A maker and installer of integrated electrical, technology, and mechanical systems for data centers, homes, wind farms, healthcare facilities, and more, serving big tech and Fortune 500 clients. Born in 1997 as Integrated Electrical Services, it began as a "roll-up" that consolidated local electrical contractors into one national business. It renamed itself IES Holdings in 2016 to reflect how it had grown beyond wiring into a diversified holding company.
Q3 FY2026 revenue rose 39.6% to $1.24B with diluted EPS of $7.57, as data center demand offset a 6.3% Residential decline.
Data center demand carried the quarter as Residential kept slipping. rose 39.6% to $1,242.7M, rose 98.7% to $7.57, and widened 0.5 points to 27.4%, driven by Communications, Infrastructure Solutions, and Commercial & Industrial growth that more than offset a 6.3% Residential drop. The company enters the back half of the year with record $4.53B and no debt drawn.
Key takeaways
Communications rose 51.4%, Infrastructure Solutions rose 73.1% including a $51.7M contribution from the January 2026 Gulf Island acquisition, and Commercial & Industrial rose 109.1%, lifting consolidated revenue 39.6% to $1,242.7M.
improved 0.5 points to 27.4% as in Communications and Commercial & Industrial offset declines in Residential and Infrastructure Solutions, where the Gulf Island volume temporarily diluted margin to 34.0%.
Section summaries
Management's Discussion and Analysis
Revenue surged 39.6% to $1.24B in Q3 FY2026, driven by data center demand, while Residential margins compressed due to housing headwinds.
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Consolidated Q3 rose 39.6% to $1.24B, with Communications (+51.4%), Infrastructure Solutions (+73.1%), and Commercial & Industrial (+109.1%) all posting strong growth, while Residential declined 6.3%.
Residential fell 51.2% to $16.3M as lower single-family housing starts and multi-family runoff pressured volume and pricing.
rose 27.4% to $162.2M, including an $8.7M increase in cash-settled expense tied to the rising stock price.
The company ended with no outstanding debt on its $300M and record of $4.53B.
rose 17.9% to $108.4M while fell 14.8% to $63.8M.
What changed
Residential declined 6.3% in Q3 FY2026 versus the 8.3% drop in Q3 FY2025 and 9.5% drop in Q2 FY2026, so the prior filings' watch for deepening decline did not materialize — the slide stabilized modestly.
Infrastructure Solutions growth was 73.1% in Q3 FY2026, up from 26.9% in Q3 FY2025 and 63.6% in Q2 FY2026, reversing the deceleration flagged after the 71.9% Q1 FY2025 pace.
The $300M remained undrawn with at $0.0M, continuing the debt-free status watched since FY2023; long-term debt was not reported for Q3 FY2026 in the table.
reached $4.53B at June 30, 2026, up from $3.86B at March 31, 2026 and $2.4B at September 30, 2025, exceeding the conversion constraints flagged in prior periods.
of $63.8M fell 14.8% after the Q2 FY2026 rebound to $71.5M, keeping the cash trajectory flagged after the Q1 FY2026 drop on the watch list.
What to watch
Residential and margin in Q4 FY2026 to see if the 6.3% decline deepens or stabilizes against housing affordability pressure.
Infrastructure Solutions growth rate in Q4 FY2026 to confirm whether the 73.1% pace holds or resumes decelerating from the 71.9% Q1 FY2025 level.
conversion against labor and capacity constraints as the $4.53B total enters the final quarter of fiscal 2026.
Whether the $300M is drawn as grows and Gulf Island integration continues.
Consolidated improved 50 to 27.4%, as in Communications and Commercial & Industrial offset declines in Residential and Infrastructure Solutions.
Residential fell 51.2% to $16.3M as lower single-family housing starts and multi-family runoff pressured volume and pricing, limiting cost recovery.
Infrastructure Solutions included a $51.7M contribution from the January 2026 acquisition of Gulf Island, which temporarily diluted to 34.0%.
Selling, general and administrative expenses rose 27.4% to $162.2M, driven by higher personnel and incentive compensation costs, including an $8.7M increase in cash-settled expense tied to the rising stock price.
The company ended Q3 with no outstanding debt on its $300M and record of $4.53B, supporting expectations for continued growth into fiscal 2027.
Quantitative and Qualitative Disclosures About Market Risk
Market risks include commodity prices, equity investments, and floating-rate debt; no borrowings were outstanding as of June 30, 2026.
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Commodity price risk arises from copper, aluminum, steel, electrical components, plastics, and fuel, with fixed-price contracts limiting near-term pass-through to customers.
The company expects to pass along a portion of commodity cost increases over the long term as market conditions allow.
Marketable securities of $310.6 million at fair value expose earnings to equity volatility; a 10% price swing would change pre-tax income by $31.1 million.
An unrealized gain of $56.1 million on marketable securities was recorded in the nine months ended June 30, 2026.
Floating-rate debt under the is tied to ; no hedging contracts are in place, but zero borrowings were outstanding at quarter-end.
For information regarding legal proceedings, see Note 12, “Commitments and Contingencies – Legal Matters” in the Notes to our Condensed Consolidated Financial Statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
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For information regarding legal proceedings, see Note 12, “Commitments and Contingencies – Legal Matters” in the Notes to our Condensed Consolidated Financial Statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
There have been no material changes to the risk factors disclosed under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
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There have been no material changes to the risk factors disclosed under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.