May. 2 at 11:51 AM
$IESC IES Holdings reports Q2 adjusted EPS
$3.30 vs.
$2.36 last year
Reports Q2 revenue
$834M vs.
$706M last year. "During the second quarter of fiscal 2025, we continued the momentum we built coming out of 2024 and through the first quarter of fiscal 2025, with an 18% increase in revenue and a 19% increase in operating income compared with the second quarter of fiscal 2024," said Jeff Gendell, CEO. "Our Communications, Infrastructure Solutions and Commercial & Industrial segments continue to benefit from strong demand, particularly in the data center market.
Operating margins remain strong, reflecting robust customer demand, operating leverage from our increased scale and strong project execution. In our Residential segment, decreased housing affordability due to high mortgage rates and the impacts of inflation on materials and labor costs, combined with declining consumer confidence, continues to create short-term challenges in the single-family housing market.
However, the impacts of those factors on our business were partly offset by the continued expansion of our plumbing and HVAC trades into new markets. In our multi-family business, we are starting to see an increase in bid activity, which we expect will benefit our revenues in fiscal 2026 and 2027, but we expect fiscal 2025 results will continue to be affected by the impact of elevated interest rates on demand over the past several quarters.
Despite the macroeconomic challenges currently impacting consumers, we remain optimistic about the outlook for our Residential business based on positive demographic trends and pent-up demand for housing."
