IES Holdings Inc. published its results for the third financial quarter of 2025 on August 1, 2025 and reported a strong overall performance despite mixed results in the individual business segments.
IES reported revenue of $890 million for the third quarter, an increase of 16% compared to the same period last year.
Operating profit grew even more strongly with a year-on-year increase of 24% to $111.9 million.
Earnings per share reached $3.81, up 43% from $2.67 in the same period last year, while adjusted earnings per share rose 45% to $3.95.
In the first nine months of fiscal 2025, IES generated revenue of $2.47 billion, an increase of 17% compared to the same period in 2024. Year-to-date operating income reached $279 million (+24%), while earnings per share increased 47% to $10.03.
The company's order backlog, a key indicator of future revenue potential, reached a record $2.1 billion as at June 30, 2025, compared to $1.7 billion in the previous year. Remaining performance obligations, a GAAP measure of future revenue to be recognized from existing contracts, amounted to USD 1.3 billion.
IES Holdings' performance varied significantly among its four business segments, with Communications and Infrastructure Solutions showing notable growth, while Residential declined.
The Communications segment was the standout performer, with revenue increasing 56% to $299.2 million in the third quarter of 2025 and operating income more than doubling with a 128% increase to $47.8 million.
Since the beginning of the year, this segment has recorded sales growth of 45% and an 80% increase in operating profit.
The Infrastructure Solutions segment also performed strongly, with sales up 27% to $129.5 million and operating profit up 65% to $32.6 million in the quarter.
In contrast, the Residential segment, which remains IES' largest revenue contributor, reported an 8% decline in revenue to $346.1 million and a 24% decline in operating income to $33.4 million. This indicates that challenges in the residential real estate market are weighing on this segment.
The Commercial & Industrial segment reported mixed results: Sales grew by 19% to $115.4 million, while the operating result was almost stagnant with a decline of 1% to $12.9 million.
The detailed breakdown by segment is shown in the following chart:
IES Holdings has a strong financial position with cash, cash equivalents and marketable securities of $175.2 million as of June 30, 2025, compared to $44.9 million in the prior year. Total assets increased from $1.16 billion in the prior-year period to $1.47 billion.
The company's balance sheet shows liabilities totaling USD 647.3 million and equity of USD 781.4 million. The net financial position (cash and cash equivalents and securities less liabilities) amounted to USD 155.2 million, which indicates a strong liquidity position.
The company's adjusted EBITDA for the third quarter was $125.7 million, up 29% from $97.7 million in the same period of fiscal 2024. 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 order backlog of USD 2.1 billion indicates high revenue visibility for the coming quarters, particularly in the Communications and Infrastructure Solutions segments, which have the strongest growth trajectories.
