data center market, which was the primary driver of the increase. Demand for our services in the distribution center and high-tech manufacturing end markets also increased year over year. The segment's operating income increased to $83.6 million for the third quarter of fiscal 2026, compared with $47.8 million for the third quarter of fiscal 2025, reflecting the increase in revenue and strong project execution. Our Residential segment’s revenue was $324.1 million in the third quarter of fiscal 2026, a decrease of $22.0 million or 6% compared with the third quarter of fiscal 2025, as a result of the ongoing softness in the housing market. This weaker demand environment has limited our ability to recover higher costs of materials through pricing actions, resulting in lower operating margins year over year. In our multi-family business, lower revenue in the third quarter of fiscal 2026 compared with the prior year reflects the impacts of a decline in backlog during fiscal 2025. As a result of these factors, the Residential segment’s operating income decreased to $16.3 million for the third quarter of fiscal 2026, compared with $33.4 million for the third quarter of fiscal 2025. Our Infrastructure Solutions segment’s revenue was $224.1 million in the third quarter of fiscal 2026, an increase of $94.6 million or 73% compared with the third quarter of fiscal 2025, driven by continued strong demand in our custom engineered solutions business, primarily in the data center end market, and our ability to meet that demand through expanded capacity. We have also continued to grow our field services offerings. Gulf Island, which we acquired in January 2026, contributed $51.7 million of revenue during the quarter. Our Infrastructure Solutions segment's operating income for the third quarter of fiscal 2026 was $53.4 million, compared with $32.6 million for the third quarter of fiscal 2025. The year-over-year profit improvement reflects higher revenue, as the investments we have made over the last several years to increase capacity have enabled us to meet increasing demand. We also benefited from improved pricing and productivity at our established operating facilities. Operating income as a percent of revenue decreased year over year, as we continue to invest in our more recent acquisitions, repositioning their operations to serve our current customer base. Our Commercial & Industrial segment’s revenue was $241.4 million in the third quarter of fiscal 2026, an increase of $126.0 million or 109% compared with the third quarter of fiscal 2025, while segment operating income for the third quarter of fiscal 2026 was $54.2 million compared with $12.9 million for the third quarter of fiscal 2025. The increase in revenue for the third quarter of fiscal 2026 was driven by an expansion of our capabilities in the data center end market, which allowed us to increase the size and number of projects we executed. Results for the quarter also benefited from certain large, quick-turning jobs that we executed at favorable margins, as well as continued successful project execution by our teams. Jeff Gendell, Executive Chairman, commented, “During the third quarter of fiscal 2026, we continued to focus on organic growth and to use capital to expand our capabilities to serve our growing customer base. We added a 176,000 square foot production facility in Abilene, TX to our Infrastructure Solutions business, while continuing to invest meaningful capital into our newly acquired Gulf Island operation in Louisiana to expand its capabilities to manufacture new products. 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. While our near-term focus is to prioritize capital spending for organic growth, we continue to evaluate acquisition opportunities, particularly those that will expand our capacity and capabilities to serve our current customers.” Capital Allocation; Stock Buyback Plan “After utilizing our credit facility during the second quarter of fiscal 2026 to fund the purchase of Gulf Island and make significant investments in capital expenditures, we have repaid those borrowings as of June 30, 2026 with cash flow from operations, in keeping with our strategy of maintaining a strong balance sheet," added Tracy McLauchlin, Chief Financial Officer. "We ended the quarter with $77.3 million of cash, no debt, and $310.6 million of marketable securities. Subsequent to quarter end, our Board of Directors approved a two-for-one split of our common stock, reflecting our confidence in the outlook for our business. We believe this action will improve liquidity in our common stock." Capital allocation highlights during the third quarter of fiscal 2026 include the following: We used $19.5 million to acquire the real property and certain related assets of Broadwind Heavy Fabrications, Inc.’s production facility in Abilene, Texas We supported the growth of our operating businesses with $44.6 million in capital expenditures We used $70.4 million of our excess cash for purchases, net of cash received from sales, of marketable securities We used $52.6 million to purchase transferrable federal income tax credits, which we expect will result in a $3.6 million reduction in our federal income tax obligation Stock Split On July 29, 2026, our board of Directors approved a two-for-one split of our common stock, to be paid in the form of a stock dividend. Each shareholder of record as of the close of trading on August 14, 2026 (the "record date") will receive, after the close of trading on August 21, 2026, one additional share for every share held on the record date. After the split, our common stock will continue to have a par value of $0.01 per share. Non-GAAP Financial Measures and Other Adjustments This press release includes adjusted net income attributable to IES, adjusted diluted earnings per share attributable to common stockholders, and backlog, and, in the non-GAAP reconciliation tables included herein, adjusted net income attributable to common stockholders, EBITDA, adjusted EBITDA and adjusted income from operations before income taxes, each of which is a financial measure not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Management believes that these measures provide useful information to our investors by, in the case of adjusted net income attributable to IES, adjusted net income attributable to common stockholders, adjusted earnings per share attributable to common stockholders, adjusted EBITDA and adjusted income from operations before income taxes, distinguishing certain nonrecurring events such as litigation settlements, significant expenses associated with leadership changes, or gains or losses from the sale of a business, noncash events, such as impairment charges, items that are not indicative of quarterly business performance such as gains and losses on our investments, or, in the case of backlog, providing a common measurement used in IES's industry, as described further below, and that these measures, when reconciled to the most directly comparable GAAP measures, help our investors to better identify underlying trends in the operations of our business and facilitate easier comparisons of our financial performance with prior and future periods and to our peers. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial tables included in this press release. Remaining performance obligations represent the unrecognized revenue value of our contract commitments. While backlog is not a defined term under GAAP, it is a common measurement used in IES’s industry and IES believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future operating trends that may not otherwise be apparent. IES’s remaining performance obligations are a component of IES’s backlog calculation, which also includes signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. IES’s methodology for determining backlog may not be comparable to the methodologies used by other companies. For further details on the Company’s financial results, please refer to the Company’s 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 a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 11,000 employees serve clients in the United States. For more information about IES, please visit www.ies-co.com. Company Contact: Tracy McLauchlinChief Financial OfficerIES Holdings, Inc.(713) 860-1500 Investor Relations Contact: Robert Winters Alpha IR Group(312) [email protected] 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, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to, a general reduction in the demand for our products or services; changes in general economic conditions, including supply chain constraints, high rates of inflation, changes in consumer sentiment, elevated interest rates, and market disruptions resulting from a number of factors, including geo-political events; competition in the industries in which we operate, which could result in the loss of one or more customers or lead to lower margins on new projects; the use of estimates in placing bids on fixed price contracts, variations from estimated contract costs and our ability to successfully manage and execute projects, the cost and availability of qualified labor and the ability to maintain positive labor relations, and our ability to pass along increases in the cost of commodities used in our business; our ability to enter into, and the terms of, future contracts; the existence of a small number of customers from whom we derive a meaningful portion of our revenues; reliance on third parties, including subcontractors and suppliers, to complete our projects; the inability to carry out plans and strategies as expected, including the inability to identify and complete acquisitions that meet our investment criteria, or the subsequent underperformance of those acquisitions; challenges integrating new businesses into the Company or new types of work, products or processes into our segments; backlog that may not be realized or may not result in profits; failure to adequately recover on contract change orders or claims against customers; closures or sales of our facilities resulting in significant future charges or a significant disruption of our operations; the impact of future epidemics or pandemics on our business; an increased cost of surety bonds affecting margins on work and the potential for our surety providers to refuse bonding or require additional collateral at their discretion; the impact of seasonality, adverse weather conditions, and climate change; fluctuations in operating activity due to factors such as cyclicality, downturns in levels of construction or the housing market, and differing regional economic conditions; difficulties in managing our billings and collections; accidents resulting from the physical hazards associated with our work and the potential for accidents; the possibility that our current insurance coverage may not be adequate or that we may not be able to obtain policies at acceptable rates; the effect of litigation, claims and contingencies, including warranty losses, damages or other latent defect claims in excess of our existing reserves and accruals; costs and liabilities under existing or potential future laws and regulations, including those laws and regulations related to the environment and climate change, as well as the inability to transfer, renew and obtain electrical and other professional licenses; interruptions to our information systems and cyber security or data breaches; expenditures to conduct environmental remediation activities required by certain environmental laws and regulations; loss of key personnel, ineffective transition of new management, or general labor constraints; credit and capital market conditions, including changes in interest rates that affect the cost of construction financing and mortgages, and the inability of some of our customers to obtain sufficient financing at acceptable rates, which could lead to project delays or cancellations; limitations on our ability to access capital markets and generate cash from operations to fund our capital needs; the impact on our effective tax rate or cash paid for taxes from changes in tax positions we have taken or changes in tax laws; difficulty in fulfilling the covenant terms of our revolving credit facility, which could result in a default and acceleration of any indebtedness under such revolving credit facility; reliance on certain estimates and assumptions that may differ from actual results in the preparation of our financial statements and the impacts of new accounting, control and operating procedures resulting from new accounting pronouncements; uncertainties inherent in the use of percentage-of-completion accounting, which could result in the reduction or elimination of previously recorded revenues and profits; the recognition of potential goodwill, long-lived assets and other investment impairments; the existence of a controlling shareholder, who has the ability to take action not aligned with other shareholders or to dispose of all or a significant portion of the shares of our common stock it holds, which may trigger certain change of control provisions in a number of our material agreements; the relatively low trading volume of our common stock, which could increase the volatility of our stock price and could make it more difficult for shareholders to sell a substantial number of shares for the same price at which shareholders could sell a smaller number of shares; the possibility that we issue additional shares of common stock, preferred stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the value per share of our common stock; the potential for substantial sales of our common stock, which could adversely affect our stock price; the impact of increasing scrutiny and changing expectations from investors and customers, or new or changing regulations, with respect to climate change or environmental impacts of our operations; the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings; and the possibility that our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur, as well as other risk factors discussed in this document, in the Company’s annual report on Form 10-K for the year ended September 30, 2025 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information or any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Forward-looking statements are provided in this press release 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 herein. General information about IES Holdings, Inc. can be found at http://www.ies-co.com 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, as well as any amendments to those reports, are available free of charge through the Company's website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.

IES Holdings, Inc.'s (NASDAQ:IESC) robust earnings report didn't manage to move the market for its stock. Our analysis suggests that shareholders have noticed something concerning in the numbers. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To properly understand IES Holdings' profit results, we need to consider the US$53m gain attributed to unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. If IES Holdings doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. We'd posit that IES Holdings' statutory earnings aren't a clean read on ongoing productivity, due to the large unusual item. Therefore, it seems possible to us that IES Holdings' true underlying earnings power is actually less than its statutory profit. But the good news is that its EPS growth over the last three years has been very impressive. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. In terms of investment risks, we've identified 1 warning sign with IES Holdings, and understanding this should be part of your investment process. This note has only looked at a single factor that sheds light on the nature of IES Holdings' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. IES Holdings (IESC) is back in focus after reporting Q2 2026 results that included higher sales, earnings and backlog, supported by Communications and Infrastructure Solutions, as well as the recent Gulf Island Fabrication acquisition. See our latest analysis for IES Holdings. The strong Q2 report and Gulf Island Fabrication acquisition arrived alongside sharp share price momentum, with a 37.08% 1 month share price return and a 1 year total shareholder return of 177.54%, pointing to building optimism about IES Holdings’ longer term earnings power. If you are looking for other infrastructure related opportunities while IES Holdings is in the spotlight, this could be a good moment to scan 36 power grid technology and infrastructure stocks With IES Holdings shares up 37% over the past month and trading only about 6% below a US$700 analyst price target, the key question is whether investors are overlooking further upside or already paying up for future growth. At a last close of $661.40, IES Holdings trades on a P/E of 34.9x, which sits below both the US Construction industry average of 45.8x and a peer average of 48.1x. This suggests the market is not assigning a premium multiple despite strong share price gains. The P/E ratio compares the current share price to earnings per share. It captures how much investors are paying for each dollar of current earnings, which is especially relevant for a profitable company with established operations across Residential, Communications, Infrastructure Solutions and Commercial & Industrial segments. In IES Holdings' case, that 34.9x earnings multiple is paired with high quality earnings, a Return on Equity of 35.6% that is described as high, and profit growth of 55.7% over the past year against a 5 year average of 45.2% per year. Compared with the Construction industry average P/E of 45.8x and a fair P/E estimate of 39.5x, the current 34.9x suggests the stock trades at a discount both to peers and to the level the market could potentially move towards if earnings performance and quality stay aligned with current expectations. Explore the SWS fair ratio for IES Holdings Result: Price-to-Earnings of 34.9x (UNDERVALUED) However, the strong run in the share price and a P/E of 34.9x leave less room for error if margins, growth or the integration of acquisitions disappoint. Find out about the key risks to this IES Holdings narrative. While the 34.9x P/E suggests the stock may be attractively priced versus peers, the Simply Wall St DCF model points the other way. On this view, the current $661.40 share price sits above an estimated future cash flow value of about $577, which leans toward overvaluation. For investors, that split between earnings based and cash flow based signals raises a simple question: which lens should carry more weight in your own process, the current profit multiple or the long term cash generation implied by our DCF work? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out IES Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With sentiment clearly mixed, now is the moment to look through the numbers yourself and decide how the trade off between risk and opportunity stacks up. A good next step is to weigh up the 4 key rewards and 1 important warning sign If you stop with just one stock, you risk missing other opportunities that might fit your goals even better, so widen your search while you have momentum. Spot potential bargain opportunities by scanning 51 high quality undervalued stocks that combine quality fundamentals with appealing pricing signals. Strengthen your core holdings by focusing on companies in the solid balance sheet and fundamentals stocks screener (46 results) that prioritize financial resilience. Get ahead of the crowd by searching the screener containing 25 high quality undiscovered gems before they attract wider attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IESC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

HOUSTON, May 01, 2026 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today announced financial results for the quarter ended March 31, 2026. Second Quarter 2026 Highlights and Recent Developments Revenue of $974 million for the second quarter of fiscal 2026, an increase of 17% compared with $834 million for the same quarter of fiscal 2025 Operating income of $112.3 million for the second quarter of fiscal 2026, an increase of 21% compared with $92.7 million for the same quarter of fiscal 2025 Net income attributable to IES of $109.9 million for the second quarter of fiscal 2026, an increase of 56% compared with $70.7 million for the same quarter of fiscal 2025, and diluted earnings per share attributable to common stockholders of $5.44 for the second quarter of fiscal 2026, compared with $3.50 for the same quarter of fiscal 2025 Adjusted net income attributable to IES (a non-GAAP financial measure, as defined below) of $84.1 million for the second quarter of fiscal 2026, an increase of 26% compared with $66.6 million for the same quarter of fiscal 2025, and diluted adjusted earnings per share attributable to common stockholders of $4.16 for the second quarter of fiscal 2026, compared with $3.30 for the same quarter of fiscal 2025 Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts with customers, of approximately $2.3 billion as of March 31, 2026 Backlog (a non-GAAP financial measure, as defined below) of approximately $3.9 billion as of March 31, 2026 Completed the acquisition of Gulf Island Fabrication, Inc. ("Gulf Island"), a leading steel fabricator and service provider for the industrial, energy and government sectors Overview of Results “For the second quarter of fiscal 2026, we delivered a 17% increase in revenue and a 21% increase in operating income compared with the second quarter of fiscal 2025," said Matt Simmes, President and Chief Executive Officer. "Strong growth in our Communications and Infrastructure Solutions businesses has continued, driven by strong demand, particularly in the data center end market. Outstanding execution by our operating teams contributed to improved operating margin year over year as we effectively delivered results in this dynamic environment. "We continue to see our customers accelerate their orders and expand the scope of their contracts, and we are investing in the business to meet those demands. We have used our strong financial position and operational flexibility to broaden our scope on large projects, expand capacity and integrate services among our segments to better serve our customers. Robust customer demand and the ongoing expansion of our capacity and capabilities helped drive our backlog to $3.9 billion at March 31, 2026, an increase of 62% since the end of fiscal 2025. Our Communications business continues to expand its geographic presence and the range of solutions offered to customers. The capacity added by our Infrastructure Solutions business in fiscal 2024 and 2025 has continued to ramp up, and we expect it will make a more meaningful contribution to the segment's revenue and earnings beginning in the second half of fiscal 2026. Our Commercial & Industrial business continues to grow, investing in hiring and training to support larger projects as we execute our increased backlog over the next six to 12 months. While our Residential segment faced continued pressure from weak housing starts and unfavorable weather during the second quarter of fiscal 2026, we are continuing to move forward with expansion of our Plumbing and HVAC offerings, prioritizing markets where our single-family electrical business already has a strong presence. Furthermore, through the first half of fiscal 2026, we have begun to see growth in our multi-family backlog, which should benefit us in fiscal 2027." Our Communications segment’s revenue was $367.7 million in the second quarter of fiscal 2026, an increase of $94.7 million or 35% compared with the second quarter of fiscal 2025. Continued strong demand in the data center market was the primary driver of the increase, and the recent capital investments we have made have positioned us well to respond to that demand and deliver solutions to our customers. Demand in the distribution center end market also continued to grow. The segment's operating income increased to $61.2 million for the second quarter of fiscal 2026, compared with $39.6 million for the second quarter of fiscal 2025, reflecting the increase in revenue. Our Residential segment’s revenue was $287.6 million in the second quarter of fiscal 2026, a decrease of $30.4 million or 10% compared with the second quarter of fiscal 2025, as a result of the ongoing softness in the housing market. Home builders have continued to seek price reductions for our services, and some have focused on reducing their existing inventory rather than starting new projects. This continued pressure on pricing, as well as increasing materials costs, resulted in reduced revenue and operating margins in our single-family housing business. In our multi-family business, lower revenue in the second quarter of fiscal 2026 compared with the prior year reflects the impacts of a decline in backlog during fiscal 2025. As a result of these factors, the Residential segment’s operating income decreased to $6.4 million for the second quarter of fiscal 2026, compared with $22.7 million for the second quarter of fiscal 2025. Our Infrastructure Solutions segment’s revenue was $192.4 million in the second quarter of fiscal 2026, an increase of $74.8 million or 64% compared with the second quarter of fiscal 2025, driven by continued strong demand in our custom engineered solutions business, primarily in the data center end market, as well as the continued expansion of our field services offerings. Gulf Island, which we acquired in January 2026, contributed $37.5 million of revenue during the quarter. Our Infrastructure Solutions segment's operating income for the second quarter of fiscal 2026 was $41.9 million, compared with $26.5 million for the second quarter of fiscal 2025. The year-over-year profit improvement reflects the impact of investments we have made over the last several years to increase capacity to meet increasing demand. Improved pricing and productivity gains as our newer facilities ramp up production also contributed to the increase in operating income. Our Commercial & Industrial segment’s revenue was $126.5 million in the second quarter of fiscal 2026, an increase of $1.1 million or 1% compared with the second quarter of fiscal 2025, while segment operating income for the second quarter of fiscal 2026 was $21.5 million compared with $15.8 million for the second quarter of fiscal 2025. Results for the second quarter of fiscal 2026 benefited from successful project execution by our teams and continuing strong demand in the data center end market. Jeff Gendell, Executive Chairman, commented, “In January, we completed the acquisition of Gulf Island to accelerate our capacity expansion plans in the Infrastructure Solutions business. For the remainder of fiscal 2026, we expect to prioritize capital spending for organic growth, as we believe investing in growth opportunities within our existing businesses, including capital expenditures, working capital and expansion of our capabilities, will allow us to provide additional capacity and new solutions for our customers while delivering attractive returns on invested capital. While we will continue to evaluate acquisitions and other investment opportunities, we are substantially raising our capital spending outlook for the remainder of fiscal 2026 to support the organic growth that we believe is a compelling use of our capital.” Capital Allocation; Stock Buyback Plan “While we deployed substantial capital during the second quarter of fiscal 2026 to fund the purchase of Gulf Island and make significant investments in capital expenditures, we ended the quarter with cash, net of debt, of $14.5 million," added Tracy McLauchlin, Chief Financial Officer. "While we do not expect Gulf Island to contribute meaningfully to our earnings during the current fiscal year as we add equipment and reposition its operations to better align this additional capacity with our strategic priorities, we do expect our results to benefit from the acquisition in fiscal 2027. We ended the quarter with $49.5 million of cash, $35.0 million debt, and $214.0 million of marketable securities." Capital allocation highlights during the second quarter of fiscal 2026 include the following: We used $143.1 million, net of cash acquired, to acquire Gulf Island We supported the growth of our operating businesses with $31.8 million in capital expenditures We used $12.2 million of our excess cash for purchases, net of cash received from sales, of marketable securities We repurchased 4,112 shares for $1.7 million, or an average price of $418.31 per share, ending the quarter with $166.2 million remaining under our stock repurchase authorization Non-GAAP Financial Measures and Other Adjustments This press release includes adjusted net income attributable to IES, adjusted diluted earnings per share attributable to common stockholders, and backlog, and, in the non-GAAP reconciliation tables included herein, adjusted net income attributable to common stockholders, EBITDA, adjusted EBITDA and adjusted income from operations before income taxes, each of which is a financial measure not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Management believes that these measures provide useful information to our investors by, in the case of adjusted net income attributable to IES, adjusted net income attributable to common stockholders, adjusted earnings per share attributable to common stockholders, adjusted EBITDA and adjusted income from operations before income taxes, distinguishing certain nonrecurring events such as litigation settlements, significant expenses associated with leadership changes, or gains or losses from the sale of a business, or noncash events, such as impairment charges or unrealized gains and losses on our investments, or, in the case of backlog, providing a common measurement used in IES's industry, as described further below, and that these measures, when reconciled to the most directly comparable GAAP measures, help our investors to better identify underlying trends in the operations of our business and facilitate easier comparisons of our financial performance with prior and future periods and to our peers. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial tables included in this press release. Remaining performance obligations represent the unrecognized revenue value of our contract commitments. While backlog is not a defined term under GAAP, it is a common measurement used in IES’s industry and IES believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future operating trends that may not otherwise be apparent. IES’s remaining performance obligations are a component of IES’s backlog calculation, which also includes signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. IES’s methodology for determining backlog may not be comparable to the methodologies used by other companies. For further details on the Company’s financial results, please refer to the Company’s quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2026, to be filed with the Securities and Exchange Commission ("SEC") by May 1, 2026, and any amendments thereto. About IES Holdings, Inc. IES designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 11,000 employees serve clients in the United States. For more information about IES, please 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] 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, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to, a general reduction in the demand for our products or services; changes in general economic conditions, including supply chain constraints, high rates of inflation, changes in consumer sentiment, elevated interest rates, and market disruptions resulting from a number of factors, including geo-political events; competition in the industries in which we operate, which could result in the loss of one or more customers or lead to lower margins on new projects; the use of estimates in placing bids on fixed price contracts, variations from estimated contract costs and our ability to successfully manage and execute projects, the cost and availability of qualified labor and the ability to maintain positive labor relations, and our ability to pass along increases in the cost of commodities used in our business; our ability to enter into, and the terms of, future contracts; the existence of a small number of customers from whom we derive a meaningful portion of our revenues; reliance on third parties, including subcontractors and suppliers, to complete our projects; the inability to carry out plans and strategies as expected, including the inability to identify and complete acquisitions that meet our investment criteria, or the subsequent underperformance of those acquisitions; challenges integrating new businesses into the Company or new types of work, products or processes into our segments; backlog that may not be realized or may not result in profits; failure to adequately recover on contract change orders or claims against customers; closures or sales of our facilities resulting in significant future charges or a significant disruption of our operations; the impact of future epidemics or pandemics on our business; an increased cost of surety bonds affecting margins on work and the potential for our surety providers to refuse bonding or require additional collateral at their discretion; the impact of seasonality, adverse weather conditions, and climate change; fluctuations in operating activity due to factors such as cyclicality, downturns in levels of construction or the housing market, and differing regional economic conditions; difficulties in managing our billings and collections; accidents resulting from the physical hazards associated with our work and the potential for accidents; the possibility that our current insurance coverage may not be adequate or that we may not be able to obtain policies at acceptable rates; the effect of litigation, claims and contingencies, including warranty losses, damages or other latent defect claims in excess of our existing reserves and accruals; costs and liabilities under existing or potential future laws and regulations, including those laws and regulations related to the environment and climate change, as well as the inability to transfer, renew and obtain electrical and other professional licenses; interruptions to our information systems and cyber security or data breaches; expenditures to conduct environmental remediation activities required by certain environmental laws and regulations; loss of key personnel, ineffective transition of new management, or general labor constraints; credit and capital market conditions, including changes in interest rates that affect the cost of construction financing and mortgages, and the inability of some of our customers to obtain sufficient financing at acceptable rates, which could lead to project delays or cancellations; limitations on our ability to access capital markets and generate cash from operations to fund our capital needs; the impact on our effective tax rate or cash paid for taxes from changes in tax positions we have taken or changes in tax laws; difficulty in fulfilling the covenant terms of our revolving credit facility, which could result in a default and acceleration of any indebtedness under such revolving credit facility; reliance on certain estimates and assumptions that may differ from actual results in the preparation of our financial statements and the impacts of new accounting, control and operating procedures resulting from new accounting pronouncements; uncertainties inherent in the use of percentage-of-completion accounting, which could result in the reduction or elimination of previously recorded revenues and profits; the recognition of potential goodwill, long-lived assets and other investment impairments; the existence of a controlling shareholder, who has the ability to take action not aligned with other shareholders or to dispose of all or a significant portion of the shares of our common stock it holds, which may trigger certain change of control provisions in a number of our material agreements; the relatively low trading volume of our common stock, which could increase the volatility of our stock price and could make it more difficult for shareholders to sell a substantial number of shares for the same price at which shareholders could sell a smaller number of shares; the possibility that we issue additional shares of common stock, preferred stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the value per share of our common stock; the potential for substantial sales of our common stock, which could adversely affect our stock price; the impact of increasing scrutiny and changing expectations from investors and customers, or new or changing regulations, with respect to climate change or environmental impacts of our operations; the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings; and the possibility that our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur, as well as other risk factors discussed in this document, in the Company’s annual report on Form 10-K for the year ended September 30, 2025 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information or any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Forward-looking statements are provided in this press release 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 herein. General information about IES Holdings, Inc. can be found at http://www.ies-co.com 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, as well as any amendments to those reports, are available free of charge through the Company's website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.

HOUSTON, Jan. 30, 2026 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today announced financial results for the quarter ended December 31, 2025. First Quarter 2026 Highlights and Recent Developments Revenue of $871 million for the first quarter of fiscal 2026, an increase of 16% compared with $750 million for the same quarter of fiscal 2025 Operating income of $97.7 million for the first quarter of fiscal 2026, an increase of 31% compared with $74.6 million for the same quarter of fiscal 2025 Net income attributable to IES of $91.4 million for the first quarter of fiscal 2026, an increase of 62% compared with $56.3 million for the same quarter of fiscal 2025, and diluted earnings per share attributable to common stockholders of $4.51 for the first quarter of fiscal 2026, compared with $2.72 for the same quarter of fiscal 2025 Adjusted net income attributable to IES (a non-GAAP financial measure, as defined below) of $75.2 million for the first quarter of fiscal 2026, an increase of 38% compared with $54.6 million for the same quarter of fiscal 2025, and diluted adjusted earnings per share attributable to common stockholders of $3.71 for the first quarter of fiscal 2026, compared with $2.64 for the same quarter of fiscal 2025 Remaining performance obligations, a GAAP measure of future revenue to be recognized from current contracts with customers, of approximately $1.8 billion as of December 31, 2025 Backlog (a non-GAAP financial measure, as defined below) of approximately $2.6 billion as of December 31, 2025 Subsequent to quarter end, completed the acquisition of Gulf Island Fabrication, Inc. ("Gulf Island"), a leading steel fabricator and service provider for the industrial, energy and government sectors Overview of Results “Fiscal 2026 is off to a strong start," said Matt Simmes, President and Chief Executive Officer. "For the first quarter of fiscal 2026, we delivered a 16% increase in revenue and a 31% increase in operating income compared with the first quarter of fiscal 2025. Robust demand in key end markets, particularly related to data centers, continued to drive growth in our Communications, Infrastructure Solutions and Commercial & Industrial segments. Our ability to deploy craft labor effectively, support our customers with innovative solutions as they expand, and deliver high quality project execution allowed us to scale effectively and improve operating margins year over year. Subsequent to the end of the quarter, we acquired Gulf Island, which adds significant new capacity, skilled labor, and expanded capabilities to our business. This acquisition advances our strategy to further expand our Infrastructure Solutions segment and deepen our role in the building and rebuilding of U.S. infrastructure. "In our Residential segment, the challenging housing market we faced throughout fiscal 2025 has not yet begun to improve. Housing affordability challenges, availability and cost of insurance, and overall economic uncertainty continue to weigh on consumer demand, resulting in a decrease in Residential revenue and earnings for the first quarter of fiscal 2026 compared with the prior year. Given the challenging market conditions, we have prioritized our plumbing and HVAC expansion plans to focus on those markets where we already have a strong presence in the single-family electrical business. While we expect these current economic challenges to persist in the near term, particularly through the seasonally slower winter season, we remain optimistic about the longer-term outlook for our Residential business." Our Communications segment’s revenue was $351.9 million in the first quarter of fiscal 2026, an increase of $119.0 million or 51% compared with the first quarter of fiscal 2025. Continued strong demand in the data center market was the primary driver of the increase, while demand in the distribution center market also continued to grow. The segment's operating income increased to $57.4 million for the first quarter of fiscal 2026, compared with $28.6 million for the first quarter of fiscal 2025, reflecting the increase in revenue, successful project execution, and improved margins on projects well-suited to our skilled workforce. Our Residential segment’s revenue was $284.1 million in the first quarter of fiscal 2026, a decrease of $35.9 million or 11% compared with the first quarter of fiscal 2025, as a result of the continued softness in the housing market. Most home builders have continued to offer incentives to buyers, passing a portion of the cost on to us and other suppliers in the form of price reductions for our services, while some have focused on reducing existing inventory rather than starting new projects. Both of these approaches to addressing the current challenging market conditions have put continued pressure on pricing, resulting in reduced revenue and operating margins in our single-family housing business. In our multi-family business, lower revenue in the first quarter of fiscal 2026 compared with the prior year reflects the impacts of declining backlog in recent years. As a result of these factors, the Residential segment’s operating income decreased to $8.9 million for the first quarter of fiscal 2026, compared with $23.8 million for the first quarter of fiscal 2025. Our Infrastructure Solutions segment’s revenue was $140.2 million in the first quarter of fiscal 2026, an increase of $32.1 million or 30% compared with the first quarter of fiscal 2025, driven by continued strong demand in our custom engineered solutions business, primarily in the data center end market, as well as the continued expansion of our field services offerings. Operating income for the first quarter of fiscal 2026 was $35.6 million, compared with $23.3 million for the first quarter of fiscal 2025. The year-over-year profit improvement reflects the impact of investments we have made over the last several years to increase capacity to meet increasing demand. Improved pricing and productivity improvements as our newer facilities ramp up production also contributed to the increase in operating income. Our Commercial & Industrial segment’s revenue was $94.8 million in the first quarter of fiscal 2026, an increase of $6.3 million or 7% compared with the first quarter of fiscal 2025, while segment operating income for the first quarter of fiscal 2026 was $9.7 million compared with $7.1 million for the first quarter of fiscal 2025. Results for the first quarter of fiscal 2026 reflect continued solid demand and strong execution in the data center end market, as well as expansion of one of our operations in the Midwest market. Jeff Gendell, Executive Chairman, commented, “With the strong cash flows generated by our operations over the past several quarters, we have continued to invest aggressively in organic growth. Additionally, we have increased our investment portfolio of marketable securities, which contributed $17 million of unrealized gains during the quarter ended December 31, 2025. We also recognized $4.2 million equity earnings from our equity investment in the CB&I storage solutions business during the quarter. Although these investments can add volatility to our earnings from quarter to quarter, we believe this provides an opportunity to generate returns from our cash while we continue to evaluate opportunities to grow the business through acquisitions and ongoing investment in our core operations.” Capital Allocation; Stock Buyback Plan “Capital allocation remains a top priority, as we seek to generate strong returns on our operating cash flow," added Tracy McLauchlin, Chief Financial Officer. "We ended the quarter with $88.8 million of cash, no debt, and $169.9 million of marketable securities. We leveraged our strong financial position to purchase Gulf Island in January 2026 for an aggregate equity value of $192.0 million (or approximately $152.0 million net of cash acquired), which we funded with a combination of cash on hand and borrowings under our revolving credit facility." Capital allocation highlights during the first quarter of fiscal 2026 include the following: We supported the growth of our operating business with $46.6 million in capital expenditures We used $48.6 million of our excess cash to purchase marketable securities Non-GAAP Financial Measures and Other Adjustments This press release includes adjusted net income attributable to IES, adjusted diluted earnings per share attributable to common stockholders, and backlog, and, in the non-GAAP reconciliation tables included herein, adjusted net income attributable to common stockholders, EBITDA, adjusted EBITDA and adjusted income from operations before income taxes, each of which is a financial measure not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Management believes that these measures provide useful information to our investors by, in the case of adjusted net income attributable to IES, adjusted net income attributable to common stockholders, adjusted earnings per share attributable to common stockholders, adjusted EBITDA and adjusted income from operations before income taxes, distinguishing certain nonrecurring events such as litigation settlements, significant expenses associated with leadership changes, or gains or losses from the sale of a business, or noncash events, such as impairment charges or unrealized gains and losses on our investments, or, in the case of backlog, providing a common measurement used in IES's industry, as described further below, and that these measures, when reconciled to the most directly comparable GAAP measures, help our investors to better identify underlying trends in the operations of our business and facilitate easier comparisons of our financial performance with prior and future periods and to our peers. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial tables included in this press release. Remaining performance obligations represent the unrecognized revenue value of our contract commitments. While backlog is not a defined term under GAAP, it is a common measurement used in IES’s industry and IES believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future operating trends that may not otherwise be apparent. IES’s remaining performance obligations are a component of IES’s backlog calculation, which also includes signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. IES’s methodology for determining backlog may not be comparable to the methodologies used by other companies. For further details on the Company’s financial results, please 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 ("SEC") by January 30, 2026, and any amendments thereto. About IES Holdings, Inc. IES designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 10,000 employees serve clients in the United States. For more information about IES, please visit www.ies-co.com. Company Contact: Tracy McLauchlin Chief Financial Officer IES Holdings, Inc. (713) 860-1500 Investor Relations Contact: Robert Winters or Stephen Poe Alpha IR Group (312) 445-2870 [email protected] 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, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to, a general reduction in the demand for our products or services; changes in general economic conditions, including supply chain constraints, high rates of inflation, changes in consumer sentiment, elevated interest rates, and market disruptions resulting from a number of factors, including geo-political events; competition in the industries in which we operate, which could result in the loss of one or more customers or lead to lower margins on new projects; the use of estimates in placing bids on fixed price contracts, variations from estimated contract costs and our ability to successfully manage and execute projects, the cost and availability of qualified labor and the ability to maintain positive labor relations, and our ability to pass along increases in the cost of commodities used in our business; our ability to enter into, and the terms of, future contracts; the existence of a small number of customers from whom we derive a meaningful portion of our revenues; reliance on third parties, including subcontractors and suppliers, to complete our projects; the inability to carry out plans and strategies as expected, including the inability to identify and complete acquisitions that meet our investment criteria, or the subsequent underperformance of those acquisitions; challenges integrating new businesses into the Company or new types of work, products or processes into our segments; backlog that may not be realized or may not result in profits; failure to adequately recover on contract change orders or claims against customers; closures or sales of our facilities resulting in significant future charges or a significant disruption of our operations; the impact of future epidemics or pandemics on our business; an increased cost of surety bonds affecting margins on work and the potential for our surety providers to refuse bonding or require additional collateral at their discretion; the impact of seasonality, adverse weather conditions, and climate change; fluctuations in operating activity due to factors such as cyclicality, downturns in levels of construction or the housing market, and differing regional economic conditions; difficulties in managing our billings and collections; accidents resulting from the physical hazards associated with our work and the potential for accidents; the possibility that our current insurance coverage may not be adequate or that we may not be able to obtain policies at acceptable rates; the effect of litigation, claims and contingencies, including warranty losses, damages or other latent defect claims in excess of our existing reserves and accruals; costs and liabilities under existing or potential future laws and regulations, including those laws and regulations related to the environment and climate change, as well as the inability to transfer, renew and obtain electrical and other professional licenses; interruptions to our information systems and cyber security or data breaches; expenditures to conduct environmental remediation activities required by certain environmental laws and regulations; loss of key personnel, ineffective transition of new management, or general labor constraints; credit and capital market conditions, including changes in interest rates that affect the cost of construction financing and mortgages, and the inability of some of our customers to obtain sufficient financing at acceptable rates, which could lead to project delays or cancellations; limitations on our ability to access capital markets and generate cash from operations to fund our capital needs; the impact on our effective tax rate or cash paid for taxes from changes in tax positions we have taken or changes in tax laws; difficulty in fulfilling the covenant terms of our revolving credit facility, which could result in a default and acceleration of any indebtedness under such revolving credit facility; reliance on certain estimates and assumptions that may differ from actual results in the preparation of our financial statements and the impacts of new accounting, control and operating procedures resulting from new accounting pronouncements; uncertainties inherent in the use of percentage-of-completion accounting, which could result in the reduction or elimination of previously recorded revenues and profits; the recognition of potential goodwill, long-lived assets and other investment impairments; the existence of a controlling shareholder, who has the ability to take action not aligned with other shareholders or to dispose of all or a significant portion of the shares of our common stock it holds, which may trigger certain change of control provisions in a number of our material agreements; the relatively low trading volume of our common stock, which could increase the volatility of our stock price and could make it more difficult for shareholders to sell a substantial number of shares for the same price at which shareholders could sell a smaller number of shares; the possibility that we issue additional shares of common stock, preferred stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the value per share of our common stock; the potential for substantial sales of our common stock, which could adversely affect our stock price; the impact of increasing scrutiny and changing expectations from investors and customers, or new or changing regulations, with respect to climate change or environmental impacts of our operations; the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings; and the possibility that our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur, as well as other risk factors discussed in this document, in the Company’s annual report on Form 10-K for the year ended September 30, 2025 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information or any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Forward-looking statements are provided in this press release 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 herein. General information about IES Holdings, Inc. can be found at http://www.ies-co.com 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, as well as any amendments to those reports, are available free of charge through the Company's website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.