IES Holdings (IESC) AI Stock Analysis

• Market Cap: $9.87B
• Dividend Yield: N/A
• Average Volume (3M): 205.65K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 2.12
• 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: 19,928,000
• 10 Day Avg. Volume: 211,459
• 30 Day Avg. Volume: 205,649
• 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: 2.84
• Enterprise Value/Gross Profit: 11.00
• Enterprise Value/Ebitda: 21.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 18.03
• Revenue Forecast (FY): $3.94B

• Rating: 81 Outperform
• Price Target: $586.00 ▲(39.28% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

IESC scores well primarily due to strong underlying financial performance (high profitability, improving margins, and low leverage) and bullish technical trends (price above key moving averages with positive momentum). The score is held back by a richer valuation (P/E ~30) and some cash-flow conversion and recent growth deceleration risks, partially offset by positive corporate developments including the Gulf Island acquisition and supportive shareholder actions.

Positive Factors

Balance Sheet Strength

Very low leverage and meaningful equity growth give IES durable financial flexibility. With debt-to-equity near 0.10 and rising equity, the company can fund capex, M&A and absorb cyclical downturns without strain, supporting long-term capital allocation and credit stability.

Margin Expansion & Profitability

Material margin expansion and sustained high EBIT/net margins reflect operational improvements and pricing power. Higher sustained margins increase cash flow potential per dollar of revenue, enabling reinvestment and returns even if top-line growth moderates, a durable earnings-strength factor.

Backlog & Strategic Acquisition

A multi-billion backlog/pipeline provides multi-quarter revenue visibility and supports stable utilization. The Gulf Island acquisition adds fabrication capacity and skilled labor aligned with infrastructure initiatives, extending service scope and competitive positioning across higher-value, longer-duration projects.

Negative Factors

Slowing Revenue Growth

Top-line momentum has decelerated materially from prior years; slower revenue growth reduces operating leverage benefits and raises the bar for margin-driven EPS gains. If sustained, weaker top-line could constrain future margin expansion and limit rollout of strategic investments.

Cash-Flow Consistency

Cash conversion lagging earnings and declining free cash flow growth indicate working-capital or timing pressures. Inconsistent cash generation reduces immediate internal funding for capex, dividends or bolt-on M&A, and increases reliance on liquidity buffers despite a strong balance sheet.

Residential Segment Exposure

Exposure to a weak residential market and pricing concessions can persist for quarters, dragging consolidated revenue and margins. Structural softness in homebuilding reduces segment backlog and profitability, requiring reallocation of resources or strategic shifts to offset the cyclical headwind.

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 balance sheet strength (Income Statement 88; Balance Sheet 90) support a high score, with standout margin expansion and very low leverage. The main offsets are weaker cash flow consistency (Cash Flow 74), including softer recent free-cash-flow growth and cash conversion running below earnings, plus slowing recent revenue growth.

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	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	3.49B	3.37B	2.88B	2.38B	2.17B	1.54B
Gross Profit	901.48M	859.50M	696.59M	444.54M	318.90M	288.00M
EBITDA	451.44M	442.17M	343.11M	190.98M	81.24M	107.78M
Net Income	341.11M	305.98M	219.12M	108.29M	34.76M	66.66M
Balance Sheet
Total Assets	1.66B	1.60B	1.24B	981.60M	934.71M	766.62M
Cash, Cash Equivalents and Short-Term Investments	258.74M	231.76M	135.84M	75.77M	24.85M	23.11M
Total Debt	131.59M	157.66M	62.43M	61.59M	137.09M	82.37M
Total Liabilities	693.17M	707.70M	591.92M	481.66M	544.23M	396.07M
Stockholders Equity	961.08M	883.96M	611.11M	449.99M	361.29M	345.95M
Cash Flow
Free Cash Flow	224.16M	218.84M	189.25M	136.24M	-13.00M	30.50M
Operating Cash Flow	324.81M	286.10M	234.40M	153.90M	16.30M	37.90M
Investing Cash Flow	-151.50M	-163.69M	-108.85M	2.77M	-29.50M	-99.60M
Financing Cash Flow	-95.28M	-96.07M	-100.50M	-105.75M	15.00M	31.20M

IES Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 420.75
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 420.75 is below the 20-day moving average (MA) of 476.94, below the 50-day MA of 446.36, and above the 200-day MA of 372.35, indicating a bullish trend. The MACD of 18.72 indicates Positive momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 50.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$12.16B	41.36	21.90%	―	13.19%	33.58%
IESC	81 Outperform	$9.87B	29.46	42.01%	―	16.89%	54.13%
STRL	76 Outperform	$13.12B	45.68	30.28%	―	6.20%	72.81%
PRIM	74 Outperform	$8.15B	30.05	17.79%	0.25%	21.45%	67.31%
KBR	69 Neutral	$5.34B	12.11	30.18%	1.65%	9.66%	29.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	55 Neutral	$7.67B	-41.69	-1.42%	―	-1.81%	1228.51%

IES Holdings Corporate Events

IES Holdings Shareholders Back Board, Auditor and Pay

IES Holdings reported the results of its 2026 Annual Stockholders Meeting held on February 19, 2026, where shareholders elected all nominated directors to serve until the 2027 meeting, with each nominee receiving strong support despite some withheld votes. Stockholders also ratified Ernst & Young LLP as the company’s independent auditor for the fiscal year ending September 30, 2026, and approved on an advisory basis the compensation of the company’s named executive officers, signaling continued shareholder backing of IES’s governance, oversight, and pay practices.

The director slate, including Jennifer A. Baldock, Todd M. Cleveland, John L. Fouts, David B. Gendell, Jeffrey L. Gendell, Kelly C. Janzen, Joe D. Koshkin, and Matthew J. Simmes, was confirmed with substantial majorities in favor. The strong votes for auditor ratification and say-on-pay suggest investors remain broadly aligned with management and the board on financial oversight and executive compensation structures.

The most recent analyst rating on (IESC) stock is a Buy with a $581.00 price target. To see the full list of analyst forecasts on IES Holdings stock, see the IESC Stock Forecast page.

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.