IES Holdings reports Q1 adjusted EPS $1.87 vs. 82c last year

Reports Q1 revenue $634M vs. $575M last year. “We are pleased with our financial performance in the first quarter of fiscal 2024, as we continued to build on the progress we saw in fiscal 2023,” said Jeff Gendell, Chairman and Chief Executive Officer. “Revenue grew by 10% in the first quarter of fiscal 2024 compared with the same quarter of fiscal 2023, reflecting continued strong demand in most of our key markets. More importantly, our operating income increased significantly year-over-year, reflecting both revenue growth and a meaningful improvement in operating margins. Our margins benefited from the process improvements across all four operating segments that were a key focus for our team in fiscal 2023, as well as improved market conditions in certain of our key markets. Operating income as a percentage of revenue increased to 9.1% for the first quarter of fiscal 2024. This compares with 7.1% for the first quarter of fiscal 2023, or 4.8% excluding a $13 million gain from the sale of our STR Mechanical business in October 2022. We remain optimistic as we look to the balance of fiscal 2024, although we continue to be cautious about demand in both the single-family and multi-family housing markets served by our Residential segment, due to elevated interest rates and a general decrease in housing affordability. The outlook for our other business segments, which are less directly affected by these factors, remains solid, supported by long-term secular growth trends. In addition, we believe the operating process improvements we have implemented over the past year have positioned us well to adapt to changing market conditions across all our segments, and to take advantage of opportunities to grow our business organically or through strategic acquisitions.”