IES Holdings (IESC) AI Stock Analysis

• Market Cap: $7.18B
• Dividend Yield: N/A
• Average Volume (3M): 147.10K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 2.04
• Revenue Growth: 17.83%
• EPS Growth: 34.73%
• Country: US
• Employees: 9,423
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.95
• Shares Outstanding: 19,854,464
• 10 Day Avg. Volume: 152,760
• 30 Day Avg. Volume: 147,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 15.14
• 1Y Price Target: $400.00
• Price Target Upside: 10.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $400.00 ▲(10.63% Upside)

IES Holdings demonstrates strong financial performance with robust profitability and a stable balance sheet, which are the most significant factors driving the score. Technical analysis indicates mixed signals, with short-term weakness but longer-term strength. The valuation suggests the stock is relatively expensive, which slightly offsets the positive financial performance.

IES Holdings Business Overview & Revenue Model

Company Description

IES Holdings, Inc. (ISEC) is a publicly traded company that operates within the energy and infrastructure sectors, specializing in the provision of electrical and mechanical contracting services. The company primarily serves a diverse range of markets including commercial, industrial, and governmental sectors. IESC's core products and services encompass electrical contracting, communications, and low voltage systems, as well as energy management and renewable energy solutions, positioning it as a comprehensive service provider in the rapidly evolving energy landscape.

How the Company Makes Money

IES Holdings generates revenue through multiple channels, primarily by offering a wide array of electrical and mechanical contracting services. The company's revenue model is based on project-based contracts, where it earns money from the design, installation, and maintenance of electrical systems for various clients. Key revenue streams include contracts from commercial building projects, infrastructure developments, and government contracts. Additionally, IESC focuses on growth through strategic partnerships with other firms in the energy sector and by expanding its service offerings in renewable energy solutions. The company also benefits from ongoing maintenance contracts that provide recurring revenue, further contributing to its earnings.

IES Holdings Financial Statement Overview

Summary

IES Holdings exhibits a solid financial position with strong profitability, stable balance sheet, and efficient cash flow management. The company has a strong revenue growth rate, impressive profit margins, low leverage, and a high return on equity, indicating minimal financial risk and a positive growth trajectory.

Income Statement

IES Holdings shows robust financial performance with a strong revenue growth rate of 12.64% from the previous year and significant improvement in gross profit and net profit margins. The TTM (Trailing-Twelve-Months) gross profit margin is 25.02%, and the net profit margin is 8.29%, indicating efficient cost management and profitability. EBIT and EBITDA margins at 10.90% and 11.71%, respectively, further underline operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.09, showcasing low leverage and a strong equity base. The TTM equity ratio stands at 53.16%, indicating financial stability and a healthy balance sheet structure. Return on equity (ROE) is impressive at 34.47%, reflecting effective use of shareholder funds.

Cash Flow

IES Holdings demonstrates strong cash flow management with a positive operating cash flow to net income ratio of 0.92 and free cash flow to net income ratio of 0.69. The free cash flow growth rate is slightly negative, indicating a small decline from the previous period, but overall cash flow metrics remain strong and supportive of the company's operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.25B	2.88B	2.38B	2.17B	1.54B	1.19B
Gross Profit	812.88M	696.59M	444.54M	318.90M	288.00M	228.00M
EBITDA	389.34M	343.11M	178.92M	81.68M	107.78M	69.56M
Net Income	267.34M	219.12M	108.29M	34.76M	66.66M	41.60M
Balance Sheet
Total Assets	1.47B	1.24B	981.60M	934.71M	766.62M	560.53M
Cash, Cash Equivalents and Short-Term Investments	168.26M	135.84M	75.77M	24.85M	23.11M	53.58M
Total Debt	72.67M	62.43M	61.59M	137.09M	82.37M	31.80M
Total Liabilities	647.30M	591.92M	481.66M	544.23M	396.07M	275.41M
Stockholders Equity	781.44M	611.11M	449.99M	361.29M	345.95M	283.31M
Cash Flow
Free Cash Flow	185.34M	189.25M	136.24M	-13.00M	30.50M	72.00M
Operating Cash Flow	246.88M	234.40M	153.90M	16.30M	37.90M	76.70M
Investing Cash Flow	-126.55M	-108.85M	2.77M	-29.50M	-99.60M	-33.60M
Financing Cash Flow	-56.78M	-100.50M	-105.75M	15.00M	31.20M	-8.50M

IES Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 361.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IESC, the sentiment is Negative. The current price of 361.56 is below the 20-day moving average (MA) of 384.34, below the 50-day MA of 362.39, and above the 200-day MA of 267.62, indicating a neutral trend. The MACD of 7.41 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IESC.

IES Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	77 Outperform	$8.23B	31.96	20.65%	―	12.61%	10.33%
STRL	73 Outperform	$10.24B	36.60	36.72%	―	3.31%	76.94%
PRIM	72 Outperform	$7.17B	30.13	17.01%	0.24%	15.08%	55.10%
IESC	72 Outperform	$7.18B	29.37	36.85%	―	17.83%	34.73%
KBR	69 Neutral	$5.57B	14.76	27.41%	1.49%	12.59%	98.20%
FLR	68 Neutral	$7.11B	1.81	102.24%	―	3.62%	943.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

IES Holdings Corporate Events

IES Holdings Reports Strong Q3 2025 Financial Performance

IES Holdings reported a strong financial performance for the third quarter of fiscal 2025, with a 16% increase in revenue and a 24% rise in operating income compared to the same period in 2024. The Communications segment saw significant growth, driven by demand in the data center market, while the Residential segment faced challenges due to a sluggish housing market. The company continued to expand its capacity and capabilities through acquisitions and capital investments, including the purchase of Qypsys and a fabrication operation in Wisconsin, positioning itself for future growth despite current economic uncertainties.

IES Holdings Appoints New CEO Matthew J. Simmes

On May 19, 2025, IES Holdings announced the appointment of Matthew J. Simmes as the new President and Chief Executive Officer, effective July 1, 2025, succeeding Jeffrey L. Gendell. Mr. Simmes, who has been with the company for over 31 years, will continue as President and join the Board of Directors, while Mr. Gendell will transition to the role of Executive Chairman. This leadership change is part of IES’s executive succession plan and reflects the company’s strategic focus on long-term growth and operational success.