IES : Q2 2025 Earnings Presentation
IESC
Published on 05/02/2025 at 08:39
IES HOLDINGS, INC. ( NASDAQ: IESC) | Second Quarter Fiscal 2025 Update | MARCH 31, 2025
Second Quarter 2025 Highlights
Revenue of $834 million, an increase of 18% year-over-year
Operating income of $92.7 million, an increase of 19% year-over-year
Earning per share of $3.50 and adjusted earnings per share* of $3.30
Remaining performance obligations of $1.2 billion, a GAAP measure of future revenue to be recognized from current contracts with customers, and record backlog* of $1.8 billion
Financial Highlights: 2Q & YTD'25
REVENUE:
($ in millions)
+18%
OPERATING INCOME:
($ in millions)
+23%
+18%
+19%
$706
$834
$1,340
$1,584
$78
$93
$136
$167
2Q '24 2Q '25 YTD'24 YTD'25 2Q '24 2Q '25 YTD'24 YTD'25
EARNINGS PER SHARE:
($ / share)
+50%
ADJ. EARNINGS PER SHARE*:
($ / share)
+40%
+53%
+40%
$2.29
$3.50
$4.16
$6.22
$2.36
$3.30
$4.23
$5.94
2Q '24 2Q '25 YTD'24 YTD'25 2Q '24 2Q '25 YTD'24 YTD'25
Segment Results: 2Q & YTD'25
Communications
Revenue: $273.1 million (+41% from 2Q FY'24)
Operating Income: $39.6 million (+81%)
Residential
Revenue: $317.9 million (-6%)
Operating Income: $22.7 million (-35%)
Infrastructure Solutions
Revenue: $117.6 million (+55%)
Operating Income: $26.5 million (+65%)
Commercial & Industrial
Revenue: $125.4 million (+29%)
Operating Income: $15.8 million (+35%)
Revenue: $506.0 million (+39% from YTD'24)
Operating Income: $68.2 million (+58%)
Revenue: $637.9 million (-3%)
Operating Income: $46.5 million (-21%)
Revenue: $225.7 million (+63%)
Operating Income: $49.8 million (+84%)
Revenue: $213.9 million (+18%)
Operating Income: $22.9 million (+22%)
Quarterly Backlog* Trend
($ in millions)
$1,363
3/31/24 6/30/24 9/30/24 12/31/2024 3/31/2025
$1,065
$1,177
$1,176
$1,215
$1,226
Income Statement
(in millions, except per share data)
Three Months Ended
March 31,
Six Months Ended
March 31,
2024
2025
2024
2025
Revenue
$705.8
$834.0
$1,340.2
$1,583.5
Operating income
77.7
92.7
135.7
167.3
Interest expense & other
1.5
(6.0)
0.5
(9.1)
Provision for income taxes
19.4
26.1
34.8
46.1
Net income attributable to noncontrolling interest
(3.9)
(1.9)
(6.5)
(3.3)
Net income attributable to IES Holdings, Inc.
$52.9
$70.7
$93.9
$127.0
Computation of EPS:
Net income attributable to IES Holdings, Inc.
$52.9
$70.7
$93.9
$127.0
Increase in noncontrolling interest
($5.9)
$0.0
($8.7)
($1.1)
Net income attributable to common stockholders of IES Holdings, Inc.
$47.0
$70.7
$85.2
$125.9
Adjusted net income attributable to common stockholders(1)
$48.4
$66.6
$86.5
$120.1
Earnings per share attributable to common stockholders
$2.29
$3.50
$4.16
$6.22
Adjusted earnings per share attributable to common stockholders(1)
$2.36
$3.30
$4.23
$5.94
Diluted shares used to calculate earnings per share
20.5
20.2
20.5
20.2
(1)Adjusted net income attributable to common stockholders and Adjusted earnings per share attributable to common stockholders are non-GAAP financial measures; see reconciliation table
Non-GAAP Reconciliation of Adjusted Net Income
(in millions, except per share data)
Three Months Ended
March 31,
Six Months Ended
March 31,
2024
2025
2024
2025
Net income attributable to IES Holdings, Inc.
$52.9
$70.7
$93.9
$127.0
Unrealized (gain)/loss on trading securities (1)
1.9
(5.6)
1.8
(7.9)
Provision for income taxes
19.4
26.1
34.8
46.1
Adjusted net income before taxes
$74.2
$91.2
$130.5
$165.2
Adjusted tax expense (2)
(19.9)
(24.6)
(35.3)
(44.0)
Adjusted net income attributable to IES Holdings, Inc. (3)
$54.3
$66.6
$95.2
$121.2
Adjustments for computation of earnings per share:
Increase in noncontrolling interest
(5.9)
0.0
(8.7)
(1.1)
Adjusted net income attributable to common stockholders (3)
$48.4
$66.6
$86.5
$120.1
Adjusted earnings per share attributable to common stockholders (3)
$2.36
$3.30
$4.23
$5.94
Diluted shares used to calculate adjusted earnings per share
20.5
20.2
20.5
20.2
(1)Included in Other income on our Condensed Consolidated Statement of Operations
(2)Adjusted for the tax impact of adjustments to pretax income above
(3)Adjusted net income attributable to IES Holdings Inc., Adjusted net income attributable to common stockholders, and Adjusted earnings per share attributable to common stockholders are non-GAAP financial measures
Select Balance Sheet Data
(in millions)
3/31/2024
Period Ended
9/30/2024
3/31/2025
Cash & Marketable securities
$106.0
$135.8
$88.2
Other Current Assets
690.5
735.9
826.3
Deferred Tax Assets
21.3
22.4
22.1
Total Assets $1,101.2 $1,244.0 $1,364.6
Non-Current Assets 283.4 349.9 428.0
Current Liabilities $434.2 $522.6 $538.2 Other Liabilities 72.0 69.3 79.8
Debt 0.0 0.0 0.0
Total Liabilities
$506.2
$591.9
$618.0
Noncontrolling interest
60.1
41.0
40.7
Equity
534.8 611.1 705.8
Total Liabilities & Equity
$1,101.2
$1,244.0
$1,364.6
Net Cash & Marketable securities less Debt
$106.0
$135.8
$88.2
Segment Results
(in millions)
Three Months Ended
March 31,
Six Months Ended
March 31,
2024
2025
2024
2025
Revenue
Communications
$193.6
$273.1
$364.3
$506.0
Residential
339.3
317.9
655.2
637.9
Infrastructure Solutions
75.8
117.6
138.7
225.7
Commercial & Industrial
97.0
125.4
182.0
213.9
Total Revenue
$705.8
$834.0
$1,340.2
$1,583.5
Operating Income (Loss) Communications
$21.9
$39.6
$43.3
$68.2
Residential
34.7
22.7
58.8
46.5
Infrastructure Solutions
16.1
26.5
27.0
49.8
Commercial & Industrial
11.7
15.8
18.7
22.9
Corporate
(6.7)
(11.9)
(12.1)
(20.1)
Total Operating Income
$77.7
$92.7
$135.7
$167.3
Non-GAAP Reconciliation of Adjusted EBITDA
Three Months Ended Six Months Ending
(in millions) March 31, March 31,
2024
2025
2024
2025
Net income attributable to IES Holdings, Inc.
$52.9
$70.7
$93.9
$127.0
Provision for income taxes
19.4
26.1
34.8
46.1
Interest & other expense, net
1.5
(6.0)
0.5
(9.1)
Depreciation and amortization
7.8
11.9
15.4
23.0
EBITDA
$81.6
$102.7
$144.6
$187.0
Non-cash equity compensation expense
1.5
3.1
2.9
5.1
Adjusted EBITDA
$83.1
$105.8
$147.5
$192.1
Non-GAAP Reconciliation of Remaining Performance Obligations to Backlog
(in millions) March 31, 2024 September 30, 2024 March 31, 2025
Remaining performance obligations
$1,065
$1,176
$1,226
Agreements without an enforceable obligation (1)
298
610
587
Backlog
$1,363
$1,786
$1,813
(1)Our backlog contains 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.
Disclaimer
IES Holdings Inc. published this content on May 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 02, 2025 at 12:34 UTC.