On August 2, 2024, IES Holdings Inc (IESC, Financial) released its 8-K filing for the third quarter of fiscal 2024, showcasing impressive financial results. The company, which designs and installs integrated electrical and technology systems and provides infrastructure products and services, operates through four business segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial.
Key Financial Highlights
IES Holdings Inc (IESC, Financial) reported a revenue of $768 million for Q3 2024, marking a 31% increase from $584 million in the same quarter of the previous year. Operating income surged by 163% to $90.2 million, compared to $34.3 million in Q3 2023. Net income attributable to IES rose by 175% to $62.1 million, up from $22.5 million in the same period last year. Diluted earnings per share (EPS) increased to $2.67, compared to $0.81 in Q3 2023.
Segment Performance
The Residential segment, which is the largest revenue generator for IES Holdings Inc (IESC, Financial), saw a 19% increase in revenue to $377.5 million. This growth was driven by strong demand and the expansion of plumbing and HVAC service offerings. Operating income for this segment rose to $43.7 million, up from $15.4 million in Q3 2023.
The Communications segment reported a 36% increase in revenue to $192.3 million, driven by strong demand in the data center market. Operating income for this segment increased to $21.0 million, compared to $13.5 million in the same quarter last year.
The Infrastructure Solutions segment experienced a 79% increase in revenue to $102.0 million, primarily due to strong demand in the custom power solutions business. Operating income for this segment rose to $19.8 million, up from $8.2 million in Q3 2023.
The Commercial & Industrial segment reported a 42% increase in revenue to $96.6 million, with operating income rising to $13.0 million from $2.6 million in Q3 2023. This growth was largely driven by a large data center project and improved bid margins.
Financial Metrics and Achievements
IES Holdings Inc (IESC, Financial) reported a gross profit of $194.8 million for Q3 2024, up from $107.6 million in the same quarter last year. Selling, general, and administrative expenses increased to $104.7 million from $74.3 million in Q3 2023. The company also reported a net income of $66.6 million, compared to $25.9 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $768 million | $584 million |
| Operating Income | $90.2 million | $34.3 million |
| Net Income | $62.1 million | $22.5 million |
| Diluted EPS | $2.67 | $0.81 |
Commentary and Future Outlook
"Our continued strong financial performance in the third quarter of fiscal 2024 reflects the benefit of the investments we have made to support the growth of our businesses," said Jeff Gendell, Chairman and Chief Executive Officer. "Our Residential segment continues to expand our plumbing and HVAC service offerings into markets where we previously offered only electrical services, while also expanding all service offerings into new geographic markets."
IES Holdings Inc (IESC, Financial) also announced a new $200 million share repurchase program, reflecting the company's strong cash flow generation and commitment to returning value to shareholders. The company ended the quarter with a cash balance of $44.9 million, despite significant investments in acquisitions and share repurchases.
For further details on the company’s financial results, please refer to the company’s quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2024, to be filed with the Securities and Exchange Commission ("SEC") by August 2, 2024.
Explore the complete 8-K earnings release (here) from IES Holdings Inc for further details.
