IES Holdings (IESC) AI Stock Analysis

• Market Cap: $7.58B
• Dividend Yield: N/A
• Average Volume (3M): 136.79K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 2.18
• Revenue Growth: 16.89%
• EPS Growth: 54.13%
• Country: US
• Employees: 9,423
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.71
• Shares Outstanding: 19,927,492
• 10 Day Avg. Volume: 143,070
• 30 Day Avg. Volume: 136,792
• PEG Ratio: 0.50
• Price to Book (P/B): 8.96
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 36.19
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 8.38
• Enterprise Value/Ebitda: 16.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 15.89
• Revenue Forecast (FY): $3.69B

• Rating: 77 Outperform
• Price Target: $539.00 ▲(28.10% Upside)

The score is primarily driven by strong financial performance (healthy margins, very low leverage, strong ROE, and improving free cash flow) and supportive technical uptrend signals. These positives are partly offset by a relatively high P/E valuation and near-overbought readings on stochastics, while corporate events add a positive catalyst from strong results and the Gulf Island acquisition.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Acquisition Strategy

Strategic acquisitions expand service offerings and market reach, positioning IES for growth in infrastructure projects.

Cash Flow Generation

Strong cash flow generation supports reinvestment in growth opportunities and enhances financial flexibility.

Negative Factors

Residential Segment Challenges

Weakness in the residential segment could limit growth in this area, impacting overall revenue diversification.

EBIT Margin Data Absence

Lack of EBIT margin data hinders comprehensive assessment of operational efficiency and profitability.

Capital Spending Increase

Increased capital spending may strain cash reserves and impact short-term financial flexibility, requiring careful management.

IES Holdings Business Overview & Revenue Model

Company Description

IES Holdings, Inc. designs and installs integrated electrical and technology systems, and provides infrastructure products and services in the United States. Its Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, chemical plants, refineries, wind farms, solar facilities, municipal infrastructures, and health care facilities. Its Communications segment designs, installs, and maintains network infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. This segment also provides design and installation services for audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. Its Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. Its Residential segment offers electrical installations to single-family housing and multi-family apartments; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. The company was incorporated in 1997 and is headquartered in Houston, Texas.

How the Company Makes Money

IES Holdings generates revenue primarily through its various service contracts and projects in the electrical and communications sectors. Key revenue streams include electrical contracting services, which encompass a range of projects from new construction to renovation and maintenance work. Additionally, the company earns income from its telecommunications services, which include network installation and maintenance, as well as infrastructure solutions for broadband and other communication systems. IESC has established significant partnerships with other firms and government entities, which contribute to its earnings by providing access to larger projects and enhancing its service offerings. The company also benefits from a growing demand for renewable energy solutions, allowing it to tap into new markets and revenue opportunities.

IES Holdings Financial Statement Overview

Summary

Strong profitability and margin expansion over multiple years, with standout ROE and very low leverage. Offsets include a clear slowdown in recent revenue growth and weaker cash flow conversion versus earnings, with TTM free cash flow declining.

Income Statement

IES Holdings shows a strong multi-year profitability and scale-up story. Annual revenue rose from ~$1.54B (2021) to ~$3.37B (2025), with margins expanding materially: gross margin improved from ~14.7% (2022) to ~25.5% (2025) and net margin improved from ~1.6% (2022) to ~9.1% (2025). TTM (Trailing-Twelve-Months) results remain very strong with ~9.1% net margin and ~11.7% EBIT margin. The main drawback is slowing top-line momentum recently (TTM revenue growth ~3.6% and 2025 annual growth ~0.2% versus much higher growth in prior years).

Balance Sheet

The balance sheet is conservatively levered and strengthening. Debt is low relative to equity (debt-to-equity ~0.10 in 2024–2025 and TTM), while equity has grown meaningfully (from ~$346M in 2021 to ~$884M in 2025 and ~$961M TTM). Returns on equity are exceptionally high (roughly ~35% in 2024–2025 and ~40% TTM), indicating strong profitability relative to the capital base. The key watch item is that total debt increased in 2025 annual data versus 2024, though leverage remains very modest overall.

Cash Flow

Cash generation is solid but less consistent than earnings. TTM operating cash flow (~$277M) and free cash flow (~$176M) are healthy, and free cash flow is a meaningful portion of net income (TTM free cash flow to net income ~0.76). However, free cash flow growth turned negative TTM (about -19.6%), and operating cash flow has been below net income in recent periods (TTM operating cash flow to net income ~0.45), suggesting working-capital or timing headwinds. The trajectory is still far better than 2022, when free cash flow was negative.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.37B	2.88B	2.38B	2.17B	1.54B
Gross Profit	859.50M	696.59M	444.54M	318.90M	288.00M
EBITDA	442.17M	343.11M	190.98M	81.24M	107.78M
Net Income	305.98M	219.12M	108.29M	34.76M	66.66M
Balance Sheet
Total Assets	1.60B	1.24B	981.60M	934.71M	766.62M
Cash, Cash Equivalents and Short-Term Investments	231.76M	135.84M	75.77M	24.85M	23.11M
Total Debt	157.66M	62.43M	61.59M	137.09M	82.37M
Total Liabilities	707.70M	591.92M	481.66M	544.23M	396.07M
Stockholders Equity	883.96M	611.11M	449.99M	361.29M	345.95M
Cash Flow
Free Cash Flow	218.84M	189.25M	136.24M	-13.00M	30.50M
Operating Cash Flow	286.10M	234.40M	153.90M	16.30M	37.90M
Investing Cash Flow	-163.69M	-108.85M	2.77M	-29.50M	-99.60M
Financing Cash Flow	-96.07M	-100.50M	-105.75M	15.00M	31.20M

IES Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 420.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IESC, the sentiment is Negative. The current price of 420.75 is below the 20-day moving average (MA) of 434.86, below the 50-day MA of 422.30, and above the 200-day MA of 346.60, indicating a neutral trend. The MACD of 9.80 indicates Positive momentum. The RSI at 37.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IESC.

IES Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	83 Outperform	$10.55B	35.88	21.90%	―	13.19%	33.58%
IESC	77 Outperform	$7.58B	22.62	42.01%	―	16.89%	54.13%
PRIM	75 Outperform	$8.01B	29.29	18.56%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.44B	13.91	27.77%	1.65%	9.66%	29.01%
STRL	71 Outperform	$10.99B	35.09	35.73%	―	6.20%	72.81%
FLR	64 Neutral	$7.45B	2.35	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

IES Holdings Corporate Events

IES Holdings Delivers Strong Q1 and Acquires Gulf Island

On January 30, 2026, IES Holdings reported a robust start to fiscal 2026, with first-quarter revenue for the period ended December 31, 2025 rising 16% year on year to $871 million, operating income up 31% to $97.7 million, and net income attributable to the company jumping 62% to $91.4 million, supported by a $1.8 billion pipeline of remaining performance obligations and $2.6 billion in backlog. Growth was driven primarily by strong demand in data center-related work across the Communications, Infrastructure Solutions, and Commercial & Industrial segments, which posted significant revenue and margin gains, while the Residential segment continued to struggle amid a weak housing market, pricing pressure from homebuilder incentives, and declining backlog, leading to lower revenue and operating income. Subsequent to quarter-end, IES deployed its strong balance sheet — which showed $88.8 million in cash, no debt, and a sizable securities portfolio at quarter close — to acquire Gulf Island Fabrication for approximately $192 million in equity value, adding steel fabrication capacity and skilled labor that advance its infrastructure strategy, even as management continues to use cash flows for capital expenditures, marketable securities investments and targeted expansion in core operations.

The most recent analyst rating on (IESC) stock is a Buy with a $426.00 price target. To see the full list of analyst forecasts on IES Holdings stock, see the IESC Stock Forecast page.

IES Holdings Reports Q4 Revenue Growth and Acquisition

On November 21, 2025, IES Holdings announced its financial results for the fourth quarter and fiscal year ending September 30, 2025, reporting a 16% increase in quarterly revenue to $898 million and a 17% rise in annual revenue to $3.37 billion. The company also highlighted a definitive agreement to acquire Gulf Island Fabrication, enhancing its capacity for custom-manufactured products and expanding into new markets. Despite challenges in the residential segment due to housing market conditions, IES experienced strong growth in its communications and infrastructure solutions segments, driven by demand in the data center market. The company plans to continue capital investments and increase its capital spending in fiscal 2026 to support future growth.

The most recent analyst rating on (IESC) stock is a Buy with a $437.00 price target. To see the full list of analyst forecasts on IES Holdings stock, see the IESC Stock Forecast page.

IES Holdings Acquires Gulf Island Fabrication

On November 7, 2025, IES Holdings, Inc. announced its acquisition of Gulf Island Fabrication, Inc. for $12.00 per share, totaling approximately $192 million. This merger, approved by both companies’ boards, aims to expand IES’s fabrication capabilities and service offerings, enhancing its ability to support U.S. infrastructure projects. The transaction is expected to close by March 31, 2026, pending shareholder and regulatory approvals. The acquisition is anticipated to provide operational continuity and align with U.S. infrastructure needs, benefiting stakeholders with improved scale and flexibility.

The most recent analyst rating on (IESC) stock is a Buy with a $437.00 price target. To see the full list of analyst forecasts on IES Holdings stock, see the IESC Stock Forecast page.