stockrowLatest quarter
IES Holdings reported Q3 FY2026 revenue of $1.2 billion, up 39.6% from $890.2 million a year earlier. Diluted earnings per share rose to $3.79 from $1.91.
The company said revenue increased in Communications, Infrastructure Solutions and Commercial & Industrial, while Residential revenue declined. IES attributed the Communications increase primarily to data center demand. It said Infrastructure Solutions benefited from data center demand and expanded capacity, while Commercial & Industrial executed larger and more numerous data center projects, including some large, short-duration jobs.
The filing shows gross margin rose to 27.4% from 26.9%, while operating margin increased to 14.4% from 12.6%. IES said Residential gross margin fell as lower demand and customer pricing pressure limited its ability to pass on higher material costs. The company also recorded a net gain on marketable securities, compared with a loss a year earlier.
IES reported free cash flow of $64.0 million, down from $75.0 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.2 billion | $890.2 million | 39.6% |
| Diluted EPS | $3.79 | $1.91 | 98.7% |
| Gross margin | 27.4% | 26.9% | 0.5 percentage points |
| Operating margin | 14.4% | 12.6% | 1.8 percentage points |
| Free cash flow | $64.0 million | $75.0 million | −14.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $118.3 million | $116.6 million | Beat by 1.42% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, IES said data center demand continued to grow and that prior capacity investments had helped it meet customers’ needs. The company said labor availability remained challenging and would continue to be an area of focus.
IES said lower demand and reduced housing starts had limited its ability to recover higher material costs through pricing in Residential. It also said multi-family backlog had increased during the fiscal year and that it was expanding its plumbing and HVAC offerings.
Guidance
IES said it expects capacity investments and increased backlog to drive business growth in the fourth quarter of fiscal 2026 and into fiscal 2027. The company expects single-family housing challenges to continue in the near term and increased multi-family backlog to benefit it in fiscal 2027.