IES Holdings reported fiscal 2025 revenue of approximately $3.4 billion, driven by a 23% compound annual growth rate over the past five years, as its data center and infrastructure segments outpaced slower residential demand. Operating income reached $384 million, reflecting a 50% CAGR over the same period and pushing operating margins above 11%, up from just under 4% five years prior.
The company’s first nine months of fiscal 2026 showed continued momentum, with operating income rising 39% year-over-year to $389 million and revenue growth holding steady at 23% over the trailing twelve months. IES operates more than 170 locations across all 50 U.S. states, Canada, and Mexico, employing over 11,000 people.
Chief Executive Matt Simmes highlighted the shift in revenue mix, noting that the residential segment—which accounted for 39% of fiscal 2025 revenue—has declined to below 30% year-to-date in 2026. Growth has increasingly come from infrastructure solutions, commercial and industrial projects, and communications, particularly fiber deployments for data centers. Simmes said fiber deployment for data center projects has increased tenfold over the past four years, contributing to higher contract values.
The company’s infrastructure solutions segment operates roughly 3 million square feet of manufacturing space, with about two-thirds active and the remainder under redevelopment for fiscal 2027. Organic growth in the segment reached 32% excluding the January 2026 acquisition of Gulf Island, which contributed $89 million in revenue during the first nine months of fiscal 2026. The commercial and industrial segment doubled its revenue in the second quarter of 2026 compared with the prior year.
IES also announced plans to acquire DBM Global for approximately $650 million, a deal expected to close by December 31, 2026. The acquisition will add 3,400 employees and create a fifth operating segment. As of June 30, 2026, IES reported no outstanding debt and aims to maintain future leverage below one times trailing 12-month EBITDA.
Simmes emphasized persistent labor constraints across trades such as electricians, painters, and welders, noting that the company has adapted by bridging operational silos to better serve customers across segments. The company’s stock has delivered an 86% return over the past year and is up 70% year-to-date as of late August 2026, trading at a P/E ratio of 29.4 and a PEG ratio of 0.4.
