IES Holdings reported fiscal 2025 revenue of $3.4 billion, up 23% compounded annually over the past five years, as operating income surged 50% to $384 million. The Nasdaq-listed contractor highlighted accelerating growth in data center infrastructure, which is offsetting weakness in residential construction.
The company’s operating margin expanded from under 4% five years ago to over 11% in the year ended September 30, 2025, reflecting improved operational leverage. For the first nine months of fiscal 2026, operating income rose 39% year-over-year to $389 million, with revenue tracking below 30% in residential work compared with 39% in fiscal 2025 and over 50% two years prior.
CEO Matt Simmes cited data center projects as a key driver of higher contract values, noting fiber deployment has increased tenfold over the past four years. The company operates more than 170 locations across the U.S., Canada and Mexico, with over 11,000 employees. The commercial and industrial segment recorded a record backlog at the end of June, while organic growth in infrastructure solutions manufacturing reached 32% excluding the Gulf Island acquisition and 57% including it.
IES also confirmed plans to acquire DBM Global, a structural steel fabrication company, for approximately $650 million. The deal is expected to close by December 31, 2026, pending regulatory approval, and will add a fifth operating segment with 3,400 employees. Management anticipates financing the acquisition with debt while targeting leverage below 1x trailing 12-month EBITDA.
The company reported no outstanding debt as of June 30, 2026, and trades at a P/E ratio of 29.4 with a PEG ratio of 0.4. Shares have returned 86% over the past year and are up 70% year-to-date, closing at $336.85 on August 24.
