IES Holdings Posts 17% Revenue Growth to $974M, Net Income Up 56%
IES Holdings delivered revenue of $974 million in Q2 FY2026, up 17% year-over-year, with operating income rising 21% to $112.3 million and net income surging 56% to $109.9 million (EPS $5.44). Backlog climbed 62% to $3.9 billion, supported by the January acquisition of Gulf Island.
1. Q2 Financial Highlights
IES Holdings reported Q2 FY2026 revenue of $974 million, a 17% increase versus prior year, driving operating income to $112.3 million, up 21%. Net income attributable to the company rose 56% to $109.9 million, with diluted EPS of $5.44; adjusted net income increased 26% to $84.1 million, or $4.16 per share.
2. Segment Performance
The Communications segment generated $367.7 million in revenue, up 35%, with operating income of $61.2 million. Infrastructure Solutions revenue jumped 64% to $192.4 million, including $37.5 million from Gulf Island, yielding $41.9 million in operating income. Residential sales declined 10% to $287.6 million, cutting operating income to $6.4 million.
3. Backlog and Acquisition
Remaining performance obligations stood at $2.3 billion, while backlog reached $3.9 billion, up 62% since fiscal 2025-end, reflecting robust customer demand. The January acquisition of Gulf Island Fabrication expanded custom engineered solutions and service capabilities in industrial, energy and government sectors.
4. Outlook and Strategic Investments
Management plans to leverage strong financial position to broaden large-project scope, expand capacity and integrate segment services. Infrastructure Solutions capacity additions are expected to drive higher second-half contributions, and emerging multi-family backlog growth should support Residential segment performance into fiscal 2027.