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What changed in IES Holdings, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of IES Holdings, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+221 added−240 removedSource: 10-K (2025-11-21) vs 10-K (2024-11-22)

Top changes in IES Holdings, Inc.'s 2025 10-K

221 paragraphs added · 240 removed · 181 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

44 edited+12 added−5 removed78 unchanged
Biggest changeIn our single-family business, we remain cautious about demand for single-family housing, as elevated mortgage rates and the impacts of inflation on materials and labor costs have resulted in a decline in housing affordability. In addition, expectations of falling interest rates over the next year could cause consumers to delay home purchases in anticipation of lower mortgage costs.
Biggest changeIn addition, expectations of falling interest rates in the near term could cause consumers to delay home purchases in anticipation of lower mortgage costs. Over the longer term, we still expect strong demand for new single-family housing. However, the timing of any improvement in the single-family housing market remains uncertain.
Our design services range from budget assistance to providing design-build and LEED (Leadership in Energy & Environmental Design) solutions to our end customers. Our maintenance and emergency services include 6 critical plant shutdown, troubleshooting, emergency testing, preventative maintenance, and constant presence.
Our design services range from budget assistance to providing design-build 6 and LEED (Leadership in Energy & Environmental Design) solutions to our end customers. Our maintenance and emergency services include critical plant shutdown, troubleshooting, emergency testing, preventative maintenance, and constant presence.
We also provide mechanical services such as maintenance agreements, installation, or replacement of mechanical equipment for commercial and industrial facilities. This segment provides services for a variety of project types, including office buildings, manufacturing facilities, data centers, wind farms, solar facilities, municipal infrastructure and health care facilities.
We also provide mechanical services such as maintenance agreements, installation, or replacement of mechanical equipment for commercial and industrial facilities. This segment provides services for a variety of project types, including data centers, manufacturing facilities, office buildings, wind farms, solar facilities, municipal infrastructure and health care facilities.
Paper copies of these documents are also available free of charge upon written request to us.
Paper copies of these documents are also available free of charge upon written request to us.
Our regional safety managers, under the supervision of our Senior Vice President of Safety, seek to maintain standardized safety and environmental policies, programs and procedures and provide personal protective equipment relevant to each segment, including programs to train new employees.
Our regional safety managers, under the supervision of our Vice President of Safety, seek to maintain standardized safety and environmental policies, programs and procedures and provide personal protective equipment relevant to each segment, including programs to train new employees.
We perform services across the United States from our 24 offices, which includes the segment headquarters located in Tempe, Arizona, and also provide dedicated onsite teams at our customers’ sites. Industry Overview Our Communications segment is driven by demand for computing and storage resources as a result of technology advancements and obsolescence and changes in data consumption patterns.
We perform services across the United States from our 41 offices, which includes the segment headquarters located in Tempe, Arizona, and also provide dedicated onsite teams at our customers’ sites. Industry Overview Our Communications segment is driven by demand for computing and storage resources as a result of technology advancements and obsolescence and changes in data consumption patterns.
McLauchlin was employed by Dynegy Inc., where she served as Senior Vice President and Controller from March 2009 to June 2011 and from June 2004 to March 2009 served in various other capacities in finance and accounting. She began her career with PricewaterhouseCoopers LLP after receiving her Master of Accounting from Rice University. Ms. McLauchlin is a Certified Public Accountant.
McLauchlin was with Dynegy Inc., where she served as Senior Vice President and Controller from March 2009 to June 2011, and from June 2004 to March 2009 served in various other capacities in finance and accounting. She began her career with PricewaterhouseCoopers LLP after receiving her Master of Accounting from Rice University. Ms. McLauchlin is a Certified Public Accountant.
In addition to the Code of Ethics for Financial Executives, we have adopted a Code of Business Conduct and Ethics for directors, officers and employees (the Legal Compliance and Corporate Policy Manual), and established Corporate Governance Guidelines and 11 adopted charters outlining the duties of our Audit, Human Resources and Compensation and Nominating/Governance Committees, copies of which may be found on our website.
In addition to the Code of Ethics for Financial Executives, we have adopted a Code of Business Conduct and Ethics for directors, officers and employees (the Legal Compliance and Corporate Policy), and established Corporate Governance Guidelines and adopted charters outlining the duties of our Audit, Human Resources and Compensation and Nominating/Governance Committees, copies of which may be found on our website.
Failure to comply with applicable regulations could result in substantial fines or revocation of our operating licenses or an inability to perform government work. 9 CAPITAL FACILITIES During fiscal year 2024, the Company maintained a revolving credit facility, as further described in Item 7.
Failure to comply with applicable regulations could result in substantial fines or revocation of our operating licenses or an inability to perform government work. 9 CAPITAL FACILITIES During fiscal year 2025, the Company maintained a revolving credit facility, as further described in Item 7.
Industry Overview Given the diverse end markets of our Commercial & Industrial customers, which include both commercial buildings, such as offices, healthcare facilities and schools, and industrial projects, such as power, agricultural and food processing, and heavy manufacturing facilities, we are subject to many trends within the construction industry.
Industry Overview Given the diverse end markets of our Commercial & Industrial customers, which include both commercial buildings, such as data centers, offices, healthcare facilities and schools, and industrial projects, such as power, agricultural and food processing, and heavy manufacturing facilities, we are subject to many trends within the construction industry.
At September 30, 2024, our Communications business has a record level of backlog. However, if customers in our end markets reduce their capital budgets due to economic, technological or other factors, this could result in a decrease in activity for our Communications segment.
At September 30, 2025, our Communications business has a record level of backlog. However, if customers in our end markets reduce their capital budgets due to economic, technological or other factors, this could result in a decrease in activity for our Communications segment.
Our construction services range from the initial planning and procurement to installation and start-up and are offered to a variety of new and remodel construction projects, ranging from the construction of office buildings and industrial facilities to transmission and distribution projects.
Our construction services range from the initial planning and procurement to installation and start-up and are offered to a variety of new and remodel construction projects, ranging from the construction of data centers, industrial facilities and office buildings to transmission and distribution projects.
Demand in the data center market remains strong, and we continue to provide technology infrastructure services for applications such as data centers, distribution centers, and high-tech manufacturing facilities. As technology evolves, we are focused on expanding our capabilities as an integrator of audio-visual and other building technology offerings, which continue to experience strong demand.
Demand in the data center market remains strong, and we continue to provide technology infrastructure services for applications such as data centers, distribution centers, and high-tech manufacturing facilities. As technology evolves, we are focused on expanding our capabilities as an integrator of audio-visual, distributed antenna systems and other building technology offerings, which continue to experience strong demand.
The corporate office also assists with strategic and operational improvement initiatives, talent development, sharing of best practices across the organization and the establishment and monitoring of risk management practices within our segments. IES Holdings, Inc. is a Delaware corporation established in 1997 and headquartered in Houston, Texas, with an executive office in Greenwich, Connecticut.
The corporate office also assists with strategic and operational improvement initiatives, talent development, sharing of best practices across the organization and the establishment and monitoring of risk management practices within our segments. IES Holdings, Inc. is a Delaware corporation established in 1997 and headquartered in Sugar Land, Texas, with an executive office in Greenwich, Connecticut.
This segment serves the steel, railroad, marine, petrochemical, pipeline, pulp and paper, wind energy, mining, automotive, power generation, scrap yards, data center, and utility industries. Our Infrastructure Solutions segment is comprised of 13 locations in Alabama, Georgia, Illinois, Indiana, Ohio, Oklahoma, Pennsylvania, South Carolina and West Virginia, and is headquartered in Massillon, Ohio.
This segment serves the data center, utility, oilfield, petrochemical, pipeline, power generation, pulp and paper, steel, railroad, marine, wind energy, mining, automotive, and scrap yards industries. Our Infrastructure Solutions segment is comprised of 15 locations in Alabama, Georgia, Illinois, Indiana, Ohio, Oklahoma, Pennsylvania, South Carolina, West Virginia, and Wisconsin, and is headquartered in Massillon, Ohio.
These agreements are excluded from remaining performance obligations until work begins. We expect that $1.3 billion of our September 30, 2024 backlog will result in revenue during fiscal 2025, with the remaining $0.5 billion expected to be realized in fiscal 2026; however, there can be no assurance that this backlog will be completed within expected time frames or at all.
These agreements are excluded from remaining performance obligations until work begins. We expect that $1.4 billion of our September 30, 2025 backlog will result in revenue during fiscal 2026, with the remaining $1.0 billion expected to be realized in fiscal 2027; however, there can be no assurance that this backlog will be completed within expected time frames or at all.
In addition to our 2 executive and corporate offices, as of September 30, 2024, we have 24 locations within our Communications business, 75 locations within our Residential business, 13 locations within our Infrastructure Solutions business and 17 locations within our Commercial & Industrial business. This geographic diversity helps to reduce our exposure to unfavorable economic developments in any given region.
In addition to our 2 executive and corporate offices, as of September 30, 2025, we have 41 locations within our Communications business, 99 locations within our Residential business, 15 locations within our Infrastructure Solutions business and 17 locations within our Commercial & Industrial business. This geographic diversity helps to reduce our exposure to unfavorable economic developments in any given region.
Our Industrial Services business includes the maintenance and repair of alternating current (AC) and direct current (DC) electric motors and generators, as well as power generating and distribution equipment; the manufacture, re-manufacture, and repair of industrial lifting magnets; and maintenance and repair of railroad main and auxiliary generators, main alternators, and traction motors.
Our Industrial Services business includes the maintenance and repair of alternating current (AC) and direct current (DC) electric motors and generators, as well as power generating and distribution equipment; the manufacture, re-manufacture, and repair of industrial lifting magnets; the manufacture of natural gas-powered engines and parts, gas compressors, and other gas production equipment; and maintenance and repair of railroad main and auxiliary generators, main alternators, and traction motors.
The table below describes the percentage of our total revenues attributable to each of our four segments over each of the last three years (percentage columns may not add due to rounding): Year Ended September 30, 2024 2023 2022 $ % $ % $ % (Dollars in thousands, Percentage of revenues) Communications $ 776,474 26.9 % $ 600,776 25.3 % $ 559,777 25.8 % Residential 1,388,840 48.2 % 1,279,504 53.8 % 1,131,414 52.2 % Infrastructure Solutions 351,096 12.2 % 217,353 9.1 % 167,113 7.7 % Commercial & Industrial 367,948 12.8 % 279,594 11.8 % 308,504 14.2 % Total Consolidated $ 2,884,358 100.0 % $ 2,377,227 100.0 % $ 2,166,808 100.0 % For additional financial information by segment, see Note 11, “Operating Segments” in the notes to our Consolidated Financial Statements.
The table below describes the percentage of our total revenues attributable to each of our four segments over each of the last three years (percentage columns may not add due to rounding): Year Ended September 30, 2025 2024 2023 $ % $ % $ % (Dollars in thousands, Percentage of revenues) Communications $ 1,140,640 33.8 % $ 776,474 26.9 % $ 600,776 25.3 % Residential 1,304,369 38.7 % 1,388,840 48.2 % 1,279,504 53.8 % Infrastructure Solutions 498,724 14.8 % 351,096 12.2 % 217,353 9.1 % Commercial & Industrial 427,735 12.7 % 367,948 12.8 % 279,594 11.8 % Total Consolidated $ 3,371,468 100.0 % $ 2,884,358 100.0 % $ 2,377,227 100.0 % For additional financial information by segment, see Note 11, “Operating Segments” in the notes to our Consolidated Financial Statements.
Tontine owns approximately 55 percent of our outstanding common stock based on a Form 4 filed by Tontine with the United States Securities and Exchange Commission (the "SEC") on September 16, 2024, and the Company's shares outstanding as of November 18, 2024.
Tontine owns approximately 54 percent of our outstanding common stock based on a Form 4 and a Schedule 13D/A filed by Tontine with the United States Securities and Exchange Commission (the "SEC") on September 17, 2025, and the Company's shares outstanding as of November 17, 2025.
We 7 maintain automobile, general liability and construction defect insurance for third-party health, bodily injury and property damage, as well as pollution coverage and workers’ compensation coverage, which we consider appropriate to insure against these risks. Our third-party insurance is subject to deductibles for which we establish reserves.
We monitor project bidding and management practices at various levels within the Company. We maintain automobile, general liability and construction defect insurance for third-party health, bodily injury and property damage, as well as pollution coverage and workers’ compensation coverage, which we consider appropriate to insure against these risks. Our third-party insurance is subject to deductibles for which we establish reserves.
“ Risk Factors ” of this Annual Report on Form 10-K. CUSTOMERS We have a diverse customer base. During both of the years ended September 30, 2024 and 2023, one customer accounted for 12.0% of our consolidated revenues and no other customer accounted for more than 10% of our consolidated revenues.
“ Risk Factors ” of this Annual Report on Form 10-K. CUSTOMERS We have a diverse customer base. During the year ended September 30, 2025, no single customer accounted for more than 10% of our consolidated revenues.
Gendell has also served as a director and as Chairman of the Board since November 2016. Mr. Gendell is the founder and managing member of Tontine, our controlling shareholder. Mr. Gendell formed Tontine in 1995 and manages all of the investment decisions at the firm. Prior to forming Tontine, Mr.
Gendell is the founder and managing member of Tontine, our controlling shareholder. Mr. Gendell formed Tontine in 1995 and manages all of the investment decisions at the firm. Prior to forming Tontine, Mr.
Safety We are committed to fostering a strong safety culture that supports the health, safety and wellness of our employees, and this commitment is reflected in our track record of workplace safety that exceeds industry averages.
We believe our investment in training supports employee motivation and retention at the same time that it improves productivity and performance. Safety We are committed to fostering a strong safety culture that supports the health, safety and wellness of our employees, and this commitment is reflected in our track record of workplace safety that exceeds industry averages.
She previously served as Vice President and Chief Accounting Officer of the Company since February 2014. Prior to joining IES, Ms. McLauchlin served as Vice President and Chief Accounting Officer of Rockwater Energy Solutions, Inc. from June 2011 to November 2013. From June 2004 to June 2011, Ms.
McLauchlin served as Vice President and Chief Accounting Officer of Rockwater Energy Solutions, Inc. from June 2011 to November 2013. From June 2004 to June 2011, Ms.
However, such protections are not included in every contract or project, and in such cases, we may not be fully reimbursed for increases in commodity prices by our customers and may be exposed to commodity price volatility on longer-term projects where we have prepaid for commodities.
However, such protections are not included in every contract or project, and in such cases, we may not be fully reimbursed for increases in commodity prices by our customers and may be exposed to commodity price volatility on longer-term projects where we have prepaid for commodities. 7 RISK MANAGEMENT The primary risks in our existing operations include project bidding and management, bodily injury, property and environmental damage, and construction defects.
CONTROLLING SHAREHOLDER A majority of our outstanding common stock is owned by Tontine Associates, L.L.C. ("Tontine Associates") and its affiliates (collectively, “Tontine”).
Management at each of our segments is responsible for determining sales strategies and sales activities. CONTROLLING SHAREHOLDER A majority of our outstanding common stock is owned by Tontine Associates, L.L.C. ("Tontine Associates") and its affiliates (collectively, “Tontine”).
For example, our Residential segment has established two residential education centers, which are dedicated facilities that train employees from around the country in the technical skills necessary for successful careers in residential electrical, plumbing and HVAC contracting.
For example, our Residential segment has established two residential education centers, which are dedicated facilities that train employees from around the country in the technical skills necessary for successful careers in residential electrical, plumbing and HVAC contracting. At all of our segments, we also include online training offerings to help meet the needs of our often mobile workforce.
Mary K. Newman , 44, has served as Vice President, General Counsel and Corporate Secretary of the Company since December 2019. Prior to joining IES, Ms.
Mary K. Newman , 45, has served as Senior Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary of the Company since July 1, 2025, and previously served as Vice President, General Counsel and Corporate Secretary of the Company from December 2019 through June 2025. Prior to joining IES, Ms.
However, in the longer term, we still expect strong demand for new single-family housing. In our multi-family business, elevated interest rates in fiscal 2024 and tighter lending conditions for project owners have resulted in a reduction in backlog at September 30, 2024 compared with September 30, 2023.
In our multi-family business, prolonged elevated interest rates and tighter lending conditions for project owners have resulted in a reduction in backlog at September 30, 2025 compared with September 30, 2024. As a result, we expect a reduction in multi-family revenue for fiscal 2026 compared with fiscal 2025.
EXECUTIVE OFFICERS OF THE REGISTRANT Certain information with respect to each executive officer is as follows: Jeffrey, L. Gendell, 65, has served as the Chief Executive Officer of the Company since October 1, 2020; he previously served as Interim Chief Executive Officer from July 31, 2020 to September 30, 2020. Mr.
EXECUTIVE OFFICERS OF THE REGISTRANT Certain information with respect to each executive officer is as follows: Jeffrey, L. Gendell, 66, has served as Executive Chairman of the Company since July 1, 2025.
Additionally, electrical installation services for single-family housing at our Residential segment are completed on a short-term basis and are therefore excluded from backlog.
Additionally, electrical installation services for single-family housing at our Residential segment are completed on a short-term basis and are therefore excluded from backlog. In our Communications segment, we have a significant amount of shorter duration projects that can be substantially completed within a quarter.
No single customer accounted for more than 10% of our consolidated revenues during the year ended September 30, 2022. We emphasize developing and maintaining relationships with our customers by providing superior, high-quality service. Management at each of our segments is responsible for determining sales strategies and sales activities.
One customer at our Residential segment accounted for 12.0% of our consolidated revenues and no other customer accounted for more than 10% of our consolidated revenues during the years ended September 30, 2024 and 2023. We emphasize developing and maintaining relationships with our customers by providing superior, high-quality service.
The table below summarizes our remaining performance obligations and backlog by segment: September 30, 2024 2023 Remaining Performance Obligations Agreements without an enforceable obligation (1) Backlog Remaining Performance Obligations Agreements without an enforceable obligation (1) Backlog (Dollars in millions) Communications $ 448,783 $ 66,878 $ 515,661 $ 369,928 $ 42,239 $ 412,167 Residential 329,364 95,124 424,488 414,179 103,657 517,836 Infrastructure Solutions 100,815 426,749 527,564 109,082 240,683 349,765 Commercial & Industrial 296,733 21,708 318,441 250,234 28,010 278,244 Total $ 1,175,695 $ 610,459 $ 1,786,154 $ 1,143,423 $ 414,589 $ 1,558,012 (1) Our backlog includes signed agreements and letters of intent that we do not have a legal right to enforce prior to beginning work.
The table below summarizes our remaining performance obligations and backlog by segment: September 30, 2025 2024 Remaining Performance Obligations Agreements without an enforceable obligation (1) Backlog Remaining Performance Obligations Agreements without an enforceable obligation (1) Backlog (Dollars in millions) Communications $ 692,238 $ 63,569 $ 755,807 $ 448,783 $ 66,878 $ 515,661 Residential 252,021 121,549 373,570 329,364 95,124 424,488 Infrastructure Solutions 128,691 490,557 619,248 100,815 426,749 527,564 Commercial & Industrial 613,633 11,532 625,165 296,733 21,708 318,441 Total $ 1,686,583 $ 687,207 $ 2,373,790 $ 1,175,695 $ 610,459 $ 1,786,154 (1) Our backlog includes signed agreements and letters of intent that we do not have a legal right to enforce prior to beginning work.
Delivery times are typically short for most raw materials and standard components, but during periods of peak demand, may extend to one month or more. Fluctuations in lead times in sourcing certain components may lead to project inefficiencies resulting from schedule extensions. We are also exposed to increases in the prices of certain commodities.
Fluctuations in lead times in sourcing certain components may lead to project inefficiencies resulting from schedule extensions. We are also exposed to increases in the prices of certain commodities.
Our sales efforts include a variety of strategies, including a concentrated focus on national and regional homebuilders and multi-family developers and a local sales strategy for single and multi-family housing projects. A significant portion of our Residential business volume is generated from long-term, repeat customers, some of whom use IES as a preferred provider for major projects.
A significant portion of our Residential business volume is generated from long-term, repeat customers, some of whom use IES as a preferred provider for major projects.
Although we operate in multiple states, the majority of our single-family revenues are derived from services provided in Texas and Florida. The majority of our multi-family revenue is earned in Texas and across the Mid-Atlantic and Southeast regions.
Sales and Marketing Demand for our Residential services is highly dependent on the number of single-family and multi-family home starts in the markets we serve. Although we operate in multiple states, the majority of our single-family revenues are derived from services provided in Texas and Florida.
The Residential segment also provides services for the installation of residential solar power, both for new construction and existing residences. The Residential segment is made up of 75 total locations, which include the segment headquarters in Houston, Texas. These locations geographically cover the Sun-Belt, Western, Mid-Atlantic, Midwest and Northeastern regions of the United States.
The Residential segment is made up of 99 total locations, which include the segment headquarters in Sugar Land, Texas. These locations geographically cover the Sun-Belt, Western, Mid-Atlantic, Midwest and Northeastern regions of the United States. Industry Overview Our Residential business is closely correlated to the single and multi-family housing market.
Our safety leadership continuously monitors and addresses safety performance, provides regular training and educational programs on safety and participates in numerous industry safety organizations. 10 LOCATIONS As of September 30, 2024, we have 131 domestic locations.
Our safety leadership continuously monitors and addresses safety performance, provides regular training and educational programs on safety and participates in numerous industry safety organizations. 10 CLIMATE CHANGE-RELATED IMPACTS We consider climate-related risks as part of our overall planning and risk management process, with oversight by our Board of Directors.
She began her legal career with the law firm of Sullivan & Cromwell LLP after receiving her J.D. from Harvard Law School and B.A. from Duke University. We have adopted a Code of Ethics for Financial Executives that applies to our principal executive officer, principal financial officer and principal accounting officer.
She began her legal career with the law firm of Sullivan & Cromwell LLP after receiving her J.D. from Harvard Law School and B.A. from Duke University. Matthew M. Allen , 51, has served as the Chief Technical Officer of the Company since July 2024.
Simmes , 49, has served as President and Chief Operating Officer of the Company since December 7, 2023; he previously served as Chief Operating Officer of the Company from December 3, 2021 to December 6, 2023. Mr. Simmes has spent 31 years at IES and its predecessors in a variety of roles.
Simmes , 50, has served as President and Chief Executive Officer of the Company since July 1, 2025. He previously served as President and Chief Operating Officer of the Company from December 2023 through June 2025, and as Chief Operating Officer of the Company from December 2021 through December 2023. Mr.
He served as President of IES Communications from January 2017 to December 2021 and as Vice President of Operations of the segment from March 2007 to December 2016. Tracy A. McLauchlin , 55, has served as Senior Vice President, Chief Financial Officer and Treasurer of the Company since May 2015.
McLauchlin , 56, has served as Senior Vice President, Chief Financial Officer and Treasurer of the Company since May 2015. She previously served as Vice President and Chief Accounting Officer of the Company since February 2014. Prior to joining IES, Ms.
The Code of Ethics may be found on our website at www.ies-corporate.com/governance-documents .
Allen is also a veteran of the United States Navy. We have adopted a Code of Ethics for Financial Executives that applies to our principal executive officer, principal financial officer and principal accounting officer. The Code of Ethics may be found on our website at www.ies-corporate.com/governance-documents .
Our human capital management objectives include recruiting, retaining, developing, incentivizing and integrating our current and prospective employees as well as prioritizing and protecting their safety. Our Employees At September 30, 2024, we had 9,485 employees, of which 9,423 were full-time employees. We are party to two collective bargaining agreements covering fewer than 30 employees within our Infrastructure Solutions segment.
Our Employees At September 30, 2025, we had 10,283 employees, of which 10,262 were full-time employees. We are party to two collective bargaining agreements covering fewer than 30 employees within our Infrastructure Solutions segment. We have not experienced, and do not expect, any work stoppage, and we believe that our relationship with our employees is strong.
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Industry Overview Our Residential business is closely correlated to the single and multi-family housing market. Although demand for both single-family and multi-family housing has increased in recent years, due to economic, technological or other factors, there can be no assurance that overall construction and demand will continue to increase in the future.
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Demand for both single-family and multi-family housing has decreased over the last fiscal year, as consumers continued to face housing affordability challenges as a result of elevated mortgage rates and the impacts of inflation on materials and labor costs.
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As a result, we expect a reduction in multi-family revenue for fiscal 2025 compared with fiscal 2024. Sales and Marketing Demand for our Residential services is highly dependent on the number of single-family and multi-family home starts in the markets we serve.
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The majority of our multi-family revenue is earned in Texas and across the Midwest, Mid-Atlantic and Southeast regions. Our sales efforts include a variety of strategies, including a concentrated focus on national and regional homebuilders and multi-family developers and a local sales strategy for single and multi-family housing projects.
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RISK MANAGEMENT The primary risks in our existing operations include project bidding and management, bodily injury, property and environmental damage, and construction defects. We monitor project bidding and management practices at various levels within the Company.
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Delivery times are typically short for most raw materials and standard components, but during periods of peak demand, may extend to one month or more. Orders for certain equipment such as electrical switch gear and power generators have experienced lead times of several months or more.
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We have not experienced, and do not expect, any work stoppage, and we believe that our relationship with our employees is strong.
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Our business depends on skilled labor to complete projects for our customers, and our management and administrative functions require professional personnel to support the business. Our human capital management objectives include recruiting, retaining, developing, incentivizing and integrating our current and prospective employees as well as prioritizing and protecting their safety.
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At all of our segments, partly in response to the COVID-19 pandemic, we expanded online training offerings to help meet the needs of our changing workplaces. We believe our investment in training supports employee motivation and retention at the same time that it improves productivity and performance.
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Challenges such as increasing frequency and severity of weather events and prolonged periods of elevated temperatures have affected, and are expected to continue to affect, our operations.
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Severe weather events such as hurricanes and other storms can interrupt our operations by requiring that work be temporarily suspended on construction projects or by impacting the ability of our employees to report to work or reach job sites.
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Severe weather can also have a negative effect on the housing market by increasing the cost of insurance for home buyers, particularly in the Gulf Coast region, which is an important market for our Residential segment.
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Additionally, sustained elevated temperatures relative to historical norms in certain regions, especially on job sites where our employees are working outdoors, can pose health and safety challenges that require us to implement additional protective measures. We are monitoring the impact of new and evolving regulations, which we expect will result in additional compliance costs.
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For example, the State of California has recently adopted rules requiring the disclosure of a range of climate-related risks and impacts, as well as greenhouse gas emissions, and new legislation in other jurisdictions may follow. As a result, we expect to incur increased costs to comply with such requirements. LOCATIONS As of September 30, 2025, we have 174 domestic locations.
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He previously served as the Chief Executive Officer from October 1, 2020 through June 30, 2025, and served as Interim Chief Executive Officer from July 31, 2020 to September 30, 2020. Mr. Gendell has also served as a director and as Chairman of the Board since November 2016. Mr.
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Simmes has spent 30 years at IES and its predecessors in a variety of roles. He served as President of IES Communications from January 2017 to December 2021 and was the segment’s Vice President of Operations from March 2006 to December 2016 and branch manager of its Arizona operations from 2003 to 2006. Tracy A.
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Previously, he was Vice President of Pre-construction at IES Communications from January 2019 to July 2024 and was a Field Application Engineer at CommScope, a network infrastructure provider, from April 2018 to December 2019. In addition, from August 2012 to March 2018, he held various 11 roles at IES Communications, including National Colocation Datacenter Division Manager. Mr.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeA failure to comply with investor or customer expectations and standards, which are evolving and vary considerably, or the perception that we have not responded appropriately to the growing concern for ESG issues, could result in reputational harm to our business and could have an adverse effect on us.
Biggest changeA failure to comply with requirements or to meet investor or customer expectations and standards, which are evolving and vary considerably, or the perception that we have not responded appropriately to the growing concern for climate related issues, could result in reputational harm to our business and could have an adverse effect on us. 20 In addition, organizations that provide ratings information to investors on such matters may assign unfavorable ratings to IES or our industries, which may lead to negative investor sentiment and the diversion of investment capital to other companies or industries, which could have a negative impact on our stock price and our costs of capital.
Although our information technology systems, networks and infrastructure are protected through our policies, procedures and physical and software safeguards, our information technology environment is still vulnerable to natural disasters, power losses, telecommunication failures, deliberate intrusions, inadvertent user misuse or error, computer viruses, malicious code, ransomware 16 attacks, acts of terrorism and other cyber security risks, which could cause a loss of critical data, or release of sensitive information.
Although our information technology systems, networks and infrastructure are protected through our policies, procedures and physical and software safeguards, our information technology environment is still vulnerable to natural disasters, power losses, telecommunication failures, deliberate intrusions, inadvertent user misuse or error, computer viruses, malicious code, ransomware attacks, acts of terrorism and other cyber security risks, which could cause a loss of critical data, or release of sensitive information.
The impact of future epidemics, pandemics or other public health emergencies on our business is difficult to predict, but adverse impacts could include the potential for job site closures or work stoppages, supply chain disruptions, delays in 14 awarding new project bids, construction delays, reduced demand for our services, delays in our ability to collect from our customers, or illness of management or other employees.
The impact of future epidemics, pandemics or other public health emergencies on our business is difficult to predict, but adverse impacts could include the potential for job site closures or work stoppages, supply chain disruptions, delays in awarding new project bids, construction delays, reduced demand for our services, delays in our ability to collect from our customers, or illness of management or other employees.
Alternatively, if a court were to find these provisions of our bylaws inapplicable to, or unenforceable in respect of, the claims as to which they are intended to apply, then we may incur additional costs associated with 20 resolving such matters in other jurisdictions, which could adversely affect our business, financial position or results of operations.
Alternatively, if a court were to find these provisions of our bylaws inapplicable to, or unenforceable in respect of, the claims as to which they are intended to apply, then we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business, financial position or results of operations.
As a result, these conditions have had, and they or any similar future conditions may continue to have, adverse impacts on our business, financial condition and results of operations. The highly competitive nature of our industries could affect our profitability by reducing our revenues or profit margins.
As a result, these conditions have had, and they or any similar future conditions may continue to have, adverse impacts on our business, financial condition and results of operations. 12 The highly competitive nature of our industries could affect our profitability by reducing our revenues or profit margins.
We also rely on suppliers for the materials necessary to complete our projects, and if a supplier fails to provide supplies when scheduled or at a higher than price than expected, project delays and additional costs could have an adverse effect on our operating results.
We also rely on suppliers 13 for the materials necessary to complete our projects, and if a supplier fails to provide supplies when scheduled or at a higher price than expected, project delays and additional costs could have an adverse effect on our operating results.
In addition, if our safety record were to substantially deteriorate over time, our customers could cancel our contracts or not award us future business. 15 Our current insurance coverage may not be adequate, and we may not be able to obtain insurance at acceptable rates, or at all.
In addition, if our safety record were to substantially deteriorate over time, our customers could cancel our contracts or not award us future business. Our current insurance coverage may not be adequate, and we may not be able to obtain insurance at acceptable rates, or at all.
Additionally, new tax laws or changes in existing interpretation and guidance could affect our provision for income taxes, deferred tax assets and liabilities, and reserves for uncertain tax positions, potentially resulting in an increase to our effective tax rate, which could adversely affect our results.
Additionally, new tax laws or changes in 18 existing interpretation and guidance could affect our provision for income taxes, deferred tax assets and liabilities, and reserves for uncertain tax positions, potentially resulting in an increase to our effective tax rate, which could adversely affect our results.
Estimates and assumptions are used in, among other areas, our assessment of revenue 18 recognition of construction in progress, fair value assumptions in accounting for business combinations, stock-based compensation, reserves for legal matters, and realizability of deferred tax assets and unrecognized tax benefits.
Estimates and assumptions are used in, among other areas, our assessment of revenue recognition of construction in progress, fair value assumptions in accounting for business combinations, stock-based compensation, reserves for legal matters, and realizability of deferred tax assets and unrecognized tax benefits.
While we have experienced increased liquidity in our stock during recent years compared with historical levels, we cannot say with certainty that a more active and liquid trading market for our common stock will continue to 19 develop.
While we have experienced increased liquidity in our stock during recent years compared with historical levels, we cannot say with certainty that a more active and liquid trading market for our common stock will continue to develop.
Accordingly, our performance in any particular quarter or year may not be indicative of the results that can be expected for any other quarter, for the entire year, or for any other year. We may experience difficulties in managing our billings and collections.
Accordingly, our performance in any particular quarter or year may not be indicative of the results that can be expected for any other quarter, for the entire year, or for any other year. 15 We may experience difficulties in managing our billings and collections.
We have from time to time experienced cybersecurity incidents, such as ransomware attacks or unauthorized parties gaining access to our information technology systems, and privacy incidents, such as potential exposure of data.
We have from time to time experienced cybersecurity incidents, such as ransomware attacks or unauthorized parties gaining access to our information technology systems, and privacy incidents, such as potential or actual exposure of data.
When appropriate, we establish provisions against possible exposures, and we adjust these provisions from time to time, but our assumptions and estimates related to these exposures might prove to be inadequate or inaccurate.
When appropriate, we establish provisions 14 against possible exposures, and we adjust these provisions from time to time, but our assumptions and estimates related to these exposures might prove to be inadequate or inaccurate.
We have a work force of over 9,000 employees, and our labor costs may fluctuate based on availability of and demand for workers as well as other labor related risks, including risks related to collective bargaining agreements, benefits arrangements, increased healthcare costs, wage and hour claims and other compensation arrangements.
We have a work force of over 10,000 employees, and our labor costs may fluctuate based on availability of and demand for workers as well as other labor related risks, including risks related to collective bargaining agreements, benefits arrangements, increased healthcare costs, wage and hour claims and other compensation arrangements.
We have established reserves for tax positions that we have determined to be less than likely to be sustained by taxing authorities. However, there can be no assurance that our results of operations will not be adversely affected in the event that disagreement over our tax positions does arise.
We have established reserves for tax positions that we have determined to be less than likely to be sustained upon examination by taxing authorities. However, there can be no assurance that our results of operations will not be adversely affected in the event that disagreement over our tax positions does arise.
These laws and regulations govern many aspects of our business, and there are often different standards and requirements in different locations.
These laws and regulations govern many aspects of our business, 16 and there are often different standards and requirements in different locations.
A majority of our outstanding common stock is owned by Tontine, and Jeffrey Gendell, founder and managing member of Tontine, serves as our Chief Executive Officer and as Chairman of our Board of Directors.
A majority of our outstanding common stock is owned by Tontine, and Jeffrey Gendell, founder and managing member of Tontine, serves as Executive Chairman of our Board of Directors.
If we fail to comply with those requirements, we may be subject to fines, penalties or suspension from doing business with the federal government. Our 131 locations are located in 27 states, which exposes us to a variety of different state and local laws and regulations, including those pertaining to electrical contractor and other licensing requirements.
If we fail to comply with those requirements, we may be subject to fines, penalties or suspension from doing business with the federal government. Our 174 locations are located in 28 states, which exposes us to a variety of different state and local laws and regulations, including those pertaining to electrical contractor and other licensing requirements.
We may not be able to remain in compliance with the covenants in our credit agreement, including financial covenants which, among other things, require minimum levels of liquidity and require us to maintain a specified fixed charge coverage ratio as defined under our credit agreement.
We may not be able to remain in compliance with the covenants in our credit agreement, including financial covenants which, among other things, require minimum levels of liquidity and require us to maintain specified leverage and interest coverage ratios as defined under our credit agreement.
Our authorized capital includes 100,000,000 shares of common stock and 10,000,000 shares of preferred stock. As of September 30, 2024, we had 22,049,529 shares of common stock issued, 19,971,670 shares of common stock outstanding and no shares of preferred stock issued or outstanding.
Our authorized capital includes 100,000,000 shares of common stock and 10,000,000 shares of preferred stock. As of September 30, 2025, we had 22,049,529 shares of common stock issued, 19,854,463 shares of common stock outstanding and no shares of preferred stock issued or outstanding.
We have restrictions and covenants under our credit agreement and the failure to meet these covenants, including liquidity and other financial requirements, could result in a default under our credit agreement.
We have restrictions and covenants under our credit agreement and the failure to meet these covenants could result in a default under our credit agreement.
As of September 30, 2024, we had the ability to issue 581,169 shares of common stock, including upon the exercise of options, as future grants under our existing equity compensation plans.
As of September 30, 2025, we had the ability to issue 1,265,801 shares of common stock, including upon the exercise of options, as future grants under our existing equity compensation plans.
Some of our past acquisitions and investments have not performed as expected, and there is no assurance that future acquisitions and investments will perform as expected or generate a positive return on investment due to factors we could not predict prior to the acquisition or due to incorrect investment assumptions. 13 Acquisitions, dispositions and other strategic transactions that we may pursue could have a negative effect on our results of operations.
Some of our past acquisitions and investments have not performed as expected, and there is no assurance that future acquisitions and investments will perform as expected or generate a positive return on investment due to factors we could not predict prior to the acquisition or due to incorrect investment assumptions.
Any such deferrals would inhibit our growth and would adversely affect our results of operations. In a weak economic environment, particularly in a period of restrictive credit markets, we may experience greater difficulties in collecting payments from our customers due to, among other reasons, a diminution in our ultimate customers’ access to the credit markets.
In a weak economic environment, particularly in a period of restrictive credit markets, we may experience greater difficulties in collecting payments from our customers due to, among other reasons, a diminution in our ultimate customers’ access to the credit markets.
We maintain insurance coverage in part because some of our contracts require us to carry certain levels of insurance coverage, which is common in the industries in which we operate. Our third-party insurance is subject to deductibles for which we establish reserves.
We maintain insurance coverage in part because some of our contracts require us to carry certain levels of insurance coverage, which is common in the industries in which we operate. Our third-party insurance is subject to high deductibles for which we establish reserves, and therefore we are effectively self-insured for typical claims up to those deductibles.
In addition, a lack of skilled labor or increased turnover rates within our employee base could lead to increased costs, such as increased overtime to meet demand and increased wage rates to attract and retain employees.
In addition, a lack of skilled labor or increased turnover rates within our employee base could lead to increased costs, such as increased overtime to meet demand and increased wage rates to attract and retain employees. Continued labor constraints may limit our ability to grow and may limit our profitability due to the impact of rising wages.
Tontine owns approximately 55 percent of the Company’s outstanding common stock based on a Form 4 filed by Tontine with the SEC on September 16, 2024, and the Company's shares outstanding as of November 18, 2024.
Tontine owns approximately 54 percent of the Company’s outstanding common stock based on a Form 4 and a Schedule 13D/A filed by Tontine with the SEC on September 17, 2025, and the Company's 19 shares outstanding as of November 17, 2025.
At September 30, 2024, we had recorded $94.0 million of goodwill on our Consolidated Balance Sheets.
At September 30, 2025, we had recorded $107.8 million of goodwill on our Consolidated Balance Sheets.
Compliance with more stringent laws or regulations, as well as more vigorous enforcement policies of the regulatory agencies, could increase the costs of projects for us or our customers, potentially resulting in reduced profitability or a reduced demand for our services, or require us to incur substantial costs of compliance.
Compliance with more stringent laws or regulations, as well as more vigorous enforcement policies of the regulatory agencies, could increase the costs of projects for us or our customers, potentially resulting in reduced profitability or a reduced demand for our services, or require us to incur substantial costs of compliance. 17 The loss of a group or several key personnel, either at the corporate or operating level, or general labor constraints could adversely affect our business.
We are actively seeking to engage in acquisitions of operations, assets and investments, or to develop new types of work or processes, and we may seek to engage in dispositions of certain operations, assets or investments from time to time.
Acquisitions, dispositions and other strategic transactions that we may pursue could have a negative effect on our results of operations. We are actively seeking to engage in acquisitions of operations, assets and investments, or to develop new types of work or processes, and we may seek to engage in dispositions of certain operations, assets or investments from time to time.
Depending upon the size of a particular project, variations from estimated contract costs can have a significant impact on our operating results. 12 If the costs associated with labor and commodities, such as copper, aluminum, steel, electrical components, fuel, and certain plastics, increase due to low supply, inflation, general market conditions, supply chain disruptions and delays, or other forces, losses may be incurred.
If the costs associated with labor and commodities, such as copper, aluminum, steel, electrical components, fuel, and certain plastics, increase due to low supply, inflation, general market conditions, supply chain disruptions and delays, or other forces, losses may be incurred.
At times, tightened availability of credit and changes in interest rates that affect the cost of construction financing and mortgages have negatively impacted the ability of existing and prospective customers to obtain sufficient financing and fund projects we might otherwise perform. As a result, our customers may defer such projects for an unknown, and perhaps lengthy, period.
Many of our customers depend on the availability of credit to help finance their capital and maintenance projects. At times, tightened availability of credit and changes in interest rates that affect the cost of construction financing and mortgages have negatively impacted the ability of existing and prospective customers to obtain sufficient financing and fund projects we might otherwise perform.
A number of economic factors, including financing conditions for our customers' industries, have, in the past, adversely affected our customers and their ability or willingness to fund expenditures. Many of our customers depend on the availability of credit to help finance their capital and maintenance projects.
Risks Relating to our Financial Results, Financing and Liquidity The impact on our customers of negative conditions in the credit and capital markets may adversely affect our business. A number of economic factors, including financing conditions for our customers' industries, have, in the past, adversely affected our customers and their ability or willingness to fund expenditures.
The loss of a group or several key personnel, either at the corporate or operating level, or general labor constraints could adversely affect our business. The loss of key personnel or the inability to hire and retain qualified employees could have an adverse effect on our business, financial condition and results of operations.
The loss of key personnel or the inability to hire and retain qualified employees could have an adverse effect on our business, financial condition and results of operations. Our operations depend on the continued efforts of our executive officers, senior management and management personnel at our segments.
We have one customer that represented approximately 12.0% of our consolidated revenue in fiscal 2024, and there are other customers that are significant to our individual operating segments.
While we do not have any single customer that represented more than 10% of our consolidated revenue in fiscal 2025, there are customers that are significant to our individual operating segments.
Increasing scrutiny and changing expectations from investors and customers with respect to our environmental, social and governance practices may impose additional costs on us or expose us to reputational or other risks. Investors have increased their emphasis on the environmental, social and governance (“ESG”) practices of companies across all industries, including the environmental impact of operations and human capital management.
Increasing scrutiny and changing expectations with respect to our approach to climate related risks may expose us to reputational or other risks. Various stakeholders have increased their emphasis on companies' disclosures of climate related risks and the environmental impact of operations. Mandatory and voluntary reporting of climate related matters continues to expand.
Removed
Our operations depend on the continued efforts of our executive officers, senior management and management personnel at our segments.
Added
Depending upon the size of a particular project, variations from estimated contract costs can have a significant impact on our operating results.
Removed
Continued labor constraints may limit our ability to grow and may limit our profitability due to the impact of rising wages. 17 Risks Relating to our Financial Results, Financing and Liquidity The impact on our customers of negative conditions in the credit and capital markets may adversely affect our business.
Added
As a result, our customers may defer such projects for an unknown, and perhaps lengthy, period. Any such deferrals would inhibit our growth and would adversely affect our results of operations.
Removed
Certain stockholders use third-party benchmarks or scores to measure a company’s ESG practices when deciding whether to invest in its common stock or engage with the company to require changes to its practices. In addition, our customers may evaluate our ESG practices or require that we adopt certain ESG policies as a condition of awarding contracts.
Removed
In addition, organizations that provide ratings information to investors on ESG matters may assign unfavorable ratings to IES or our industries, which may lead to negative investor sentiment and the diversion of investment capital to other companies or industries, which could have a negative impact on our stock price and our costs of capital.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur incident response plan provides for prompt notice to the Board of any material cybersecurity incident. Our cybersecurity program is overseen by our head of cybersecurity, with guidance from our Chief Technical Officer and our Vice President of Information Technology.
Biggest changeOur incident response plan provides for prompt notice to the Board of any material cybersecurity incident. Our cybersecurity program is overseen by our head of cybersecurity, with guidance from our Chief Technical Officer.
In addition, the Company has adopted an incident response plan establishing the processes for responding to any cybersecurity incident. The Company has engaged third party cybersecurity firms to perform maturity assessments of our cybersecurity risk management program, the results of which are reported to the Board.
In addition, the Company has 21 adopted an incident response plan establishing the processes for responding to any cybersecurity incident. The Company periodically engages third party cybersecurity firms to perform maturity assessments of our cybersecurity risk management program, the results of which are reported to the Board.
Our head of cybersecurity has more than ten years of experience managing cybersecurity 21 matters, holds an undergraduate degree in information systems with a focus on information security, and holds numerous certificates across the cybersecurity landscape. Our head of cybersecurity is also responsible for providing the Audit Committee with quarterly updates on cybersecurity risks and developments.
Our head of cybersecurity has more than ten years of experience managing cybersecurity matters, holds an undergraduate degree in information systems with a focus on information security, and holds numerous certificates across the cybersecurity landscape. Our Chief Technical Officer is responsible for providing the Audit Committee with quarterly updates on cybersecurity risks and developments.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties At September 30, 2024, we maintained branch offices, warehouses, sales facilities and administrative offices at 131 locations. The majority of our facilities are leased. We lease our executive office located in Greenwich, Connecticut and our corporate office located in Houston, Texas.
Biggest changeItem 2. Properties At September 30, 2025, we maintained branch offices, warehouses, sales facilities and administrative offices at 174 locations. The majority of our facilities are leased. We lease our executive office located in Greenwich, Connecticut and our corporate office located in Sugar Land, Texas.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. MINE SAFETY DISCLOSURES 22 PART II Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 23 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 25 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 39 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 40
Biggest changeItem 4. MINE SAFETY DISCLOSURES 22 PART II Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 23 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 25 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 38 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 39

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table presents information with respect to purchases of common stock by the Company during the three months ended September 30, 2024 : Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of a Publicly Announced Plan Maximum Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Plan July 1, 2024 – July 31, 2024 124,892 $140.75 119,041 $ 200,000,000 August 1, 2024 – August 31, 2024 573 $173.62 — $ 200,000,000 September 1, 2024 – September 30, 2024 12,738 $145.92 12,738 $ 198,141,288 Total 138,203 $141.37 131,779 $ 198,141,288 23 Five-Year Stock Performance Graph The graph below compares the cumulative five year total return provided shareholders on IES Holdings, Inc.'s common stock relative to the cumulative total returns of (i) the Russell 2000 index, (ii) a customized peer group of four companies that includes Comfort Systems USA Inc., MYR Group Inc., Sterling Infrastructure, Inc. and Primoris (the "Peer Group (Old)") and (iii) a revised customized peer group of five companies that includes Comfort Systems USA Inc., MYR Group Inc., Sterling Infrastructure, Inc., Primoris and Installed Building Products, Inc.
Biggest changeThe following table presents information with respect to purchases of common stock by the Company during the three months ended September 30, 2025 : Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of a Publicly Announced Plan Maximum Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Plan July 1, 2025 – July 31, 2025 — $— — $ 167,950,925 August 1, 2025 – August 31, 2025 — $— — $ 167,950,925 September 1, 2025 – September 30, 2025 — $— — $ 167,950,925 Total — $— — $ 167,950,925 23 Five-Year Stock Performance Graph The graph below compares the cumulative five year total return provided shareholders on IES Holdings, Inc.'s common stock relative to the cumulative total returns of (i) the Russell 2000 index and (ii) a customized peer group of five companies that includes Comfort Systems USA Inc., MYR Group Inc., Sterling Infrastructure, Inc., Primoris and Installed Building Products, Inc.
An investment of $100 (with reinvestment of all dividends) is assumed to have been made in our common stock, in the Russell 2000 index, and in the peer group on September 30, 2019, and its relative performance is tracked through September 30, 2024.
An investment of $100 (with reinvestment of all dividends) is assumed to have been made in our common stock, in the Russell 2000 index, and in the peer group on September 30, 2020, and its relative performance is tracked through September 30, 2025.
Item 5. Market for Registrant’s Common Equity; Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock trades on the Nasdaq Global Market under the ticker symbol “IESC.” As of November 18, 2024, the closing market price of our common stock was $264.67 per share and there were approximately 299 holders of record.
Item 5. Market for Registrant’s Common Equity; Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock trades on the Nasdaq Global Market under the ticker symbol “IESC.” As of November 17, 2025, the closing market price of our common stock was $359.63 per share and there were approximately 266 holders of record.
We have never declared or paid dividends on our common stock. We intend to retain any future earnings and do not expect to pay cash dividends in the foreseeable future.
We have never declared or paid dividends on our common stock. We intend to retain any future earnings and do not expect to pay cash dividends in the foreseeable future. Stock Repurchase Program On July 31, 2024, the Board authorized a $200 million stock repurchase program.
During the year ended September 30, 2024 , we repurchased 289,284 shares of common stock at an average price of $136.34 per share for a total aggregate purchase price of $39.4 million . The Company had $198.1 million remaining under its stock repurchase authorization at September 30, 2024.
During the year ended September 30, 2025 , we repurchased 173,262 shares of common stock at an average price of $174.25 per share for a total aggregate purchase price of $30.2 million . The Company had $168.0 million remaining under its stock repurchase authorization at September 30, 2025.
Comparison of Five Year Cumulative Total Return* Among IES Holdings, Inc., the Russell 2000 Index, and a Peer Group *$100 invested on September 30, 2019 in stock or index, including reinvestment of dividends. 2019 2020 2021 2022 2023 2024 IES Holdings, Inc. $ 100.00 $ 154.30 $ 221.90 $ 134.14 $ 319.91 $ 969.50 Russell 2000 100.00 100.39 148.26 113.42 123.54 156.60 Peer Group (Old) 100.00 87.47 156.40 149.30 311.92 530.14 Peer Group (New) 100.00 112.47 182.94 169.80 344.19 594.52 24
Comparison of Five Year Cumulative Total Return* Among IES Holdings, Inc., the Russell 2000 Index, and a Peer Group *$100 invested on September 30, 2020 in stock or index, including reinvestment of dividends. 2020 2021 2022 2023 2024 2025 IES Holdings, Inc. $ 100.00 $ 221.90 $ 134.14 $ 319.91 $ 969.50 $ 1,931.28 Russell 2000 100.00 147.68 112.98 123.06 156.00 172.78 Peer Group 100.00 165.81 151.80 311.25 541.71 1,139.88 24
Removed
Stock Repurchase Program In 2015, our Board of Directors authorized a stock repurchase program for the purchase from time to time of up to 1.5 million shares of the Company’s common stock, and in 2019, authorized the repurchase from time to time of up to an additional 1.0 million shares of the Company's common stock under the stock repurchase program.
Removed
In December 2022, our Board of Directors terminated our previous stock repurchase program and authorized a new $40 million stock repurchase program. In July 2024, the Company fully utilized the amount remaining under this $40 million authorization. On July 31, 2024, the Board authorized a new $200 million stock repurchase program.
Removed
(the “Peer Group (New)”). The change from the Peer Group (Old) to the Peer Group (New) was made to better reflect companies relevant to the Company's current business.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeAmounts outstanding bear interest at a per annum rate equal to the Daily Three Month Secured Overnight Financing Rate ("SOFR"), plus an interest rate margin, which is determined quarterly, based on the following thresholds: Level Thresholds Interest Rate Margin I If Liquidity is less than 35% of the Maximum Revolver Amount (each as defined in the Amended Credit Agreement) at any time during the period 2.00 percentage points II If Liquidity is greater than or equal to 35% of the Maximum Revolver Amount at all times during the period and less than 50% of the Maximum Revolver Amount at any time during the period 1.75 percentage points III If Liquidity is greater than or equal to 50% of the Maximum Revolver Amount at all times during the period 1.50 percentage points In addition, we are charged monthly in arrears for (1) an unused commitment fee of 0.25% per annum, (2) a collateral monitoring fee of $5 thousand per quarter, (3) a letter of credit fee based on the then-applicable interest rate margin (4) appraisal fees, costs and expenses and (5) certain other fees and charges as specified in the Amended Credit Agreement.
Biggest changeAmounts outstanding bear interest at a rate equal to either (1) the Base Rate (which is the greater of the Federal Funds Rate (as defined in the Amended Credit Agreement) and the Prime Rate (as defined in the Amended Credit Agreement)), (2) the Daily Simple SOFR (as defined in the Amended Credit Agreement) or (3) Term SOFR (as defined in the Amended Credit Agreement), plus, in each case, an interest rate margin, which is determined quarterly based on our Consolidated Total Leverage Ratio, in accordance with the following thresholds: Pricing Level Consolidated Total Leverage Ratio Interest Margin applicable to Daily Simple SOFR/Term SOFR Interest Margin applicable to Base Rate I Greater than or equal to 2.50 to 1.00 2.25 percentage points 1.25 percentage points II Greater than or equal to 1.75 to 1.00, but less than 2.50 to 1.00 2.00 percentage points 1.00 percentage points III Greater than or equal to 1.00 to 1.00, but less than 1.75 to 1.00 1.75 percentage points 0.75 percentage points IV Less than 1.00 to 1.00 1.50 percentage points 0.50 percentage points In addition, we are charged monthly in arrears for an unused commitment fee of 0.25% to 0.35% per annum on any unused portion of the revolving credit facility based on the Company's Consolidated Total Leverage Ratio.
In particular, the markets in which we operate are exposed to many regional and national trends such as the demand for single and multi-family housing, the need for mission critical facilities as a result of technology-driven advancements, capital spending on data centers, distribution centers, and high-tech manufacturing facilities, demand for back-up power, output levels and equipment utilization at heavy industrial facilities, demand for our rail and infrastructure services and custom engineered products, and changes in commercial, institutional, public infrastructure and electric utility spending.
In particular, the markets in which we operate are exposed to many regional and national trends such as the need for mission critical facilities as a result of technology-driven advancements, capital spending on data centers, distribution centers, and high-tech manufacturing facilities, the demand for single and multi-family housing, demand for back-up power, output levels and equipment utilization at heavy industrial facilities, demand for our rail and infrastructure services and custom engineered products, and changes in commercial, institutional, public infrastructure and electric utility spending.
Over the long term, we believe that there are numerous factors that could positively drive demand and affect growth within the industries in which we operate, including (i) population growth, which will increase the need for commercial and residential facilities, (ii) aging public infrastructure, which must be replaced or repaired, (iii) an increasing demand for data storage, and (iv) increased emphasis on environmental and energy efficiency, which may lead to increased public and private spending.
Over the long term, we believe that there are numerous factors that could positively drive demand and affect growth within the industries in which we operate, including (i) an increasing demand for data storage, (ii) population growth, which will increase the need for commercial and residential facilities, (iii) aging public infrastructure, which must be replaced or repaired, and (iv) increased emphasis on environmental and energy efficiency, which may lead to increased public and private spending.
Our Infrastructure Solutions segment’s gross profit for the year ended September 30, 2024 increased by $50.9 million, or 93.5%, as compared to the year ended September 30, 2023, primarily resulting from higher volumes, improved pricing and operating efficiencies at our custom engineered solutions manufacturing facilities as well as the impact of investments to increase capacity we have made over the last several years.
Our Infrastructure Solutions segment’s gross profit for the year ended September 30, 2024 increased by $50.9 million, or 93.5%, as compared to the year ended September 30, 2023, primarily resulting from higher volumes, improved pricing and operating 30 efficiencies at our custom engineered solutions manufacturing facilities as well as the impact of investments to increase capacity we have made over the last several years.
Financing Activities Net cash used in financing activities was $100.5 million in the year ended September 30, 2024.
Net cash used in financing activities was $100.5 million in the year ended September 30, 2024.
Our Board of Directors has approved an investment policy that, after taking into consideration the liquidity required to support and invest in the Company's operations, permits the Company to invest in marketable securities, including equities and fixed income securities that can be easily bought and sold on a public market, and non-marketable securities, including equity and fixed income investments in private companies as well as private investments in public companies, subject to size limits and required approvals for certain investments.
Our Board of Directors has approved an investment policy that, after taking into consideration the liquidity required to support and invest in the Company's operations, permits the Company to invest in marketable securities, including equities and fixed income securities that can 34 be easily bought and sold on a public market, and non-marketable securities, including equity and fixed income investments in private companies as well as private investments in public companies, subject to size limits and required approvals for certain investments.
Our single-family electrical business continued to have strong demand as revenues increased by $14.9 million, while multi-family and other revenue increased by $13.4 million resulting from continued strong demand and successful execution of existing backlog, partially offset by a reduction in activity in certain areas as we became more selective in our bidding process. 28 Gross Profit.
Our single-family electrical business continued to have strong demand as revenues increased by $14.9 million, while multi-family and other revenue increased by $13.4 million resulting from continued strong demand and successful execution of existing backlog, partially offset by a reduction in activity in certain areas as we became more selective in our bidding process. Gross Profit.
Gendell was an employee of Tontine from 2004 until January 2018. 36 OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS As is common in our industry, we have entered into certain off-balance sheet arrangements that expose us to increased risk. Our significant off-balance sheet transactions include letter of credit obligations, firm commitments for materials and surety guarantees.
Gendell was an employee of Tontine from 2004 until January 2018. OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS As is common in our industry, we have entered into certain off-balance sheet arrangements that expose us to increased risk. Our significant off-balance sheet transactions include letter of credit obligations, firm commitments for materials and surety guarantees.
To date, we have not incurred any material costs to indemnify our sureties for expenses they incurred on our behalf. CRITICAL ACCOUNTING POLICIES The discussion and analysis of our financial condition and results of operations are based on our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
To date, we have not incurred any material costs to indemnify our sureties for expenses they incurred on our behalf. 36 CRITICAL ACCOUNTING POLICIES The discussion and analysis of our financial condition and results of operations are based on our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
See further discussion below of changes in revenues for our individual segments. Our overall gross profit percentage increased to 24.2% during the year September 30, 2024, as compared to 18.7% during the year ended September 30, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments.
See further discussion below of changes in revenues for our individual segments. 26 Our overall gross profit percentage increased to 24.2% during the year September 30, 2024, as compared to 18.7% during the year ended September 30, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments.
In December 2022, the Company entered into an amendment of the sublease agreement, which was set to terminate on February 28, 2023, to extend the term of the agreement through August 31, 2024 and to increase the monthly payments from approximately $8 to approximately $9 effective March 1, 2023.
In December 2022, the Company entered into an amendment of the sublease agreement, which was set to terminate on February 28, 2023, to extend the term of the agreement through August 31, 2024 and to increase the monthly payments from approximately $8 thousand to approximately $9 thousand effective March 1, 2023.
However, current market conditions, as well as changes in our sureties' assessment of our operating and financial risk, could cause our sureties to decline to 33 issue bonds for our work.
However, current market conditions, as well as changes in our sureties' assessment of our operating and financial risk, could cause our sureties to decline to issue bonds for our work.
Business Outlook While there are differences among the Company’s segments, on an overall basis, increased demand for the Company’s services and the Company’s previous investment in growth initiatives and other business-specific factors discussed below resulted in aggregate year-over-year revenue growth in fiscal 2024 as compared to fiscal 2023.
Business Outlook While there are differences among the Company’s segments, on an overall basis, increased demand for the Company’s services and the Company’s previous investment in growth initiatives and other business-specific factors discussed below resulted in aggregate year-over-year revenue growth in fiscal 2025 as compared to fiscal 2024.
PROVISION FOR INCOME TAXES For the year ended September 30, 2024, we recorded income tax expense of $72.2 million, which reflects a higher pretax income than in the year ended September 30, 2023, partially offset by $5.5 million of non-cash tax benefits from the recognition of previously unrecognized tax benefits in fiscal 2024.
For the year ended September 30, 2024, we recorded income tax expense of $72.2 million, which reflects a higher pretax income than in the year ended September 30, 2023, partially offset by $5.5 million of non-cash tax benefits from the recognition of previously unrecognized tax benefits in fiscal 2024.
Although the terms of our contracts vary considerably, approximately 90.0% of our revenues are based on either a fixed price or unit price basis in which we agree to do the work for a fixed amount for the entire project (fixed price) or for units of work performed (unit price).
Although the terms of our contracts vary considerably, approximately 87.1% of our revenues are based on either a fixed price or unit price basis in which we agree to do the work for a fixed amount for the entire project (fixed price) or for units of work performed (unit price).
At September 30, 2024, $4.8 million of our outstanding letters of credit were to collateralize our insurance programs. From time to time, we may enter into firm purchase commitments for materials such as copper wire and aluminum wire, which we expect to use in the ordinary course of business.
At September 30, 2025, $5.5 million of our outstanding letters of credit were to collateralize our insurance programs. From time to time, we may enter into firm purchase commitments for materials such as copper wire and aluminum wire, which we expect to use in the ordinary course of business.
Communications 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 776,474 100.0 % $ 600,776 100.0 % Cost of services 623,844 80.3 % 494,964 82.4 % Gross Profit 152,630 19.7 % 105,812 17.6 % Selling, general and administrative expenses 65,752 8.5 % 54,344 9.0 % (Gain) loss on sale of assets (18) — % 12 — % Operating Income 86,896 11.2 % 51,456 8.6 % Revenue.
Selling, general and administrative expenses as a percentage of revenue in the Communications segment were 8.6% during the year ended September 30, 2025, compared to 8.5% for the year ended September 30, 2024. 27 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 776,474 100.0 % $ 600,776 100.0 % Cost of services 623,844 80.3 % 494,964 82.4 % Gross Profit 152,630 19.7 % 105,812 17.6 % Selling, general and administrative expenses 65,752 8.5 % 54,344 9.0 % (Gain) loss on sale of assets (18) — % 12 — % Operating Income 86,896 11.2 % 51,456 8.6 % Revenue.
Net cash used in financing activities for the year ended September 30, 2024 included $44.0 million used for the repurchase of our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, $32.0 million paid to acquire the 20 percent noncontrolling interest in Bayonet Plumbing, Heating & Air-Conditioning, LLC, and distributions to noncontrolling interests of $16.2 million under operating agreements in connection with certain acquisitions.
Net cash used in financing activities for the year ended September 30, 2024 included $44.0 million used for the repurchase of our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, $32.0 million paid to acquire the 20 percent noncontrolling interest in Bayonet Plumbing, Heating & Air-Conditioning, LLC, and distributions to noncontrolling interests of $16.2 million.
Approximately 10.0% of our revenues are earned from contracts where we are paid on a time and materials basis. Our most significant cost drivers are the cost of labor and materials. These costs may vary from the costs we originally estimated.
Approximately 12.9% of our revenues are earned from contracts where we are paid on a time and materials basis. Our most significant cost drivers are the cost of labor and materials. These costs may vary from the costs we originally estimated.
The most significant assumptions requiring judgment involve identifying and estimating the fair value of intangible assets and the associated useful lives for establishing amortization periods. To finalize purchase accounting for significant intangible assets and liabilities, we utilize the services of independent valuation specialists to assist in the determination of the fair value. Valuation Allowance for Deferred Tax Assets.
The most significant assumptions requiring judgment involve identifying and estimating the fair value of intangible assets and the associated useful lives for establishing amortization periods. To finalize purchase accounting for significant intangible assets and liabilities, we utilize the services of independent valuation specialists to assist in the determination of the fair value. New Accounting Pronouncements.
At September 30, 2024, we had $4.8 million in outstanding letters of credit and no outstanding borrowings under our revolving credit facility. Investments From time to time, the Company invests in non-controlling positions in the debt or equity securities of other businesses.
At September 30, 2025, we had $5.5 million in outstanding letters of credit and no outstanding borrowings under our revolving credit facility. Investments From time to time, the Company invests in non-controlling positions in the debt or equity securities of other businesses.
Selling, general and administrative expenses as a percentage of revenue in the Communications segment were 9.0% during the year ended September 30, 2023, compared to 8.3% for the year ended September 30, 2022.
Selling, general and administrative expenses as a percentage of revenue in the Communications segment were 8.5% during the year ended September 30, 2024, compared to 9.0% for the year ended September 30, 2023.
Revenues in our Infrastructure Solutions segment increased by $133.7 million, or 61.5% during the year ended September 30, 2024 compared to the year ended September 30, 2023. The increase in revenues was driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses. We also acquired Greiner Industries, Inc.
Revenues in our Infrastructure Solutions segment increased by $133.7 million, or 61.5% during the year ended September 30, 2024 compared to the year ended September 30, 2023. The increase in revenues was driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses.
Revenues recognized on a percentage-of-completion basis, all of which are fixed price or cost plus arrangements, comprised approximately 55% of our total revenue for the 37 year ended September 30, 2024.
Revenues recognized on a percentage-of-completion basis, all of which are fixed price or cost plus arrangements, comprised approximately 64% of our total revenue for the year ended September 30, 2025.
Commercial & Industrial 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 367,948 100.0 % $ 279,594 100.0 % Cost of services 293,741 79.8 % 248,295 88.8 % Gross Profit 74,207 20.2 % 31,299 11.2 % Selling, general and administrative expenses 32,925 8.9 % 25,225 9.0 % Gain on sale of assets (114) — % (13,198) (4.7) % Operating Income (Loss) 41,396 11.3 % 19,272 6.9 % Revenue.
As a percentage of r evenue, s elling, general and administrative expenses increased from 8.9% during the year September 30, 2024 to 9.3% during the year ended September 30, 2025. 31 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 367,948 100.0 % $ 279,594 100.0 % Cost of services 293,741 79.8 % 248,295 88.8 % Gross Profit 74,207 20.2 % 31,299 11.2 % Selling, general and administrative expenses 32,925 8.9 % 25,225 9.0 % Gain on sale of assets (114) — % (13,198) (4.7) % Operating Income 41,396 11.3 % 19,272 6.9 % Revenue.
Selling, general and administrative expenses as a percentage of revenues in the Residential segment increased to 13.3% during the year ended September 30, 2023, from 12.7% during the year ended September 30, 2022. 29 Infrastructure Solutions 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 351,096 100.0 % $ 217,353 100.0 % Cost of services 245,743 70.0 % 162,905 74.9 % Gross Profit 105,353 30.0 % 54,448 25.1 % Selling, general and administrative expenses 37,394 10.7 % 26,260 12.1 % Contingent consideration 678 0.2 % — — % Gain on sale of assets (184) (0.1) % (1,029) (0.5) % Operating Income 67,465 19.2 % 29,217 13.4 % Revenue.
Selling, general and administrative expenses as a percentage of revenue decreased from 10.7% for the year ended September 30, 2024, to 10.4% for the year ended September 30, 2025 as we benefited from the scale of our operations. 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 351,096 100.0 % $ 217,353 100.0 % Cost of services 245,743 70.0 % 162,905 74.9 % Gross Profit 105,353 30.0 % 54,448 25.1 % Selling, general and administrative expenses 37,394 10.7 % 26,260 12.1 % Contingent consideration 678 0.2 % — — % Gain on sale of assets (184) (0.1) % (1,029) (0.5) % Operating Income 67,465 19.2 % 29,217 13.4 % Revenue.
Residential 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 1,388,840 100.0 % $ 1,279,504 100.0 % Cost of services 1,024,440 73.8 % 1,026,524 80.2 % Gross Profit 364,400 26.2 % 252,980 19.8 % Selling, general and administrative expenses 228,371 16.4 % 169,737 13.3 % Contingent consideration 36 — % 277 — % (Gain) loss on sale of assets (1,354) (0.1) % 69 — % Operating Income 137,347 9.9 % 82,897 6.5 % Revenue.
Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 17.8% during the year ended September 30, 2025, from 16.4% during the year ended September 30, 2024 as a decline in overall revenues as discussed above resulted in less absorption of fixed costs. 2024 Compared to 2023 Year Ended September 30, 2024 2023 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 1,388,840 100.0 % $ 1,279,504 100.0 % Cost of services 1,024,440 73.8 % 1,026,524 80.2 % Gross Profit 364,400 26.2 % 252,980 19.8 % Selling, general and administrative expenses 228,371 16.4 % 169,737 13.3 % Contingent consideration 36 — % 277 — % (Gain) loss on sale of assets (1,354) (0.1) % 69 — % Operating Income 137,347 9.9 % 82,897 6.5 % Revenue.
(“Greiner”) on April 1, 2024, which contributed $34.0 million in revenue in the year ended September 30, 2024. Gross Profit .
We also acquired Greiner on April 1, 2024, which contributed $34.0 million in revenue in the year ended September 30, 2024. Gross Profit .
The increase is a result of higher personnel costs including higher incentive compensation as a result of higher earnings, investment in an organizational structure that will enhance the scalability of our business, and higher wages in a competitive labor market.
The increase is a result of higher personnel costs including higher incentive compensation as a result of higher earnings, as well as continued investment in an organizational structure that will enhance the scalability of our business.
("Tontine Associates"), together with its affiliates (collectively, "Tontine") is the Company's controlling stockholder, owning approximately 55 percent of the Company’s outstanding common stock based on a Form 4 filed by Tontine with the SEC on September 16, 2024 and the Company's shares outstanding as of November 18, 2024.
("Tontine Associates"), together with its affiliates (collectively, "Tontine") is the Company's controlling stockholder, owning approximately 54 percent of the Company’s outstanding common stock based on a Form 4 and a Schedule 13D/A filed by Tontine with the SEC on September 17, 2025 and the Company's shares outstanding as of November 17, 2025.
Variable consideration, including claims and unapproved change orders, is estimated at probability weighted value we expect to receive (or the most probable amount we expect to incur in the case of liquidated damages, if any), utilizing estimation methods that best predict the amount of consideration to which we will be entitled (or will be incurred in the case of liquidated damages, if any).
Variable consideration, including claims and unapproved change orders, is estimated at either the expected probability weighted value or the most likely amount in a range of possible consideration amounts, utilizing estimation methods that best predict the amount of consideration to which we will be entitled (or will be incurred in the case of liquidated damages, if any).
During the year ended September 30, 2024, our current assets exclusive of cash increased to $770.9 million, as compared to $595.5 million as of September 30, 2023.
During the year ended September 30, 2025, our current assets exclusive of cash increased to $958.3 million, as compared to $770.9 million as of September 30, 2024.
During the year ended September 30, 2023, the sale of assets, including the sale of STR, provided cash of $20.6 million, which was partially offset by capital expenditures of $17.7 million.
During the year ended September 30, 2023, the sale of assets, including the sale of STR, provided cash of $20.6 million, which was partially offset by capital expenditures of $17.7 million. Financing Activities Net cash used in financing activities was $96.1 million in the year ended September 30, 2025.
Net cash used in financing activities for the year ended September 30, 2023 included net repayments on our credit facility of $82.7 million, distributions to noncontrolling interests of $11.5 million under operating agreements in connection with certain acquisitions, and $8.3 million used for the repurchase of our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation.
Net cash used in financing activities for the year ended September 30, 2023 included net repayments on our credit facility of $82.7 million, distributions to noncontrolling interests of $11.5 million, and $8.3 million used for the repurchase of our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation. 35 CONTROLLING SHAREHOLDER Tontine Associates, L.L.C.
During the year ended September 30, 2024, our total current liabilities increased by $122.0 million to $522.6 million, compared to $400.6 million as of September 30, 2023, driven by a $55.2 million increase in contract billings in excess of costs and estimated earnings, which varies based on the timing of contract billings on projects on which revenue is recognized using the percentage of completion method, and a $66.8 million increase in accounts payable and accrued expenses primarily as a result of increased activity and the timing of payments across all of our operating segments, and an increase in income tax payable based on the timing of tax payments.
During the year ended September 30, 2025, our total current liabilities increased by $110.9 million to $633.4 million, compared to $522.6 million as of September 30, 2024, driven by a $93.1 million increase in accounts payable and accrued expenses primarily as a result of increased activity and the timing of payments across all of our operating segments and a $17.8 million increase in contract billings in excess of costs and estimated earnings, which varies based on the timing of contract billings on projects on which revenue is recognized using the percentage of completion method.
INTEREST AND OTHER EXPENSE, NET Year Ended September 30, 2024 2023 2022 (In thousands) Interest expense $ 1,051 $ 2,754 $ 2,771 Deferred financing charges 287 268 199 Total interest expense 1,338 3,022 2,970 Interest income (4,042) (564) (10) Other (income) expense, net (1,086) (1,230) 47 Total other (income) expense, net (5,128) (1,794) 37 Total interest and other (income) expense, net (3,790) 1,228 3,007 During the year ended September 30, 2024, we incurred interest expense of $1.3 million primarily comprised of interest expense on our finance lease agreements and fees on an average letter of credit balance of $5.5 million under our revolving credit facility and an average unused line of credit balance of $144.5 million.
INTEREST AND OTHER EXPENSE, NET Year Ended September 30, 2025 2024 2023 (In thousands) Interest expense $ 1,339 $ 1,051 $ 2,754 Deferred financing charges 475 287 268 Total interest expense 1,814 1,338 3,022 Interest income (2,925) (4,042) (564) Other income, net (9,245) (1,086) (1,230) Total other income, net (12,170) (5,128) (1,794) Total interest expense and other income, net $ (10,356) $ (3,790) $ 1,228 During the year ended September 30, 2025, we incurred interest expense of $1.8 million primarily comprised of interest expense on our finance lease agreements and fees on an average letter of credit balance of $5.5 million under our revolving credit facility and an average unused line of credit balance of $248.7 million.
Total other income, net of $5.1 million in the year ended September 30, 2024 was primarily the result of interest income of $4.0 million and unrealized gains on investments in trading securities of $1.8 million. 32 During the year ended September 30, 2023, we incurred interest expense of $3.0 million primarily comprised of interest expense on an average outstanding balance of $26.9 million under our revolving credit facility and on our finance lease agreements, in addition to fees on an average letter of credit balance of $4.7 million under our revolving credit facility and an average unused line of credit balance of $117.8 million.
During the year ended September 30, 2023, we incurred interest expense of $3.0 million primarily comprised of interest expense on an average outstanding balance of $26.9 million under our revolving credit facility and on our finance lease agreements, in addition to fees on an average letter of credit balance of $4.7 million under our revolving credit facility and an average unused line of credit balance of $117.8 million.
On December 6, 2018, the Company entered into a Board Observer Letter Agreement (the "Observer Agreement") with Tontine Associates in order to assist Tontine in managing its investment in the Company.
Payments by the Company are at a rate consistent with that paid by Tontine Associates to its landlord. On December 6, 2018, the Company entered into a Board Observer Letter Agreement (the "Observer Agreement") with Tontine Associates in order to assist Tontine in managing its investment in the Company.
This reversal is predominantly due to the expiration of the statutes of limitation for unrecognized tax benefits. New Accounting Pronouncements. Recent accounting pronouncements are described in Note 2, “Summary of Significant Accounting Policies — New Accounting Pronouncements ” in the notes to our Consolidated Financial Statements and at relevant sections in this discussion and analysis.
Recent accounting pronouncements are described in Note 2, “Summary of Significant Accounting Policies — New Accounting Pronouncements ” in the notes to our Consolidated Financial Statements and at relevant sections in this discussion and analysis.
The increase in operating cash flow resulted primarily from increased earnings partially offset by an increase in cash used in working capital during the year ended September 30, 2024 compared to the year ended September 30, 2023 Operating activities provided net cash of $153.9 million during the year ended September 30, 2023, as compared to $16.3 million of net cash provided in the year ended September 30, 2022.
The increase in operating cash flow resulted primarily from increased earnings partially offset by an increase in cash used in working capital during the year ended September 30, 2024 compared to the year ended September 30, 2023.
If in the future our Liquidity falls below $15.0 million (or Excess Availability falls below 50% of our minimum Liquidity), our Fixed Charge Coverage Ratio is less than 1.1:1.0, or if we otherwise fail to perform or otherwise comply with certain of our covenants or other agreements under the Amended Credit Agreement, it would result in an event of default under the Amended Credit Agreement, which could result in some or all of our then-outstanding indebtedness becoming immediately due and payable.
Under the Amended Credit Agreement, if in the future our Consolidated Total Leverage Ratio is greater than 3.00:1.00, or our Consolidated Interest Coverage Ratio is less than 3.00:1.00, or if we otherwise fail to perform or otherwise comply with certain of our covenants or other agreements under the Amended Credit Agreement, it would result in an event of default under the Amended Credit Agreement, which could result in some or all of our then-outstanding indebtedness becoming immediately due and payable.
In addition, if we are awarded a project for which a surety bond is required but we are unable to obtain a surety bond, the result could be a claim for damages by the customer for the costs of replacing us with another contractor.
In addition, if we are awarded a project for which a surety bond is required but we are unable to obtain a surety bond, the result could be a claim for damages by the customer for the costs of replacing us with another contractor. 33 We believe the bonding capacity currently provided by our sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future.
Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased $7.6 million, or 16.3% during the year ended September 30, 2023, as compared to the year ended September 30, 2022.
Our Communications segment’s selling, general and administrative expenses increased $32.4 million, or 49.3%, during the year ended September 30, 2025, as compared to the year ended September 30, 2024.
Our Infrastructure Solutions segment’s selling, general and administrative expenses during the year ended September 30, 2023, increased $1.1 million, or 4.5%, compared to the year ended September 30, 2022.
Our Residential segment's selling, general and administrative expenses increased by $4.4 million, or 1.9%, during the year ended September 30, 2025, compared to the year ended September 30, 2024.
Selling, general and administrative expenses as a percentage of revenue was 9.0% and 8.9% in the years ended September 30, 2023 and 2024, respectively. Gain on Sale of Assets .
Selling, general and administrative expenses as a percentage of revenue was 9.0% and 8.9% in the years ended September 30, 2023 and 2024, respectively. Gain on Sale of Assets . As discussed above, our results for the year ended September 30, 2023 include a pretax gain on sale of $13.0 million from the sale of STR in October 2022.
Gross profit as a percent of revenue increased to 25.1% for the year ended September 30, 2023 compared to 17.2% for the year ended September 30, 2022. Selling, General and Administrative Expenses.
Gross profit as a percent of revenue increased to 34.4% for the year ended September 30, 2025 compared to 30.0% for the year ended September 30, 2024. Selling, General and Administrative Expenses.
We do not recognize profits on construction costs incurred in connection with claims. Claims made by us involve negotiation and, in certain cases, litigation. Such litigation costs are expensed as incurred. Business Combinations .
Claims made by us involve negotiation and, in certain cases, litigation. Such litigation costs are expensed as incurred. 37 Business Combinations .
Year Ended September 30, 2024 2023 2022 $ % $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 2,884,358 100.0 % $ 2,377,227 100.0 % $ 2,166,808 100.0 % Cost of services 2,187,768 75.8 % 1,932,688 81.3 % 1,847,878 85.3 % Gross profit 696,590 24.2 % 444,539 18.7 % 318,930 14.7 % Selling, general and administrative expenses 396,684 13.8 % 298,625 12.6 % 262,714 12.1 % Contingent consideration 714 — % 277 — % 277 — % Gain on sale of assets (1,684) (0.1) % (14,139) (0.6) % (69) — % Operating income 300,876 10.4 % 159,776 6.7 % 56,008 2.6 % Interest and other (income) expense, net (3,790) (0.1) % 1,228 0.1 % 3,007 0.1 % Income from operations before income taxes 304,666 10.6 % 158,548 6.7 % 53,001 2.4 % Provision for income taxes 72,165 2.5 % 38,761 1.6 % 12,815 0.6 % Net income 232,501 8.1 % 119,787 5.0 % 40,186 1.9 % Net income attributable to noncontrolling interest (13,385) (0.5) % (11,499) (0.5) % (5,424) (0.3) % Net income attributable to IES Holdings, Inc. $ 219,116 7.6 % $ 108,288 4.6 % $ 34,762 1.6 % 2024 Compared to 2023 Consolidated revenues for the year ended September 30, 2024, were $507.1 million higher than for the year ended September 30, 2023, an increase of 21.3%, with increases at all of our operating segments.
Year Ended September 30, 2025 2024 2023 $ % $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 3,371,468 100.0 % $ 2,884,358 100.0 % $ 2,377,227 100.0 % Cost of services 2,511,971 74.5 % 2,187,768 75.8 % 1,932,688 81.3 % Gross profit 859,497 25.5 % 696,590 24.2 % 444,539 18.7 % Selling, general and administrative expenses 474,978 14.1 % 396,684 13.8 % 298,625 12.6 % Contingent consideration 1,145 — % 714 — % 277 — % Gain on sale of assets (155) — % (1,684) (0.1) % (14,139) (0.6) % Operating income 383,529 11.4 % 300,876 10.4 % 159,776 6.7 % Interest and other (income) expense, net (10,356) (0.3) % (3,790) (0.1) % 1,228 0.1 % Income from operations before income taxes and equity method investment income 393,885 11.7 % 304,666 10.6 % 158,548 6.7 % Provision for income taxes 96,805 2.9 % 72,165 2.5 % 38,761 1.6 % Equity method investment income (14,762) (0.4) % — 0.0 % — 0.0 % Net income 311,842 9.2 % 232,501 8.1 % 119,787 5.0 % Net income attributable to noncontrolling interest (5,867) (0.2) % (13,385) (0.5) % (11,499) (0.5) % Net income attributable to IES Holdings, Inc. $ 305,975 9.1 % $ 219,116 7.6 % $ 108,288 4.6 % 2025 Compared to 2024 Consolidated revenues for the year ended September 30, 2025, were $487.1 million higher than for the year ended September 30, 2024, an increase of 16.9%, with increases in our Communications, Infrastructure Solutions and Commercial & Industrial operating segments, partly offset by a decrease in our Residential segment.
Net cash provided by investing activities was $2.8 million for the year ended September 30, 2023, compared to $29.5 million of net cash used in investing activities in the year ended September 30, 2022.
Net cash used in investing activities was $108.8 million for the year ended September 30, 2024, compared to $2.8 million of net cash provided by investing activities in the year ended September 30, 2023. During the year ended September 30, 2024, we completed the acquisition of Greiner for $67.0 million.
During the year ended September 30, 2022, we incurred interest expense of $3.0 million primarily comprised of interest expense on an average outstanding balance of $82.3 million under our revolving credit facility, in addition to fees on an average letter of credit balance of $4.5 million under our revolving credit facility and an average unused line of credit balance of $49.2 million.
During the year ended September 30, 2024, we incurred interest expense of $1.3 million primarily comprised of interest expense on our finance lease agreements and fees on an average letter of credit balance of $5.5 million under our revolving credit facility and an 32 average unused line of credit balance of $144.5 million.
These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specified intervals at a fixed price over the term. As of September 30, 2024, we did not have any such firm commitments to purchase materials outstanding.
These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specified intervals at a fixed price over the term. As of September 30, 2025, we had firm commitments of $13.4 million outstanding under agreements to purchase materials over the next 12 months in the ordinary course of business.
See further discussion below of changes in gross margin for our individual segments. Selling, general and administrative expenses include costs not directly associated with performing work for our customers.
Gross profit as a percentage of revenue increased at our Communications, Infrastructure Solutions and Commercial & Industrial operating segments and decreased at our Residential segment. See further discussion below of changes in gross margin for our individual segments. Selling, general and administrative expenses include costs not directly associated with performing work for our customers.
Our Communications segment’s revenues increased by $41.0 million, or 7.3%, during the year ended September 30, 2023 compared to the year ended September 30, 2022. This increase primarily resulted from increased demand from our high-tech manufacturing and data center customers. Gross Profit.
Our Communications segment’s revenues increased by $364.2 million, or 46.9%, during the year ended September 30, 2025, compared to the year ended September 30, 2024. This increase primarily resulted from increased demand from our data center customers, coupled with continued strong demand from high-tech manufacturing and e-commerce distribution center customers. Gross Profit.
WORKING CAPITAL During the year ended September 30, 2024, working capital exclusive of cash increased by $53.4 million from September 30, 2023, reflecting a $175.4 million increase in current assets excluding cash partially offset by a $122.0 million increase in current liabilities during the period.
For the year ended September 30, 2023, we recorded income tax expense of $38.8 million. WORKING CAPITAL During the year ended September 30, 2025, working capital exclusive of cash increased by $76.6 million from September 30, 2024, reflecting a $187.4 million increase in current assets excluding cash partially offset by a $110.9 million increase in current liabilities during the period.
See further discussion below of changes in revenues for our individual segments. Our overall gross profit percentage increased to 18.7% during the year ended September 30, 2023, as compared to 14.7% during the year ended September 30, 2022. Gross profit as a percentage of revenue increased at all four of our operating segments.
See further discussion below of changes in revenues for our individual segments. Our overall gross profit percentage increased to 25.5% during the year September 30, 2025, as compared to 24.2% during the year ended September 30, 2024.
As discussed above, our results for the year ended September 30, 2023 include a pretax gain on sale of $13.0 million from the sale of STR in October 2022.
Our results for the year ended September 30, 2023 included a pretax gain of $13.0 million from the sale of STR Mechanical, LLC (“STR”), which previously operated as part of our Commercial & Industrial segment, on October 7, 2022.
On August 1, 2024, the Company entered into an amendment of the sublease agreement to extend the term of the agreement through September 30, 2025, effective September 1, 2024. Payments by the Company are at a rate consistent with that paid by Tontine Associates to its landlord.
On August 1, 2024, the Company entered into an amendment of the sublease agreement to extend the term of the agreement through September 30, 2025, effective September 1, 2024. On August 1, 2025, the Company entered into an amendment of the sublease agreement to extend the term of the agreement through September 30, 2026.
Our Communications segment’s gross profit during the year ended September 30, 2023, increased $37.0 million, or 53.8%, as compared to the year ended September 30, 2022. Gross profit as a percentage of revenue increased from 12.3% for the year ended September 30, 2022 to 17.6% for the year ended September 30, 2023.
Our Communications segment’s gross profit during the year ended September 30, 2025, increased $112.0 million, or 73.4%, as compared to the year ended September 30, 2024. Gross profit as a percentage of revenue increased from 19.7% for the year ended September 30, 2024 to 23.2% for the year ended September 30, 2025.
The increase in operating cash flow resulted primarily from increased earnings and a reduction in cash used in working capital during the year ended September 30, 2023 compared to the year ended September 30, 2022 Investing Activities Net cash used in investing activities was $108.8 million for the year ended September 30, 2024, compared to $2.8 million of net cash provided by investing activities in the year ended September 30, 2023.
The increase in operating cash flow resulted primarily from increased earnings partially offset by an increase in cash used in working capital during the year ended September 30, 2025 compared to the year ended September 30, 2024.
For the year ended September 30, 2023, we recorded income tax expense of $38.8 million, which reflects a higher pretax income than in the year ended September 30, 2022. For the year ended September 30, 2022, we recorded income tax expense of $12.8 million, which reflects a $0.8 million benefit related to the recognition of previously unrecognized tax benefits.
PROVISION FOR INCOME TAXES For the year ended September 30, 2025, we recorded income tax expense of $96.8 million, which reflects a higher pretax income than in the year ended September 30, 2024, partially offset by $11.1 million of non-cash tax benefits from the recognition of previously unrecognized tax benefits in fiscal 2025.
However, backlog across our business segments as a whole remains at record levels, reflecting strong demand in key end markets. Demand with respect to data centers, a key end market served by our Communications, Infrastructure Solutions, and Commercial & Industrial segments, remains particularly strong.
Demand with respect to data centers, a key end market served by our Communications, Infrastructure Solutions, and Commercial & Industrial segments, remains particularly strong. However, availability of labor and capacity could constrain the rate at which we are able to grow this business.
Entering fiscal 2025, we see strong demand across many of our key end markets. However, our business segments each have their own unique set of factors influencing demand for our services.
Our business segments each have their own unique set of factors influencing demand for our services. Heading into fiscal 2026, backlog across our business segments as a whole remains at record levels, reflecting strong demand in key end markets.
LIQUIDITY AND CAPITAL RESOURCES As of September 30, 2024, we had cash and cash equivalents of $100.8 million and $143.4 million of availability under our revolving credit facility.
As of September 30, 2025, the estimated cost to complete our bonded projects was approximately $199.8 million. LIQUIDITY AND CAPITAL RESOURCES As of September 30, 2025, we had cash and cash equivalents of $127.2 million and $294.5 million of availability under our revolving credit facility.
During the year ended September 30, 2023, our selling, general and administrative expenses were $298.6 million, an increase of $35.9 million, or 13.7% over the year ended September 30, 2022, driven by increased personnel costs, primarily at our Residential operating segment, in connection with its growth, including higher incentive compensation at the division level as a result of higher earnings.
During the year ended September 30, 2025, our selling, general and administrative expenses were $475.0 million, an increase of $78.3 million, or 19.7%, over the year ended September 30, 2024, driven by increased personnel costs and higher incentive compensation across our business as a result of higher earnings, as well as continued investment in the scalability of the business.
Net cash provided by financing activities for the year ended September 30, 2022 included net borrowing on our credit facility of $42.3 million, partly offset by $18.6 million used for the repurchase of our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation.
Net cash used in financing activities for the year ended September 30, 2025 included $41.6 million used for the repurchase of our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, $40.0 million paid to acquire the 20 percent noncontrolling interest in Edmonson Electric, LLC, and distributions to noncontrolling interests of $8.6 million.
The increase was driven primarily by higher personnel costs in connection with a reorganization of the segment's management structure in fiscal 2023 and increased incentive profit sharing for division management resulting from higher earnings. 2023 Compared to 2022 Year Ended September 30, 2023 2022 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 1,279,504 100.0 % $ 1,131,414 100.0 % Cost of services 1,026,524 80.2 % 928,161 82.0 % Gross Profit 252,980 19.8 % 203,253 18.0 % Selling, general and administrative expenses 169,737 13.3 % 144,100 12.7 % Contingent consideration 277 — % 277 — % Loss on sale of assets 69 — % 20 — % Operating Income 82,897 6.5 % 58,856 5.2 % Revenue.
The increase was driven primarily by higher personnel costs in connection with a reorganization of the segment's management structure in fiscal 2023 and increased incentive profit sharing for division management resulting from higher earnings. 29 Infrastructure Solutions 2025 Compared to 2024 Year Ended September 30, 2025 2024 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 498,724 100.0 % $ 351,096 100.0 % Cost of services 327,202 65.6 % 245,743 70.0 % Gross Profit 171,522 34.4 % 105,353 30.0 % Selling, general and administrative expenses 51,813 10.4 % 37,394 10.7 % Contingent consideration 1,145 0.2 % 678 0.2 % (Gain) loss on sale of assets 97 — % (184) (0.1) % Operating Income 118,467 23.8 % 67,465 19.2 % Revenue.
RESULTS OF OPERATIONS We report our operating results across our four operating segments: Communications, Residential, Infrastructure Solutions and Commercial & Industrial. Expenses associated with our corporate office are classified separately. The following table presents selected historical results of operations of IES, as well as the results of acquired businesses from the dates acquired.
We expect our capital expenditures will range from $110 million to $130 million for the year ending on September 30, 2026. 25 RESULTS OF OPERATIONS We report our operating results across our four operating segments: Communications, Residential, Infrastructure Solutions and Commercial & Industrial. Expenses associated with our corporate office are classified separately.
Jeffrey L. Gendell was appointed Chief Executive Officer of the Company effective October 1, 2020, having served as the Company's Interim Chief Executive Officer since July 31, 2020. Mr. Gendell also serves as Chairman of the Board of Directors, a position he has held since November 2016.
Jeffrey L. Gendell was appointed Executive Chairman of the Company effective July 1, 2025 after serving as Chief Executive Officer of the Company from October 1, 2020 to June 30, 2025, and as the Company's Interim Chief Executive Officer from July 31, 2020 to September 30, 2020. Mr.
Our Residential segment's selling, general and administrative expenses increased by $25.6 million, or 17.8%, during the year ended September 30, 2023, compared to the year ended September 30, 2022. The increase was driven primarily by higher personnel costs in connection with business growth, including incentive profit sharing for division management.
Our Commercial & Industrial segment’s selling, general and administrative expenses during the year ended September 30, 2025 increased $6.8 million, or 20.6%, compared to the year ended September 30, 2024. The increase was driven primarily by increased employee compensation cost, including higher incentive compensation as a result of higher earnings.
He is the managing member and founder of Tontine, and the brother of David B.
Gendell has also served as a director and as Chairman of the Board of Directors since November 2016. He is the managing member and founder of Tontine, and the brother of David B.
Revenues in our Infrastructure Solutions segment increased by $50.2 million, or 30.1% during the year ended September 30, 2023 compared to the year ended September 30, 2022. The increase in revenue was driven primarily by increased demand at our generator enclosure business. Gross Profit .
Revenues in our Infrastructure Solutions segment increased by $147.6 million, or 42.0% during the year ended September 30, 2025 compared to the year ended September 30, 2024. The increase in revenues was driven primarily by continued strong demand and expanded capacity in our custom engineered solutions businesses.
Heading into fiscal 2025, we are cautious about near-term demand for single-family housing as elevated mortgage rates and the impacts of inflation on materials and labor costs have resulted in a decline in housing affordability. In addition, consumer expectations about future interest rate reductions may cause some home buyers to delay purchases in anticipation of lower mortgage costs.
In addition, consumer expectations about future interest rate reductions may cause some home buyers to delay purchases in anticipation of lower mortgage costs. In the multi-family business, prolonged elevated borrowing costs for project owners have resulted in a reduction in backlog at September 30, 2025 compared with September 30, 2024.
However, availability of labor and capacity could constrain the rate at which we are able to grow this business. To continue to grow our business, including through acquisitions and the funding of working capital, we may require a significant amount of cash.
This is expected to result in lower multi-family revenues in fiscal 2026 as compared with the prior year. To continue to grow our business, including through acquisitions and the funding of working capital, we may require a significant amount of cash.
The Revolving Credit Facility On April 28, 2022, we entered into a Third Amended and Restated Credit and Security Agreement (the "Amended Credit Agreement"), which increased our maximum borrowing amount from $125 million to $150 million.
The Revolving Credit Facility On January 21, 2025, we entered into the Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”). Pursuant to the Amended Credit Agreement, our maximum revolver amount increased from $150 million to $300 million, and the maturity date was extended from September 30, 2026 to January 21, 2030.
The decrease in revenues was also the result of a planned reduction in activity at an underperforming branch where we incurred substantial losses in fiscal 2022. Gross Profit . Our Commercial & Industrial segment’s gross profit during the year ended September 30, 2023 increased by $13.1 million, or 72.1%, as compared to the year ended September 30, 2022.
Our Commercial & Industrial segment’s gross profit during the year ended September 30, 2025 increased by $12.7 million, or 17.1%, as compared to the year ended September 30, 2024. Gross profit as a percentage of revenue was 20.3% for the year ended September 30, 2025 compared to 20.2% for the year ended September 30, 2024.
Our Infrastructure Solutions segment’s gross profit for the year ended September 30, 2023, increased by $25.8 million, 30 or 89.9%, as compared to the year ended September 30, 2022.
During the year ended September 30, 2025, our Residential segment gross profit decreased by $28.0 million, or 7.7%, as compared to the year ended September 30, 2024, and gross margin as a percentage of revenue decreased to 25.8% during the year 28 ended September 30, 2025 from 26.2% for the year ended September 30, 2024.
Additionally, our Residential segment recorded severance charges of $3.6 million in connection with a reorganization of its management structure. Selling, general and administrative expenses as a percentage of revenue increased to 12.6% for the year ended September 30, 2023 from 12.1% for the year ended September 30, 2022.
Selling, general and administrative expenses as a percentage of revenue were 14.1% for the year ended September 30, 2025 compared to 13.8% for the year ended September 30, 2024. 2024 Compared to 2023 Consolidated revenues for the year ended September 30, 2024, were $507.1 million higher than for the year ended September 30, 2023, an increase of 21.3%, with increases at all of our operating segments.
Net cash provided by financing activities was $15.0 million in the year ended September 30, 2022.
Operating activities provided net cash of $286.1 million during the year ended September 30, 2025, as compared to $234.4 million of net cash provided in the year ended September 30, 2024.
The sale of this excess land will have no impact on the operations of the facility. 2023 Compared to 2022 Year Ended September 30, 2023 2022 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 217,353 100.0 % $ 167,113 100.0 % Cost of services 162,905 74.9 % 138,444 82.8 % Gross Profit 54,448 25.1 % 28,669 17.2 % Selling, general and administrative expenses 26,260 12.1 % 25,129 15.0 % Gain on sale of assets (1,029) (0.5) % (46) — % Operating Income 29,217 13.4 % 3,586 2.1 % Revenue.
Residential 2025 Compared to 2024 Year Ended September 30, 2025 2024 $ % $ % (Dollars in thousands, Percentage of revenues) Revenues $ 1,304,369 100.0 % $ 1,388,840 100.0 % Cost of services 967,920 74.2 % 1,024,440 73.8 % Gross Profit 336,449 25.8 % 364,400 26.2 % Selling, general and administrative expenses 232,789 17.8 % 228,371 16.4 % Contingent consideration — — % 36 — % Gain on sale of assets (132) — % (1,354) (0.1) % Operating Income 103,792 8.0 % 137,347 9.9 % Revenue.
Revenues in our Commercial & Industrial segment decreased $28.9 million, or 9.4%, during the year ended September 30, 2023, compared to the year ended September 30, 2022. The decrease is primarily due to the sale of our STR business in October 2022, which contributed revenue of $18.3 million for the year ended September 30, 2022.
Revenues in our Commercial & Industrial segment increased $59.8 million, or 16.2%, during the year ended September 30, 2025, compared to the year ended September 30, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeCommodity price risks may have an impact on our results of operations due to the fixed price nature of many of our contracts. We are exposed to market price volatility as the fair value of our investments in marketable securities may fluctuate in response to changes in market value of such securities.
Biggest changeWe are exposed to market price volatility as the fair value of our investments in marketable securities may fluctuate in response to changes in market value of such securities. We are also exposed to interest rate risk with respect to any debt obligations we may incur on our credit facility.
Investment Risk We are exposed to market price volatility for our investments in marketable securities which are carried at fair value measured using market prices, with gains and losses included in Other (income) expense, net on our Consolidated Statements of Comprehensive Income.
Investment Risk We are exposed to market price volatility for our investments in marketable securities which are carried at fair value measured using market prices, with gains and losses included in Other income, net on our Consolidated Statements of Comprehensive Income.
As of September 30, 2024, we had investments in marketable securities with a fair value of $35.0 million, and a 10% change in the market value of these investments would cause a $3.5 million impact to our pre-tax income. Interest Rate Risk Floating rate debt, where the interest rate fluctuates periodically, exposes us to short-term changes in market interest rates.
As of September 30, 2025, we had investments in marketable securities with a fair value of $104.6 million, and a 10% change in the market value of these investments would cause a $10.5 million impact to our pre-tax income. Interest Rate Risk Floating rate debt, where the interest rate fluctuates periodically, exposes us to short-term changes in market interest rates.
Changes in market value of investments measured at fair value resulted in an unrealized gain of $1.8 million in the year ended September 30, 2024.
Changes in market value of investments measured at fair value resulted in an unrealized gain of $7.5 million in the year ended September 30, 2025.
The Amended Credit Agreement uses SOFR as the benchmark for establishing the interest rate charged on our borrowings. If SOFR were to increase, our interest payment obligations on any then-outstanding borrowings would increase, having a negative effect on our cash flow and financial condition. We had no borrowings outstanding under our revolving credit facility as of September 30, 2024. 39
If SOFR were to increase, our interest payment obligations on any then-outstanding borrowings would increase, having a negative effect on our cash flow and financial condition. We had no borrowings outstanding under our revolving credit facility as of September 30, 2025. 38
All of the long-term debt outstanding under our revolving credit facility is structured on floating rate terms. We currently do not maintain any hedging contracts that would limit our exposure to variable rates of interest when we have outstanding borrowings under our revolving credit facility.
Any borrowings under our revolving credit facility is structured on floating rate terms. We currently do not maintain any hedging contracts that would limit our exposure to variable rates of interest when we have outstanding borrowings under our revolving credit facility. The Amended Credit Agreement uses SOFR as the benchmark for establishing the interest rate charged on our borrowings.
Over the long-term, we expect to be able to pass along a portion of these costs to our customers, as market conditions in the construction industry will allow.
Commodity price risks may have an impact on our results of operations due to the fixed nature of many of our contracts. Over the long term, we expect to be able to pass along a portion of these costs to our customers, as market conditions in the construction industry will allow.
Commodity Risk Our exposure to significant market risks includes fluctuations in commodity prices including, but not limited to, copper, aluminum, steel, electrical components, fuel, and certain plastics. Commodity price risks may have an impact on our results of operations due to the fixed nature of many of our contracts.
For additional information see “Risk Factors” in Item 1A of this Annual Report on Form 10-K. Commodity Risk Our exposure to significant market risks includes fluctuations in commodity prices including, but not limited to, copper, aluminum, steel, electrical components, fuel, and certain plastics.
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We are also exposed to interest rate risk with respect to any debt obligations we may incur on our credit facility. For additional information see “Risk Factors” in Item 1A of this Annual Report on Form 10-K.

Other IESC 10-K year-over-year comparisons