You might also like
IES Holdings, Inc. (IESC) is a Delaware corporation established in 1997 and headquartered in Houston, Texas, with an executive office in Greenwich, Connecticut. The company designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. IESC operates through four main segments, offering services such as network infrastructure solutions, electrical installation, electro-mechanical solutions, and electrical and mechanical design.
- Residential - Provides electrical installation services for single-family housing and multi-family apartment complexes, along with HVAC and plumbing installation services in certain markets.
- Communications - Offers technology infrastructure services, including the design, build, and maintenance of communications infrastructure within data centers for co-location and managed hosting customers.
- Commercial & Industrial - Delivers electrical and mechanical design, construction, and maintenance services for commercial and industrial markets, including power infrastructure and data centers.
- Infrastructure Solutions - Supplies electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products like generator enclosures used in data centers and other industrial applications.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Jeffrey L. Gendell ExecutiveBoard | Chairman and CEO | Founder and Managing Member of Tontine Associates, L.L.C. | Founder of Tontine Associates, extensive experience in investment management and corporate finance. Brother of David B. Gendell, another IESC director. | |
Mary K. Newman Executive | General Counsel and Corporate Secretary | None | Current General Counsel and Corporate Secretary. No further details available in the documents. | |
Matthew J. Simmes Executive | President and COO | None | Over 30 years at IESC, previously President of IES Communications. Played a key role in Residential segment reorganization and operational improvements. | |
Tracy A. McLauchlin Executive | SVP, CFO, and Treasurer | None | CPA with extensive experience in accounting and finance. Previously VP and Chief Accounting Officer at Rockwater Energy Solutions and Dynegy Inc.. | |
Jennifer A. Baldock Board | Director | Chair of Nominating and Governance Committee at CCF Holdings, LLC; Chair of Greenwich Emergency Medical Service | Extensive experience in corporate governance and financial statement review. Former Vice Chairman at World Color Press, Inc.. | |
Joe D. Koshkin Board | Director | Independent financial consultant | Retired PwC partner with expertise in accounting, SEC issues, and risk management. CPA in Texas. | |
John L. Fouts Board | Director | Trustee and Chairman of Investments Committee at Georgia Tech Foundation | Former partner at Water Street Capital. Extensive experience in public markets and private investing. | |
Todd M. Cleveland Board | Director | Director at Patrick Industries, Inc. | Former CEO and Chairman at Patrick Industries, Inc. Extensive experience in mergers and acquisitions and leadership in industrial sectors. |
-
Despite your efforts in cost reductions and restructuring, SG&A expenses as a percentage of revenues increased to 16.6% from 15.4% due to lower volume ; how do you plan to further reduce SG&A expenses to align with declining revenues?
-
Considering the backlog decreased to $319 million from $348 million a year ago , and acknowledging that the shift in your go-to-market strategy adversely affected backlog, especially in the industrial segment ; what specific measures are you taking to rebuild backlog, and when do you anticipate tangible improvements?
-
The industrial group's gross profit margin declined significantly to 13.3% from 18.3% a year ago ; can you explain the specific factors behind this decline, and what strategies are in place to restore margins in this segment?
-
With revenues declining across all three business segments due to the nationwide construction slowdown and changes in your go-to-market strategy , how confident are you that your new sales model and restructuring efforts will lead to revenue growth, and what key indicators support this confidence?
-
Given that you repurchased 886,000 shares for $14.4 million at an average price of $16.24 per share , while cash and equivalents decreased to $49 million from $65 million in the preceding quarter ; how do you justify continuing share repurchases in light of the current economic environment and reduced liquidity?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Arrow Engine Company | 2025 | Completed acquisition by IES Holdings’ Infrastructure Solutions business after Q1 fiscal 2025, expanding its product portfolio to include engines, generator sets, compressors, and replacement parts for the natural gas market. |
Greiner Industries, Inc. | 2024 | Completed on April 1, 2024, this deal was valued at approximately $70.3 million (including cash and contingent consideration) and enhanced IES’s geographic footprint and custom structural steel fabrication capabilities, with detailed purchase price allocation and revenue contributions noted. |
Bayonet Plumbing, Heating & Air Conditioning | 2024 | Completed acquisition of the remaining 20% noncontrolling interest for $32,000 and later settled a contingent consideration of $4,500, aligning with IES’s strategy to expand its service offerings and geographic reach while also facilitating leadership enhancements. |
Recent press releases and 8-K filings for IESC.
- Financial Performance: Revenue of $834 million in Q2 2025 (up 18% YoY), operating income of $92.7 million, and net income of $70.7 million (up 34%)
- Record Backlog: Achieved a record backlog of $1.8 billion and remaining performance obligations of $1.2 billion
- Earnings Details: Reported EPS of $3.50 and adjusted EPS of $3.30
- Segment Results: Communications and Infrastructure Solutions segments grew by 41% and 55%, respectively, while the Residential segment saw a revenue decline
- Capital Allocation: Invested $30.1 million in capital expenditures, executed a share repurchase of 118,314 shares for $20.4 million, and expanded its revolving credit facility to $300 million