Executive Summary

Q1 FY2025 delivered strong growth: revenue $0.750B (+18% YoY), operating income $74.6M (+29% YoY), diluted EPS $2.72 (+45% YoY); adjusted diluted EPS $2.64 (+42% YoY) .
Demand remained robust across data center-exposed businesses; Communications revenue +36% YoY and Infrastructure Solutions +72% YoY driven by higher volumes, pricing, and efficiencies; Residential grew modestly (+1% YoY) given Florida hurricane impacts and affordability concerns .
Backlog $1.754B and remaining performance obligations (“RPO”) $1.215B support forward visibility; quarter-end cash $59.1M and marketable securities $53.0M after $13.2M capex and $4.4M buybacks .
Subsequent events enhanced strategic and financial flexibility: new $300M revolving credit facility to 2030 and the Arrow Engine acquisition (CY2024 revenue ~$20M) broadening Infrastructure Solutions product offerings .
Wall Street consensus (S&P Global) for Q1 FY2025 was unavailable at the time of this analysis; therefore beat/miss vs estimates cannot be assessed [S&P Global data unavailable due to request limit].

What Went Well and What Went Wrong

What Went Well

Communications and Infrastructure Solutions posted outsized growth on data center demand and improved pricing/efficiency; Infrastructure Solutions operating income more than doubled YoY to $23.3M on capacity investments. “Operating margins across all businesses remained strong…” .
Backlog and RPO remained elevated ($1.754B and $1.215B), providing multi-quarter revenue visibility .
Strengthened capital position and strategic optionality: expanded the revolver to $300M, invested $44.9M for a minority interest in CB&I storage solutions, and closed Arrow Engine to expand power services into oil & gas .

What Went Wrong

Residential single-family demand softened due to Florida hurricanes and affordability/interest rate dynamics; segment operating income declined slightly to $23.8M despite margin improvements, as SG&A rose to support scalability and growth .
Sequential cash decline (to $59.1M) driven by investment activity, marketable securities purchases, and buybacks; cash from operations improved YoY but working capital movements (AP/Accrued down $31.5M) weighed on cash conversion in the quarter .
Commercial & Industrial segment revenue was relatively flat YoY and expected to have lower activity following completion of a large data center project (flagged in Q4 commentary), implying near-term normalization from peak contributions .

Financial Results

Consolidated Performance vs prior periods

Metric	Q3 2024	Q4 2024	Q1 2025
Revenues ($USD Millions)	$768.4	$775.8	$749.5
Gross Profit ($USD Millions)	$194.8	$186.4	$178.0
Operating Income ($USD Millions)	$90.2	$75.0	$74.6
Net Income Attributable to IES ($USD Millions)	$62.1	$63.1	$56.3
Diluted EPS ($USD)	$2.67	$3.06	$2.72
Adjusted Diluted EPS ($USD)	$2.67	$2.79	$2.64

Margins and EBITDA

Metric	Q3 2024	Q4 2024	Q1 2025
Gross Margin % (Gross Profit/Revenue)	25.4%	24.0%	23.7%
Operating Margin % (Operating Income/Revenue)	11.7%	9.7%	10.0%
Net Margin % (Net Income Attrib. to IES/Revenue)	8.1%	8.1%	7.5%
EBITDA ($USD Millions)	$96.3	$83.7	$84.3
Adjusted EBITDA ($USD Millions)	$97.7	$84.9	$86.3

Note: Margin percentages are calculated from cited revenue and profit figures.

Segment Revenue

Segment Revenue ($USD Millions)	Q3 2024	Q4 2024	Q1 2025
Communications	$192.3	$219.9	$232.9
Residential	$377.5	$356.1	$320.0
Infrastructure Solutions	$102.0	$110.4	$108.1
Commercial & Industrial	$96.6	$89.4	$88.5
Total	$768.4	$775.8	$749.5

Segment Operating Income

Segment Operating Income ($USD Millions)	Q3 2024	Q4 2024	Q1 2025
Communications	$21.0	$22.6	$28.6
Residential	$43.7	$34.8	$23.8
Infrastructure Solutions	$19.8	$20.7	$23.3
Commercial & Industrial	$13.0	$9.7	$7.1
Corporate	$(7.3)	$(12.8)	$(8.2)
Total	$90.2	$75.0	$74.6

KPIs and Balance Sheet

KPI	Q3 2024	Q4 2024	Q1 2025
Backlog ($USD Billions)	$1.697	$1.786	$1.754
Remaining Performance Obligations ($USD Billions)	$1.177	$1.176	$1.215
Cash and Cash Equivalents ($USD Millions)	$44.9	$100.8	$59.1
Marketable Securities ($USD Millions)	—	$35.0	$53.0
Capex ($USD Millions)	—	—	$13.2
Share Repurchases ($USD Millions / Shares)	$20.9 / 157,505 (Q3)	$44.0 (FY)	$4.4 / 21,048 (Q1)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue/Margins	FY2025	None issued	No formal quantitative guidance provided; management expects continued strong demand in data centers and improvement in Florida Residential activity through FY2025	Maintained “no guidance”
C&I Segment Activity	Q1–Q2 FY2025	Indicated in Q4 that segment revenue would reduce in Q1 as a large data center project completes, then increase into Q2 as new projects ramp	Commentary reiterated strong execution; no numeric guidance provided	Maintained qualitative trajectory
Capital Structure	Ongoing	$150M ABL revolver	$300M cash flow-based revolver, maturity extended to 2030	Raised capacity

Earnings Call Themes & Trends

Note: A full Q1 FY2025 earnings call transcript was not available on the company’s IR site at the time of review; the site lists the Q1 press release, presentation, and Form 10-Q but no transcript link . Themes below reflect prepared remarks and releases.

Topic	Previous Mentions (Q3 & Q4 FY2024)	Current Period (Q1 FY2025)	Trend
Data center demand	Strong demand across Communications, Infrastructure Solutions, and C&I; large data center project boosted C&I in Q3; expected normalization post-completion in Q4 guide	Continued robust demand; Communications +36% YoY; Infra Solutions +72% YoY with custom engineered solutions (generator enclosures)	Positive and broad-based; normalization in C&I from peak levels
Residential plumbing/HVAC expansion	Expansion driving outperformance vs housing market; improved margins via procurement/process discipline	Continued expansion; margins solid but SG&A investments increased; Florida hurricanes impacted single-family demand; early signs of recovery in Q2	Structural expansion intact; near-term single-family headwinds easing
Florida hurricane impact	Minor expected impact to Q1 revenues (Hurricane Milton mid-Oct)	Single-family demand impacted; normalization beginning in Q2	Temporary headwind; improving trajectory
Capacity investments/efficiency	Greiner acquisition and facility additions; improved capacity utilization and margins	Year-over-year profit improvement in Infra Solutions from higher volumes, pricing, and efficiencies; capacity investments cited	Accretive; sustained benefits
Capital allocation	Repurchases and acquisitions (Greiner; Bayonet minority buyout)	$300M revolver; Arrow acquisition; CB&I minority stake; continued buybacks and marketable securities purchases	Balance sheet flexibility increased
ERP/IT scalability	Ongoing ERP implementation to enhance data/controls	Continued investment in ERP and personnel for scalability	Execution continues

Management Commentary

CEO Jeff Gendell: “Our Communications, Infrastructure Solutions, and Commercial & Industrial segments continued to benefit from strong demand, particularly in the data center market… Operating margins across all businesses remained strong…” .
COO Matt Simmes: “Demand in the Florida market has begun to show signs of recovering in the second fiscal quarter… we have focused on maintaining margins and continuing to invest in the scalability of our platform, including a new ERP system…” .
CFO Tracy McLauchlin: “The continued strength of our cash flow allowed us to put capital to work while ending the quarter with $59.1 million of cash and $53.0 million of marketable securities… increasing our revolving credit facility from $150 million to $300 million, extending its maturity to 2030” .

Q&A Highlights

A full Q1 FY2025 earnings call transcript was not available on the IR site at the time of review; thus Q&A specifics and tone shifts cannot be assessed .

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q1 FY2025 (Primary EPS Consensus Mean, Revenue Consensus Mean, and # of estimates) were unavailable due to system request limits at the time of retrieval; therefore, we cannot determine beat/miss versus Wall Street expectations. In light of strong YoY growth and elevated backlog/RPO, analysts may focus on the durability of data center-driven demand and the pace of Residential recovery, but formal estimate adjustments cannot be inferred without consensus data [S&P Global data unavailable due to request limit].

Key Takeaways for Investors

Data center exposure is the core driver: Communications and Infra Solutions posted strong YoY gains; sustained demand and capacity investments point to continued strength even as C&I normalizes from a completed large project .
Residential is executing through a soft patch: single-family headwinds (Florida storms, affordability) are transient; plumbing/HVAC expansion supports margins and growth as activity normalizes into Q2 .
Operating discipline remains evident: gross and operating margins stayed strong, with EBITDA/Adj. EBITDA holding near recent highs despite sequential revenue moderation .
Capital allocation optionality improved: $300M revolver (to 2030) and Arrow Engine add strategic breadth; CB&I minority stake opens adjacent opportunities in storage solutions .
Backlog and RPO support visibility: $1.754B backlog and $1.215B RPO underpin multi-quarter revenue, mitigating near-term end-market variability .
Near-term focus: monitor C&I project mix as post-peak normalization runs through Q1/Q2, Florida single-family recovery trajectory, and execution on Arrow integration and ERP rollout .
Medium-term thesis: structurally advantaged positioning in data center infrastructure, expanding multi-trade Residential platform, and disciplined capital deployment should sustain margin quality and cash generation through cycles .

Sources: Q1 FY2025 press release and tables ; associated 8-K (Item 2.02 and Exhibit 99.1) ; Q4 FY2024 press release and tables ; Q3 FY2024 press release and tables ; Arrow Engine acquisition ; $300M credit facility ; IR site reference (no transcript link) .

IES Holdings, Inc. (IESC)·Q1 2025 Earnings Summary