IES Holdings Inc. Reports Strong Q3 2026 Results Amid Stock Split Announcement

For the quarter ending June 30, 2026, IES Holdings reported a revenue of $1.243 billion, marking a 40% increase from $890 million in the same quarter of fiscal 2025. This robust growth underscores the company’s successful execution of its strategic initiatives.

Operating income for the third quarter soared to $178.5 million, a 60% increase compared to $111.9 million in Q3 2025. Net income attributable to IES was reported at $153 million, representing a remarkable 98% increase from $77.2 million year-over-year. This translated to diluted earnings per share of $7.57, up from $3.81 in the prior year.

The company also reported adjusted net income of $135.3 million, a 70% increase from $79.5 million in Q3 2025, with diluted adjusted earnings per share standing at $6.70 compared to $3.92 the previous year.

IES Holdings reported approximately $2.8 billion in remaining performance obligations as of June 30, 2026, indicating strong future revenue potential. Additionally, the company’s backlog reached $4.5 billion, a 91% increase since the end of fiscal 2025.

The Communications segment generated $453.1 million in revenue, up 51% from the prior year. The growth was primarily driven by robust demand in the data center market. Operating income for this segment rose to $83.6 million, significantly improving from $47.8 million in Q3 2025.

Revenue from the Infrastructure Solutions segment increased by 73% to $224.1 million, driven by strong demand for custom-engineered solutions. This segment’s operating income also saw significant growth, reaching $53.4 million.

The Commercial & Industrial segment reported a staggering 109% increase in revenue, totaling $241.4 million. Operating income surged to $54.2 million, up from $12.9 million in the previous year.

In contrast, the Residential segment faced challenges, with revenue declining 6% to $324.1 million due to reduced housing starts. Operating income decreased to $16.3 million from $33.4 million in Q3 2025.

Matt Simmes, President and CEO, emphasized the disciplined capital allocation strategy adopted over the years, which has enabled IES to expand operational capabilities. The company has added approximately one million square feet of production capacity through acquisitions and facility enhancements.

The company’s initiatives to train teams and expand capabilities in the data center market are expected to yield benefits, particularly in the Commercial & Industrial segment.

Chief Financial Officer Tracy McLauchlin reported a strong financial position with $77.3 million in cash, no debt, and $310.6 million in marketable securities. The company actively managed its capital, utilizing $19.5 million for acquisitions and $44.6 million for capital expenditures.

On July 29, 2026, the Board of Directors approved a two-for-one stock split, set to take effect after the close of trading on August 21, 2026. Shareholders of record as of August 14, 2026, will receive an additional share for every share held, aimed at improving liquidity in the stock.

IES Holdings Inc. has shown remarkable growth in its third-quarter results for fiscal 2026, driven by strong demand across its segments, particularly in communications and infrastructure solutions. With strategic investments and a focus on expanding capabilities, the company is well-positioned for continued growth as it heads into fiscal 2027. The recent stock split further enhances shareholder value and reflects the company’s optimism for the future.